10-Q
GLOBE LIFE INC. (GL)
Table of Contents
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark one)
☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2025
or
☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from _____ to ________
Commission File Number: 001-08052
GLOBE LIFE INC.
(Exact name of registrant as specified in its charter)
| Delaware | 63-0780404 |
|---|---|
| (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
3700 South Stonebridge Drive, McKinney, Texas 75070
(Address of principal executive offices) (Zip Code)
(972) 569-4000
(Registrant’s telephone number, including area code)
NONE
(Former name, former address and former fiscal year, if changed since last report)
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
|---|---|---|
| Common Stock, $1.00 par value per share | GL | New York Stock Exchange |
| 4.250% Junior Subordinated Debentures | GL PRD | New York Stock Exchange |
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.
| Large accelerated filer | ☒ | Accelerated filer | ☐ |
|---|---|---|---|
| Non-accelerated filer | ☐ | Smaller reporting company | ☐ |
| Emerging growth company | ☐ | ||
| If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. | ☐ |
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.
| Class | Outstanding at July 31, 2025 |
|---|---|
| Common Stock, $1.00 Par Value | 81,003,536 |
GL Q2 2025 FORM 10-Q
Table of Contents
Globe Life Inc.
Table of Contents
| Page | |||
|---|---|---|---|
| PART I. FINANCIAL INFORMATION | |||
| Item 1. | Condensed Consolidated Financial Statements | ||
| Condensed Consolidated Balance Sheets | 1 | ||
| Condensed Consolidated Statements of Operations | 2 | ||
| Condensed Consolidated Statements of Comprehensive Income (Loss) | 3 | ||
| Condensed Consolidated Statements of Shareholders' Equity | 4 | ||
| Condensed Consolidated Statements of Cash Flows | 5 | ||
| Notes to Condensed Consolidated Financial Statements | 6 | ||
| Note 1—Significant Accounting Policies | 6 | ||
| Note 2—New Accounting Standards | 7 | ||
| Note 3—Supplemental Information about Changes to Accumulated Other Comprehensive Income | 8 | ||
| Note 4—Investments | 10 | ||
| Note 5—Commitments and Contingencies | 21 | ||
| Note 6—Policy Liabilities | 23 | ||
| Note 7—Deferred Acquisition Costs | 42 | ||
| Note8—Liability for Unpaid Claims | 45 | ||
| Note9—Postretirement Benefits | 46 | ||
| Note10—Earnings Per Share | 48 | ||
| Note 11—Debt | 49 | ||
| Note 12—Business Segments | 51 | ||
| Note 13—Subsequent Events | 58 | ||
| Cautionary Statements | 60 | ||
| Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations | 61 | |
| Item 3. | Quantitative and Qualitative Disclosures About Market Risk | 90 | |
| Item 4. | Controls and Procedures | 90 | |
| PART II. OTHER INFORMATION | |||
| Item 1. | Legal Proceedings | 90 | |
| Item 1A. | Risk Factors | 90 | |
| Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds | 90 | |
| Item 5. | Other Information | 91 | |
| Item 6. | Exhibits | 92 | |
| Signatures | 93 |
As used in this Form 10-Q, “Globe Life,” the “Company,” “we,” “our” and “us” refer to Globe Life Inc., a Delaware corporation incorporated in 1979, its subsidiaries and affiliates.
GL Q2 2025 FORM 10-Q
Table of Contents
PART I—FINANCIAL INFORMATION
Item 1. Condensed Consolidated Financial Statements
Globe Life Inc.
Condensed Consolidated Balance Sheets
(Unaudited)
(Dollar amounts in thousands, except per share data)
| June 30,<br>2025 | December 31, 2024 | |||
|---|---|---|---|---|
| Assets: | ||||
| Investments: | ||||
| Fixed maturities—available for sale, at fair value (amortized cost: 2025—$18,959,797;<br><br>2024—$18,835,809, allowance for credit losses: 2025— $10,355; 2024— $10,395) | $ | 17,365,354 | $ | 17,155,012 |
| Mortgage loans | 455,767 | 396,088 | ||
| Policy loans | 718,621 | 699,669 | ||
| Other long-term investments (includes: 2025—$1,022,425; 2024—$986,766 under the fair value option) | 1,268,624 | 1,235,759 | ||
| Short-term investments | 116,724 | 85,035 | ||
| Total investments | 19,925,090 | 19,571,563 | ||
| Cash | 239,122 | 165,325 | ||
| Accrued investment income | 271,670 | 269,791 | ||
| Other receivables | 690,705 | 691,907 | ||
| Deferred acquisition costs | 6,754,821 | 6,495,589 | ||
| Goodwill | 490,446 | 490,446 | ||
| Other assets | 1,437,494 | 1,391,560 | ||
| Total assets | $ | 29,809,348 | $ | 29,076,181 |
| Liabilities: | ||||
| Future policy benefits at current discount rates: (at original discount rates: 2025—$17,901,979; 2024—$17,552,564) | $ | 18,846,755 | $ | 18,457,263 |
| Unearned and advance premium | 273,195 | 257,631 | ||
| Policy claims and other benefits payable | 532,179 | 532,832 | ||
| Other policyholders' funds | 492,146 | 468,604 | ||
| Total policy liabilities | 20,144,275 | 19,716,330 | ||
| Current and deferred income taxes | 816,135 | 731,255 | ||
| Short-term debt | 464,540 | 415,401 | ||
| Long-term debt (estimated fair value: 2025—$2,172,267; 2024—$2,122,772) | 2,325,642 | 2,324,251 | ||
| Other liabilities | 639,726 | 583,424 | ||
| Total liabilities | 24,390,318 | 23,770,661 | ||
| Commitments and Contingencies (Note 5) | ||||
| Shareholders' equity: | ||||
| Preferred stock, par value $1 per share—5,000,000 shares authorized; outstanding: 0 in 2025 and 2024 | — | — | ||
| Common stock, par value $1 per share—320,000,000 shares authorized; outstanding: (2025—97,218,183 issued; 2024—97,218,183 issued) | 97,218 | 97,218 | ||
| Additional paid-in-capital | 538,050 | 527,795 | ||
| Accumulated other comprehensive income (loss) | (1,983,868) | (2,029,720) | ||
| Retained earnings | 8,453,893 | 8,002,521 | ||
| Treasury stock, at cost: (2025—16,206,643 shares; 2024—13,240,616 shares) | (1,686,263) | (1,292,294) | ||
| Total shareholders' equity | 5,419,030 | 5,305,520 | ||
| Total liabilities and shareholders' equity | $ | 29,809,348 | $ | 29,076,181 |
See accompanying Notes to Condensed Consolidated Financial Statements.
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GL Q2 2025 FORM 10-Q
Table of Contents
Globe Life Inc.
Condensed Consolidated Statements of Operations
(Unaudited)
(Dollar amounts in thousands, except per share data)
| Three Months Ended<br>June 30, | Six Months Ended<br>June 30, | |||||||
|---|---|---|---|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | |||||
| Revenue: | ||||||||
| Life premium | $ | 839,544 | $ | 815,482 | $ | 1,669,407 | $ | 1,619,747 |
| Health premium | 378,099 | 351,643 | 747,890 | 692,662 | ||||
| Total premium | 1,217,643 | 1,167,125 | 2,417,297 | 2,312,409 | ||||
| Net investment income | 282,169 | 285,636 | 562,783 | 568,214 | ||||
| Realized gains (losses) | (18,574) | (12,589) | (18,489) | (24,388) | ||||
| Other income | 49 | 74 | 118 | 150 | ||||
| Total revenue | 1,481,287 | 1,440,246 | 2,961,709 | 2,856,385 | ||||
| Benefits and expenses: | ||||||||
| Life policyholder benefits(1) | 519,355 | 518,792 | 1,029,111 | 1,038,663 | ||||
| Health policyholder benefits(2) | 229,924 | 205,423 | 463,853 | 407,750 | ||||
| Other policyholder benefits | 6,719 | 11,479 | 13,799 | 21,074 | ||||
| Total policyholder benefits | 755,998 | 735,694 | 1,506,763 | 1,467,487 | ||||
| Amortization of deferred acquisition costs | 111,401 | 101,915 | 216,916 | 201,393 | ||||
| Commissions, premium taxes, and non-deferred acquisition costs | 157,411 | 149,802 | 321,734 | 297,912 | ||||
| Other operating expense | 108,293 | 99,108 | 217,039 | 192,322 | ||||
| Interest expense | 34,885 | 31,404 | 69,877 | 60,025 | ||||
| Total benefits and expenses | 1,167,988 | 1,117,923 | 2,332,329 | 2,219,139 | ||||
| Income before income taxes | 313,299 | 322,323 | 629,380 | 637,246 | ||||
| Income tax benefit (expense) | (60,550) | (63,968) | (122,068) | (124,674) | ||||
| Net income | $ | 252,749 | $ | 258,355 | $ | 507,312 | $ | 512,572 |
| Basic net income per common share | $ | 3.09 | $ | 2.83 | $ | 6.13 | $ | 5.53 |
| Diluted net income per common share | $ | 3.05 | $ | 2.83 | $ | 6.07 | $ | 5.51 |
(1)Net of a remeasurement gain of $16.7 million for the three months ended June 30, 2025 and a remeasurement gain of $12.4 million for the same period in 2024. Net of a remeasurement gain of $25.3 million for the six months ended June 30, 2025 and a remeasurement gain of $17.3 million for the same period in 2024.
(2)Net of a remeasurement gain of $3.9 million for the three months ended June 30, 2025 and a remeasurement gain of $3.2 million for the same period in 2024. Net of a remeasurement gain of $4.3 million for the six months ended June 30, 2025 and a remeasurement gain of $6.5 million for the same period in 2024.
See accompanying Notes to Condensed Consolidated Financial Statements.
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Table of Contents
Globe Life Inc.
Condensed Consolidated Statements of Comprehensive Income (Loss)
(Unaudited)
(Dollar amounts in thousands)
| Three Months Ended<br>June 30, | Six Months Ended<br>June 30, | |||||||
|---|---|---|---|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | |||||
| Net income | $ | 252,749 | $ | 258,355 | $ | 507,312 | $ | 512,572 |
| Other comprehensive income (loss): | ||||||||
| Investments: | ||||||||
| Unrealized gains (losses) on fixed maturities: | ||||||||
| Unrealized holding gains (losses) arising during period | (134,318) | (263,012) | 80,810 | (568,028) | ||||
| Other reclassification adjustments included in net income | 10,603 | 7,400 | 7,262 | 4,988 | ||||
| Foreign exchange adjustment on fixed maturities recorded at fair value | (1,328) | (117) | (1,758) | 1,500 | ||||
| Total unrealized investment gains (losses) | (125,043) | (255,729) | 86,314 | (561,540) | ||||
| Less applicable tax (expense) benefit | 26,264 | 53,701 | (18,123) | 117,923 | ||||
| Unrealized gains (losses) on investments, net of tax | (98,779) | (202,028) | 68,191 | (443,617) | ||||
| Future Policy Benefits: | ||||||||
| Change in discount rate on future policy benefits | 92,229 | 606,384 | (47,123) | 1,310,980 | ||||
| Less applicable tax (expense) benefit | (19,367) | (127,342) | 9,896 | (275,306) | ||||
| Future policy benefit adjustments, net of tax | 72,862 | 479,042 | (37,227) | 1,035,674 | ||||
| Foreign exchange translation: | ||||||||
| Foreign exchange translation adjustments, other than securities | 16,300 | 641 | 18,721 | (11,956) | ||||
| Less applicable tax (expense) benefit | (3,425) | (135) | (3,933) | 2,511 | ||||
| Foreign exchange translation adjustments, other than securities, net of tax | 12,875 | 506 | 14,788 | (9,445) | ||||
| Pension: | ||||||||
| Pension adjustments | 59 | 118 | 127 | 236 | ||||
| Less applicable tax (expense) benefit | (12) | (22) | (27) | (49) | ||||
| Pension adjustments, net of tax | 47 | 96 | 100 | 187 | ||||
| Other comprehensive income (loss) | (12,995) | 277,616 | 45,852 | 582,799 | ||||
| Comprehensive income (loss) | $ | 239,754 | $ | 535,971 | $ | 553,164 | $ | 1,095,371 |
See accompanying Notes to Condensed Consolidated Financial Statements.
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Globe Life Inc.
Condensed Consolidated Statements of Shareholders' Equity
(Unaudited)
(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 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Balance at December 31, 2024 | $ | — | $ | 97,218 | $ | 527,795 | $ | (2,029,720) | $ | 8,002,521 | $ | (1,292,294) | $ | 5,305,520 |
| Comprehensive income (loss) | — | — | — | 58,847 | 254,563 | — | 313,410 | |||||||
| Common dividends declared<br><br>($0.2700 per share) | — | — | — | — | (22,383) | — | (22,383) | |||||||
| Acquisition of treasury stock | — | — | — | — | — | (264,544) | (264,544) | |||||||
| Stock-based compensation | — | — | (3,754) | — | — | 15,773 | 12,019 | |||||||
| Exercise of stock options | — | — | — | — | (9,753) | 91,147 | 81,394 | |||||||
| Balance at March 31, 2025 | — | 97,218 | 524,041 | (1,970,873) | 8,224,948 | (1,449,918) | 5,425,416 | |||||||
| Comprehensive income (loss) | — | — | — | (12,995) | 252,749 | — | 239,754 | |||||||
| Common dividends declared<br><br>($0.2700 per share) | — | — | — | — | (21,869) | — | (21,869) | |||||||
| Acquisition of treasury stock | — | — | — | — | — | (250,311) | (250,311) | |||||||
| Stock-based compensation | — | — | 14,009 | — | — | 34 | 14,043 | |||||||
| Exercise of stock options | — | — | — | — | (1,935) | 13,932 | 11,997 | |||||||
| Balance at June 30, 2025 | $ | — | $ | 97,218 | $ | 538,050 | $ | (1,983,868) | $ | 8,453,893 | $ | (1,686,263) | $ | 5,419,030 |
| Preferred Stock | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Treasury Stock | Total Shareholders' Equity | ||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Balance at December 31, 2023 | $ | — | $ | 102,218 | $ | 532,474 | $ | (2,772,419) | $ | 7,478,813 | $ | (854,283) | $ | 4,486,803 |
| Comprehensive income (loss) | — | — | — | 305,183 | 254,217 | — | 559,400 | |||||||
| Common dividends declared<br><br>($0.2400 per share) | — | — | — | — | (22,603) | — | (22,603) | |||||||
| Acquisition of treasury stock | — | — | — | — | — | (23,469) | (23,469) | |||||||
| Stock-based compensation | — | — | (5,612) | — | (438) | 15,317 | 9,267 | |||||||
| Exercise of stock options | — | — | — | — | (3,334) | 33,097 | 29,763 | |||||||
| Balance at March 31, 2024 | — | 102,218 | 526,862 | (2,467,236) | 7,706,655 | (829,338) | 5,039,161 | |||||||
| Comprehensive income (loss) | — | — | — | 277,616 | 258,355 | — | 535,971 | |||||||
| Common dividends declared<br><br>($0.2400 per share) | — | — | — | — | (21,595) | — | (21,595) | |||||||
| Acquisition of treasury stock | — | — | — | — | — | (335,873) | (335,873) | |||||||
| Stock-based compensation | — | — | 7,166 | — | — | 2,924 | 10,090 | |||||||
| Exercise of stock options | — | — | — | — | — | — | — | |||||||
| Balance at June 30, 2024 | $ | — | $ | 102,218 | $ | 534,028 | $ | (2,189,620) | $ | 7,943,415 | $ | (1,162,287) | $ | 5,227,754 |
See accompanying Notes to Condensed Consolidated Financial Statements.
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Globe Life Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited)
(Dollar amounts in thousands)
| Six Months Ended<br>June 30, | ||||
|---|---|---|---|---|
| 2025 | 2024 | |||
| Cash provided from (used for) operating activities | $ | 739,813 | $ | 724,923 |
| Cash provided from (used for) investing activities: | ||||
| Investments sold or matured: | ||||
| Fixed maturities available for sale—sold | 272,067 | 510,904 | ||
| Fixed maturities available for sale—matured or other redemptions | 132,253 | 85,385 | ||
| Mortgage loans | 3,437 | 26,071 | ||
| Other long-term investments | 25,939 | 14,125 | ||
| Total investments sold or matured | 433,696 | 636,485 | ||
| Acquisition of investments: | ||||
| Fixed maturities—available for sale | (511,297) | (923,096) | ||
| Mortgage loans | (66,686) | (92,167) | ||
| Other long-term investments | (53,799) | (165,322) | ||
| Total investments acquired | (631,782) | (1,180,585) | ||
| Net (increase) decrease in policy loans | (18,952) | (19,057) | ||
| Net (increase) decrease in short-term investments | (31,689) | (18,820) | ||
| Additions to property and equipment | (24,687) | (26,738) | ||
| Investments in low-income housing interests | (30,569) | (17,870) | ||
| Cash provided from (used for) investing activities | (303,983) | (626,585) | ||
| Cash provided from (used for) financing activities: | ||||
| Issuance of common stock | 93,391 | 29,763 | ||
| Cash dividends paid to shareholders | (42,524) | (43,681) | ||
| Net borrowing from Federal Home Loan Bank (FHLB) | 70,000 | 180,000 | ||
| Net borrowing (repayment) of commercial paper | 26,983 | (114,494) | ||
| Proceeds from commercial paper with original maturities greater than 90 days | 361,118 | 339,518 | ||
| Repayment of commercial paper with original maturities greater than 90 days | (408,962) | (236,786) | ||
| Acquisition of treasury stock | (514,855) | (359,342) | ||
| Net receipts (payments) from deposit-type products | 59,600 | 85,236 | ||
| Cash provided from (used for) financing activities | (355,249) | (119,786) | ||
| Effect of foreign exchange rate changes on cash | (6,784) | 6,206 | ||
| Net increase (decrease) in cash | 73,797 | (15,242) | ||
| Cash at beginning of year | 165,325 | 103,156 | ||
| Cash at end of period | $ | 239,122 | $ | 87,914 |
See accompanying Notes to Condensed Consolidated Financial Statements.
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Globe Life Inc.
Notes to Condensed 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 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 condensed consolidated financial statements of Globe Life have been prepared in accordance with the instructions to Form 10-Q. Therefore, they do not include all of the disclosures required by accounting principles generally accepted in the United States of America (GAAP) for annual financial statements. However, in the opinion of management, these statements include all adjustments, consisting of normal recurring adjustments, which are necessary for a fair presentation of the condensed consolidated financial position at June 30, 2025, and the condensed consolidated results of operations, comprehensive income, and cash flows for the periods ended June 30, 2025 and 2024. The interim period condensed consolidated financial statements should be read in conjunction with the Consolidated Financial Statements that were included in the Form 10-K filed with the Securities Exchange Commission (SEC) on February 26, 2025.
Use of Estimates: The preparation of the condensed 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 condensed 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.
Reinsurance and Recapture: 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. The Company entered into a coinsurance transaction with funds withheld agreement with a third-party reinsurer on March 6, 2025, with an agreement effective date of January 1, 2025. Under the terms of the agreement Globe Life ceded 100% of the liabilities, net of existing reinsurance, associated with certain term and whole life insurance policies. The contract is accounted for under deposit accounting as it did not pass the risk transfer requirements for reinsurance treatment on a GAAP basis. Since the agreement is subject to deposit accounting and meets the right of offset conditions outlined in the accounting policy the Company recorded the initial coinsurance, ceding commission and funds withheld balance on a net basis. At inception, no cash was exchanged between the parties and subsequently, a risk charge was recorded as a component of net investment income in the Condensed Consolidated Statement of Operations, with net cash settlements occurring quarterly between the parties.
On March 31, 2025, the Company entered into a recapture and termination agreement with a third-party reinsurer to recapture certain policies that had previously been ceded under a reinsurance agreement dated November 12, 2001. The recapture was executed to accomplish common objectives between the Company and the reinsurer. As a result of the transaction, the Company received net proceeds of $39 million, which are reflected as operating cash flows in the Condensed Consolidated Statement of Cash Flows. The Company also recognized a gain of approximately $14 million in policyholder benefits in the Condensed Consolidated Statement of Operations.
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Globe Life Inc.
Notes to Condensed Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
Note 2—New Accounting Standards
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 an 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 condensed consolidated financial statements. The guidance requires only additional disclosure, as a result there will be no effects on our financial position, results of operations or cash flows.
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.
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Globe Life Inc.
Notes to Condensed 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 the three and six month periods ended June 30, 2025 and 2024:
| Three Months Ended June 30, 2025 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Available<br>for Sale<br>Assets | Future Policy Benefits | Foreign<br>Exchange | Pension<br>Adjustments | Total | ||||||
| Balance at April 1, 2025 | $ | (1,152,648) | $ | (819,131) | $ | (19,844) | $ | 20,750 | $ | (1,970,873) |
| Other comprehensive income (loss) before reclassifications, net of tax | (107,155) | 72,862 | 12,875 | — | (21,418) | |||||
| Reclassifications, net of tax | 8,376 | — | — | 47 | 8,423 | |||||
| Other comprehensive income (loss) | (98,779) | 72,862 | 12,875 | 47 | (12,995) | |||||
| Balance at June 30, 2025 | $ | (1,251,427) | $ | (746,269) | $ | (6,969) | $ | 20,797 | $ | (1,983,868) |
| Three Months Ended June 30, 2024 | ||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | ||
| Available<br>for Sale<br>Assets | Future Policy Benefits | Foreign<br>Exchange | Pension<br>Adjustments | Total | ||||||
| Balance at April 1, 2024 | $ | (1,069,185) | $ | (1,390,759) | $ | (5,232) | $ | (2,060) | $ | (2,467,236) |
| Other comprehensive income (loss) before reclassifications, net of tax | (207,874) | 479,042 | 506 | — | 271,674 | |||||
| Reclassifications, net of tax | 5,846 | — | — | 96 | 5,942 | |||||
| Other comprehensive income (loss) | (202,028) | 479,042 | 506 | 96 | 277,616 | |||||
| Balance at June 30, 2024 | $ | (1,271,213) | $ | (911,717) | $ | (4,726) | $ | (1,964) | $ | (2,189,620) |
| Six Months Ended June 30, 2025 | ||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | ||
| Available<br>for Sale<br>Assets | Future Policy Benefits | Foreign<br>Exchange | Pension<br>Adjustments | Total | ||||||
| Balance at January 1, 2025 | $ | (1,319,618) | $ | (709,042) | $ | (21,757) | $ | 20,697 | $ | (2,029,720) |
| Other comprehensive income (loss) before reclassifications, net of tax | 62,454 | (37,227) | 14,788 | — | 40,015 | |||||
| Reclassifications, net of tax | 5,737 | — | — | 100 | 5,837 | |||||
| Other comprehensive income (loss) | 68,191 | (37,227) | 14,788 | 100 | 45,852 | |||||
| Balance at June 30, 2025 | $ | (1,251,427) | $ | (746,269) | $ | (6,969) | $ | 20,797 | $ | (1,983,868) |
| Six Months Ended June 30, 2024 | ||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | ||
| Available<br>for Sale<br>Assets | Future Policy Benefits | Foreign<br>Exchange | Pension<br>Adjustments | Total | ||||||
| Balance at January 1, 2024 | $ | (827,596) | $ | (1,947,391) | $ | 4,719 | $ | (2,151) | $ | (2,772,419) |
| Other comprehensive income (loss) before reclassifications, net of tax | (447,558) | 1,035,674 | (9,445) | — | 578,671 | |||||
| Reclassifications, net of tax | 3,941 | — | — | 187 | 4,128 | |||||
| Other comprehensive income (loss) | (443,617) | 1,035,674 | (9,445) | 187 | 582,799 | |||||
| Balance at June 30, 2024 | $ | (1,271,213) | $ | (911,717) | $ | (4,726) | $ | (1,964) | $ | (2,189,620) |
8
GL Q2 2025 FORM 10-Q
Table of Contents
Globe Life Inc.
Notes to Condensed 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 and six month periods ended June 30, 2025 and 2024.
| Three Months Ended<br>June 30, | Six Months Ended June 30, | Affected line items in the Statements of Operations | |||||||
|---|---|---|---|---|---|---|---|---|---|
| Component Line Item | 2025 | 2024 | 2025 | 2024 | |||||
| Unrealized investment (gains) losses on available for sale assets: | |||||||||
| Realized (gains) losses | $ | 12,837 | $ | 10,217 | $ | 12,009 | $ | 9,989 | Realized (gains) losses |
| Amortization of (discount) premium | (2,234) | (2,817) | (4,747) | (5,001) | Net investment income | ||||
| Total before tax | 10,603 | 7,400 | 7,262 | 4,988 | |||||
| Tax | (2,227) | (1,554) | (1,525) | (1,047) | Income taxes | ||||
| Total after-tax | 8,376 | 5,846 | 5,737 | 3,941 | |||||
| Pension adjustments: | |||||||||
| Amortization of prior service cost | 292 | 269 | 584 | 538 | Other operating expense | ||||
| Amortization of actuarial (gain) loss | (233) | (151) | (457) | (302) | Other operating expense | ||||
| Total before tax | 59 | 118 | 127 | 236 | |||||
| Tax | (12) | (22) | (27) | (49) | Income taxes | ||||
| Total after-tax | 47 | 96 | 100 | 187 | |||||
| Total reclassification (after-tax) | $ | 8,423 | $ | 5,942 | $ | 5,837 | $ | 4,128 |
9
GL Q2 2025 FORM 10-Q
Table of Contents
Globe Life Inc.
Notes to Condensed 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 June 30, 2025 and December 31, 2024, 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 June 30, 2025 | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Amortized<br>Cost | Allowance for Credit Losses | Gross<br>Unrealized<br>Gains | Gross<br>Unrealized<br>Losses | Fair<br><br>Value(1) | % of Total<br><br>Fixed<br><br>Maturities(2) | ||||||
| Fixed maturities available for sale: | |||||||||||
| U.S. Government direct, guaranteed, and government-sponsored enterprises | $ | 411,371 | $ | — | $ | 131 | $ | (31,467) | $ | 380,035 | 2 |
| States, municipalities, and political subdivisions | 3,303,151 | — | 23,550 | (633,924) | 2,692,777 | 16 | |||||
| Foreign governments | 39,427 | — | 21 | (9,842) | 29,606 | — | |||||
| Corporates, by sector: | |||||||||||
| Industrials | 8,007,486 | (7,058) | 138,507 | (737,473) | 7,401,462 | 43 | |||||
| Financial | 5,004,947 | — | 107,285 | (386,613) | 4,725,619 | 27 | |||||
| Utilities | 2,113,952 | — | 55,957 | (109,524) | 2,060,385 | 12 | |||||
| Total corporates | 15,126,385 | (7,058) | 301,749 | (1,233,610) | 14,187,466 | 82 | |||||
| Collateralized debt obligations | — | — | — | — | — | — | |||||
| Other asset-backed securities | 79,463 | (3,297) | 114 | (810) | 75,470 | — | |||||
| Total fixed maturities | $ | 18,959,797 | $ | (10,355) | $ | 325,565 | $ | (1,909,653) | $ | 17,365,354 | 100 |
(1)Amount reported in the balance sheet.
(2)At fair value.
| At December 31, 2024 | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Amortized<br>Cost | Allowance for Credit Losses | Gross<br>Unrealized<br>Gains | Gross<br>Unrealized<br>Losses | Fair<br><br>Value(1) | % of Total<br><br>Fixed<br><br>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.
The Company had unfunded commitments of $146 million and $167 million in fixed maturities at June 30, 2025 and December 31, 2024, respectively.
10
GL Q2 2025 FORM 10-Q
Table of Contents
Globe Life Inc.
Notes to Condensed Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
A schedule of fixed maturities available for sale by contractual maturity date at June 30, 2025, 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 June 30, 2025 | ||||
|---|---|---|---|---|
| Amortized<br>Cost, net | Fair<br>Value | |||
| Fixed maturities available for sale: | ||||
| Due in one year or less | $ | 96,098 | $ | 96,423 |
| Due after one year through five years | 809,469 | 833,243 | ||
| Due after five years through ten years | 1,916,943 | 1,958,923 | ||
| Due after ten years through twenty years | 9,007,319 | 8,411,758 | ||
| Due after twenty years | 7,043,430 | 5,989,520 | ||
| Mortgage-backed and asset-backed securities | 76,183 | 75,487 | ||
| $ | 18,949,442 | $ | 17,365,354 |
Analysis of Investment Operations: "Net investment income" for the three and six month periods ended June 30, 2025 and 2024 is summarized as follows:
| Three Months Ended<br>June 30, | Six Months Ended<br>June 30, | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 2025 | 2024 | % Change | 2025 | 2024 | % Change | |||||
| Fixed maturities available for sale | $ | 245,205 | $ | 247,215 | (1) | $ | 487,415 | $ | 493,313 | (1) |
| Policy loans | 13,850 | 13,084 | 6 | 27,508 | 25,900 | 6 | ||||
| Mortgage loans | 5,350 | 6,909 | (23) | 12,018 | 13,669 | (12) | ||||
| Other long-term investments(1) | 21,438 | 18,953 | 13 | 44,517 | 38,616 | 15 | ||||
| Short-term investments | 3,059 | 3,625 | 4,535 | 5,313 | ||||||
| 288,902 | 289,786 | — | 575,993 | 576,811 | — | |||||
| Less investment expense | (6,733) | (4,150) | 62 | (13,210) | (8,597) | 54 | ||||
| Net investment income | $ | 282,169 | $ | 285,636 | (1) | $ | 562,783 | $ | 568,214 | (1) |
(1)For the three months ended June 30, 2025 and June 30, 2024 the investment funds, accounted for under the fair value option method, recorded $18 million in net investment income for both periods. For the six months ended June 30, 2025 and 2024, the investment funds, accounted for under the fair value option method, recorded $37.3 million and $37.0 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:
| Three Months Ended<br>June 30, | Six Months Ended<br>June 30, | |||||||
|---|---|---|---|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | |||||
| Fixed maturities available for sale: | ||||||||
| Proceeds from sales(1) | $ | 218,156 | $ | 483,051 | $ | 272,067 | $ | 510,904 |
| Gross realized gains | 1,617 | 3,869 | 3,095 | 4,044 | ||||
| Gross realized losses | (7,026) | (13,933) | (8,490) | (13,968) |
(1)During the three and six months ended June 30, 2025 and 2024, the Company had $0 unsettled trades.
11
GL Q2 2025 FORM 10-Q
Table of Contents
Globe Life Inc.
Notes to Condensed Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
An analysis of "realized gains (losses)" is as follows:
| Three Months Ended<br>June 30, | Six Months Ended<br>June 30, | |||||||
|---|---|---|---|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | |||||
| Realized investment gains (losses): | ||||||||
| Fixed maturities available for sale: | ||||||||
| Sales and other(1) | $ | (12,837) | $ | (10,113) | $ | (12,049) | $ | (9,973) |
| Provision for credit losses | — | (104) | 40 | (16) | ||||
| Fair value option—change in fair value | (8,476) | (3,691) | (6,105) | (19,094) | ||||
| Mortgage loans | (126) | (1,280) | 307 | (2,154) | ||||
| Other investments | (264) | 837 | (1,342) | 1,151 | ||||
| Realized gains (losses) from investments | (21,703) | (14,351) | (19,149) | (30,086) | ||||
| Other gains (losses) | 3,129 | 1,762 | 660 | 5,698 | ||||
| Total realized gains (losses) | (18,574) | (12,589) | (18,489) | (24,388) | ||||
| Applicable tax | 3,900 | 2,644 | 3,882 | 5,122 | ||||
| Realized gains (losses), net of tax | $ | (14,674) | $ | (9,945) | $ | (14,607) | $ | (19,266) |
(1)During the three months ended June 30, 2025 and 2024, the Company recorded $72.6 million and $12.0 million of issuer-initiated exchanges of fixed maturities (noncash transactions) that resulted in $(3.2) million and $0 realized gains (losses) respectively. During the six months ended June 30, 2025 and 2024, the Company recorded $128.3 million and $78.9 million of issuer-initiated exchanges of fixed maturities (noncash transactions) that resulted in $(3.1) million and $0 realized gains (losses) respectively.
12
GL Q2 2025 FORM 10-Q
Table of Contents
Globe Life Inc.
Notes to Condensed 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 June 30, 2025 and December 31, 2024:
| Fair Value Measurement at June 30, 2025: | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Quoted Prices in<br>Active Markets<br>for Identical<br>Assets (Level 1) | Significant Other<br>Observable<br>Inputs (Level 2) | Significant<br>Unobservable<br>Inputs (Level 3) | Total Fair<br>Value | |||||||||
| Fixed maturities available for sale | ||||||||||||
| U.S. Government direct, guaranteed, and government-sponsored enterprises | $ | — | $ | 380,035 | $ | — | $ | 380,035 | ||||
| States, municipalities, and political subdivisions | — | 2,692,777 | — | 2,692,777 | ||||||||
| Foreign governments | — | 29,606 | — | 29,606 | ||||||||
| Corporates, by sector: | ||||||||||||
| Industrials | — | 7,222,920 | 178,542 | 7,401,462 | ||||||||
| Financial | — | 4,603,643 | 121,976 | 4,725,619 | ||||||||
| Utilities | — | 1,942,506 | 117,879 | 2,060,385 | ||||||||
| Total corporates | — | 13,769,069 | 418,397 | 14,187,466 | ||||||||
| Collateralized debt obligations | — | — | — | — | ||||||||
| Other asset-backed securities | — | 42,877 | 32,593 | 75,470 | ||||||||
| Total fixed maturities | $ | — | $ | 16,914,364 | $ | 450,990 | $ | 17,365,354 | ||||
| Percentage of total | — | % | 97 | % | 3 | % | 100 | % | ||||
| Fair Value Measurement at December 31, 2024: | ||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Quoted Prices in<br>Active Markets<br>for Identical<br>Assets (Level 1) | Significant Other<br>Observable<br>Inputs (Level 2) | Significant<br>Unobservable<br>Inputs (Level 3) | Total Fair<br>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 | % |
13
GL Q2 2025 FORM 10-Q
Table of Contents
Globe Life Inc.
Notes to Condensed Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
The following tables represent changes in fixed maturities measured at fair value on a recurring basis using significant unobservable inputs (Level 3):
| Analysis of Changes in Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Asset-<br><br>backed Securities | Collateralized<br>Debt<br>Obligations | Corporates | Total | |||||||||
| Balance at January 1, 2025 | $ | 11,183 | $ | 42,866 | $ | 420,065 | $ | 474,114 | ||||
| Included in realized gains / losses | — | (588) | (4) | (592) | ||||||||
| Included in other comprehensive income | 71 | — | (3,328) | (3,257) | ||||||||
| Acquisitions | 21,339 | — | 17,515 | 38,854 | ||||||||
| Sales | — | (36,398) | — | (36,398) | ||||||||
| Amortization | — | 1,893 | 13 | 1,906 | ||||||||
| Other(1) | — | (7,773) | (15,864) | (23,637) | ||||||||
| Transfers into Level 3(2) | — | — | — | — | ||||||||
| Transfers out of Level 3(2) | — | — | — | — | ||||||||
| Balance at June 30, 2025 | $ | 32,593 | $ | — | $ | 418,397 | $ | 450,990 | ||||
| Percent of total fixed maturities | — | % | — | % | 3 | % | 3 | % |
(1)Includes capitalized interest, foreign exchange adjustments, and principal repayments.
(2)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.
| Analysis of Changes in Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Asset-<br><br>backed Securities | Collateralized<br>Debt<br>Obligations | Corporates | Total | |||||||||
| Balance at January 1, 2024 | $ | — | $ | 42,146 | $ | 454,733 | $ | 496,879 | ||||
| Included in realized gains / losses | — | — | — | — | ||||||||
| Included in other comprehensive income | — | 742 | (9,905) | (9,163) | ||||||||
| Acquisitions | — | — | 14,800 | 14,800 | ||||||||
| Sales | — | — | — | — | ||||||||
| Amortization | — | 2,277 | (33) | 2,244 | ||||||||
| Other(1) | — | (2,441) | (21,564) | (24,005) | ||||||||
| Transfers into Level 3(2) | — | — | — | — | ||||||||
| Transfers out of Level 3(2) | — | — | — | — | ||||||||
| Balance at June 30, 2024 | $ | — | $ | 42,724 | $ | 438,031 | $ | 480,755 | ||||
| Percent of total fixed maturities | — | % | — | % | 3 | % | 3 | % |
(1)Includes capitalized interest, foreign exchange adjustments, and principal repayments.
(2)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.
14
GL Q2 2025 FORM 10-Q
Table of Contents
Globe Life Inc.
Notes to Condensed Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
The following table presents changes in unrealized gains and losses for the period included in accumulated other comprehensive income for assets held at the end of the reporting period for Level 3 classification:
| Changes in Unrealized Gains (Losses) included in Accumulated Other Comprehensive Income for Assets Held at the End of the Period | ||||||||
|---|---|---|---|---|---|---|---|---|
| Asset-<br>backed Securities | Collateralized<br>Debt<br>Obligations | Corporates | Total | |||||
| At June 30, 2025 | $ | 71 | $ | — | $ | (3,328) | $ | (3,257) |
| At June 30, 2024 | — | 742 | (9,905) | (9,163) |
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 | ||||||
|---|---|---|---|---|---|---|
| June 30, 2025 | ||||||
| Fair Value | Valuation<br>Techniques | Significant Unobservable<br>Input | Range | Weighted-<br><br>Average(1) | ||
| Private placement fixed maturities | $ | 418,397 | Determination of credit spread | Credit rating | B to AAA | BBB+ |
| Asset-backed securities | 32,593 | Determination of credit spread | Credit rating | CC to BBB | BB+ | |
| $ | 450,990 |
(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. For more information regarding valuation procedures, please refer to Note 1—Significant Accounting Policies under the caption Fair Value Measurements, Investments in Securities disclosed in the Form 10-K.
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 June 30, 2025 | 644 | 1,486 | 2,130 |
| As of December 31, 2024 | 705 | 1,498 | 2,203 |
Globe Life's entire fixed maturity portfolio consisted of 2,577 issues by 1,016 different issuers at June 30, 2025 and 2,552 issues by 1,014 different issuers at December 31, 2024. The weighted-average quality rating of all unrealized loss positions at amortized cost was A as of June 30, 2025 and A- as of December 31, 2024.
15
GL Q2 2025 FORM 10-Q
Table of Contents
Globe Life Inc.
Notes to Condensed 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 June 30, 2025 and December 31, 2024.
Analysis of Gross Unrealized Investment Losses
| At June 30, 2025 | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Less than Twelve Months | Twelve Months or Longer | Total | ||||||||||
| Fair<br>Value | Unrealized<br>Loss | Fair<br>Value | Unrealized<br>Loss | Fair<br>Value | Unrealized<br>Loss | |||||||
| Fixed maturities available for sale: | ||||||||||||
| Investment grade securities: | ||||||||||||
| U.S. Government direct, guaranteed, and government-sponsored enterprises | $ | 4,658 | $ | (497) | $ | 365,241 | $ | (30,970) | $ | 369,899 | $ | (31,467) |
| States, municipalities, and political subdivisions | 788,376 | (47,539) | 1,449,974 | (586,385) | 2,238,350 | (633,924) | ||||||
| Foreign governments | — | — | 25,084 | (9,842) | 25,084 | (9,842) | ||||||
| Corporates, by sector: | ||||||||||||
| Industrials | 1,295,455 | (63,946) | 3,437,449 | (638,215) | 4,732,904 | (702,161) | ||||||
| Financial | 749,725 | (23,304) | 1,846,917 | (346,568) | 2,596,642 | (369,872) | ||||||
| Utilities | 365,180 | (9,905) | 564,596 | (93,048) | 929,776 | (102,953) | ||||||
| Total corporates | 2,410,360 | (97,155) | 5,848,962 | (1,077,831) | 8,259,322 | (1,174,986) | ||||||
| Other asset-backed securities | 6,535 | (66) | 19,430 | (744) | 25,965 | (810) | ||||||
| Total investment grade securities | 3,209,929 | (145,257) | 7,708,691 | (1,705,772) | 10,918,620 | (1,851,029) | ||||||
| Below investment grade securities: | ||||||||||||
| Corporates, by sector: | ||||||||||||
| Industrials | 15,750 | (697) | 185,564 | (34,615) | 201,314 | (35,312) | ||||||
| Financial | 6,185 | (32) | 96,165 | (16,709) | 102,350 | (16,741) | ||||||
| Utilities | 15,778 | (794) | 35,846 | (5,777) | 51,624 | (6,571) | ||||||
| Total corporates | 37,713 | (1,523) | 317,575 | (57,101) | 355,288 | (58,624) | ||||||
| Other asset-backed securities | — | — | — | — | — | — | ||||||
| Total below investment grade securities | 37,713 | (1,523) | 317,575 | (57,101) | 355,288 | (58,624) | ||||||
| Total fixed maturities | $ | 3,247,642 | $ | (146,780) | $ | 8,026,266 | $ | (1,762,873) | $ | 11,273,908 | $ | (1,909,653) |
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Table of Contents
Globe Life Inc.
Notes to Condensed Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
| At December 31, 2024 | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Less than Twelve Months | Twelve Months or Longer | Total | ||||||||||
| Fair<br>Value | Unrealized<br>Loss | Fair<br>Value | Unrealized<br>Loss | Fair<br>Value | Unrealized<br>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) | ||||||
| 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) | ||||||
| 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.
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Table of Contents
Globe Life Inc.
Notes to Condensed 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.
| Three Months Ended<br>June 30, | Six Months Ended<br>June 30, | |||||||
|---|---|---|---|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | |||||
| Allowance for credit losses beginning balance | $ | 10,355 | $ | 7,027 | $ | 10,395 | $ | 7,115 |
| Additions to allowance for which credit losses were not previously recorded | — | — | — | — | ||||
| Additions (reductions) to allowance for fixed maturities that previously had an allowance | — | 105 | (40) | 17 | ||||
| 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 | $ | 10,355 | $ | 7,132 | $ | 10,355 | $ | 7,132 |
As of June 30, 2025 and December 31, 2024, the Company had one fixed maturity security in non-accrual status with an amortized cost of $5 million and an allowance of $3 million.
Mortgage Loans (commercial mortgage loans): Summaries of commercial mortgage loans by property type and geographical location at June 30, 2025 and December 31, 2024 are as follows:
| June 30, 2025 | December 31, 2024 | |||||
|---|---|---|---|---|---|---|
| Carrying Value | % of Total | Carrying Value | % of Total | |||
| Property type: | ||||||
| Industrial | $ | 148,190 | 32 | $ | 110,456 | 28 |
| Multi-family | 112,680 | 25 | 111,234 | 28 | ||
| Hospitality | 86,250 | 19 | 73,931 | 19 | ||
| Retail | 75,848 | 16 | 65,612 | 16 | ||
| Mixed use | 36,367 | 8 | 35,960 | 9 | ||
| Office | 3,061 | 1 | 6,539 | 2 | ||
| Total recorded investment | 462,396 | 101 | 403,732 | 102 | ||
| Less allowance for credit losses | (6,629) | (1) | (7,644) | (2) | ||
| Carrying value, net of allowance for credit losses | $ | 455,767 | 100 | $ | 396,088 | 100 |
| June 30, 2025 | December 31, 2024 | |||||
| --- | --- | --- | --- | --- | --- | --- |
| Carrying Value | % of Total | Carrying Value | % of Total | |||
| Geographic location: | ||||||
| Texas | $ | 82,236 | 18 | $ | 75,131 | 19 |
| Florida | 81,203 | 18 | 63,308 | 16 | ||
| New Jersey | 55,941 | 12 | 51,744 | 13 | ||
| California | 47,708 | 10 | 48,371 | 12 | ||
| North Carolina | 41,992 | 9 | 23,253 | 6 | ||
| Alabama | 36,577 | 8 | 35,850 | 9 | ||
| Other | 116,739 | 26 | 106,075 | 27 | ||
| Total recorded investment | 462,396 | 101 | 403,732 | 102 | ||
| Less allowance for credit losses | (6,629) | (1) | (7,644) | (2) | ||
| Carrying value, net of allowance for credit losses | $ | 455,767 | 100 | $ | 396,088 | 100 |
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Globe Life Inc.
Notes to Condensed Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
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 a result of decreases in the valuation of the underlying property. Generally, a higher LTV ratio and a lower debt service coverage ratio equates to higher risk of loss.
| June 30, 2025 | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| 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% | $ | 114,189 | $ | 56,783 | $ | 242,599 | $ | 413,571 | 89 |
| 70% to 80% | — | — | — | — | — | ||||
| 81% to 90% | — | — | — | — | — | ||||
| Greater than 90% | 12,458 | 36,367 | — | 48,825 | 11 | ||||
| Total | $ | 126,647 | $ | 93,150 | $ | 242,599 | 462,396 | 100 | |
| Less allowance for credit losses | (6,629) | ||||||||
| Total, net of allowance for credit losses | $ | 455,767 |
(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.
| 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.
As of June 30, 2025, the Company had 37 loans in the portfolio. During the quarter, the Company evaluated the commercial mortgage loan portfolio on both an individual and pooling basis to determine the allowance for credit losses and determined four loans were collateral dependent or likely to foreclose. The allowance for credit losses on these 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 four loans was $49 million and the allowance, determined using the practical expedient, was $3 million as of June 30, 2025. For the three months ended June 30, 2025, one loan with an outstanding principal value of $2 million was removed from the evaluation as a result of foreclosure. For the six months ended June 30, 2025, two loans with an outstanding principal value of $5 million were removed from the evaluation as a result of foreclosure and were transferred into limited partnerships, held under the fair value option, in other long-term investments. As of June 30, 2025, there were two commercial mortgage loans in the process of foreclosure, with an outstanding par value of $41 million and outstanding interest due of $0. For the six months ended June 30, 2025, the allowance for credit losses decreased by $1 million to $6.6
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Table of Contents
Globe Life Inc.
Notes to Condensed Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
million. The provision for credit losses is included in "Realized gains (losses)" in the Condensed Consolidated Statements of Operations.
| Three Months Ended<br>June 30, | Six Months Ended<br>June 30, | |||||||
|---|---|---|---|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | |||||
| Allowance for credit losses beginning balance | $ | 6,731 | $ | 4,546 | $ | 7,644 | $ | 3,672 |
| Provision (reversal) for credit losses | 110 | 1,280 | (138) | 2,154 | ||||
| Reduction in allowance due to dispositions | (212) | — | (877) | — | ||||
| Allowance for credit losses ending balance | $ | 6,629 | $ | 5,826 | $ | 6,629 | $ | 5,826 |
As of June 30, 2025, the Company had three commercial mortgage loans in non-accrual status with a principal balance of $48 million. As of December 31, 2024, the Company had five commercial mortgage loans in non-accrual status with a principal balance of $53 million. The Company's unfunded commitment balance to commercial loan borrowers was $19 million as of June 30, 2025.
Other Long-Term Investments: Other long-term investments consist of the following assets:
| June 30, | ||||
|---|---|---|---|---|
| June 30,<br>2025 | December 31, 2024 | |||
| Investment funds | $ | 1,022,425 | $ | 986,766 |
| Company-owned life insurance(1) | 202,854 | 202,734 | ||
| Other | 43,345 | 46,259 | ||
| Total | $ | 1,268,624 | $ | 1,235,759 |
(1) Company-owned life insurance (COLI) is reported at cash surrender value.
The following table presents additional information about the Company's investment funds as of June 30, 2025 and December 31, 2024 at fair value:
| Fair Value | Unfunded Commitments(2) | ||||||
|---|---|---|---|---|---|---|---|
| Investment Category | June 30,<br>2025 | December 31, 2024 | June 30,<br>2025 | Redemption Term/Notice(1) | |||
| Commercial mortgage loans | $ | 577,472 | $ | 566,142 | $ | 170,251 | Fully redeemable and non-redeemable with varying terms. |
| Opportunistic and private credit | 219,031 | 202,008 | 171,756 | Fully redeemable and non-redeemable with varying terms. | |||
| Infrastructure | 183,102 | 179,627 | 25,000 | Fully redeemable and non-redeemable with varying terms. | |||
| Other | 42,820 | 38,989 | 57,419 | Non-redeemable with varying terms | |||
| Total investment funds | $ | 1,022,425 | $ | 986,766 | $ | 424,426 |
(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 June 30, 2025, unfunded commitments totaled $567 million, including funds past the investment period.
The Company had $57 million of capital called during the period from existing investment funds. The Company's unfunded commitments were $424 million as of June 30, 2025.
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Table of Contents
Globe Life Inc.
Notes to Condensed Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
Note 5—Commitments and Contingencies
Guarantees: At June 30, 2025, 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.
Letters of credit—The Parent Company has guaranteed letters of credit with a group of banks in connection with its credit facility. 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 subsidiaries. These letters of credit facilitate TMK Re, Ltd.’s ability to reinsure the business of Globe Life's insurance carriers. The credit facility 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 June 30, 2025 was $115 million.
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.
On November 30, 2023, Globe Life Inc. and its subsidiary, American Income Life Insurance Company, 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 Life Insurance Company policies. Globe Life Inc. and American Income Life Insurance Company cooperated fully in responding to the Department of Justice’s requests. On July 28, 2025, the Department of Justice informed the companies that it had closed its investigation. The closing of the investigation means the Department of Justice will not be taking enforcement action against Globe Life Inc. or American Income Life Insurance Company.
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. provided information in response to the SEC’s requests and cooperated fully with the SEC. On July 24, 2025, SEC staff notified Globe Life Inc. that they had concluded their investigation and, based on the information gathered, did not intend to recommend an SEC enforcement action against Globe Life Inc.
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,
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GL Q2 2025 FORM 10-Q
Table of Contents
Globe Life Inc.
Notes to Condensed Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
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 its 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 its performance and financial results. The allegations are substantially similar to the allegations made in the City of Miami Matter and derive from a 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 Life Insurance Company, were notified by the Equal Employment Opportunity Commission (EEOC) that the EEOC conducted an investigation of charges filed against Globe Life Inc. and/or American Income Life Insurance Company 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 Life Insurance Company 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.
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GL Q2 2025 FORM 10-Q
Table of Contents
Globe Life Inc.
Notes to Condensed 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 and six month periods ended June 30, 2025 and 2024:
| 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 | — | — | — | — | — | |||||
| Effect of actual variances from expected experience | (113,699) | (122,971) | (17,268) | (7,321) | (261,259) | |||||
| Adjusted balance at January 1, 2024 | 4,409,630 | 5,541,288 | 1,060,563 | 436,628 | 11,448,109 | |||||
| Issuances(1) | 412,701 | 287,040 | 60,219 | 12,156 | 772,116 | |||||
| Interest accrual(2) | 109,168 | 147,351 | 27,775 | 11,505 | 295,799 | |||||
| Net premiums collected(3) | (274,166) | (305,391) | (67,915) | (22,738) | (670,210) | |||||
| Effect of changes in the foreign exchange rate | (9,222) | — | — | — | (9,222) | |||||
| Ending balance at original discount rates | 4,648,111 | 5,670,288 | 1,080,642 | 437,551 | 11,836,592 | |||||
| Effect of change from original to current discount rates | (12,208) | 140,230 | 4,591 | 12,332 | 144,945 | |||||
| Balance at June 30, 2024 | $ | 4,635,903 | $ | 5,810,518 | $ | 1,085,233 | $ | 449,883 | $ | 11,981,537 |
| Balance at January 1, 2025 | $ | 4,645,917 | $ | 5,622,906 | $ | 1,048,447 | $ | 440,047 | $ | 11,757,317 |
| Beginning balance at original discount rates | 4,656,710 | 5,504,912 | 1,047,020 | 430,276 | 11,638,918 | |||||
| Effect of changes in assumptions on future cash flows | — | — | — | — | — | |||||
| Effect of actual variances from expected experience | (112,710) | (112,667) | (13,776) | (8,888) | (248,041) | |||||
| Adjusted balance at January 1, 2025 | 4,544,000 | 5,392,245 | 1,033,244 | 421,388 | 11,390,877 | |||||
| Issuances(1) | 380,213 | 257,099 | 54,393 | 12,114 | 703,819 | |||||
| Interest accrual(2) | 113,641 | 144,532 | 27,056 | 11,211 | 296,440 | |||||
| Net premiums collected(3) | (281,023) | (295,271) | (66,699) | (21,904) | (664,897) | |||||
| Effect of changes in the foreign exchange rate | 14,630 | — | — | — | 14,630 | |||||
| Ending balance at original discount rates | 4,771,461 | 5,498,605 | 1,047,994 | 422,809 | 11,740,869 | |||||
| Effect of change from original to current discount rates | 46,620 | 183,765 | 15,168 | 13,975 | 259,528 | |||||
| Balance at June 30, 2025 | $ | 4,818,081 | $ | 5,682,370 | $ | 1,063,162 | $ | 436,784 | $ | 12,000,397 |
(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.
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Globe Life Inc.
Notes to Condensed 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 April 1, 2024 | $ | 4,652,671 | $ | 5,945,259 | $ | 1,102,209 | $ | 464,169 | $ | 12,164,308 |
| Beginning balance at original discount rates | 4,596,138 | 5,698,050 | 1,073,485 | 442,392 | 11,810,065 | |||||
| Effect of changes in assumptions on future cash flows | — | — | — | — | — | |||||
| Effect of actual variances from expected experience | (65,450) | (86,743) | (6,820) | (5,471) | (164,484) | |||||
| Adjusted balance at April 1, 2024 | 4,530,688 | 5,611,307 | 1,066,665 | 436,921 | 11,645,581 | |||||
| Issuances(1) | 200,853 | 137,809 | 34,056 | 6,227 | 378,945 | |||||
| Interest accrual(2) | 55,345 | 73,931 | 13,936 | 5,741 | 148,953 | |||||
| Net premiums collected(3) | (138,480) | (152,759) | (34,015) | (11,338) | (336,592) | |||||
| Effect of changes in the foreign exchange rate | (295) | — | — | — | (295) | |||||
| Ending balance at original discount rates | 4,648,111 | 5,670,288 | 1,080,642 | 437,551 | 11,836,592 | |||||
| Effect of change from original to current discount rates | (12,208) | 140,230 | 4,591 | 12,332 | 144,945 | |||||
| Balance at June 30, 2024 | $ | 4,635,903 | $ | 5,810,518 | $ | 1,085,233 | $ | 449,883 | $ | 11,981,537 |
| Balance at April 1, 2025 | $ | 4,757,044 | $ | 5,686,115 | $ | 1,058,696 | $ | 440,270 | $ | 11,942,125 |
| Beginning balance at original discount rates | 4,719,733 | 5,512,271 | 1,045,143 | 426,436 | 11,703,583 | |||||
| Effect of changes in assumptions on future cash flows | — | — | — | — | — | |||||
| Effect of actual variances from expected experience | (61,093) | (73,750) | (5,858) | (5,199) | (145,900) | |||||
| Adjusted balance at April 1, 2025 | 4,658,640 | 5,438,521 | 1,039,285 | 421,237 | 11,557,683 | |||||
| Issuances(1) | 184,580 | 135,319 | 28,611 | 6,902 | 355,412 | |||||
| Interest accrual(2) | 57,175 | 72,325 | 13,535 | 5,586 | 148,621 | |||||
| Net premiums collected(3) | (141,459) | (147,560) | (33,437) | (10,916) | (333,372) | |||||
| Effect of changes in the foreign exchange rate | 12,525 | — | — | — | 12,525 | |||||
| Ending balance at original discount rates | 4,771,461 | 5,498,605 | 1,047,994 | 422,809 | 11,740,869 | |||||
| Effect of change from original to current discount rates | 46,620 | 183,765 | 15,168 | 13,975 | 259,528 | |||||
| Balance at June 30, 2025 | $ | 4,818,081 | $ | 5,682,370 | $ | 1,063,162 | $ | 436,784 | $ | 12,000,397 |
(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.
24
GL Q2 2025 FORM 10-Q
Table of Contents
Globe Life Inc.
Notes to Condensed 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, 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 | — | — | — | — | — | ||||||||||
| Effect of actual variances from expected experience | (121,945) | (129,976) | (19,337) | (10,212) | (281,470) | ||||||||||
| Adjusted balance at January 1, 2024 | 8,939,888 | 8,526,776 | 3,318,915 | 3,496,647 | 24,282,226 | ||||||||||
| Issuances(1) | 412,703 | 287,041 | 60,221 | 12,156 | 772,121 | ||||||||||
| Interest accrual(2) | 243,096 | 236,977 | 89,276 | 104,571 | 673,920 | ||||||||||
| Benefit payments(3) | (220,560) | (301,894) | (111,881) | (68,051) | (702,386) | ||||||||||
| Effect of changes in the foreign exchange rate | (21,601) | — | — | — | (21,601) | ||||||||||
| Ending balance at original discount rates | 9,353,526 | 8,748,900 | 3,356,531 | 3,545,323 | 25,004,280 | ||||||||||
| Effect of change from original to current discount rates | 457,881 | 540,934 | 68,237 | 436,575 | 1,503,627 | ||||||||||
| Balance at June 30, 2024 | $ | 9,811,407 | $ | 9,289,834 | $ | 3,424,768 | $ | 3,981,898 | $ | 26,507,907 | |||||
| Balance at January 1, 2025 | $ | 9,870,692 | $ | 9,125,112 | $ | 3,377,517 | $ | 3,960,963 | $ | 26,334,284 | |||||
| Beginning balance at original discount rates | 9,508,588 | 8,660,948 | 3,340,219 | 3,582,068 | 25,091,823 | ||||||||||
| Effect of changes in assumptions on future cash flows | — | — | — | — | — | ||||||||||
| Effect of actual variances from expected experience | (123,908) | (122,494) | (17,717) | (12,945) | (277,064) | ||||||||||
| Adjusted balance at January 1, 2025 | 9,384,680 | 8,538,454 | 3,322,502 | 3,569,123 | 24,814,759 | ||||||||||
| Issuances(1) | 380,214 | 257,097 | 54,393 | 12,115 | 703,819 | ||||||||||
| Interest accrual(2) | 256,757 | 239,097 | 89,565 | 107,021 | 692,440 | ||||||||||
| Benefit payments(3) | (226,848) | (291,899) | (107,656) | (70,952) | (697,355) | ||||||||||
| Effect of changes in the foreign exchange rate | 34,732 | — | — | — | 34,732 | ||||||||||
| Ending balance at original discount rates | 9,829,535 | 8,742,749 | 3,358,804 | 3,617,307 | 25,548,395 | ||||||||||
| Effect of change from original to current discount rates | 404,619 | 535,396 | 63,014 | 391,078 | 1,394,107 | ||||||||||
| Balance at June 30, 2025 | $ | 10,234,154 | $ | 9,278,145 | $ | 3,421,818 | $ | 4,008,385 | $ | 26,942,502 |
(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.
25
GL Q2 2025 FORM 10-Q
Table of Contents
Globe Life Inc.
Notes to Condensed 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 April 1, 2024 | $ | 9,958,093 | $ | 9,500,215 | $ | 3,499,742 | $ | 4,103,892 | $ | 27,061,942 | |||||||||||||||||
| Beginning balance at original discount rates | 9,216,265 | 8,728,403 | 3,340,412 | 3,527,882 | 24,812,962 | ||||||||||||||||||||||
| Effect of changes in assumptions on future cash flows | — | — | — | — | — | ||||||||||||||||||||||
| Effect of actual variances from expected experience | (69,724) | (93,532) | (8,889) | (7,345) | (179,490) | ||||||||||||||||||||||
| Adjusted balance at April 1, 2024 | 9,146,541 | 8,634,871 | 3,331,523 | 3,520,537 | 24,633,472 | ||||||||||||||||||||||
| Issuances(1) | 200,858 | 137,810 | 34,057 | 6,224 | 378,949 | ||||||||||||||||||||||
| Interest accrual(2) | 122,894 | 119,052 | 44,723 | 52,436 | 339,105 | ||||||||||||||||||||||
| Benefit payments(3) | (115,802) | (142,833) | (53,772) | (33,874) | (346,281) | ||||||||||||||||||||||
| Effect of changes in the foreign exchange rate | (965) | — | — | — | (965) | ||||||||||||||||||||||
| Ending balance at original discount rates | 9,353,526 | 8,748,900 | 3,356,531 | 3,545,323 | 25,004,280 | ||||||||||||||||||||||
| Effect of change from original to current discount rates | 457,881 | 540,934 | 68,237 | 436,575 | 1,503,627 | ||||||||||||||||||||||
| Balance at June 30, 2024 | $ | 9,811,407 | $ | 9,289,834 | $ | 3,424,768 | $ | 3,981,898 | $ | 26,507,907 | Balance at April 1, 2025 | $ | 10,112,896 | $ | 9,253,740 | $ | 3,415,857 | $ | 4,009,979 | $ | 26,792,472 | ||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |||||||||||||||||
| Beginning balance at original discount rates | 9,671,087 | 8,709,934 | 3,347,430 | 3,600,322 | 25,328,773 | ||||||||||||||||||||||
| Effect of changes in assumptions on future cash flows | — | — | — | — | — | ||||||||||||||||||||||
| Effect of actual variances from expected experience | (68,094) | (80,546) | (9,006) | (7,498) | (165,144) | ||||||||||||||||||||||
| Adjusted balance at April 1, 2025 | 9,602,993 | 8,629,388 | 3,338,424 | 3,592,824 | 25,163,629 | ||||||||||||||||||||||
| Issuances(1) | 184,580 | 135,318 | 28,612 | 6,905 | 355,415 | ||||||||||||||||||||||
| Interest accrual(2) | 129,298 | 119,903 | 44,830 | 53,634 | 347,665 | ||||||||||||||||||||||
| Benefit payments(3) | (117,722) | (141,860) | (53,062) | (36,056) | (348,700) | ||||||||||||||||||||||
| Effect of changes in the foreign exchange rate | 30,386 | — | — | — | 30,386 | ||||||||||||||||||||||
| Ending balance at original discount rates | 9,829,535 | 8,742,749 | 3,358,804 | 3,617,307 | 25,548,395 | ||||||||||||||||||||||
| Effect of change from original to current discount rates | 404,619 | 535,396 | 63,014 | 391,078 | 1,394,107 | ||||||||||||||||||||||
| Balance at June 30, 2025 | $ | 10,234,154 | $ | 9,278,145 | $ | 3,421,818 | $ | 4,008,385 | $ | 26,942,502 |
(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 expected assumptions.
26
GL Q2 2025 FORM 10-Q
Table of Contents
Globe Life Inc.
Notes to Condensed Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
| Life | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Net liability for future policy benefits as of June 30, 2024 | ||||||||||
| American Income | DTC | Liberty National | Other | Total | ||||||
| Net liability for future policy benefits at original discount rates | $ | 4,705,415 | $ | 3,078,612 | $ | 2,275,889 | $ | 3,107,772 | $ | 13,167,688 |
| Effect of changes in discount rate assumptions | 470,089 | 400,704 | 63,646 | 424,243 | 1,358,682 | |||||
| Other adjustments(1) | 194 | — | — | 34 | 228 | |||||
| Net liability for future policy benefits, after other adjustments, at current discount rates | 5,175,698 | 3,479,316 | 2,339,535 | 3,532,049 | 14,526,598 | |||||
| Reinsurance recoverable | (170) | — | (7,830) | (35,403) | (43,403) | |||||
| Net liability for future policy benefits, after reinsurance recoverable, at current discount rates | $ | 5,175,528 | $ | 3,479,316 | $ | 2,331,705 | $ | 3,496,646 | $ | 14,483,195 |
(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).
| Life | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Net liability for future policy benefits as of June 30, 2025 | ||||||||||
| American Income | DTC | Liberty National | Other | Total | ||||||
| Net liability for future policy benefits at original discount rates | $ | 5,058,074 | $ | 3,244,144 | $ | 2,310,810 | $ | 3,194,498 | $ | 13,807,526 |
| Effect of changes in discount rate assumptions | 357,999 | 351,631 | 47,846 | 377,103 | 1,134,579 | |||||
| Other adjustments(1) | 75 | — | — | 35 | 110 | |||||
| Net liability for future policy benefits, after other adjustments, at current discount rates | 5,416,148 | 3,595,775 | 2,358,656 | 3,571,636 | 14,942,215 | |||||
| Reinsurance recoverable | (177) | — | (7,984) | (14) | (8,175) | |||||
| Net liability for future policy benefits, after reinsurance recoverable, at current discount rates | $ | 5,415,971 | $ | 3,595,775 | $ | 2,350,672 | $ | 3,571,622 | $ | 14,934,040 |
(1)Other adjustments include the effects of flooring the liability (guidance requires an amount not less than zero at the calculation level of the liability for future policy benefits).
27
GL Q2 2025 FORM 10-Q
Table of Contents
Globe Life Inc.
Notes to Condensed 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 and six month periods ended June 30, 2025 and 2024:
| Health | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Present value of expected future net premiums | ||||||||||||
| United American | Family Heritage | Liberty National | American Income | DTC | Total | |||||||
| 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 | — | — | — | — | — | — | ||||||
| Effect of actual variances from expected experience | (37,074) | (31,290) | (21,165) | (7,058) | (2,462) | (99,049) | ||||||
| Adjusted balance at January 1, 2024 | 3,588,729 | 1,751,883 | 327,405 | 194,811 | 107,418 | 5,970,246 | ||||||
| Issuances(1) | 191,794 | 128,874 | 29,015 | 22,124 | 8,503 | 380,310 | ||||||
| Interest accrual(2) | 84,630 | 36,717 | 8,347 | 4,642 | 2,760 | 137,096 | ||||||
| Net premiums collected(3) | (145,045) | (93,746) | (25,833) | (11,871) | (5,434) | (281,929) | ||||||
| Effect of changes in the foreign exchange rate | — | — | — | (839) | — | (839) | ||||||
| Ending balance at original discount rates | 3,720,108 | 1,823,728 | 338,934 | 208,867 | 113,247 | 6,204,884 | ||||||
| Effect of change from original to current discount rates | (61,617) | (132,931) | (1,193) | (2,978) | 1,629 | (197,090) | ||||||
| Balance at June 30, 2024 | $ | 3,658,491 | $ | 1,690,797 | $ | 337,741 | $ | 205,889 | $ | 114,876 | $ | 6,007,794 |
| Balance at January 1, 2025 | $ | 3,885,530 | $ | 1,734,875 | $ | 337,119 | $ | 223,247 | $ | 133,377 | $ | 6,314,148 |
| Beginning balance at original discount rates | 3,948,856 | 1,867,873 | 338,275 | 225,141 | 131,919 | 6,512,064 | ||||||
| Effect of changes in assumptions on future cash flows | — | — | — | — | — | — | ||||||
| Effect of actual variances from expected experience | (3,085) | (27,223) | (17,307) | (9,744) | (299) | (57,658) | ||||||
| Adjusted balance at January 1, 2025 | 3,945,771 | 1,840,650 | 320,968 | 215,397 | 131,620 | 6,454,406 | ||||||
| Issuances(1) | 228,892 | 135,477 | 26,889 | 20,650 | 11,434 | 423,342 | ||||||
| Interest accrual(2) | 95,079 | 39,696 | 8,053 | 5,305 | 3,403 | 151,536 | ||||||
| Net premiums collected(3) | (163,600) | (100,206) | (26,730) | (13,457) | (6,971) | (310,964) | ||||||
| Effect of changes in the foreign exchange rate | — | — | — | 1,274 | — | 1,274 | ||||||
| Ending balance at original discount rates | 4,106,142 | 1,915,617 | 329,180 | 229,169 | 139,486 | 6,719,594 | ||||||
| Effect of change from original to current discount rates | 5,981 | (104,771) | 2,671 | 661 | 3,582 | (91,876) | ||||||
| Balance at June 30, 2025 | $ | 4,112,123 | $ | 1,810,846 | $ | 331,851 | $ | 229,830 | $ | 143,068 | $ | 6,627,718 |
(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.
28
GL Q2 2025 FORM 10-Q
Table of Contents
Globe Life Inc.
Notes to Condensed Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
| Health | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Present value of expected future net premiums | ||||||||||||
| United American | Family Heritage | Liberty National | American Income | DTC | Total | |||||||
| Balance at April 1, 2024 | $ | 3,653,395 | $ | 1,694,026 | $ | 345,441 | $ | 203,795 | $ | 113,879 | $ | 6,010,536 |
| Beginning balance at original discount rates | 3,661,448 | 1,801,792 | 342,165 | 203,850 | 110,863 | 6,120,118 | ||||||
| Effect of changes in assumptions on future cash flows | — | — | — | — | — | — | ||||||
| Effect of actual variances from expected experience | 3,458 | (14,197) | (9,755) | (3,508) | (144) | (24,146) | ||||||
| Adjusted balance at April 1, 2024 | 3,664,906 | 1,787,595 | 332,410 | 200,342 | 110,719 | 6,095,972 | ||||||
| Issuances(1) | 87,190 | 64,865 | 15,457 | 12,174 | 3,893 | 183,579 | ||||||
| Interest accrual(2) | 42,808 | 18,614 | 4,119 | 2,360 | 1,392 | 69,293 | ||||||
| Net premiums collected(3) | (74,796) | (47,346) | (13,052) | (6,032) | (2,757) | (143,983) | ||||||
| Effect of changes in the foreign exchange rate | — | — | — | 23 | — | 23 | ||||||
| Ending balance at original discount rates | 3,720,108 | 1,823,728 | 338,934 | 208,867 | 113,247 | 6,204,884 | ||||||
| Effect of change from original to current discount rates | (61,617) | (132,931) | (1,193) | (2,978) | 1,629 | (197,090) | ||||||
| Balance at June 30, 2024 | $ | 3,658,491 | $ | 1,690,797 | $ | 337,741 | $ | 205,889 | $ | 114,876 | $ | 6,007,794 |
| Balance at April 1, 2025 | $ | 3,993,693 | $ | 1,777,351 | $ | 332,931 | $ | 227,273 | $ | 138,383 | $ | 6,469,631 |
| Beginning balance at original discount rates | 4,005,620 | 1,888,954 | 331,182 | 226,852 | 135,412 | 6,588,020 | ||||||
| Effect of changes in assumptions on future cash flows | — | — | — | — | — | — | ||||||
| Effect of actual variances from expected experience | 25,129 | (13,323) | (6,587) | (4,863) | 1,116 | 1,472 | ||||||
| Adjusted balance at April 1, 2025 | 4,030,749 | 1,875,631 | 324,595 | 221,989 | 136,528 | 6,589,492 | ||||||
| Issuances(1) | 111,268 | 70,716 | 14,233 | 10,209 | 4,770 | 211,196 | ||||||
| Interest accrual(2) | 48,210 | 20,056 | 3,962 | 2,662 | 1,723 | 76,613 | ||||||
| Net premiums collected(3) | (84,085) | (50,786) | (13,610) | (6,743) | (3,535) | (158,759) | ||||||
| Effect of changes in the foreign exchange rate | — | — | — | 1,052 | — | 1,052 | ||||||
| Ending balance at original discount rates | 4,106,142 | 1,915,617 | 329,180 | 229,169 | 139,486 | 6,719,594 | ||||||
| Effect of change from original to current discount rates | 5,981 | (104,771) | 2,671 | 661 | 3,582 | (91,876) | ||||||
| Balance at June 30, 2025 | $ | 4,112,123 | $ | 1,810,846 | $ | 331,851 | $ | 229,830 | $ | 143,068 | $ | 6,627,718 |
(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.
29
GL Q2 2025 FORM 10-Q
Table of Contents
Globe Life Inc.
Notes to Condensed 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, 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 | — | — | — | — | — | — | ||||||||||||
| Effect of actual variances from expected experience | (36,684) | (35,000) | (21,424) | (8,179) | (2,326) | (103,613) | ||||||||||||
| Adjusted balance at January 1, 2024 | 3,704,846 | 3,471,689 | 795,395 | 307,252 | 102,175 | 8,381,357 | ||||||||||||
| Issuances(1) | 191,231 | 128,875 | 28,604 | 22,126 | 8,485 | 379,321 | ||||||||||||
| Interest accrual(2) | 87,778 | 72,179 | 21,549 | 7,956 | 2,760 | 192,222 | ||||||||||||
| Benefit payments(3) | (160,345) | (67,428) | (46,232) | (13,072) | (6,277) | (293,354) | ||||||||||||
| Effect of changes in the foreign exchange rate | — | — | — | (1,556) | — | (1,556) | ||||||||||||
| Ending balance at original discount rates | 3,823,510 | 3,605,315 | 799,316 | 322,706 | 107,143 | 8,657,990 | ||||||||||||
| Effect of change from original to current discount rates | (65,023) | (355,849) | 16,462 | 5,730 | 1,474 | (397,206) | ||||||||||||
| Balance at June 30, 2024 | $ | 3,758,487 | $ | 3,249,466 | $ | 815,778 | $ | 328,436 | $ | 108,617 | $ | 8,260,784 | ||||||
| Balance at January 1, 2025 | $ | 3,960,432 | $ | 3,336,546 | $ | 804,695 | $ | 355,303 | $ | 129,277 | $ | 8,586,253 | ||||||
| Beginning balance at original discount rates | 4,026,860 | 3,712,044 | 791,141 | 348,711 | 127,975 | 9,006,731 | ||||||||||||
| Effect of changes in assumptions on future cash flows | — | — | — | — | — | — | ||||||||||||
| Effect of actual variances from expected experience | (6,629) | (30,870) | (15,255) | (12,205) | (124) | (65,083) | ||||||||||||
| Adjusted balance at January 1, 2025 | 4,020,231 | 3,681,174 | 775,886 | 336,506 | 127,851 | 8,941,648 | ||||||||||||
| Issuances(1) | 228,111 | 135,476 | 26,531 | 20,650 | 11,392 | 422,160 | ||||||||||||
| Interest accrual(2) | 97,069 | 78,270 | 20,796 | 8,951 | 3,403 | 208,489 | ||||||||||||
| Benefit payments(3) | (192,355) | (79,732) | (50,278) | (11,126) | (8,370) | (341,861) | ||||||||||||
| Effect of changes in the foreign exchange rate | — | — | — | 2,431 | — | 2,431 | ||||||||||||
| Ending balance at original discount rates | 4,153,056 | 3,815,188 | 772,935 | 357,412 | 134,276 | 9,232,867 | ||||||||||||
| Effect of change from original to current discount rates | 1,250 | (324,147) | 22,309 | 9,954 | 3,256 | (287,378) | ||||||||||||
| Balance at June 30, 2025 | $ | 4,154,306 | $ | 3,491,041 | $ | 795,244 | $ | 367,366 | $ | 137,532 | $ | 8,945,489 |
(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.
30
GL Q2 2025 FORM 10-Q
Table of Contents
Globe Life Inc.
Notes to Condensed 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 April 1, 2024 | $ | 3,756,534 | $ | 3,271,604 | $ | 834,006 | $ | 328,783 | $ | 107,775 | $ | 8,298,702 | ||||||||||||||||||||
| Beginning balance at original discount rates | 3,766,995 | 3,554,274 | 804,316 | 317,365 | 105,050 | 8,548,000 | ||||||||||||||||||||||||||
| Effect of changes in assumptions on future cash flows | — | — | — | — | — | — | ||||||||||||||||||||||||||
| Effect of actual variances from expected experience | 3,641 | (15,951) | (8,603) | (4,177) | (5) | (25,095) | ||||||||||||||||||||||||||
| Adjusted balance at April 1, 2024 | 3,770,636 | 3,538,323 | 795,713 | 313,188 | 105,045 | 8,522,905 | ||||||||||||||||||||||||||
| Issuances(1) | 86,801 | 64,866 | 15,255 | 12,177 | 3,887 | 182,986 | ||||||||||||||||||||||||||
| Interest accrual(2) | 44,334 | 36,517 | 10,716 | 4,019 | 1,392 | 96,978 | ||||||||||||||||||||||||||
| Benefit payments(3) | (78,261) | (34,391) | (22,368) | (6,670) | (3,181) | (144,871) | ||||||||||||||||||||||||||
| Effect of changes in the foreign exchange rate | — | — | — | (8) | — | (8) | ||||||||||||||||||||||||||
| Ending balance at original discount rates | 3,823,510 | 3,605,315 | 799,316 | 322,706 | 107,143 | 8,657,990 | ||||||||||||||||||||||||||
| Effect of change from original to current discount rates | (65,023) | (355,849) | 16,462 | 5,730 | 1,474 | (397,206) | ||||||||||||||||||||||||||
| Balance at June 30, 2024 | $ | 3,758,487 | $ | 3,249,466 | $ | 815,778 | $ | 328,436 | $ | 108,617 | $ | 8,260,784 | Balance at April 1, 2025 | $ | 4,051,322 | $ | 3,430,602 | $ | 799,440 | $ | 362,540 | $ | 133,563 | $ | 8,777,467 | |||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | ||||||||||||||||||||
| Beginning balance at original discount rates | 4,066,655 | 3,761,470 | 778,662 | 352,443 | 130,822 | 9,090,052 | ||||||||||||||||||||||||||
| Effect of changes in assumptions on future cash flows | — | — | — | — | — | — | ||||||||||||||||||||||||||
| Effect of actual variances from expected experience | 18,426 | (15,115) | (4,250) | (6,009) | 1,067 | (5,881) | ||||||||||||||||||||||||||
| Adjusted balance at April 1, 2025 | 4,085,081 | 3,746,355 | 774,412 | 346,434 | 131,889 | 9,084,171 | ||||||||||||||||||||||||||
| Issuances(1) | 110,710 | 70,717 | 14,054 | 10,209 | 4,762 | 210,452 | ||||||||||||||||||||||||||
| Interest accrual(2) | 49,086 | 39,514 | 10,326 | 4,496 | 1,722 | 105,144 | ||||||||||||||||||||||||||
| Benefit payments(3) | (91,821) | (41,398) | (25,857) | (5,806) | (4,097) | (168,979) | ||||||||||||||||||||||||||
| Effect of changes in the foreign exchange rate | — | — | — | 2,079 | — | 2,079 | ||||||||||||||||||||||||||
| Ending balance at original discount rates | 4,153,056 | 3,815,188 | 772,935 | 357,412 | 134,276 | 9,232,867 | ||||||||||||||||||||||||||
| Effect of change from original to current discount rates | 1,250 | (324,147) | 22,309 | 9,954 | 3,256 | (287,378) | ||||||||||||||||||||||||||
| Balance at June 30, 2025 | $ | 4,154,306 | $ | 3,491,041 | $ | 795,244 | $ | 367,366 | $ | 137,532 | $ | 8,945,489 |
(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 expected assumptions.
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Globe Life Inc.
Notes to Condensed Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
| Health | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net liability for future policy benefits as of June 30, 2024 | ||||||||||||
| United American | Family Heritage | Liberty National | American Income | Direct to Consumer | Total | |||||||
| Net liability for future policy benefits at original discount rates | $ | 103,402 | $ | 1,781,587 | $ | 460,382 | $ | 113,839 | $ | (6,104) | $ | 2,453,106 |
| Effect of changes in discount rate assumptions | (3,406) | (222,918) | 17,655 | 8,708 | (155) | (200,116) | ||||||
| Other adjustments(1) | 14,032 | 52 | 9,169 | 933 | 6,952 | 31,138 | ||||||
| Net liability for future policy benefits, after other adjustments, at current discount rates | 114,028 | 1,558,721 | 487,206 | 123,480 | 693 | 2,284,128 | ||||||
| Reinsurance recoverable | (2,905) | (10,470) | (1,114) | — | — | (14,489) | ||||||
| Net liability for future policy benefits, after reinsurance recoverable, at current discount rates | $ | 111,123 | $ | 1,548,251 | $ | 486,092 | $ | 123,480 | $ | 693 | $ | 2,269,639 |
(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 June 30, 2025 | ||||||||||||
| United American | Family Heritage | Liberty National | American Income | Direct to Consumer | Total | |||||||
| Net liability for future policy benefits at original discount rates | 46,914 | 1,899,571 | 443,755 | 128,243 | (5,210) | 2,513,273 | ||||||
| Effect of changes in discount rate assumptions | (4,731) | (219,376) | 19,638 | 9,293 | (326) | (195,502) | ||||||
| Other adjustments(1) | 45,814 | 16 | 10,861 | 702 | 6,259 | 63,652 | ||||||
| Net liability for future policy benefits, after other adjustments, at current discount rates | 87,997 | 1,680,211 | 474,254 | 138,238 | 723 | 2,381,423 | ||||||
| Reinsurance recoverable | (2,376) | — | (890) | — | — | (3,266) | ||||||
| Net liability for future policy benefits, after reinsurance recoverable, at current discount rates | $ | 85,621 | $ | 1,680,211 | $ | 473,364 | $ | 138,238 | $ | 723 | $ | 2,378,157 |
(1)Other adjustments include the effects of flooring the liability (guidance requires an amount not less than zero at the calculation level of the liability for future policy benefits).
32
GL Q2 2025 FORM 10-Q
Table of Contents
Globe Life Inc.
Notes to Condensed Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
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 and six month periods ended June 30, 2025 and 2024:
| Three Months Ended<br>June 30, | Six Months Ended<br>June 30, | |||||||
|---|---|---|---|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | |||||
| Life Remeasurement Gain (Loss)—Experience: | ||||||||
| American Income | $ | 6,672 | $ | 3,876 | $ | 10,851 | $ | 7,848 |
| Direct to Consumer | 6,609 | 6,561 | 9,589 | 6,727 | ||||
| Liberty National | 1,432 | 538 | 1,614 | 650 | ||||
| Other | 2,032 | 1,419 | 3,216 | 2,025 | ||||
| Total Life Remeasurement Gain (Loss)—Experience | 16,745 | 12,394 | 25,270 | 17,250 | ||||
| Life Remeasurement Gain (Loss)—Assumption Updates(1): | ||||||||
| American Income | — | — | — | — | ||||
| Direct to Consumer | — | — | — | — | ||||
| Liberty National | — | — | — | — | ||||
| Other | — | — | — | — | ||||
| Total Life Remeasurement Gain (Loss)—Assumption Updates | — | — | — | — | ||||
| Total Life Remeasurement Gain (Loss) | 16,745 | 12,394 | 25,270 | 17,250 | ||||
| Health Remeasurement Gain (Loss)—Experience: | ||||||||
| United American | 1,938 | 1,013 | (1,882) | 677 | ||||
| Family Heritage | 1,640 | 1,669 | 3,476 | 3,552 | ||||
| Liberty National | (821) | (70) | 362 | 1,141 | ||||
| American Income | 1,089 | 610 | 2,338 | 1,040 | ||||
| Direct to Consumer | 32 | 26 | 28 | 46 | ||||
| Total Health Remeasurement Gain (Loss)—Experience | 3,878 | 3,248 | 4,322 | 6,456 | ||||
| Health Remeasurement Gain (Loss)—Assumption Updates(1): | ||||||||
| United American | — | — | — | — | ||||
| Family Heritage | — | — | — | — | ||||
| Liberty National | — | — | — | — | ||||
| American Income | — | — | — | — | ||||
| Direct to Consumer | — | — | — | — | ||||
| Health Remeasurement Gain (Loss)—Assumption Updates | — | — | — | — | ||||
| Total Health Remeasurement Gain (Loss) | $ | 3,878 | $ | 3,248 | $ | 4,322 | $ | 6,456 |
(1)Changes to the judgments, assumptions, and methods used in measuring the liability for future policy benefits occur annually, unless otherwise necessary. There were no changes to the judgments, assumptions, and methods used in measuring the liability for future policy benefits during the six months ended June 30, 2025 and 2024.
33
GL Q2 2025 FORM 10-Q
Table of Contents
Globe Life Inc.
Notes to Condensed Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
The following table reconciles the liability for future policy benefits to the Condensed Consolidated Balance Sheets as of June 30, 2025 and 2024:
| At Original Discount Rates | At Current Discount Rates | |||||||
|---|---|---|---|---|---|---|---|---|
| As of June 30, | As of June 30, | |||||||
| 2025 | 2024 | 2025 | 2024 | |||||
| Life(1): | ||||||||
| American Income | $ | 5,058,139 | $ | 4,705,606 | $ | 5,416,148 | $ | 5,175,698 |
| Direct to Consumer | 3,244,145 | 3,078,612 | 3,595,775 | 3,479,316 | ||||
| Liberty National | 2,310,810 | 2,275,889 | 2,358,656 | 2,339,535 | ||||
| Other | 3,194,531 | 3,107,805 | 3,571,636 | 3,532,049 | ||||
| Net liability for future policy benefits—long duration life | 13,807,625 | 13,167,912 | 14,942,215 | 14,526,598 | ||||
| Health(1): | ||||||||
| United American | 88,003 | 115,771 | 87,997 | 114,028 | ||||
| Family Heritage | 1,899,578 | 1,781,632 | 1,680,211 | 1,558,721 | ||||
| Liberty National | 454,025 | 469,145 | 474,254 | 487,206 | ||||
| American Income | 128,924 | 114,716 | 138,238 | 123,480 | ||||
| Direct to Consumer | 708 | 673 | 723 | 693 | ||||
| Net liability for future policy benefits—long duration health | 2,571,238 | 2,481,937 | 2,381,423 | 2,284,128 | ||||
| Deferred profit liability | 181,140 | 176,123 | 181,140 | 176,123 | ||||
| Deferred annuity | 615,897 | 706,022 | 615,897 | 706,022 | ||||
| Interest sensitive life | 717,140 | 728,097 | 717,140 | 728,097 | ||||
| Other | 8,939 | 9,702 | 8,940 | 9,704 | ||||
| Total future policy benefits | $ | 17,901,979 | $ | 17,269,793 | $ | 18,846,755 | $ | 18,430,672 |
(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).
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GL Q2 2025 FORM 10-Q
Table of Contents
Globe Life Inc.
Notes to Condensed 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 June 30, 2025 and 2024:
| As of June 30, | ||||||||
|---|---|---|---|---|---|---|---|---|
| 2025 | 2024 | |||||||
| Original discount rate | Current discount rate | Original discount rate | Current discount rate | |||||
| Life | ||||||||
| American Income | 5.7 | % | 5.4 | % | 5.7 | % | 5.3 | % |
| Direct to Consumer | 6.0 | % | 5.5 | % | 6.0 | % | 5.4 | % |
| Liberty National | 5.6 | % | 5.5 | % | 5.6 | % | 5.4 | % |
| Other | 6.2 | % | 5.5 | % | 6.2 | % | 5.4 | % |
| Health | ||||||||
| United American | 5.1 | % | 5.1 | % | 5.1 | % | 5.2 | % |
| Family Heritage | 4.2 | % | 5.3 | % | 4.2 | % | 5.3 | % |
| Liberty National | 5.8 | % | 5.3 | % | 5.8 | % | 5.4 | % |
| American Income | 5.8 | % | 5.2 | % | 5.8 | % | 5.2 | % |
| Direct to Consumer | 5.1 | % | 5.1 | % | 5.1 | % | 5.2 | % |
The following table provides the weighted-average durations of the liability for future policy benefits and the additional insurance liabilities as of June 30, 2025 and 2024:
| As of June 30, | ||||||
|---|---|---|---|---|---|---|
| 2025 | 2024 | |||||
| At original discount rates | At current discount rates | At original discount rates | At current discount rates | |||
| Life | ||||||
| American Income | 22.60 | 22.42 | 23.03 | 23.17 | ||
| Direct to Consumer | 19.07 | 19.86 | 19.44 | 20.66 | ||
| Liberty National | 15.35 | 15.18 | 15.22 | 15.40 | ||
| Other | 15.83 | 16.53 | 16.10 | 17.23 | ||
| Health | ||||||
| United American | 11.68 | 10.49 | 11.59 | 10.64 | ||
| Family Heritage | 15.28 | 14.00 | 15.16 | 14.21 | ||
| Liberty National | 9.41 | 9.22 | 9.26 | 9.26 | ||
| American Income | 12.45 | 12.37 | 12.35 | 12.55 | ||
| Direct to Consumer | 11.68 | 10.49 | 11.59 | 10.64 |
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GL Q2 2025 FORM 10-Q
Table of Contents
Globe Life Inc.
Notes to Condensed 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 Condensed Consolidated Statements of Operations for the three and six month periods ended June 30, 2025 and 2024:
| Life | ||||||||
|---|---|---|---|---|---|---|---|---|
| Six Months Ended<br>June 30, 2025 | Six Months Ended<br>June 30, 2024 | |||||||
| Gross<br> Premiums | Required Interest<br><br>Expense | Gross<br> Premiums | Required Interest<br><br>Expense | |||||
| American Income | $ | 882,738 | $ | 143,116 | $ | 836,931 | $ | 133,928 |
| Direct to Consumer | 486,442 | 94,526 | 491,235 | 89,541 | ||||
| Liberty National | 191,631 | 62,224 | 181,110 | 61,153 | ||||
| Other | 100,108 | 95,333 | 101,652 | 92,151 | ||||
| Total | $ | 1,660,919 | $ | 395,199 | $ | 1,610,928 | $ | 376,773 |
| Life | ||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Three Months Ended<br>June 30, 2025 | Three Months Ended<br>June 30, 2024 | |||||||
| Gross<br> Premiums | Interest<br><br>Expense | Gross<br> Premiums | Interest<br><br>Expense | |||||
| American Income | $ | 445,289 | $ | 72,123 | $ | 423,172 | $ | 67,549 |
| Direct to Consumer | 243,572 | 47,559 | 246,041 | 45,081 | ||||
| Liberty National | 96,331 | 31,175 | 91,239 | 30,611 | ||||
| Other | 50,194 | 48,048 | 50,583 | 46,233 | ||||
| Total | $ | 835,386 | $ | 198,905 | $ | 811,035 | $ | 189,474 |
| Health | ||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Six Months Ended<br>June 30, 2025 | Six Months Ended<br>June 30, 2024 | |||||||
| Gross<br> Premiums | Required Interest<br><br>Expense | Gross<br> Premiums | Required Interest<br><br>Expense | |||||
| United American | $ | 239,422 | $ | 1,867 | $ | 214,850 | $ | 3,041 |
| Family Heritage | 228,210 | 38,574 | 209,246 | 35,204 | ||||
| Liberty National | 95,221 | 12,690 | 94,952 | 13,155 | ||||
| American Income | 59,543 | 3,646 | 58,389 | 3,314 | ||||
| Direct to Consumer | 8,350 | — | 7,390 | — | ||||
| Total | $ | 630,746 | $ | 56,777 | $ | 584,827 | $ | 54,714 |
| Health | ||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Three Months Ended<br>June 30, 2025 | Three Months Ended<br>June 30, 2024 | |||||||
| Gross<br> Premiums | Interest<br><br>Expense | Gross<br> Premiums | Interest<br><br>Expense | |||||
| United American | $ | 123,026 | $ | 818 | $ | 110,753 | $ | 1,474 |
| Family Heritage | 115,856 | 19,458 | 105,855 | 17,773 | ||||
| Liberty National | 47,468 | 6,335 | 47,518 | 6,572 | ||||
| American Income | 29,789 | 1,834 | 29,470 | 1,659 | ||||
| Direct to Consumer | 4,214 | — | 3,733 | — | ||||
| Total | $ | 320,353 | $ | 28,445 | $ | 297,329 | $ | 27,478 |
Gross premiums are included within life and health premium on the Condensed Consolidated Statements of Operations, while the related interest expense is included in life and health policyholder benefits.
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GL Q2 2025 FORM 10-Q
Table of Contents
Globe Life Inc.
Notes to Condensed 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 as of June 30, 2025 and 2024:
| Life | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| As of June 30, 2025 | As of June 30, 2024 | |||||||||||
| 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 | $ | 26,323,656 | $ | 14,880,435 | $ | 15,115,288 | $ | 25,077,717 | $ | 14,130,383 | $ | 14,177,334 |
| PV of expected future net premiums | 8,440,381 | 4,771,461 | 4,818,081 | 8,240,194 | 4,648,111 | 4,635,903 | ||||||
| PV of expected future policy benefits | 32,858,954 | 9,829,535 | 10,234,154 | 31,638,799 | 9,353,526 | 9,811,407 | ||||||
| DTC | ||||||||||||
| PV of expected future gross premiums | $ | 17,465,145 | $ | 9,138,361 | $ | 9,430,064 | $ | 17,605,488 | $ | 9,202,366 | $ | 9,418,076 |
| PV of expected future net premiums | 10,454,351 | 5,498,605 | 5,682,370 | 10,784,908 | 5,670,288 | 5,810,518 | ||||||
| PV of expected future policy benefits | 26,022,344 | 8,742,749 | 9,278,145 | 25,978,972 | 8,748,900 | 9,289,834 | ||||||
| Liberty National | ||||||||||||
| PV of expected future gross premiums | $ | 4,928,564 | $ | 2,871,400 | $ | 2,869,264 | $ | 4,760,222 | $ | 2,777,507 | $ | 2,744,508 |
| PV of expected future net premiums | 1,848,910 | 1,047,994 | 1,063,162 | 1,900,361 | 1,080,642 | 1,085,233 | ||||||
| PV of expected future policy benefits | 9,159,106 | 3,358,804 | 3,421,818 | 8,997,194 | 3,356,531 | 3,424,768 | ||||||
| Other | ||||||||||||
| PV of expected future gross premiums | $ | 3,571,030 | $ | 1,820,383 | $ | 1,938,264 | $ | 3,671,193 | $ | 1,866,118 | $ | 1,974,726 |
| PV of expected future net premiums | 869,582 | 422,809 | 436,784 | 897,326 | 437,551 | 449,883 | ||||||
| PV of expected future policy benefits | 12,451,064 | 3,617,307 | 4,008,385 | 12,433,005 | 3,545,323 | 3,981,898 | ||||||
| Total | ||||||||||||
| PV of expected future gross premiums | $ | 52,288,395 | $ | 28,710,579 | $ | 29,352,880 | $ | 51,114,620 | $ | 27,976,374 | $ | 28,314,644 |
| PV of expected future net premiums | 21,613,224 | 11,740,869 | 12,000,397 | 21,822,789 | 11,836,592 | 11,981,537 | ||||||
| PV of expected future policy benefits | 80,491,468 | 25,548,395 | 26,942,502 | 79,047,970 | 25,004,280 | 26,507,907 |
As of June 30, 2025, for the life segment using current discount rates, the Company anticipates $29.4 billion of expected future gross premiums and $12.0 billion of expected future net premiums. As of June 30, 2024, using current discount rates, the Company anticipated $28.3 billion of expected future gross premiums and $12.0 billion in expected future net premiums. The determination of the liability for future policy benefits on the balance sheet does not include the difference between the expected future gross premiums and the expected future net premiums of $17.4 billion and $16.3 billion, as of June 30, 2025 and 2024, respectively, and rather only includes the expected future net premiums.
37
GL Q2 2025 FORM 10-Q
Table of Contents
Globe Life Inc.
Notes to Condensed Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
| Health | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| As of June 30, 2025 | As of June 30, 2024 | |||||||||||
| 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 | $ | 9,701,771 | $ | 5,974,711 | $ | 5,982,760 | $ | 8,930,346 | $ | 5,449,708 | $ | 5,359,418 |
| PV of expected future net premiums | 6,674,188 | 4,106,142 | 4,112,123 | 6,100,831 | 3,720,108 | 3,658,491 | ||||||
| PV of expected future policy benefits | 6,782,252 | 4,153,056 | 4,154,306 | 6,287,625 | 3,823,510 | 3,758,487 | ||||||
| Family Heritage | ||||||||||||
| PV of expected future gross premiums | $ | 7,545,828 | $ | 4,365,220 | $ | 4,145,063 | $ | 6,998,187 | $ | 4,103,577 | $ | 3,823,106 |
| PV of expected future net premiums | 3,293,461 | 1,915,617 | 1,810,846 | 3,092,463 | 1,823,728 | 1,690,797 | ||||||
| PV of expected future policy benefits | 7,465,105 | 3,815,188 | 3,491,041 | 6,909,758 | 3,605,315 | 3,249,466 | ||||||
| Liberty National | ||||||||||||
| PV of expected future gross premiums | $ | 2,006,456 | $ | 1,276,610 | $ | 1,309,873 | $ | 2,061,622 | $ | 1,307,386 | $ | 1,326,826 |
| PV of expected future net premiums | 489,624 | 329,180 | 331,851 | 505,985 | 338,934 | 337,741 | ||||||
| PV of expected future policy benefits | 1,353,104 | 772,935 | 795,244 | 1,391,768 | 799,316 | 815,778 | ||||||
| American Income | ||||||||||||
| PV of expected future gross premiums | $ | 1,795,279 | $ | 1,005,844 | $ | 1,036,573 | $ | 1,792,241 | $ | 1,003,909 | $ | 1,021,346 |
| PV of expected future net premiums | 408,732 | 229,169 | 229,830 | 373,186 | 208,867 | 205,889 | ||||||
| PV of expected future policy benefits | 728,196 | 357,412 | 367,366 | 656,571 | 322,706 | 328,436 | ||||||
| Direct to Consumer | ||||||||||||
| PV of expected future gross premiums | $ | 256,043 | $ | 163,050 | $ | 167,656 | $ | 242,288 | $ | 151,969 | $ | 154,318 |
| PV of expected future net premiums | 220,022 | 139,486 | 143,068 | 180,882 | 113,247 | 114,876 | ||||||
| PV of expected future policy benefits | 214,895 | 134,276 | 137,532 | 168,428 | 107,143 | 108,617 | ||||||
| Total | ||||||||||||
| PV of expected future gross premiums | $ | 21,305,377 | $ | 12,785,435 | $ | 12,641,925 | $ | 20,024,684 | $ | 12,016,549 | $ | 11,685,014 |
| PV of expected future net premiums | 11,086,027 | 6,719,594 | 6,627,718 | 10,253,347 | 6,204,884 | 6,007,794 | ||||||
| PV of expected future policy benefits | 16,543,552 | 9,232,867 | 8,945,489 | 15,414,150 | 8,657,990 | 8,260,784 |
As of June 30, 2025, for the health segment using current discount rates, the Company anticipates $12.6 billion of expected future gross premiums and $6.6 billion of expected future net premiums. As of June 30, 2024, using current discount rates, the Company anticipated $11.7 billion of expected future gross premiums and $6.0 billion in expected future net premiums. The determination of the liability for future policy benefits on the balance sheet does not include the difference between the expected future gross premiums and the expected future net premiums of $6.0 billion and $5.7 billion as of June 30, 2025 and 2024, respectively, and rather only includes the expected future net premiums.
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Globe Life Inc.
Notes to Condensed Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
The following table summarizes the balances of, and changes in, policyholders’ account balances as of June 30, 2025 and 2024:
| Policyholders' Account Balances | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2025 | 2024 | |||||||||||
| Interest Sensitive Life | Deferred Annuity(1) | Other Policy-holders' Funds | Interest Sensitive Life | Deferred Annuity | Other Policy-holders' Funds | |||||||
| Balance at January 1, | $ | 723,389 | $ | 656,573 | $ | 468,604 | $ | 732,948 | $ | 773,039 | $ | 236,958 |
| Issuances | — | 347 | — | — | 358 | — | ||||||
| Premiums and deposits received | 10,400 | 6,953 | 148,520 | 11,110 | 6,409 | 168,470 | ||||||
| Policy charges | (5,878) | — | — | (6,172) | — | — | ||||||
| Surrenders and withdrawals | (12,074) | (32,065) | (126,908) | (11,476) | (62,562) | (7,351) | ||||||
| Benefit payments | (16,332) | (25,926) | — | (16,740) | (24,137) | — | ||||||
| Interest credited | 13,758 | 10,561 | 10,903 | 13,968 | 12,213 | 9,104 | ||||||
| Other | 3,877 | (546) | (8,973) | 4,459 | 702 | (6,556) | ||||||
| Balance at June 30, | $ | 717,140 | $ | 615,897 | $ | 492,146 | $ | 728,097 | $ | 706,022 | $ | 400,625 |
(1) At June 30, 2025, $427 million has been reinsured with third-party reinsurers under existing reinsurance agreements.
| Policyholders' Account Balances | ||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2025 | 2024 | |||||||||||||||||
| Interest Sensitive Life | Deferred Annuity(1) | Other Policy-holders' Funds | Interest Sensitive Life | Deferred Annuity | Other Policy-holders' Funds | |||||||||||||
| Balance at April 1, | $ | 720,269 | $ | 636,219 | $ | 463,148 | $ | 729,721 | $ | 739,019 | $ | 401,269 | ||||||
| Issuances | — | 176 | — | — | 160 | — | ||||||||||||
| Premiums and deposits received | 5,150 | 3,187 | 61,635 | 5,486 | 2,836 | 1,770 | ||||||||||||
| Policy charges | (2,892) | — | — | (3,061) | — | — | ||||||||||||
| Surrenders and withdrawals | (6,108) | (15,534) | (33,780) | (5,167) | (30,999) | (3,834) | ||||||||||||
| Benefit payments | (8,003) | (13,095) | — | (7,600) | (11,366) | — | ||||||||||||
| Interest credited | 6,883 | 5,188 | 5,460 | 6,952 | 5,970 | 5,583 | ||||||||||||
| Other | 1,841 | (244) | (4,317) | 1,766 | 402 | (4,163) | ||||||||||||
| Balance at June 30, | $ | 717,140 | $ | 615,897 | $ | 492,146 | $ | 728,097 | $ | 706,022 | $ | 400,625 | ||||||
| Weighted-average credit rate | 3.89 | % | 3.36 | % | 4.65 | % | 3.87 | % | 3.35 | % | 5.69 | % | ||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Net amount at risk | $ | 1,609,774 | N/A | N/A | $ | 1,714,347 | N/A | N/A | ||||||||||
| Cash surrender value | $ | 671,517 | $ | 615,897 | $ | 492,146 | $ | 680,564 | $ | 706,022 | $ | 400,625 |
(1) At June 30, 2025, $427 million has been reinsured with third-party reinsurers under existing reinsurance agreements.
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GL Q2 2025 FORM 10-Q
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Globe Life Inc.
Notes to Condensed Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
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 policyholders and the respective guaranteed minimums as of June 30, 2025 and 2024:
| At June 30, 2025 | ||||||
|---|---|---|---|---|---|---|
| Range of guaranteed minimum crediting rates | Interest Sensitive Life | Deferred Annuity(1) | Other Policyholders' Funds | |||
| At guaranteed minimum: | ||||||
| Less than 3.00% | $ | — | $ | 2,244 | $ | 398,451 |
| 3.00%-3.99% | 29,395 | 436,884 | 3,140 | |||
| 4.00%-4.99% | 598,244 | 176,769 | 55,368 | |||
| Greater than 5.00% | 89,501 | — | 35,187 | |||
| Total | 717,140 | 615,897 | 492,146 | |||
| 51-150 basis points above: | ||||||
| Less than 3.00% | — | — | — | |||
| 3.00%-3.99% | — | — | — | |||
| 4.00%-4.99% | — | — | — | |||
| Greater than 5.00% | — | — | — | |||
| Total | — | — | — | |||
| Greater than 150 basis points above | ||||||
| Less than 3.00% | — | — | — | |||
| 3.00%-3.99% | — | — | — | |||
| 4.00%-4.99% | — | — | — | |||
| Greater than 5.00% | — | — | — | |||
| Total | — | — | — | |||
| Grand Total | $ | 717,140 | $ | 615,897 | $ | 492,146 |
(1) At June 30, 2025, $427 million has been reinsured with third-party reinsurers under existing reinsurance agreements.
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Globe Life Inc.
Notes to Condensed Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
| At June 30, 2024 | ||||||
|---|---|---|---|---|---|---|
| Range of guaranteed minimum crediting rates | Interest Sensitive Life | Deferred Annuity | Other Policyholders' Funds | |||
| At guaranteed minimum: | ||||||
| Less than 3.00% | $ | — | $ | 1,743 | $ | 304,454 |
| 3.00%-3.99% | 29,238 | 515,442 | 3,246 | |||
| 4.00%-4.99% | 608,867 | 187,985 | 6,539 | |||
| Greater than 5.00% | 89,992 | — | 36,775 | |||
| Total | 728,097 | 705,170 | 351,014 | |||
| 51-150 basis points above: | ||||||
| Less than 3.00% | — | — | — | |||
| 3.00%-3.99% | — | — | — | |||
| 4.00%-4.99% | — | — | 49,611 | |||
| Greater than 5.00% | — | — | — | |||
| Total | — | — | 49,611 | |||
| Greater than 150 basis points above | ||||||
| Less than 3.00% | $ | — | $ | — | $ | — |
| 3.00%-3.99% | — | 852 | — | |||
| 4.00%-4.99% | — | — | — | |||
| Greater than 5.00% | — | — | — | |||
| Total | — | 852 | — | |||
| Grand Total | $ | 728,097 | $ | 706,022 | $ | 400,625 |
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GL Q2 2025 FORM 10-Q
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Globe Life Inc.
Notes to Condensed 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 and six month periods ended June 30, 2025 and 2024:
| Life | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| American Income | DTC | Liberty National | Other | Total | ||||||
| Balance at January 1, 2024 | $ | 2,573,370 | $ | 1,737,117 | $ | 666,419 | $ | 294,869 | $ | 5,271,775 |
| Capitalizations | 259,856 | 78,976 | 58,100 | 6,280 | 403,212 | |||||
| Amortization expense | (87,377) | (50,420) | (27,614) | (8,272) | (173,683) | |||||
| Foreign exchange adjustment | (5,711) | — | — | — | (5,711) | |||||
| Balance at June 30, 2024 | $ | 2,740,138 | $ | 1,765,673 | $ | 696,905 | $ | 292,877 | $ | 5,495,593 |
| Balance at January 1, 2025 | $ | 2,900,229 | $ | 1,781,230 | $ | 728,790 | $ | 290,506 | $ | 5,700,755 |
| Capitalizations | 268,475 | 73,401 | 59,258 | 6,172 | 407,306 | |||||
| Amortization expense | (100,155) | (51,493) | (30,352) | (4,834) | (186,834) | |||||
| Foreign exchange adjustment | 9,821 | — | — | — | 9,821 | |||||
| Balance at June 30, 2025 | $ | 3,078,370 | $ | 1,803,138 | $ | 757,696 | $ | 291,844 | $ | 5,931,048 |
| Life | ||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| American Income | DTC | Liberty National | Other | Total | ||||||
| Balance at April 1, 2024 | $ | 2,652,009 | $ | 1,754,184 | $ | 678,885 | $ | 293,747 | $ | 5,378,825 |
| Capitalizations | 132,413 | 36,851 | 32,035 | 3,267 | 204,566 | |||||
| Amortization expense | (44,401) | (25,362) | (14,015) | (4,137) | (87,915) | |||||
| Foreign exchange adjustment | 117 | — | — | — | 117 | |||||
| Balance at June 30, 2024 | $ | 2,740,138 | $ | 1,765,673 | $ | 696,905 | $ | 292,877 | $ | 5,495,593 |
| Balance at April 1, 2025 | $ | 2,986,007 | $ | 1,792,790 | $ | 743,388 | $ | 292,635 | $ | 5,814,820 |
| Capitalizations | 134,605 | 36,253 | 29,667 | 3,365 | 203,890 | |||||
| Amortization expense | (50,781) | (25,905) | (15,359) | (4,156) | (96,201) | |||||
| Foreign exchange adjustment | 8,539 | — | — | — | 8,539 | |||||
| Balance at June 30, 2025 | $ | 3,078,370 | $ | 1,803,138 | $ | 757,696 | $ | 291,844 | $ | 5,931,048 |
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Globe Life Inc.
Notes to Condensed Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
| Health | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| United American | Family Heritage | Liberty National | American Income | DTC | Total | |||||||
| Balance at January 1, 2024 | $ | 73,489 | $ | 452,843 | $ | 139,941 | $ | 66,783 | $ | 1,679 | $ | 734,735 |
| Capitalizations | 1,289 | 33,932 | 12,444 | 7,280 | 2 | 54,947 | ||||||
| Amortization expense | (2,803) | (14,521) | (7,288) | (2,237) | (73) | (26,922) | ||||||
| Foreign exchange adjustment | — | — | — | (237) | — | (237) | ||||||
| Balance at June 30, 2024 | $ | 71,975 | $ | 472,254 | $ | 145,097 | $ | 71,589 | $ | 1,608 | $ | 762,523 |
| Balance at January 1, 2025 | $ | 70,530 | $ | 496,119 | $ | 148,920 | $ | 76,319 | $ | 1,533 | $ | 793,421 |
| Capitalizations | 1,352 | 38,104 | 11,721 | 7,403 | — | 58,580 | ||||||
| Amortization expense | (2,809) | (16,040) | (7,819) | (2,618) | (74) | (29,360) | ||||||
| Foreign exchange adjustment | — | — | — | 441 | — | 441 | ||||||
| Balance at June 30, 2025 | $ | 69,073 | $ | 518,183 | $ | 152,822 | $ | 81,545 | $ | 1,459 | $ | 823,082 |
| Health | ||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| United American | Family Heritage | Liberty National | American Income | DTC | Total | |||||||
| Balance at April 1, 2024 | $ | 72,604 | $ | 462,346 | $ | 144,313 | $ | 68,938 | $ | 1,643 | $ | 749,844 |
| Capitalizations | 793 | 17,242 | 4,465 | 3,750 | 1 | 26,251 | ||||||
| Amortization expense | (1,422) | (7,334) | (3,681) | (1,138) | (36) | (13,611) | ||||||
| Foreign exchange adjustment | — | — | — | 39 | — | 39 | ||||||
| Balance at June 30, 2024 | $ | 71,975 | $ | 472,254 | $ | 145,097 | $ | 71,589 | $ | 1,608 | $ | 762,523 |
| Balance at April 1, 2025 | $ | 69,755 | $ | 506,712 | $ | 150,977 | $ | 78,833 | $ | 1,496 | $ | 807,773 |
| Capitalizations | 736 | 19,573 | 5,802 | 3,671 | — | 29,782 | ||||||
| Amortization expense | (1,418) | (8,102) | (3,957) | (1,327) | (37) | (14,841) | ||||||
| Foreign exchange adjustment | — | — | — | 368 | — | 368 | ||||||
| Balance at June 30, 2025 | $ | 69,073 | $ | 518,183 | $ | 152,822 | $ | 81,545 | $ | 1,459 | $ | 823,082 |
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Globe Life Inc.
Notes to Condensed Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
The following table presents a reconciliation of deferred policy acquisition costs to the Condensed Consolidated Balance Sheets as of June 30, 2025 and 2024:
| June 30, | ||||||
|---|---|---|---|---|---|---|
| 2025 | 2024 | |||||
| Life | ||||||
| American Income | $ | 3,078,370 | $ | 2,740,138 | ||
| Direct to Consumer | 1,803,138 | 1,765,673 | ||||
| Liberty National | 757,696 | 696,905 | ||||
| Other | 291,844 | 292,877 | ||||
| Total DAC—Life | 5,931,048 | 5,495,593 | ||||
| Health | ||||||
| United American | 69,073 | 71,975 | ||||
| Family Heritage | 518,183 | 472,254 | ||||
| Liberty National | 152,822 | 145,097 | ||||
| American Income | 81,545 | 71,589 | ||||
| Direct to Consumer | 1,459 | 1,608 | ||||
| Total DAC—Health | 823,082 | 762,523 | ||||
| Annuity | 691 | 2,178 | ||||
| Total | $ | 6,754,821 | $ | 6,260,294 |
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Globe Life Inc.
Notes to Condensed 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:
| June 30,<br>2025 | December 31,<br>2024 | |||
|---|---|---|---|---|
| Balance at beginning of period | $ | 210,994 | $ | 194,809 |
| Less reinsurance recoverables | (1,521) | (2,157) | ||
| Net balance at beginning of period | 209,473 | 192,652 | ||
| Incurred related to: | ||||
| Current year | 422,468 | 767,076 | ||
| Prior years | 3,248 | (10,460) | ||
| Total incurred | 425,716 | 756,616 | ||
| Paid related to: | ||||
| Current year | 263,694 | 587,473 | ||
| Prior years | 151,463 | 152,322 | ||
| Total paid | 415,157 | 739,795 | ||
| Net balance at end of period | 220,032 | 209,473 | ||
| Plus reinsurance recoverables | 1,395 | 1,521 | ||
| Balance at end of period | $ | 221,427 | $ | 210,994 |
Below is the reconciliation of the liability of "Policy claims and other benefits payable" in the Condensed Consolidated Balance Sheets.
| June 30,<br>2025 | December 31,<br>2024 | |||
|---|---|---|---|---|
| Policy claims and other benefits payable: | ||||
| Life insurance | $ | 310,752 | $ | 321,838 |
| Health insurance | 221,427 | 210,994 | ||
| Total | $ | 532,179 | $ | 532,832 |
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Globe Life Inc.
Notes to Condensed Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
Note 9—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.
Pension Assets: The following table presents the assets of the Company's Pension Plans at June 30, 2025 and December 31, 2024.
Pension Assets by Component at June 30, 2025
| Fair Value Determined by: | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Quoted Prices in<br><br>Active Markets<br><br>for Identical<br><br>Assets (Level 1) | Significant<br><br>Observable<br><br>Inputs (Level 2) | Significant<br>Unobservable<br>Inputs (Level 3) | Total<br><br>Amount | % of<br>Total | |||||
| Exchange traded fund(4) | $ | 36,015 | $ | — | $ | — | $ | 36,015 | 6 |
| Equity exchange traded fund(1) | 328,993 | — | — | 328,993 | 53 | ||||
| U.S. Government and Agency | — | 180,413 | — | 180,413 | 29 | ||||
| Other bonds | — | 3 | — | 3 | — | ||||
| Guaranteed annuity contract(2) | — | 44,139 | — | 44,139 | 7 | ||||
| Short-term investments | 183 | — | — | 183 | — | ||||
| Other | 2,697 | — | — | 2,697 | — | ||||
| $ | 367,888 | $ | 224,555 | $ | — | 592,443 | 95 | ||
| Other long-term investments(3) | 33,962 | 5 | |||||||
| Total pension assets | $ | 626,405 | 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 June 30, 2025, 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.
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Globe Life Inc.
Notes to Condensed Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
Pension Assets by Component at December 31, 2024
| Fair Value Determined by: | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Quoted Prices in<br><br>Active Markets<br><br>for Identical<br><br>Assets (Level 1) | Significant<br><br>Observable<br><br>Inputs (Level 2) | Significant<br><br>Unobservable<br><br>Inputs (Level 3) | Total<br><br>Amount | % of<br>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.
SERP: The following tables include premiums paid for COLI at June 30, 2025 and 2024 and investments of the Rabbi Trust at June 30, 2025 and December 31, 2024.
| Six Months Ended<br>June 30, | ||||
|---|---|---|---|---|
| 2025 | 2024 | |||
| Premiums paid for insurance coverage | $ | — | $ | 443 |
| June 30,<br>2025 | December 31,<br>2024 | |||
| Total investments: | ||||
| COLI | $ | 58,126 | $ | 57,210 |
| Exchange traded funds | 100,721 | 98,314 | ||
| $ | 158,847 | $ | 155,524 |
Pension Plans and SERP Liabilities: The following table presents liabilities for the defined benefit pension plans and SERP at June 30, 2025 and December 31, 2024.
| June 30,<br>2025 | December 31,<br>2024 | |||
|---|---|---|---|---|
| Pension Plans | $ | 577,844 | $ | 561,615 |
| SERP | 73,920 | 73,441 | ||
| Benefit obligation | $ | 651,764 | $ | 635,056 |
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Globe Life Inc.
Notes to Condensed Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
Net Periodic Benefit Cost: The following table presents the net periodic benefit costs for the defined benefit pension plans and SERP by expense components for the three and six month periods ended June 30, 2025 and 2024.
Components of Net Periodic Benefit Cost
| Three Months Ended<br>June 30, | Six Months Ended<br>June 30, | |||||||
|---|---|---|---|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | |||||
| Service cost—benefits earned during the period | $ | 6,243 | $ | 6,228 | $ | 12,485 | $ | 12,449 |
| Interest cost on projected benefit obligation | 9,024 | 8,308 | 18,049 | 16,575 | ||||
| Expected return on assets | (11,563) | (10,647) | (23,126) | (21,293) | ||||
| Amortization: | ||||||||
| Prior service cost | 292 | 269 | 584 | 538 | ||||
| Actuarial (gain) loss | — | 6 | — | 12 | ||||
| Net periodic benefit cost | $ | 3,996 | $ | 4,164 | $ | 7,992 | $ | 8,281 |
Note 10—Earnings Per Share
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:
| Three Months Ended<br>June 30, | Six Months Ended<br>June 30, | |||
|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | |
| Basic weighted average shares outstanding | 81,915,162 | 91,441,350 | 82,693,257 | 92,653,478 |
| Weighted average dilutive options outstanding | 877,499 | — | 937,793 | 333,855 |
| Diluted weighted average shares outstanding | 82,792,661 | 91,441,350 | 83,631,050 | 92,987,333 |
| Antidilutive shares | 867,652 | 4,958,491 | 755,708 | 2,063,624 |
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.
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Globe Life Inc.
Notes to Condensed Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
Note 11—Debt
The following table presents information about the terms and outstanding balances of Globe Life's debt.
Selected Information about Debt Issues
| As of | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| June 30,<br>2025 | December 31,<br>2024 | ||||||||||||
| Instrument | Issue Date | Maturity Date | Coupon Rate | Par<br>Value | Unamortized Discount & Issuance Costs | Book<br>Value | Fair<br>Value | Book<br>Value | |||||
| Senior notes | 09/27/2018 | 09/15/2028 | 4.550% | $ | 550,000 | $ | (2,627) | $ | 547,373 | $ | 552,519 | $ | 546,999 |
| Senior notes | 08/21/2020 | 08/15/2030 | 2.150% | 400,000 | (2,632) | 397,368 | 353,416 | 397,132 | |||||
| Senior notes | 05/19/2022 | 06/15/2032 | 4.800% | 250,000 | (3,518) | 246,482 | 245,922 | 246,272 | |||||
| Senior notes | 08/23/2024 | 09/15/2034 | 5.850% | 450,000 | (4,984) | 445,016 | 465,089 | 444,814 | |||||
| Junior subordinated debentures | 11/17/2017 | 11/17/2057 | 5.275% | 125,000 | (1,548) | 123,452 | 97,500 | 123,443 | |||||
| Junior subordinated debentures | 06/14/2021 | 06/15/2061 | 4.250% | 325,000 | (7,570) | 317,430 | 209,300 | 317,387 | |||||
| Term loan(2) | 05/11/2023 | 08/15/2027 | 5.799% | 250,000 | (1,479) | 248,521 | 248,521 | 248,204 | |||||
| Total long-term debt | 2,350,000 | (24,358) | 2,325,642 | 2,172,267 | 2,324,251 | ||||||||
| FHLB borrowings | 70,000 | — | 70,000 | 70,000 | — | ||||||||
| Commercial paper | 397,000 | (2,460) | 394,540 | 394,540 | 415,401 | ||||||||
| Total short-term debt | 467,000 | (2,460) | 464,540 | 464,540 | 415,401 | ||||||||
| Total debt | $ | 2,817,000 | $ | (26,818) | $ | 2,790,182 | $ | 2,636,807 | $ | 2,739,652 |
(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.
Credit facility: Globe Life has in place a credit facility which provides for a $1 billion revolving credit facility that may be increased to $1.25 billion. The 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 June 30, 2025, the Company was in full compliance with these covenants.
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Globe Life Inc.
Notes to Condensed Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
The following tables present certain information about our commercial paper borrowings.
Credit Facility—Commercial Paper
| As of | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| June 30,<br>2025 | December 31, 2024 | June 30,<br>2024 | |||||||
| Balance of commercial paper at end of period (par value) | $ | 397,000 | $ | 419,000 | $ | 313,225 | |||
| Annualized interest rate | 4.73 | % | 5.22 | % | 6.02 | % | |||
| Letters of credit outstanding | $ | 115,000 | $ | 115,000 | $ | 115,000 | |||
| Remaining amount available under credit line | 488,000 | 466,000 | 571,775 |
Credit Facility—Commercial Paper Activity
| Six Months Ended June 30, | ||||||
|---|---|---|---|---|---|---|
| 2025 | 2024 | |||||
| Average balance of commercial paper outstanding during period (par value) | $ | 456,181 | $ | 392,905 | ||
| Daily-weighted average interest rate (annualized) | 4.99 | % | 5.76 | % | ||
| Maximum daily amount outstanding during period (par value) | $ | 605,500 | $ | 633,425 | ||
| Commercial paper issued during period (par value) | 1,158,250 | 997,492 | ||||
| Commercial paper matured during period (par value) | (1,180,250) | (1,003,267) | ||||
| Net commercial paper issued (matured) during period (par value) | (22,000) | (5,775) |
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.
Globe Life owned $33 million in FHLB common stock as of June 30, 2025 and $34 million as of December 31, 2024. The FHLB stock is restricted from redemption or repurchases 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 Condensed Consolidated Balance Sheets. Borrowings with the FHLB are subject to the availability of pledged assets at the insurance subsidiaries of Globe Life. As of June 30, 2025, Globe Life's insurance subsidiaries' maximum borrowing capacity under the FHLB facility was approximately $649 million, net of outstanding funding agreements and short-term borrowings, on pledged assets with a fair value of $1.3 billion. As of June 30, 2025, $397 million in funding agreements were outstanding with the FHLB, compared to $372 million as of December 31, 2024. This amount is included in "Other policyholders' funds" in the Condensed Consolidated Balance Sheets. The Company had $70 million and $180 million in short-term borrowings from the FHLB as of June 30, 2025 and 2024, respectively.
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Globe Life Inc.
Notes to Condensed Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
Note 12—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 adjusted our segments from four down to three at December 31, 2024. All quarterly presentations of segment information related to prior year 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 Company adopted ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, in 2024 which added 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 and the new disclosures are also required prospectively on a quarterly basis. The prior-year presentation has been recast to reflect the new disclosures in accordance with this adopted accounting standard.
The following tables present segment premium revenue by each of Globe Life's distribution channels.
| Premium Income by Distribution Channel | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Three Months Ended June 30, 2025 | ||||||||||
| Life | Health | Total | ||||||||
| Distribution Channel | Amount | % of<br>Total | Amount | % of<br>Total | Amount | % of<br>Total | ||||
| American Income | $ | 445,511 | 53 | $ | 31,422 | 8 | $ | 476,933 | 39 | |
| Direct to Consumer | 246,223 | 29 | 19,212 | 5 | 265,435 | 22 | ||||
| Liberty National | 97,263 | 12 | 47,631 | 13 | 144,894 | 12 | ||||
| United American | 1,570 | — | 163,978 | 43 | 165,548 | 13 | ||||
| Family Heritage | 1,796 | — | 115,856 | 31 | 117,652 | 10 | ||||
| Other | 47,181 | 6 | — | — | 47,181 | 4 | ||||
| Total | $ | 839,544 | 100 | $ | 378,099 | 100 | $ | 1,217,643 | 100 |
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Globe Life Inc.
Notes to Condensed Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
| Premium Income by Distribution Channel | |||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Three Months Ended June 30, 2024 | |||||||||||||||||||
| Life | Health | Total | |||||||||||||||||
| Distribution Channel | Amount | % of<br><br>Total | Amount | % of<br><br>Total | Amount | % of<br><br>Total | |||||||||||||
| American Income | $ | 423,534 | 52 | $ | 30,721 | 9 | $ | 454,255 | 39 | ||||||||||
| Direct to Consumer | 248,839 | 31 | 18,132 | 5 | 266,971 | 23 | |||||||||||||
| Liberty National | 92,197 | 11 | 47,705 | 14 | 139,902 | 12 | |||||||||||||
| United American | 1,558 | — | 149,230 | 42 | 150,788 | 13 | |||||||||||||
| Family Heritage | 1,645 | — | 105,855 | 30 | 107,500 | 9 | |||||||||||||
| Other | 47,709 | 6 | — | — | 47,709 | 4 | |||||||||||||
| Total | $ | 815,482 | 100 | $ | 351,643 | 100 | $ | 1,167,125 | 100 | ||||||||||
| Six Months Ended June 30, 2025 | |||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | ||||||||||||
| Life | Health | Total | |||||||||||||||||
| Distribution Channel | Amount | % of<br>Total | Amount | % of<br>Total | Amount | % of<br>Total | |||||||||||||
| American Income | $ | 883,377 | 53 | $ | 62,113 | 8 | $ | 945,490 | 39 | ||||||||||
| Direct to Consumer | 491,823 | 29 | 38,188 | 5 | 530,011 | 22 | |||||||||||||
| Liberty National | 193,445 | 12 | 95,553 | 13 | 288,998 | 12 | |||||||||||||
| United American | 3,162 | — | 323,826 | 43 | 326,988 | 13 | |||||||||||||
| Family Heritage | 3,522 | — | 228,210 | 31 | 231,732 | 10 | |||||||||||||
| Other | 94,078 | 6 | — | — | 94,078 | 4 | |||||||||||||
| Total | $ | 1,669,407 | 100 | $ | 747,890 | 100 | $ | 2,417,297 | 100 | Six Months Ended June 30, 2024 | |||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | ||||||||||||
| Life | Health | Total | |||||||||||||||||
| Distribution Channel | Amount | % of<br><br>Total | Amount | % of<br><br>Total | Amount | % of<br><br>Total | |||||||||||||
| American Income | $ | 837,578 | 52 | $ | 61,218 | 9 | $ | 898,796 | 39 | ||||||||||
| Direct to Consumer | 496,879 | 31 | 35,998 | 5 | 532,877 | 23 | |||||||||||||
| Liberty National | 182,974 | 11 | 95,335 | 14 | 278,309 | 12 | |||||||||||||
| United American | 3,401 | — | 290,865 | 42 | 294,266 | 13 | |||||||||||||
| Family Heritage | 3,261 | — | 209,246 | 30 | 212,507 | 9 | |||||||||||||
| Other | 95,654 | 6 | — | — | 95,654 | 4 | |||||||||||||
| Total | $ | 1,619,747 | 100 | $ | 692,662 | 100 | $ | 2,312,409 | 100 |
Due to the nature of the life insurance industry, Globe Life has no individual or group that 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 CODM for the insurance segments is underwriting margin before other income and administrative expenses, 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. 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.
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Globe Life Inc.
Notes to Condensed Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
The measure of profitability for the Investment segment is excess investment income, representing the net income earned on the investment portfolio in excess of policy requirements. Other than the required interest on the insurance segments, no other intersegment revenues or expenses are recognized. Expenses directly attributable to corporate operations are included in the “Corporate & Other” category. Stock-based compensation expense is considered a corporate expense by Globe Life management and is included in this category. All other unallocated revenues and expenses on a pretax basis, including insurance administrative expense and interest on debt, are also included in the “Corporate & Other” segment category.
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. 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 business. All of these items are included in “Other operating expense” in the Condensed Consolidated Statements of Operations for the appropriate year. See additional detail below in the tables.
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Globe Life Inc.
Notes to Condensed Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
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.
| Three Months Ended June 30, 2025 | ||||||||
|---|---|---|---|---|---|---|---|---|
| Life | Health | Investment | Consolidated | |||||
| Revenue: | ||||||||
| Premium | $ | 839,544 | $ | 378,099 | $ | — | $ | 1,217,643 |
| Net investment income | — | — | 282,169 | 282,169 | ||||
| Segment revenue | 839,544 | 378,099 | 282,169 | 1,499,812 | ||||
| Realized gains (losses) | (18,574) | |||||||
| Other income | 49 | |||||||
| Total consolidated revenue | $ | 1,481,287 | ||||||
| Expenses: | ||||||||
| Policy obligations(1) | 519,355 | 229,924 | 5,410 | 754,689 | ||||
| Required interest on reserves | (211,160) | (28,391) | 241,931 | 2,380 | ||||
| Amortization of acquisition costs | 96,201 | 14,841 | — | 111,042 | ||||
| Commissions | 42,357 | 41,965 | — | 84,322 | ||||
| Premium taxes | 16,682 | 7,649 | — | 24,331 | ||||
| Non-deferred acquisition costs | 36,035 | 14,054 | — | 50,089 | ||||
| Segment profit or (loss) | $ | 340,074 | $ | 98,057 | $ | 34,828 | 472,959 | |
| Insurance administrative expenses: | ||||||||
| Salaries | 34,677 | |||||||
| Other employee costs | 9,407 | |||||||
| Information technology costs | 19,555 | |||||||
| Legal costs | 5,827 | |||||||
| Other administrative costs | 16,581 | |||||||
| Parent expense | 3,555 | |||||||
| Stock-based compensation expense | 14,043 | |||||||
| Interest expense | 34,885 | |||||||
| Legal proceedings | 4,648 | |||||||
| Annuity | (2,043) | |||||||
| Total expenses | 1,167,988 | |||||||
| Income before income taxes per Condensed Consolidated Statements of Operations | $ | 313,299 |
(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.
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Globe Life Inc.
Notes to Condensed Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
| Three Months Ended June 30, 2024 | ||||||||
|---|---|---|---|---|---|---|---|---|
| Life | Health | Investment | Consolidated | |||||
| Revenue: | ||||||||
| Premium | $ | 815,482 | $ | 351,643 | $ | — | $ | 1,167,125 |
| Net investment income | — | — | 285,636 | 285,636 | ||||
| Segment revenue | 815,482 | 351,643 | 285,636 | 1,452,761 | ||||
| Realized gains (losses) | (12,589) | |||||||
| Other income | 74 | |||||||
| Total consolidated revenue | 1,440,246 | |||||||
| Expenses: | ||||||||
| Policy obligations(1) | 518,792 | 205,423 | 5,536 | 729,751 | ||||
| Required interest on reserves | (201,815) | (27,410) | 237,309 | 8,084 | ||||
| Amortization of acquisition costs | 87,915 | 13,611 | — | 101,526 | ||||
| Commissions | 39,698 | 41,661 | — | 81,359 | ||||
| Premium taxes | 17,200 | 5,274 | — | 22,474 | ||||
| Non-deferred acquisition costs | 33,369 | 12,596 | — | 45,965 | ||||
| Segment profit or (loss) | $ | 320,323 | $ | 100,488 | $ | 42,791 | 463,602 | |
| Insurance administrative expenses: | ||||||||
| Salaries | 30,855 | |||||||
| Other employee costs | 8,063 | |||||||
| Information technology costs | 20,561 | |||||||
| Legal costs | 6,889 | |||||||
| Other administrative costs | 15,828 | |||||||
| Parent expense | 3,130 | |||||||
| Stock-based compensation expense | 10,090 | |||||||
| Interest expense | 31,404 | |||||||
| Legal proceedings | 2,435 | |||||||
| Non-operating expenses | 1,257 | |||||||
| Annuity | (1,748) | |||||||
| Total expenses | 1,117,923 | |||||||
| Income before income taxes per Condensed Consolidated Statements of Operations | $ | 322,323 |
(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.
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Globe Life Inc.
Notes to Condensed Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
| Six Months Ended June 30, 2025 | ||||||||
|---|---|---|---|---|---|---|---|---|
| Life | Health | Investment | Consolidated | |||||
| Revenue: | ||||||||
| Premium | $ | 1,669,407 | $ | 747,890 | $ | — | $ | 2,417,297 |
| Net investment income | — | — | 562,783 | 562,783 | ||||
| Segment revenue | 1,669,407 | 747,890 | 562,783 | 2,980,080 | ||||
| Realized gains (losses) | (18,489) | |||||||
| Other income | 118 | |||||||
| Total consolidated revenue | $ | 2,961,709 | ||||||
| Expenses: | ||||||||
| Policy obligations(1) | 1,029,111 | 463,853 | 10,804 | 1,503,768 | ||||
| Required interest on reserves | (419,696) | (56,677) | 481,281 | 4,908 | ||||
| Amortization of acquisition costs | 186,834 | 29,360 | — | 216,194 | ||||
| Commissions | 87,924 | 84,852 | — | 172,776 | ||||
| Premium taxes | 34,693 | 15,142 | — | 49,835 | ||||
| Non-deferred acquisition costs | 73,203 | 28,582 | — | 101,785 | ||||
| Segment profit or (loss) | $ | 677,338 | $ | 182,778 | $ | 70,698 | 930,814 | |
| Insurance administrative expenses: | ||||||||
| Salaries | 68,365 | |||||||
| Other employee costs | 19,708 | |||||||
| Information technology costs | 40,491 | |||||||
| Legal costs | 12,076 | |||||||
| Other administrative costs | 32,956 | |||||||
| Parent expense | 6,605 | |||||||
| Stock-based compensation expense | 26,062 | |||||||
| Interest expense | 69,877 | |||||||
| Legal proceedings | 10,776 | |||||||
| Annuity | (3,853) | |||||||
| Total expenses | 2,332,329 | |||||||
| Income before income taxes per Condensed Consolidated Statement of Operations | $ | 629,380 |
(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.
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Globe Life Inc.
Notes to Condensed Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
| Six Months Ended June 30, 2024 | ||||||||
|---|---|---|---|---|---|---|---|---|
| Life | Health | Investment | Consolidated | |||||
| Revenue: | ||||||||
| Premium | $ | 1,619,747 | $ | 692,662 | $ | — | $ | 2,312,409 |
| Net investment income | — | — | 568,214 | 568,214 | ||||
| Segment revenue | 1,619,747 | 692,662 | 568,214 | 2,880,623 | ||||
| Realized gains (losses) | (24,388) | |||||||
| Other income | 150 | |||||||
| Total consolidated revenue | $ | 2,856,385 | ||||||
| Expenses: | ||||||||
| Policy obligations(1) | 1,038,663 | 407,750 | 9,004 | $ | 1,455,417 | |||
| Required interest on reserves | (401,522) | (54,583) | 472,634 | 16,529 | ||||
| Amortization of acquisition costs | 173,683 | 26,922 | — | 200,605 | ||||
| Commissions | 78,388 | 80,810 | — | 159,198 | ||||
| Premium taxes | 34,286 | 12,090 | — | 46,376 | ||||
| Non-deferred acquisition costs | 66,915 | 25,415 | — | 92,330 | ||||
| Segment profit or (loss) | $ | 629,334 | $ | 194,258 | $ | 86,576 | 910,168 | |
| Insurance administrative expenses: | ||||||||
| Salaries | 62,029 | |||||||
| Other employee costs | 18,076 | |||||||
| Information technology costs | 38,868 | |||||||
| Legal costs | 12,162 | |||||||
| Other administrative costs | 31,472 | |||||||
| Parent expense | 5,956 | |||||||
| Stock-based compensation expense | 19,357 | |||||||
| Interest expense | 60,025 | |||||||
| Legal proceedings | 2,435 | |||||||
| Non-operating expenses | 1,967 | |||||||
| Annuity | (3,663) | |||||||
| Total expenses | 2,219,139 | |||||||
| Income before income taxes per Condensed Consolidated Statement of Operations | $ | 637,246 |
(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.
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Globe Life Inc.
Notes to Condensed 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 Condensed Consolidated Balance Sheets.
Assets by Segment
| June 30, 2025 | ||||||||
|---|---|---|---|---|---|---|---|---|
| Life | Health | Investment | Consolidated | |||||
| Cash and invested assets | $ | — | $ | — | $ | 20,164,212 | $ | 20,164,212 |
| Accrued investment income | — | — | 271,670 | 271,670 | ||||
| Deferred acquisition costs | 5,931,048 | 823,082 | — | 6,754,130 | ||||
| Goodwill | 309,609 | 180,837 | — | 490,446 | ||||
| Total segment assets | $ | 6,240,657 | $ | 1,003,919 | $ | 20,435,882 | 27,680,458 | |
| Annuity and other corporate | 2,128,890 | |||||||
| Total assets | $ | 29,809,348 | ||||||
| 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 |
Note 13—Subsequent Events
On July 1, 2025, Globe Life entered into a 30-year facility agreement (“Facility Agreement”) with a Delaware Trust (the “Trust”) to complete the issuance and sale of 500 thousand of Pre-Capitalized Trust Securities redeemable May 15, 2055 (the “P-Caps”) for an aggregate purchase price of $500 million in a private placement. On the Closing Date, the Company entered into a facility agreement with the Trust that grants the Company the right to require the Trust to purchase from the Company’s 6.580% Senior Notes due 2055 in an aggregate principal amount at any one time outstanding and held by the Trust, of up to $500 million. We agreed to pay a semi-annual facility fee of 1.789% per annum on the unexercised portion of the issuance right which will be expensed as incurred. The costs that are directly attributable to the debt issuance will be capitalized and amortized as interest expense over the term of the facility agreement. Approximately, $7 million of direct transaction costs associated with the P-Caps facility will be capitalized as part of the arrangement. P-Caps provide the Company with a source of liquidity, the proceeds of which, if drawn, would be used for general corporate purposes.
On July 3, 2025, Globe Life Inc. completed the acquisition of real estate located in McKinney, Texas for total consideration of $80 million. The acquisition was executed in order to support Company growth and efficiency through modern technological infrastructure and centralized operations. The acquisition includes land, a building structure and building improvements. The transaction was executed pursuant to a purchase agreement and will be accounted for as an asset acquisition. The building will be depreciated over its estimated useful life of 40 years on a straight-line basis. The Company expects to utilize the facility for its own operational needs.
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Globe Life Inc.
Notes to Condensed Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
As of the date of this filing, the current facility does not qualify for held for sale classification and no impairment indicators have been identified.
The Company has evaluated these subsequent events and determined no adjustments are required to the financial statements for the period ended June 30, 2025.
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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. 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 impact of inflation, immigration, geopolitical events, escalating tariff and non-tariff trade measures imposed by the U.S. and other countries, and other governmental actions which affect the U.S. economy and/or U.S. consumer confidence, leading to unexpected changes in lapse rates and/or sales of our policies, as well as levels of mortality, morbidity, and/or 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 affect Medicare Supplement insurance sales, claims utilization or use);
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 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 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 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, including those described in the "Risk Factors" section of our most recent Annual Report on Form 10-K.
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GLOBE LIFE INC.
Management's Discussion & Analysis
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
The following discussion should be read in conjunction with Globe Life's Condensed Consolidated Financial Statements and Notes thereto appearing elsewhere in this report. The following management discussion will only include comparison to prior year.
"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<br><br>(Policy obligations)<br><br>(Policy acquisition costs and commissions)<br><br>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<br><br>(Required interest on policy liabilities)<br><br>Excess investment income |
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GLOBE LIFE INC.
Management's Discussion & Analysis
Current Highlights.
•Net income as a return on equity (ROE) for the six months ended June 30, 2025 was 18.8% and net operating income as an ROE, excluding accumulated other comprehensive income(1) was 14.4%.
•Total premium increased 5% over the same period in the prior year. Life premium increased 3% for the period from $1.62 billion in 2024 to $1.67 billion in 2025.
•Total net sales increased 6% over the same period in the prior year from $415 million in 2024 to $439 million in 2025. The average producing agent count across all of the exclusive agencies increased 4% over the prior year.
•Book value per share increased 14% over the same period in the prior year from $58.06 to $66.07. Book value per share, excluding accumulated other comprehensive income(1), increased 10% over the prior year from $82.38 in 2024 to $90.26 in 2025.
•For the six months ended June 30, 2025, the Company repurchased 3.3 million shares of Globe Life Inc. common stock at a total cost of $403 million for an average share price of $121.38.
The following graphs represent net income and net operating income for the six month periods ended June 30, 2025 and 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 $(2.0) billion and $(2.2) billion for the six months ended June 30, 2025 and 2024, 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 $(24.19) and $(24.32) for the six months ended June 30, 2025 and 2024, respectively.
Refer to Analysis of Profitability by Segment for non-GAAP reconciliation to GAAP.
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GLOBE LIFE INC.
Management's Discussion & Analysis
Summary of Operations.
•Net income totaled $507 million during the six months ended June 30, 2025, compared with $513 million in the same period in 2024.
•On a diluted per common share basis, net income per common share for the six months ended June 30, 2025 increased 10% from $5.51 to $6.07.
•Net operating income was $530 million for the six months ended June 30, 2025, compared with $535 million for the same period in 2024.
•On a diluted per common share basis, net operating income per common share for the six months ended June 30, 2025 increased from $5.76 to $6.34, a 10% increase.
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 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.
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.
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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)
| Six Months Ended June 30, | |||||||
|---|---|---|---|---|---|---|---|
| 2025 | 2024 | Change | % | ||||
| Life insurance underwriting margin | $ | 677,338 | $ | 629,334 | $ | 48,004 | 8 |
| Health insurance underwriting margin | 182,778 | 194,258 | (11,480) | (6) | |||
| Excess investment income | 70,698 | 86,576 | (15,878) | (18) | |||
| Segment profit or (loss) | 930,814 | 910,168 | 20,646 | 2 | |||
| Annuity and other income | 3,971 | 3,813 | 158 | 4 | |||
| Administrative expense | (173,596) | (162,607) | (10,989) | 7 | |||
| Other corporate expense | (102,544) | (85,338) | (17,206) | 20 | |||
| Pre-tax total | 658,645 | 666,036 | (7,391) | (1) | |||
| Applicable taxes | (128,213) | (130,720) | 2,507 | (2) | |||
| Net operating income | 530,432 | 535,316 | (4,884) | (1) | |||
| Reconciling items, net of tax: | |||||||
| Realized gains (losses) | (14,607) | (19,266) | 4,659 | ||||
| Non-operating expenses | — | (1,554) | 1,554 | ||||
| Legal proceedings | (8,513) | (1,924) | (6,589) | ||||
| Net income | $ | 507,312 | $ | 512,572 | $ | (5,260) | (1) |
The life insurance segment is our primary segment and is the largest contributor to earnings in each period presented. The life insurance segment underwriting margin increased $48 million compared with the prior period, primarily a result of increased premiums and favorable policy obligations as a percent of premium. Excess investment income declined $16 million compared with the prior period, partly due to lower earned yields on commercial mortgage loans, limited partnerships and short term investments. The health segment experienced higher policy obligations and declined $11 million in the first six months of 2025 with $183 million of underwriting margin compared with $194 million in the first six months of 2024.
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GLOBE LIFE INC.
Management's Discussion & Analysis
In 2025, 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 six months ended June 30, 2025.
Total premium income rose 5% for the six months ended June 30, 2025 to $2.4 billion. Total net sales increased 6% to $439 million, when compared with 2024. Total first-year collected premium (defined in the following section) increased 3% to $343 million for 2025, compared to $333 million in 2024.
Life insurance premium income increased 3% to $1.67 billion over the prior-year total of $1.62 billion. Life net sales were relatively flat at $303 million for the first six months of 2025 as compared to the year ago period. First-year collected life premium increased 2% to $231 million. Life underwriting margin, as a percent of premium, increased to 41% for 2025 from 39% in 2024. Underwriting margin increased to $677 million in 2025, compared to $629 million in 2024.
Health insurance premium income increased 8% to $748 million over the prior-year total of $693 million. Health net sales rose 21% to $136 million for the first six months of 2025. First-year collected health premium rose 6% to $113 million. Health underwriting margin, as a percent of premium, was 24% for 2025 and 28% for 2024. Health underwriting margin declined to $183 million for the first six months of 2025, compared to $194 million in 2024.
Excess investment income, the measure of profitability of our investment segment, declined 18% during the first six months of 2025 to $71 million from $87 million in 2024. Excess investment income per common share, reflecting the impact of our share repurchase program, declined 9% to $0.85 from $0.93 when compared with the same period in 2024.
Insurance administrative expenses increased 7% in 2025 when compared with the prior-year period. These expenses were 7.2% as a percent of premium during 2025 compared to 7.0% in 2024.
For the six months ended June 30, 2025, the Company repurchased 3.3 million shares of Globe Life Inc. common stock at a total cost of $403 million for an average share price of $121.38.
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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 12—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 12-month period.
•Net sales is calculated as annualized premium issued, net of cancellations generally in the first 30 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 one 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.
See further discussion of the distribution channels below for Life and Health.
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GLOBE LIFE INC.
Management's Discussion & Analysis
LIFE INSURANCE
Life insurance is the Company's predominant segment. During 2025, life premium represented 69% of total premium and life underwriting margin represented 79% of the total underwriting margin. Additionally, investments supporting the reserves for life products produce the majority of 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)
| Six Months Ended June 30, | Change | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| 2025 | 2024 | ||||||||
| Amount | % of Premium | Amount | % of Premium | Amount | % | ||||
| Premium and policy charges | $ | 1,669,407 | 100 | $ | 1,619,747 | 100 | $ | 49,660 | 3 |
| Policy obligations | 1,029,111 | 62 | 1,038,663 | 64 | (9,552) | (1) | |||
| Required interest on reserves | (419,696) | (25) | (401,522) | (25) | (18,174) | 5 | |||
| Net policy obligations | 609,415 | 37 | 637,141 | 39 | (27,726) | (4) | |||
| Amortization of acquisition costs | 186,834 | 11 | 173,683 | 11 | 13,151 | 8 | |||
| Commission expense | 87,924 | 5 | 78,388 | 5 | 9,536 | 12 | |||
| Premium taxes | 34,693 | 2 | 34,286 | 2 | 407 | 1 | |||
| Non-deferred acquisition costs | 73,203 | 4 | 66,915 | 4 | 6,288 | 9 | |||
| Total expense | 992,069 | 59 | 990,413 | 61 | 1,656 | — | |||
| Insurance underwriting margin | $ | 677,338 | 41 | $ | 629,334 | 39 | $ | 48,004 | 8 |
Net policy obligations amounted to 37% of premium for the six months ended June 30, 2025 compared to 39% in the year-ago period.
The table below summarizes life underwriting margin by distribution channel.
Life Insurance
Underwriting Margin by Distribution Channel
(Dollar amounts in thousands)
| Six Months Ended June 30, | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| 2025 | 2024 | Change | |||||||
| Amount | % of Premium | Amount | % of Premium | Amount | % | ||||
| American Income | $ | 400,702 | 45 | $ | 379,730 | 45 | $ | 20,972 | 6 |
| Direct to Consumer | 133,159 | 27 | 122,433 | 25 | 10,726 | 9 | |||
| Liberty National | 65,218 | 34 | 61,785 | 34 | 3,433 | 6 | |||
| Other(1) | 78,259 | 78 | 65,386 | 64 | 12,873 | 20 | |||
| Total | $ | 677,338 | 41 | $ | 629,334 | 39 | $ | 48,004 | 8 |
(1) Includes a gain of $14 million related to the recapture of reinsurance for six months ended June 30, 2025 as disclosed in Note 1 - Significant Accounting Policies.
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Globe Life Inc.
Management's Discussion & Analysis
The following table presents Globe Life's life insurance premium by distribution channel.
Life Insurance
Premium by Distribution Channel
(Dollar amounts in thousands)
| Six Months Ended June 30, | Change | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| 2025 | 2024 | ||||||||
| Amount | % of Total | Amount | % of Total | Amount | % | ||||
| American Income | $ | 883,377 | 53 | $ | 837,578 | 52 | $ | 45,799 | 5 |
| Direct to Consumer | 491,823 | 29 | 496,879 | 31 | (5,056) | (1) | |||
| Liberty National | 193,445 | 12 | 182,974 | 11 | 10,471 | 6 | |||
| Other | 100,762 | 6 | 102,316 | 6 | (1,554) | (2) | |||
| Total | $ | 1,669,407 | 100 | $ | 1,619,747 | 100 | $ | 49,660 | 3 |
Annualized life premium in force was $3.38 billion at June 30, 2025, an increase of 4% over $3.27 billion a year earlier.
An analysis of life net sales, an indicator of new business production, by distribution channel is presented below.
Life Insurance
Net Sales by Distribution Channel
(Dollar amounts in thousands)
| Six Months Ended June 30, | Change | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| 2025 | 2024 | ||||||||
| Amount | % of Total | Amount | % of Total | Amount | % | ||||
| American Income | $ | 194,782 | 64 | $ | 191,863 | 63 | $ | 2,919 | 2 |
| Direct to Consumer | 56,271 | 19 | 59,177 | 20 | (2,906) | (5) | |||
| Liberty National | 47,084 | 15 | 47,494 | 16 | (410) | (1) | |||
| Other | 5,099 | 2 | 4,466 | 1 | 633 | 14 | |||
| Total | $ | 303,236 | 100 | $ | 303,000 | 100 | $ | 236 | — |
First-year collected life premium by distribution channel is presented in the table below.
Life Insurance
First-Year Collected Premium by Distribution Channel
(Dollar amounts in thousands)
| Six Months Ended June 30, | Change | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| 2025 | 2024 | ||||||||
| Amount | % of Total | Amount | % of Total | Amount | % | ||||
| American Income | $ | 157,171 | 68 | $ | 150,362 | 66 | $ | 6,809 | 5 |
| Direct to Consumer | 30,676 | 13 | 35,716 | 16 | (5,040) | (14) | |||
| Liberty National | 38,799 | 17 | 36,764 | 16 | 2,035 | 6 | |||
| Other | 3,900 | 2 | 3,947 | 2 | (47) | (1) | |||
| Total | $ | 230,546 | 100 | $ | 226,789 | 100 | $ | 3,757 | 2 |
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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 internally generated leads, third-party internet vendor leads and referrals to facilitate sustainable growth. This Division is Globe Life's largest contributor of life premium of any distribution channel at 53% of the Company's June 30, 2025 total life premium. For the six months ended June 30, 2025, the average monthly life premium issued per policy was $59 as compared to $57 for the same period in the prior year. Net sales were $195 million for the six months ended June 30, 2025, up from $192 million in the year-ago period. The underwriting margin, as a percent of premium, was 45% for the six months ended June 30, 2025 and 2024.
The average producing agent count increased 3% over the year-ago period. 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 Life Division. The average producing agent count is based on the actual count at the beginning and end of each week during the year.
| At June 30, | Change | |||
|---|---|---|---|---|
| 2025 | 2024 | Amount | % | |
| American Income | 11,876 | 11,504 | 372 | 3 |
American Income Life continues to focus on growing and strengthening the agency force, specifically through emphasis on agency middle-management growth and additional agency 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 provide dashboards and drive productivity in lead distribution, conservation of business, 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 the customers and have generated a vast majority of sales through virtual presentations. We find this flexibility to be enticing for new recruits as well as a driver of retention in our agency force.
The Direct to Consumer Division (DTC) markets adult and juvenile life insurance through a variety of channels, 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 as part of 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 inquiries that 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 insurance market is an important source of sales as well as a vehicle to reach the parents and grandparents of existing juvenile insureds, who are more likely to respond favorably to a direct to consumer solicitation for life coverage on themselves in comparison to the general adult population. Additionally, future offerings to parents and grandparents for adult and juvenile insurance are sources of lower acquisition-cost life insurance sales in the future.
DTC net sales declined 5% to $56 million for the six months ended June 30, 2025, compared to $59 million for the same period in the prior year. This decline is due primarily to an intentional reduction of direct mail and print insert marketing activity because of the impact of inflation on postage, paper and online advertising costs. We reported higher net sales in the second quarter of 2025, which were up 24% from the first quarter of the year, resulting from our initiatives noted above. While total year to date sales have declined compared to the prior year, the focus has been on improving profitability and improving underwriting margin. DTC’s underwriting margin was $133.2 million and 27% as a percent of premium for the six months ended June 30, 2025 compared to $122.4 million and 25% as a percent of premium for the same period in 2024. For the six months ended June 30, 2025, the average monthly life premium issued for DTC adults was $17 as compared to $15 for the same period in the prior year.
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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 Division are expected to support increased sales. Underwriting margin and premium were up 6% from the year ago period at $65 million and $193 million respectively. The underwriting margin as a percent of premium was flat for the six months ended June 30, 2025, at 34% compared to the year-ago period. For the six months ended June 30, 2025, the average monthly life premium per policy issued rose slightly compared to the prior year to $44 from $43.
Below is the average producing agent count for the six months ended June 30, 2025 and 2024 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.
| At June 30, | Change | |||
|---|---|---|---|---|
| 2025 | 2024 | Amount | % | |
| Liberty National | 3,785 | 3,560 | 225 | 6 |
The Liberty National Division's average producing agent count increased when compared with the prior-year comparable period. This Division continues to execute a long-term plan to grow through expansion from small-town markets in the Southeast to more densely populated areas with larger pools of potential agent recruits and customers in the communities, regions, and cities the Liberty National Division serves. 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. A CRM platform and enhanced analytical capabilities have helped the agents develop additional worksite marketing opportunities and improve the productivity of agents selling in the individual life market. As the Division gains momentum in its sales and recruiting initiatives, advances in technology and use of the CRM platform, it 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 $101 million of life premium income, or 6% of Globe Life's total life premium income in the six months ended June 30, 2025, and contributed 2% of net sales for the period.
HEALTH INSURANCE
Health insurance sold by the Company primarily includes Medicare Supplement insurance as well as retiree health insurance, accident coverage, and other limited-benefit supplemental health products such as cancer, critical illness, heart disease, intensive care, and other health products.
Health premium accounted for 31% of our total premium in 2025, while the health underwriting margin accounted for 21% of total underwriting margin. Health underwriting margin declined to $183 million compared to $194 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.
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Globe Life Inc.
Management's Discussion & Analysis
The following table presents underwriting margin data for health insurance.
Health Insurance
Summary of Results
(Dollar amounts in thousands)
| Six Months Ended June 30, | Change | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| 2025 | 2024 | ||||||||
| Amount | % of<br>Premium | Amount | % of<br>Premium | Amount | % | ||||
| Premium | $ | 747,890 | 100 | $ | 692,662 | 100 | $ | 55,228 | 8 |
| Policy obligations | 463,853 | 62 | 407,750 | 59 | 56,103 | 14 | |||
| Required interest on reserves | (56,677) | (7) | (54,583) | (8) | (2,094) | 4 | |||
| Net policy obligations | 407,176 | 55 | 353,167 | 51 | 54,009 | 15 | |||
| Amortization of acquisition costs | 29,360 | 4 | 26,922 | 4 | 2,438 | 9 | |||
| Commission expense | 84,852 | 11 | 80,810 | 11 | 4,042 | 5 | |||
| Premium taxes | 15,142 | 2 | 12,090 | 2 | 3,052 | 25 | |||
| Non-deferred acquisition costs | 28,582 | 4 | 25,415 | 4 | 3,167 | 12 | |||
| Total expense | 565,112 | 76 | 498,404 | 72 | 66,708 | 13 | |||
| Insurance underwriting margin | $ | 182,778 | 24 | $ | 194,258 | 28 | $ | (11,480) | (6) |
Net policy obligations amounted to 55% of premium for the six months ended June 30, 2025 compared to 51% in the year ago period.
The table below summarizes health underwriting margin by distribution channel.
Health Insurance
Underwriting Margin by Distribution Channel
(Dollar amounts in thousands)
| Six Months Ended June 30, | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| 2025 | 2024 | Change | |||||||
| Amount | % of Premium | Amount | % of Premium | Amount | % | ||||
| United American | $ | 14,019 | 4 | $ | 28,477 | 10 | $ | (14,458) | (51) |
| Family Heritage | 80,176 | 35 | 72,449 | 35 | 7,727 | 11 | |||
| Liberty National | 50,354 | 53 | 53,072 | 56 | (2,718) | (5) | |||
| American Income | 38,714 | 62 | 38,284 | 63 | 430 | 1 | |||
| Direct to Consumer | (485) | (1) | 1,976 | 5 | (2,461) | (125) | |||
| Total | $ | 182,778 | 24 | $ | 194,258 | 28 | $ | (11,480) | (6) |
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Globe Life Inc.
Management's Discussion & Analysis
Globe Life markets supplemental health insurance products through a number of distribution channels. The following table is an analysis of our health premium by distribution channel.
Health Insurance
Premium by Distribution Channel
(Dollar amounts in thousands)
| Six Months Ended June 30, | Increase<br>(Decrease) | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| 2025 | 2024 | ||||||||
| Amount | % of Total | Amount | % of Total | Amount | % | ||||
| United American | $ | 323,826 | 43 | $ | 290,865 | 42 | $ | 32,961 | 11 |
| Family Heritage | 228,210 | 31 | 209,246 | 30 | 18,964 | 9 | |||
| Liberty National | 95,553 | 13 | 95,335 | 14 | 218 | — | |||
| American Income | 62,113 | 8 | 61,218 | 9 | 895 | 1 | |||
| Direct to Consumer | 38,188 | 5 | 35,998 | 5 | 2,190 | 6 | |||
| Total | $ | 747,890 | 100 | $ | 692,662 | 100 | $ | 55,228 | 8 |
Premiums related to limited-benefit supplemental health products comprise $417 million, or 56%, of the total health premiums for the six months ended June 30, 2025, compared with $388 million, or 56%, in the same period in the prior year. Premium from Medicare Supplement products comprises the remaining $331 million, or 44%, for the six months ended June 30, 2025, compared to $305 million, or 44%, in the same period in the prior year.
Annualized health premium in force was $1.54 billion at June 30, 2025, an increase of 7% over $1.44 billion a year earlier.
Presented below is a table of health net sales by distribution channel.
Health Insurance
Net Sales by Distribution Channel
(Dollar amounts in thousands)
| Six Months Ended June 30, | Increase<br>(Decrease) | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| 2025 | 2024 | ||||||||
| Amount | % of Total | Amount | % of Total | Amount | % | ||||
| United American | $ | 53,162 | 39 | $ | 34,651 | 31 | $ | 18,511 | 53 |
| Family Heritage | 56,377 | 42 | 49,536 | 44 | 6,841 | 14 | |||
| Liberty National | 15,380 | 11 | 15,969 | 14 | (589) | (4) | |||
| American Income | 9,619 | 7 | 10,386 | 9 | (767) | (7) | |||
| Direct to Consumer | 1,431 | 1 | 1,643 | 2 | (212) | (13) | |||
| Total | $ | 135,969 | 100 | $ | 112,185 | 100 | $ | 23,784 | 21 |
Health net sales related to limited-benefit supplemental health products comprise $101 million, or 74%, of the total health net sales for the six months ended June 30, 2025, compared with $84 million, or 75%, in the same period in the prior year. Medicare Supplement sales make up the remaining $35 million, or 26%, for 2025 compared to $28 million, or 25%, in the same period in the prior year.
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Globe Life Inc.
Management's Discussion & Analysis
The following table presents health insurance first-year collected premium by distribution channel.
Health Insurance
First-Year Collected Premium by Distribution Channel
(Dollar amounts in thousands)
| Six Months Ended June 30, | Increase<br>(Decrease) | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| 2025 | 2024 | ||||||||
| Amount | % of Total | Amount | % of Total | Amount | % | ||||
| United American | $ | 42,723 | 38 | $ | 42,434 | 40 | $ | 289 | 1 |
| Family Heritage | 43,921 | 39 | 38,666 | 36 | 5,255 | 14 | |||
| Liberty National | 13,982 | 12 | 14,102 | 13 | (120) | (1) | |||
| American Income | 9,623 | 9 | 9,568 | 9 | 55 | 1 | |||
| Direct to Consumer | 2,319 | 2 | 1,885 | 2 | 434 | 23 | |||
| Total | $ | 112,568 | 100 | $ | 106,655 | 100 | $ | 5,913 | 6 |
First-year collected premium related to limited-benefit supplemental health products is $77.2 million, or 69%, of total first-year collected premium for the six months ended June 30, 2025 compared with $76.9 million, or 72%, in the same period in the prior year. First-year collected premium from Medicare Supplement policies make up the remaining $35.3 million, or 31%, for the six months ended June 30, 2025 compared to $29.8 million, or 28%, in the same period in the prior year.
A discussion of health operations by distribution channel follows.
The United American Division consists of non-exclusive independent agencies 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 53% from the same period in the prior year.
This Division includes 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 4% for the six months ended June 30, 2025 and 10% for the same period in 2024. The decline in underwriting margin as a percent of premium when compared to prior year is primarily attributable to increased claims utilization during the current year from Medicare Supplement. We adjust premium rates based upon an annual review of utilization and claim cost trends and submit revisions for approval to the insurance department regulators, and if approved, the new premium rates generally become effective in the following year.
The Family Heritage Division primarily markets limited-benefit supplemental health insurance to small- to medium- sized businesses. Most of its policies include a return of premium feature, where premium paid is returned less any claims paid to the policyholder at the end of a specified period stated within the insurance policy. Underwriting margin as a percent of premium was 35% for the six months ended June 30, 2025 and 2024.
The Division experienced a 14% rise in health net sales as compared with the same six-month period a year ago, primarily due to increased agent count and increased agent productivity. The Division will continue to implement incentive and retention programs to further these increases in the number of producing agents.
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Globe Life Inc.
Management's Discussion & Analysis
Below is the average producing agent count at the end of the period 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. The average producing agent count increased 10% compared with the same period a year ago. Along with the Division's increased efforts to grow agent count, it is also focused on the further training and development of its middle management. While growth in net sales and earned premium is impacted by agent productivity, growth in the number of producing agents will be the primary driver of future growth in sales, similar to our other exclusive agencies.
| At June 30, | Change | |||
|---|---|---|---|---|
| 2025 | 2024 | Amount | % | |
| Family Heritage | 1,458 | 1,328 | 130 | 10 |
The Liberty National Division represented 13% of all Globe Life health premium income for the six months ended June 30, 2025. The Liberty National Division markets limited-benefit supplemental health products, consisting primarily of cancer, critical illness, and accident insurance. Much of Liberty National's health business is generated through worksite marketing targeting small businesses. Health premium at the Liberty National Division was $95.6 million for the six months ended June 30, 2025 up from $95.3 million for the same period in 2024. Liberty National's first-year collected premium fell 1% to $14.0 million in the six months ended June 30, 2025 compared with $14.1 million for the same period in 2024. Health net sales for the six months ended June 30, 2025 fell 4% from the comparable period in 2024. For the six months ended June 30, 2025, underwriting margin as a percent of premium was 53%, compared with 56% in the same period in the prior year primarily due to an increase in policy obligations in the current period.
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 Supplement insurance to employer or union-sponsored groups. On a combined basis, these other channels accounted for 13% of health premium for the six months ended June 30, 2025 and 14% for the same period in 2024.
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 12—Business Segments. It is defined as net investment income less the required interest attributable to policy liabilities.
Management 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.
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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 for per share data)
| Six Months Ended<br>June 30, | Change | ||||||
|---|---|---|---|---|---|---|---|
| 2025 | 2024 | Amount | % | ||||
| Net investment income | $ | 562,783 | $ | 568,214 | $ | (5,431) | (1) |
| Interest on policy liabilities(1) | (492,085) | (481,638) | (10,447) | 2 | |||
| Excess investment income | $ | 70,698 | $ | 86,576 | $ | (15,878) | (18) |
| Excess investment income per diluted share | $ | 0.85 | $ | 0.93 | $ | (0.08) | (9) |
| Mean invested assets (at amortized cost) | $ | 21,494,647 | $ | 21,307,683 | $ | 186,964 | 1 |
| Average insurance policy liabilities | 17,727,143 | 17,395,345 | 331,798 | 2 |
(1)Interest on policy liabilities, at original rates, is a component of total policyholder benefits, a GAAP measure.
Excess investment income declined $16 million, or 18%, compared with the year-ago period. Excess investment income per diluted common share was $0.85 for the six months ended June 30, 2025, a decrease of 9% from the prior-year period. Excess investment income per diluted common share generally increases or decreases at a different 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 for the six months ended June 30, 2025 was $563 million, or 1% less than the year-ago period. Mean invested assets increased 1% during the first six months of 2025 over the same period last year. Net investment income declined in the current period primarily due to lower earned yields on short-term investments, commercial mortgage loans and limited partnerships compared to the prior year. The effective annual yield rate earned on the fixed maturity portfolio was 5.27% in the first six months of 2025, compared to 5.26% a year earlier. 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 six months ended June 30, 2025 was 5.62% compared with 8.47% in the prior year period. The lower earned yield on commercial mortgage loans is partly due to lower floating rates in addition to loans in non-accrual status. The earned yield on limited partnership investments for the six months ended June 30, 2025 was 7.60% and 8.90% in the comparable prior year period. See additional information in Note 4—Investments.
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 June 30, 2025, we are not concerned because we do not generally intend to sell, nor is it likely that we will be required to sell, the fixed maturities prior to their anticipated recovery.
Required interest on insurance policy liabilities reduces excess investment income, as it is the amount of net investment income 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 12—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.
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 mandates 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.
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Globe Life Inc.
Management's Discussion & Analysis
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 5.6% 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.
In comparison to the year-ago period, required interest on insurance policy liabilities increased $10 million, or 2%, to $492 million, consistent with the 2% growth in average interest-bearing insurance policy liabilities.
Realized Gains and Losses. Our life and health insurance companies collect premium income from policyholders for the eventual payment of policyholder benefits, sometimes paid for 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. 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 Condensed 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.
Analysis of Realized Gains (Losses), Net of Tax
(Dollar amounts in thousands, except for per share data)
| Six Months Ended June 30, | ||||||||
|---|---|---|---|---|---|---|---|---|
| 2025 | 2024 | |||||||
| Amount | Per Share | Amount | Per Share | |||||
| Fixed maturities: | ||||||||
| Sales | $ | (4,262) | $ | (0.05) | $ | (7,840) | $ | (0.09) |
| Matured or other redemptions(1) | (5,257) | (0.06) | (39) | — | ||||
| Provision for credit losses | 32 | — | (13) | — | ||||
| Fair value option—change in fair value | (4,823) | (0.06) | (15,084) | (0.16) | ||||
| Mortgages | 242 | — | (1,701) | (0.02) | ||||
| Other investments | (1,060) | (0.01) | 910 | 0.01 | ||||
| Total realized gains (losses)—investments | (15,128) | (0.18) | (23,767) | (0.26) | ||||
| Other gains (losses)(2) | 521 | 0.01 | 4,501 | 0.05 | ||||
| Total realized gains (losses) | $ | (14,607) | $ | (0.17) | $ | (19,266) | $ | (0.21) |
(1)During the six months ended June 30, 2025 and 2024, the Company recorded $128.3 million and $78.9 million, respectively, of exchanges of fixed maturity securities (noncash transactions) that resulted in a realized losses of $(2.5) million and $0 net of tax, respectively.
(2)Other realized gains (losses) are primarily a result of changes in the fair value for assets held in rabbi trust.
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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)
| Six Months Ended<br>June 30, | ||||||
|---|---|---|---|---|---|---|
| 2025 | 2024 | |||||
| Cost of acquisitions: | ||||||
| Investment-grade corporate securities | $ | 479,578 | $ | 898,390 | ||
| Investment-grade municipal securities | 18,228 | 6,520 | ||||
| Other securities | 10,292 | 18,186 | ||||
| Total fixed maturity acquisitions(1) | $ | 508,098 | $ | 923,096 | ||
| Effective annual yield (one year compounded)(2) | 6.43 | % | 5.94 | % | ||
| Average life (in years, to next call) | 35.8 | 30.9 | ||||
| Average life (in years, to maturity) | 38.3 | 33.0 | ||||
| Average rating | A- | A- |
(1)Fixed maturity acquisitions included unsettled trades of $0 in 2025 and $0 in 2024.
(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.
Acquisitions in 2025 and 2024 consisted primarily of corporate and municipal bonds with securities spanning a diversified range of issuers, industry sectors, and geographical regions. In the first six months of 2025, we invested primarily in the industrial, financial, and utility sectors. For the entire portfolio, the taxable equivalent effective yield earned was 5.27%, up approximately 1 basis point from the yield in the first six months of 2024. The increase in taxable equivalent effective yield was primarily due to new purchases at yields exceeding the yield on dispositions and the average portfolio yield. For the remainder of 2025, the Company will continue to execute on its existing strategy by seeking to invest in assets that satisfy our quality and other objectives, while maximizing the highest risk-adjusted, capital-adjusted return.
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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)
| Six Months Ended<br>June 30, | ||||
|---|---|---|---|---|
| 2025 | 2024 | |||
| Limited partnerships | $ | 52,816 | $ | 149,223 |
| Commercial mortgage loans | 66,836 | 92,483 | ||
| Common stock | 1,844 | 14,013 | ||
| Convertible notes | — | 2,850 | ||
| Total | $ | 121,496 | $ | 258,569 |
Since fixed maturities represent such a significant portion of our investment portfolio, 88% of total amortized cost net of allowance for credit losses at June 30, 2025, 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 | |||
|---|---|---|---|
| June 30,<br>2025 | December 31, 2024 | June 30,<br>2024 | |
| Average annual effective yield(1) | 5.26% | 5.25% | 5.24% |
| Average life, in years, to: | |||
| Next call(2) | 15.3 | 15.1 | 15.1 |
| Maturity(2) | 19.5 | 19.3 | 19.1 |
| Effective duration to: | |||
| Next call(2,3) | 8.8 | 8.8 | 8.9 |
| Maturity(2,3) | 10.5 | 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 non-callable 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.
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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 June 30, 2025 and December 31, 2024.
Fixed Maturities by Sector
June 30, 2025
(Dollar amounts in thousands)
| Below Investment Grade | Total Fixed Maturities | % of Total<br><br>Fixed Maturities | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Amortized<br>Cost, net | Gross<br>Unrealized<br>Gains | Gross<br>Unrealized<br>Losses | Fair<br>Value | Amortized<br>Cost, net | Gross<br>Unrealized<br>Gains | Gross<br>Unrealized<br>Losses | Fair<br>Value | At Amortized Cost, net | At Fair Value | |||||||||
| Corporates: | ||||||||||||||||||
| Financial | ||||||||||||||||||
| Insurance - life, health, P&C | $ | 7,999 | $ | 115 | $ | — | $ | 8,114 | $ | 2,878,552 | $ | 66,927 | $ | (195,213) | $ | 2,750,266 | 15 | 16 |
| Banks | 60,345 | 372 | (3,707) | 57,010 | 939,288 | 23,379 | (51,085) | 911,582 | 5 | 5 | ||||||||
| Other financial | 74,974 | — | (13,034) | 61,940 | 1,187,107 | 16,979 | (140,315) | 1,063,771 | 6 | 6 | ||||||||
| Total financial | 143,318 | 487 | (16,741) | 127,064 | 5,004,947 | 107,285 | (386,613) | 4,725,619 | 26 | 27 | ||||||||
| Industrial | ||||||||||||||||||
| Energy | 44,541 | — | (4,807) | 39,734 | 1,320,121 | 40,323 | (77,110) | 1,283,334 | 7 | 7 | ||||||||
| Basic materials | — | — | — | — | 1,133,943 | 25,235 | (91,895) | 1,067,283 | 6 | 6 | ||||||||
| Consumer, non-cyclical | — | — | — | — | 2,160,520 | 17,332 | (229,860) | 1,947,992 | 11 | 11 | ||||||||
| Other industrials | 25,000 | — | (5,126) | 19,874 | 1,118,016 | 20,190 | (93,617) | 1,044,589 | 6 | 6 | ||||||||
| Communications | 2,760 | 288 | — | 3,048 | 804,332 | 16,123 | (81,118) | 739,337 | 4 | 4 | ||||||||
| Transportation | — | — | — | — | 629,724 | 13,442 | (40,937) | 602,229 | 3 | 4 | ||||||||
| Consumer, cyclical | 167,086 | — | (25,379) | 141,707 | 491,721 | 3,836 | (60,404) | 435,153 | 3 | 3 | ||||||||
| Technology | 50,274 | 1,256 | — | 51,530 | 342,051 | 2,026 | (62,532) | 281,545 | 2 | 2 | ||||||||
| Total industrial | 289,661 | 1,544 | (35,312) | 255,893 | 8,000,428 | 138,507 | (737,473) | 7,401,462 | 42 | 43 | ||||||||
| Utilities | 58,195 | — | (6,571) | 51,624 | 2,113,952 | 55,957 | (109,524) | 2,060,385 | 12 | 12 | ||||||||
| Total corporates | 491,174 | 2,031 | (58,624) | 434,581 | 15,119,327 | 301,749 | (1,233,610) | 14,187,466 | 80 | 82 | ||||||||
| States, municipalities, and political divisions: | ||||||||||||||||||
| General obligations | — | — | — | — | 909,974 | 4,564 | (216,859) | 697,679 | 5 | 4 | ||||||||
| Revenues | — | — | — | — | 2,393,177 | 18,986 | (417,065) | 1,995,098 | 13 | 12 | ||||||||
| Total states, municipalities, and political divisions | — | — | — | — | 3,303,151 | 23,550 | (633,924) | 2,692,777 | 18 | 16 | ||||||||
| Other fixed maturities: | ||||||||||||||||||
| Government (U.S. and foreign) | — | — | — | — | 450,798 | 152 | (41,309) | 409,641 | 2 | 2 | ||||||||
| Collateralized debt obligations | — | — | — | — | — | — | — | — | — | — | ||||||||
| Other asset-backed securities | 11,648 | 35 | — | 11,683 | 76,166 | 114 | (810) | 75,470 | — | — | ||||||||
| Total fixed maturities | $ | 502,822 | $ | 2,066 | $ | (58,624) | $ | 446,264 | $ | 18,949,442 | $ | 325,565 | $ | (1,909,653) | $ | 17,365,354 | 100 | 100 |
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Management's Discussion & Analysis
Fixed Maturities by Sector
December 31, 2024
(Dollar amounts in thousands)
| Below Investment Grade | Total Fixed Maturities | % of Total<br><br>Fixed Maturities | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Amortized<br>Cost | Gross<br>Unrealized<br>Gains | Gross<br>Unrealized<br>Losses | Fair<br>Value | Amortized<br>Cost | Gross<br>Unrealized<br>Gains | Gross<br>Unrealized<br>Losses | Fair<br>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., municipal, 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 |
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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 June 30, 2025, representing 80% of amortized cost, net, and 82% 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 June 30, 2025, the total fixed maturity portfolio consisted of 1,016 issuers.
Fixed maturities had a fair value of $17.4 billion at June 30, 2025, compared to $17.2 billion at December 31, 2024. The net unrealized loss position in the fixed-maturity portfolio decreased from $1.7 billion at December 31, 2024 to $1.6 billion at June 30, 2025 due to a change in market rates during the period.
For more information about our fixed-maturity portfolio by component at June 30, 2025 and December 31, 2024, 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 June 30, 2025 and December 31, 2024, 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 three or more ratings are available and the lowest rating when two 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 June 30, 2025
(Dollar amounts in thousands)
| Amortized Cost, net | % of Total | Fair<br>Value | % of Total | Average Composite Quality Rating on Amortized Cost, net | |||
|---|---|---|---|---|---|---|---|
| Investment grade: | |||||||
| AAA | $ | 942,695 | 5 | $ | 837,905 | 5 | |
| AA | 3,351,694 | 17 | 2,746,832 | 16 | |||
| A | 5,816,062 | 31 | 5,500,548 | 31 | |||
| BBB+ | 3,230,903 | 17 | 3,039,564 | 18 | |||
| BBB | 3,954,154 | 21 | 3,711,886 | 21 | |||
| BBB- | 1,151,112 | 6 | 1,082,355 | 6 | |||
| Total investment grade | 18,446,620 | 97 | 16,919,090 | 97 | A- | ||
| Below investment grade: | |||||||
| BB | 375,502 | 2 | 334,428 | 2 | |||
| B | 125,122 | 1 | 109,638 | 1 | |||
| Below B | 2,198 | — | 2,198 | — | |||
| Total below investment grade | 502,822 | 3 | 446,264 | 3 | BB- | ||
| $ | 18,949,442 | 100 | $ | 17,365,354 | 100 | ||
| Weighted average composite quality rating | A- |
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Management's Discussion & Analysis
Fixed Maturities by Rating
At December 31, 2024
(Dollar amounts in thousands)
| Amortized<br>Cost, net | % of Total | Fair<br><br>Value | % of Total | Average Composite Quality Rating on Amortized Cost | |||
|---|---|---|---|---|---|---|---|
| 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- |
The overall quality rating of the portfolio is A-, the same as of year-end 2024. Fixed maturities rated BBB are 44% of the total portfolio at June 30, 2025, down from 46% at December 31, 2024. While this ratio is high relative to our peers, it is at its lowest level since 2006 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 June 30, 2025. 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)
| Six Months Ended<br>June 30, | ||||
|---|---|---|---|---|
| 2025 | 2024 | |||
| Balance at beginning of period | $ | 529,120 | $ | 529,511 |
| Downgrades by rating agencies | 65,627 | 29,006 | ||
| Upgrades by rating agencies | (30,565) | — | ||
| Dispositions | (65,513) | (12,549) | ||
| Acquisitions | 6,893 | 17,737 | ||
| Provision for credit losses | 40 | (17) | ||
| Amortization and other | (2,780) | 414 | ||
| Balance at end of period | $ | 502,822 | $ | 564,102 |
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Management's Discussion & Analysis
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 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 June 30, 2025.
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.
An analysis of operating expenses is shown below.
Operating Expenses Selected Information
(Dollar amounts in thousands)
| Six Months Ended June 30, | Increase | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| 2025 | 2024 | (Decrease) | |||||||
| Amount | % of<br>Premium | Amount | % of<br>Premium | Amount | % | ||||
| Insurance administrative expenses: | |||||||||
| Salaries | $ | 68,365 | 2.8 | $ | 62,029 | 2.7 | $ | 6,336 | 10 |
| Other employee costs | 19,708 | 0.8 | 18,076 | 0.8 | 1,632 | 9 | |||
| Information technology costs | 40,491 | 1.7 | 38,868 | 1.7 | 1,623 | 4 | |||
| Legal costs | 12,076 | 0.5 | 12,162 | 0.5 | (86) | (1) | |||
| Other administrative costs | 32,956 | 1.4 | 31,472 | 1.3 | 1,484 | 5 | |||
| Total insurance administrative expenses | 173,596 | 7.2 | 162,607 | 7.0 | 10,989 | 7 | |||
| Parent company expense | 6,605 | 5,956 | 649 | ||||||
| Stock compensation expense | 26,062 | 19,357 | 6,705 | ||||||
| Legal proceedings | 10,776 | 2,435 | 8,341 | ||||||
| Non-operating expenses | — | 1,967 | (1,967) | ||||||
| Total operating expenses, per Condensed Consolidated Statements of Operations | $ | 217,039 | $ | 192,322 | $ | 24,717 | 13 |
Total operating expenses for June 30, 2025 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 $11 million primarily due to higher employee costs, which include salaries and other costs. Insurance administrative expenses as a percent of premium were 7.2% for the six months ended June 30, 2025 compared to 7.0% for the same period in 2024. Stock compensation expense increased primarily due to changes in the mix of awards and increase in award values.
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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 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 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 $10.7 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 the six month periods ended June 30, 2025 and 2024.
Analysis of Share Repurchases
(Amounts in thousands, except per share data)
| Six Months Ended June 30, | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 2025 | 2024 | |||||||||
| Purchases with: | Shares | Amount | Average<br>Price | Shares | Amount | Average<br>Price | ||||
| Excess cash flow at the Parent Company(1) | 3,317 | $ | 402,603 | $ | 121.38 | 3,964 | $ | 329,737 | $ | 83.17 |
| Option exercise proceeds | 881 | 108,598 | 123.27 | 300 | 26,404 | 88.09 | ||||
| Total | 4,198 | $ | 511,201 | $ | 121.78 | 4,264 | $ | 356,141 | $ | 83.52 |
(1)Excludes excise tax on the repurchase of treasury stock of $3.7 million and $3.2 million for the six months ended June 30, 2025 and 2024, respectively.
The amount of share repurchases in the first six months were higher due to higher excess cash flow. The amount of excess cash flow was higher than in the prior year primarily due to higher statutory earnings and the inclusion of extraordinary dividends approved in late 2024. Throughout the remainder of this discussion, share repurchases will only refer to those made from excess cash flow at the Parent Company.
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.
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Management's Discussion & Analysis
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 source of liquidity, the FHLB could provide the insurance subsidiaries with an additional source of liquidity, if needed. Refer to Note 11—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.
| Six Months Ended<br>June 30, | Twelve Months Ended <br>December 31, | ||||||
|---|---|---|---|---|---|---|---|
| 2025 | 2024 | Projected 2025 | 2024 | ||||
| Liquidity Sources: | |||||||
| Dividends from Subsidiaries | $ | 351,394 | $ | 358,255 | $700,000—$750,000 | $ | 692,690 |
| Excess Cash Flows(1) | $ | 474,953 | $ | 327,283 | $780,000—$830,000 | $ | 455,013 |
(1)Excess cash flows are reported gross of shareholder dividends. For the six months ended June 30, 2025 and 2024, shareholder dividends were $43 million and $44 million, respectively. For the twelve months ended December 31, 2025, we project approximately $84 million in shareholder dividends, compared to the $85 million paid in 2024.
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. The excess cash flows in 2025 include the extraordinary dividends approved in the latter part of 2024 of $192 million. Additional sources of liquidity for the Parent Company are cash, intercompany receivables, intercompany borrowings, debt markets, term loans, and a revolving credit facility.
On July 1, 2025, we entered into a 30-year facility agreement (“Facility Agreement”) with a Delaware Trust (the “Trust”) formed by us in connection with the sale by the trust of $500 million pre-capitalized trust securities redeemable May 15, 2055 in a Rule 144A private placement. The Trust invested the proceeds from the sale of its securities in a portfolio of principal and interest strips of U.S. Treasury securities (the “Strips”).
The Facility Agreement provides us with the right to sell at any time to the Trust up to $500 million of our 6.580% Senior Notes due 2055 (the “6.580% Senior Notes”) in exchange for a corresponding amount of the Strips held by the Trust (the “Issuance Right”). We agreed to pay a semi-annual facility fee of 1.789% per annum on the unexercised portion of the Issuance
The Issuance Right will be exercised automatically in full upon (i) our failure to pay the facility fee or to purchase any Strips required to be purchased under the Facility, if the failure to pay is not cured within 30 days, or (ii) certain bankruptcy events involving the Company. We are also required to exercise the Issuance Right in full if our consolidated stockholders’ equity (excluding AOCI) falls below $1.55 billion, subject to certain adjustments.
The Company can redeem the 6.580% Senior Notes at any time, in whole or in part, at a price equal to the greater of par or a make-whole redemption price. At June 30, 2025, the Company had no senior note issuances under the Facility Agreement.
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 backup 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 June 30, 2025, we had available $488 million of additional borrowing capacity under this facility,
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Management's Discussion & Analysis
compared to $572 million a year earlier. As of June 30, 2025, 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 credits. These letters of credit are issued on behalf of our insurance subsidiaries.
The following tables present certain information about our commercial paper borrowings.
Credit Facility—Commercial Paper
(Dollar amounts in thousands)
| At | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| June 30,<br>2025 | December 31, 2024 | June 30,<br>2024 | |||||||
| Balance of commercial paper at end of period (par value) | $ | 397,000 | $ | 419,000 | $ | 313,225 | |||
| Annualized interest rate | 4.73 | % | 5.22 | % | 6.02 | % | |||
| Letters of credit outstanding | $ | 115,000 | $ | 115,000 | $ | 115,000 | |||
| Remaining amount available under credit line | 488,000 | 466,000 | 571,775 |
Credit Facility—Commercial Paper Activity
(Dollar amounts in thousands)
| Six Months Ended June 30, | ||||||
|---|---|---|---|---|---|---|
| 2025 | 2024 | |||||
| Average balance of commercial paper outstanding during period (par value) | $ | 456,181 | $ | 392,905 | ||
| Daily-weighted average interest rate (annualized) | 4.99 | % | 5.76 | % | ||
| Maximum daily amount outstanding during period (par value) | $ | 605,500 | $ | 633,425 |
The Company reduced commercial paper borrowings by $22 million since year end. The Company was able to issue commercial paper as needed under this facility during the six months ended June 30, 2025 and 2024.
Globe Life 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 through liquid assets currently available, internally-generated cash flow and the credit facility. In the event more liquidity is needed, the Parent Company could generate additional funds through multiple sources including, but not limited to, the issuance of debt, an additional short-term credit facility or term loan, and intercompany borrowing.
Consolidated Liquidity. Consolidated net cash inflows from operations were $740 million in the first six months of 2025, compared with $725 million in the same period of 2024. The increase 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 available for sale, mortgage loans, and other long-term investments in the amount of $434 million during the first six months of 2025. As previously noted under the caption Short-Term Borrowings, 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 $356 million at June 30, 2025, compared with $250 million at December 31, 2024. In addition to these liquid assets, $17 billion (fair value at June 30, 2025) 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, on-going investment maturities, and available liquidity under our credit facility make any need to sell securities for liquidity highly unlikely.
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Globe Life Inc.
Management's Discussion & Analysis
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.
Long-Term Borrowings. At June 30, 2025, the outstanding long-term debt at book value was $2.3 billion unchanged from December 31, 2024.
Selected Information about Debt Issues
As of June 30, 2025
(Dollar amounts in thousands)
| Instrument | Issue Date | Maturity Date | Coupon Rate | Interest Payment Dates | Par<br>Value | Book<br>Value | Fair<br>Value | |||
|---|---|---|---|---|---|---|---|---|---|---|
| Senior notes | 09/27/2018 | 09/15/2028 | 4.550% | semiannual | $ | 550,000 | $ | 547,373 | $ | 552,519 |
| Senior notes | 08/21/2020 | 08/15/2030 | 2.150% | semiannual | 400,000 | 397,368 | 353,416 | |||
| Senior notes(1) | 05/19/2022 | 06/15/2032 | 4.800% | semiannual | 250,000 | 246,482 | 245,922 | |||
| Senior notes | 08/23/2024 | 09/15/2034 | 5.850% | semiannual | 450,000 | 445,016 | 465,089 | |||
| Junior subordinated debentures | 11/17/2017 | 11/17/2057 | 5.275% | semiannual | 125,000 | 123,452 | 97,500 | |||
| Junior subordinated debentures | 06/14/2021 | 06/15/2061 | 4.250% | quarterly | 325,000 | 317,430 | 209,300 | |||
| Term loan(2) | 05/11/2023 | 08/15/2027 | 5.799% | quarterly | 250,000 | 248,521 | 248,521 | |||
| Total long-term debt | 2,350,000 | 2,325,642 | 2,172,267 | |||||||
| FHLB borrowings | 70,000 | 70,000 | 70,000 | |||||||
| Commercial paper | 397,000 | 394,540 | 394,540 | |||||||
| Total short-term debt | 467,000 | 464,540 | 464,540 | |||||||
| Total debt | $ | 2,817,000 | $ | 2,790,182 | $ | 2,636,807 |
(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 term loan was amended on August 15, 2024 extending the maturity date from November 11, 2024 to August 15, 2027 and increasing the principal amount from $170 million to $250 million.
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 Condensed Consolidated Statements of Operations.
Analysis of Financing Costs
(Dollar amounts in thousands)
| Six Months Ended<br>June 30, | Increase<br>(Decrease) | ||||||
|---|---|---|---|---|---|---|---|
| 2025 | 2024 | Amount | % | ||||
| Interest on funded debt | $ | 47,179 | $ | 33,853 | $ | 13,326 | 39 |
| Interest on term loans | 7,674 | 5,956 | 1,718 | 29 | |||
| Interest on short-term debt | 15,011 | 20,203 | (5,192) | (26) | |||
| Other | 13 | 13 | — | — | |||
| Financing costs | $ | 69,877 | $ | 60,025 | $ | 9,852 | 16 |
During the first six months of 2025, financing costs increased 16% compared to the prior year. The increase in financing costs is primarily due to higher average balances in the current year compared to the prior year due to the issuance of debt in the third quarter of 2024. More information on our debt transactions is disclosed in the Financial Condition section of this report.
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GLOBE LIFE INC.
Management's Discussion & Analysis
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 RBC 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.
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 was 316%. 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.
Shareholders' Equity: Shareholders’ equity was $5.4 billion at June 30, 2025. This compares with $5.3 billion at December 31, 2024 and $5.2 billion at June 30, 2024. During the six months since December 31, 2024, shareholders’ equity increased as a result of net income of $507 million during the first six months of 2025, but was offset by share repurchases of $403 million and an additional $109 million in share repurchases to offset the dilution from stock option exercises. Additionally, the change in the balance of AOCI increased shareholders' equity $46 million primarily due to changes in interest rates and discount rates over the period.
On April 25, 2025, the Parent Company announced that it had declared a quarterly dividend of $0.27 per share. This dividend was paid on August 1, 2025.
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 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
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GLOBE LIFE INC.
Management's Discussion & Analysis
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.
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Item 3. Quantitative and Qualitative Disclosures About Market Risk
There have been no quantitative or qualitative changes with respect to market risk exposure during the six months ended June 30, 2025.
Item 4. 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 period completed June 30, 2025, 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-Q. 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-Q.
Changes in Internal Control over Financial Reporting: During the period ended June 30, 2025, 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.
Part II—Other Information
Item 1. Legal Proceedings
Discussion regarding litigation is provided in Note 5—Commitments and Contingencies.
Item 1A. Risk Factors
The Company had no material changes to its risk factors.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Purchases of Certain Equity Securities by the Issuer and Others for the Second Quarter of 2025
| Period | (a) Total Number<br><br>of Shares<br><br>Purchased | (b) Average<br><br>Price Paid<br><br>Per Share | (c) Total Number of<br>Shares Purchased as <br>Part of Publicly Announced<br>Plans or Programs | (d) Maximum Number<br><br>of Shares (or<br><br>Approximate Dollar<br><br>Amount) that May<br><br>Yet Be Purchased<br><br>Under the Plans or<br><br>Programs | |
|---|---|---|---|---|---|
| April 1-30, 2025 | 427,129 | $ | 121.76 | 427,129 | — |
| May 1-31, 2025 | 1,168,418 | 121.02 | 1,168,418 | — | |
| June 1-30, 2025 | 451,775 | 120.90 | 451,775 | — |
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Item 5. Other Information
(c) Trading arrangements
During the six months ended June 30, 2025, 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.
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Item 6. Exhibits
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
| GLOBE LIFE INC. | |
|---|---|
| Date: August 6, 2025 | /s/ J. Matthew Darden |
| J. Matthew Darden | |
| Co-Chairman and Chief Executive Officer | |
| Date: August 6, 2025 | /s/ Frank M. Svoboda |
| Frank M. Svoboda | |
| Co-Chairman and Chief Executive Officer | |
| Date: August 6, 2025 | /s/ Thomas P. Kalmbach |
| Thomas P. Kalmbach | |
| Executive Vice President and Chief Financial Officer |
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globelife-fifthsupplemen
Execution Version GLOBE LIFE INC., as Issuer and REGIONS BANK, as Trustee ______________________ 6.580% Senior Notes due 2055 ______________________ FIFTH SUPPLEMENTAL INDENTURE Dated as of July 1, 2025
1 FIFTH SUPPLEMENTAL INDENTURE THIS FIFTH SUPPLEMENTAL INDENTURE (this “Fifth Supplemental Indenture”), dated as of July 1, 2025, is between Globe Life Inc. (formerly known as Torchmark Corporation), a Delaware corporation (the “Company”), and Regions Bank, as trustee (the “Trustee”). All capitalized terms used but not otherwise defined herein shall have the meaning set forth in the Base Indenture (as defined below). RECITALS OF THE COMPANY WHEREAS, the Company and the Trustee executed and delivered an Indenture, dated as of September 24, 2018 (the “Base Indenture” and, as amended and supplemented by this Fifth Supplemental Indenture, the “Indenture”), to provide for the issuance by the Company from time to time of the Company’s senior debt securities evidencing its unsecured and unsubordinated indebtedness (the “Securities”), to be issued in one or more series as provided in the Indenture. WHEREAS, the Company has duly authorized the execution and delivery, and desires and has requested the Trustee to join it in the execution and delivery, of this Fifth Supplemental Indenture in order to establish and provide for the issuance by the Company of a series of Securities designated as its 6.580% Senior Notes due 2055 (the “Notes”), on the terms set forth herein. WHEREAS, Sections 901(5) and 901(7) of the Base Indenture provide that without the consent of Holders of the Securities of any series issued under the Indenture, the Company, when authorized by or pursuant to a Board Resolution, and the Trustee, at any time and from time to time, may enter into one or more indentures supplemental to the Base Indenture for such purpose. WHEREAS, the Company desires to establish the form and terms of the Notes and to modify, alter, supplement and change certain provisions of the Base Indenture for the benefit of the Holders of the Notes (except as may be provided in a future supplemental indenture to the Indenture applicable to the Notes (a “Future Supplemental Indenture”)). WHEREAS, pursuant to the terms of the Facility Agreement, dated July 1, 2025 (the “Facility Agreement”), among the Company, Henneman Trust, a Delaware statutory trust (the “Trust”), and the Trustee, the Company may issue and sell the Notes to the Trust from time to time in an amount up to the Maximum Amount at any one time outstanding; WHEREAS, the Company has duly authorized the execution and delivery of this Fifth Supplemental Indenture to provide for the issuance of the Notes and amendment of certain provisions of the Base Indenture as herein provided, and all acts and things necessary to make this Fifth Supplemental Indenture a valid, binding, and legal obligation of the Company and to constitute a valid agreement of the Company, in accordance with its terms, have been done and performed.
2 NOW, THEREFORE, for and in consideration of the premises and the purchase of the Notes by the Holders thereof, it is mutually agreed, for the equal and proportionate benefit of all Holders of the Notes, as follows: ARTICLE I DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION Section 101 Certain Defined Terms. Except as may be provided in a Future Supplemental Indenture, for the benefit of the Holders of the Notes but no other series of Securities under the Indenture, whether now or hereafter issued and Outstanding, Article I of the Base Indenture shall be amended by adding the following defined terms to Section 101 in appropriate alphabetical sequence, as follows: “Business Day” means any day that is not a day on which the federal or state banking institutions in The City of New York or the State of Delaware are authorized or obligated by law or executive order to close or the Federal Reserve Bank of New York is closed. “Lien” means, with respect to any property of any person, any mortgage or deed of trust, pledge, hypothecation, assignment, deposit arrangement, security interest, lien, charge, encumbrance, preference, priority or other security agreement or preferential arrangement of any kind or nature whatsoever on or with respect to such property (including any capital lease obligation, conditional sale or other title retention agreement having substantially the same economic effect as any of the foregoing or any sale and leaseback transaction). “Maximum Amount” means, at any time, in respect of the Notes, $500,000,000 aggregate principal amount of Notes less the aggregate principal amount of Notes, if any, that the Company has previously redeemed from the Trust or as to which the Company has paid the Cash Settlement Amount (as defined in the Facility Agreement). “Offering Memorandum” means the offering memorandum relating to the Trust Securities dated June 24, 2025. “Par Call Date” means November 15, 2054. “Permitted Lien” means: (1) Liens securing indebtedness owed by a Significant Subsidiary to another Significant Subsidiary or to the Company; (2) pledges or deposits under workers’ compensation or other similar laws and judgment Liens thereunder that are not currently dischargeable; (3) good faith deposits in connection with leases to which the Company or any Significant Subsidiary is a party; (4) deposits to secure the Company’s public or statutory obligations;
3 (5) deposits in connection with obtaining or maintaining self-insurance or obtaining the benefits of any law, regulation or arrangement pertaining to unemployment insurance, old age pensions, social security or similar matters; (6) deposits in litigation or other proceedings; (7) Liens created by or resulting from any judgments or awards against the Company or any of its Significant Subsidiaries with respect to which the Company is in good faith prosecuting an appeal or other review proceedings, or Liens incurred by the Company or any of its Significant Subsidiaries of for the purpose of obtaining a stay or discharge in the course of any litigation to which the Company a party; or (8) Liens for taxes or assessments, governmental charges or levies not yet due or delinquent, or which can be paid thereafter without penalty, or which are being contested in good faith by appropriate proceedings. “Regular Record Date” means the May 1 or November 1 of each year (whether or not a Business Day) immediately preceding the related Interest Payment Date. “Restricted Legend” means the legend set forth in Exhibit A on the face of the Note. “Rule 144” means Rule 144 under the Securities Act, as such rule may be amended from time to time, or any successor provision. “Rule 144A” means Rule 144A under the Securities Act, as such rule may be amended from time to time, or any successor provision. “Securities Act” means the Securities Act of 1933, as amended. “Treasury Rate” means, with respect to any Redemption Date, the yield determined by the Company in accordance with the following two paragraphs. The Treasury Rate shall be determined by the Company after 4:15 p.m., New York City time (or after such time as yields on U.S. government securities are posted daily by the Board of Governors of the Federal Reserve System), on the third Business Day preceding the Redemption Date based upon the yield or yields for the most recent day that appear after such time on such day in the most recent statistical release published by the Board of Governors of the Federal Reserve System designated as “Selected Interest Rates (Daily)—H.15” (or any successor designation or publication) (“H.15”) under the caption “U.S. government securities–Treasury constant maturities–Nominal” (or any successor caption or heading) (“H.15 TCM”). In determining the Treasury Rate, the Company shall select, as applicable: (1) the yield for the Treasury constant maturity on H.15 exactly equal to the period from the Redemption Date to the Par Call Date (the “Remaining Life”); or (2) if there is no such Treasury constant maturity on H.15 exactly equal to the Remaining Life, the two yields – one yield corresponding to the Treasury constant maturity on H.15 immediately shorter than the Remaining Life and one yield corresponding to the Treasury constant maturity on H.15 immediately longer than the Remaining Life – and shall interpolate to the Par Call Date on a straight-line basis (using the actual number
4 of days) using such yields and rounding the result to three decimal places; or (3) if there is no such Treasury constant maturity on H.15 shorter than or longer than the Remaining Life, the yield for the single Treasury constant maturity on H.15 closest to the Remaining Life. For purposes of this paragraph, the applicable Treasury constant maturity or maturities on H.15 shall be deemed to have a maturity date equal to the relevant number of months or years, as applicable, of such Treasury constant maturity from the Redemption Date. If on the third Business Day preceding the Redemption Date H.15 TCM is no longer published, the Company shall calculate the Treasury Rate based on the rate per annum equal to the semi-annual equivalent yield to maturity at 11:00 a.m., New York City time, on the second Business Day preceding such Redemption Date of the United States Treasury security maturing on, or with a maturity that is closest to, the Par Call Date, as applicable. If there is no United States Treasury security maturing on the Par Call Date but there are two or more United States Treasury securities with a maturity date equally distant from the Par Call Date, one with a maturity date preceding the Par Call Date and one with a maturity date following the Par Call Date, the Company shall select the United States Treasury security with a maturity date preceding the Par Call Date. If there are two or more United States Treasury securities maturing on the Par Call Date or two or more United States Treasury securities meeting the criteria of the preceding sentence, the Company shall select from among these two or more United States Treasury securities the United States Treasury security that is trading closest to par based upon the average of the bid and asked prices for such United States Treasury securities at 11:00 a.m., New York City time. In determining the Treasury Rate in accordance with the terms of this paragraph, the semi-annual yield to maturity of the applicable United States Treasury security shall be based upon the average of the bid and asked prices (expressed as a percentage of principal amount) at 11:00 a.m., New York City time, of such United States Treasury security, and rounded to three decimal places. “Trust Declaration” means the Amended and Restated Declaration of Trust, dated as of July 1, 2025, among the Company, as depositor, The Bank of New York Mellon, a New York banking corporation, as trustee of the Trust, and BNY Mellon Trust of Delaware, a Delaware banking corporation, as Delaware trustee, and the Company (solely for the purposes of Section 5.10(b), Section 5.10(f), Section 7.1(a) and Section 10.4(c) thereof), relating to the Trust. “Trust Securities” means the pre-capitalized trust securities of the Trust. ARTICLE II TERMS OF THE NOTES Section 201 Terms of the Notes. The following terms relating to the Notes are hereby established: (a) The Notes are hereby created and designated a series of Securities under the Base Indenture. The title of the Notes shall be “6.580% Senior Notes due 2055”, and the Notes shall bear a CUSIP number of 37959E AD4 and an ISIN number of US37959EAD40. (b) The aggregate principal amount of Notes that may be authenticated and delivered under the Indenture and at any one time outstanding shall not exceed the Maximum Amount.
5 On the date hereof, the Company shall execute, and the Trustee shall authenticate, a single certificate, registered in the name of the Trust in the form of Exhibit A to this Fifth Supplemental Indenture (the “Initial Note Certificate”), to evidence Notes that may be sold to the Trust from time to time pursuant to the Facility Agreement. The initial principal amount of the Initial Note Certificate shall be $0, and the aggregate principal amount of Notes represented by such certificate may from time to time be increased or decreased (at the direction of the Company in a Company Order) to reflect (i) any issuance and sale, or any Repurchase (as defined in the Facility Agreement), of Notes pursuant to the Facility Agreement upon receipt of written confirmation of the receipt of the purchase price for the Notes to be sold or repurchased from (A) the Company in the case of any exercise of the Issuance Right (as defined in the Facility Agreement), (B) the Issuance Right Assignee (as defined in the Facility Agreement) in the case of any exercise of the Assigned Issuance Right (as defined in the Facility Agreement) or (C) the trustee of the Trust in the case of any Repurchase (as defined in the Facility Agreement), (ii) any cancellation thereof pursuant to Section 201(n) hereof or (iii) any redemption thereof pursuant to Section 201 hereof; provided that the principal amount of Notes represented by the Initial Note Certificate may at no time exceed the Maximum Amount. The principal amount of the Initial Note Certificate as recorded in the Security Register shall be conclusive and binding absent manifest error. (c) The Stated Maturity for the Notes shall be May 15, 2055, or if such date is not a Business Day, the next Business Day. (d) The Notes will initially be issued at 100% of the principal amount. (e) The rate at which the Notes shall bear interest shall be 6.580% per annum. The date from which interest shall accrue on the Notes shall be the date the Notes are delivered to the Trust or, if such date is not a May 15 or November 15, the immediately preceding May 15 or November 15 (or, if such date is prior to November 15, 2025, the date that the Trust Securities are initially issued); the Interest Payment Dates for the Notes shall be May 15 and November 15 of each year, commencing on the May 15 or November 15 next following the date the Notes are delivered to the Trust; the initial interest period will be the period from, and including, the date the Notes are delivered to the Trust or, if such date is not a May 15 or November 15, the immediately preceding May 15 or November 15 (or, if such date is prior to November 15, 2025, the date that the Trust Securities are initially issued) to, but excluding, the initial Interest Payment Date, and the subsequent interest periods will be the periods from, and including, an Interest Payment Date to, but excluding, the next Interest Payment Date; the interest so payable, and punctually paid or duly provided for, on any Interest Payment Date, will be paid to the Person in whose name the Note (or one or more Predecessor Securities) is registered at the close of business on the relevant Regular Record Date; provided that (a) interest payable at maturity or upon redemption will be paid to the Person in whose name the principal of the Note (or one or more Predecessor Securities) is payable and (b) if a payment date would fall on a day that is not a Business Day, then the applicable interest payment will be made on the next succeeding Business Day and no additional interest will accrue as a result of such delayed payment. Notwithstanding the foregoing or Section 307 of the Base Indenture, (a) at any time that an outstanding Note is held by the Trust or in book-entry form only, interest will be paid to the Person in whose name the Note (or one or more Predecessor Securities) is registered at the close of business on the Business Day immediately preceding the relevant date of payment and (b) if
6 any Note is issued as a certificated Note to holders of Trust Securities on or after a Regular Record Date and prior to the related Interest Payment Date, interest shall be payable to the Person in whose name the Trust Securities were registered at the close of business on such Regular Record Date (and notified in writing by the Company to the Trustee). Payment of principal of and interest on (and premium and Make-Whole Amounts, if any, on) the Notes will initially be made at the office of the Company located at 3700 South Stonebridge Drive, McKinney, Texas 75070 (provided that if the Notes are distributed by the Trust to the holders of the Trust Securities upon the dissolution and termination of the Trust, then such payments shall be made at the Corporate Trust Office of the Trustee) in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts; provided, however, that at the option of the Company payment of interest may be made by check mailed to the address of the Person entitled thereto as such address shall appear in the Security Register; provided, further, however, that at any time that the Notes are registered to Cede & Co., such payment will be made by wire transfer in accordance with the procedures established by The Depository Trust Company (“DTC”). Interest on the Notes will be computed on the basis of a 360-day year composed of twelve 30-day months. So long as the Company is acting as its own Paying Agent, the Trustee shall be entitled to assume without inquiry that payments to the Holders of the Notes have been made absent written notice to the contrary. (f) If the Notes are distributed by the Trust to the holders of the Trust Securities upon the dissolution and termination of the Trust, then such Notes shall initially be issuable in global form (each such Note in global form, a “Global Note”) and, prior to such distribution, the Company shall use its best efforts to cause the cancellation of the Initial Note Certificate in exchange for the issuance of one or more Global Notes through the facilities of DTC (including delivery to the Trustee of a Company Order to authenticate such Global Note(s) and approve Deposit/Withdrawal at Custodian (“DWAC”) deposit instructions as necessary to effectuate such exchange). The Trustee shall have no duty to cause such Global Note(s) to be exchanged for the Initial Note Certificate other than authenticating such Global Note(s) and approving DWAC instructions initiated by the holders thereof as directed in such Company Order. Each Global Note and the Trustee’s certificate of authentication thereon shall be substantially in the form of Exhibit A to this Fifth Supplemental Indenture. Each Global Note shall represent the outstanding Notes as shall be specified therein and each shall provide that it shall represent the aggregate amount of outstanding Notes from time to time endorsed thereon and that the aggregate amount of outstanding Notes represented thereby may from time to time be reduced or increased, as appropriate, to reflect exchanges and redemptions. Any endorsement of a Global Note to reflect the amount of any increase or decrease in the amount of outstanding Notes represented thereby shall be made by the Trustee or the Security Registrar, in accordance with Sections 203 and 305 of the Base Indenture. Furthermore, any Global Note shall be exchangeable for certificated Notes only in the limited circumstances provided in Section 305 of the Base Indenture. (g) If the Notes are distributed by the Trust to the holders of the Trust Securities upon the dissolution and termination of the Trust, the depositary for such Global Note(s) (the “Depositary”) shall initially be DTC, New York, New York; provided that, if the Notes are not eligible to be settled through DTC or any successor thereto at the time of such distribution, such Notes will be distributed in definitive form.
7 (h) (i) The Notes shall be defeasible pursuant to Section 1402 or Section 1403 of the Base Indenture and (ii) covenant defeasance contained in Section 1403 of the Base Indenture shall apply to the covenants contained in Sections 1006 and 1007 of the Indenture, as such covenants are amended pursuant to Article III of this Fifth Supplemental Indenture, in each case, only after the Notes are distributed to the holders of the Trust Securities upon the dissolution and termination of the Trust. (i) The Notes shall be redeemable pursuant to Section 1101 of the Base Indenture pursuant to the following terms: (i) Prior to the Par Call Date, the Notes will be redeemable in whole or in part at any time and from time to time, at the option of the Company, at a Redemption Price (expressed as a percentage of principal amount and rounded to three decimal places) equal to the greater of: (1) (a) the sum of the present values of the remaining scheduled payments of principal and interest thereon discounted to the Redemption Date (assuming the Notes to be redeemed matured on the Par Call Date) on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months), at the Treasury Rate plus 30 basis points, less (b) interest accrued to, but excluding, the Redemption Date, and (2) 100% of the principal amount of the Notes to be redeemed, plus, in either case, accrued and unpaid interest thereon to, but excluding, the Redemption Date. (ii) On or after the Par Call Date, the Notes will be redeemable at the Company’s option, in whole or in part, at any time and from time to time, at a Redemption Price equal to 100% of the principal amount of the Notes being redeemed plus accrued and unpaid interest thereon to, but excluding, the Redemption Date. (iii) Notice of redemption shall be given in writing and mailed, first-class postage prepaid or by overnight courier guaranteeing next-day delivery, or, in the case of a Global Note, sent electronically in accordance with the procedures of the applicable Depositary, to the Trustee, the Paying Agent and each Holder of the Notes to be redeemed (at the Holder’s address appearing in the Security Register) not less than ten (10) nor more than sixty (60) days prior to the Redemption Date. All notices of redemption shall contain the information set forth in Section 1104 of the Base Indenture. (iv) Any exercise of the Company’s option to redeem the Notes will be done in compliance with the Indenture. (v) If the Company elects to redeem only a portion of the Notes, the Trustee shall select the Notes to be redeemed pro rata, in accordance with the procedures of the applicable Depositary and any applicable stock exchange to the extent applicable; provided further, that the unredeemed portion of the principal amount of any Note shall be in a denomination of not less than $2,000.00. Prior to the dissolution and termination of the
8 Trust, the Company may redeem the Notes only in integral multiples of $25,000,000 principal amount. (vi) Once notice of redemption is sent, any Notes called for redemption will become due and payable on the Redemption Date and at the applicable Redemption Price, subject to any conditions precedent specified in such notice. (vii) Unless the Company defaults in payment of the Redemption Price, interest will cease to accrue on the Notes (or portions thereof) called for redemption hereunder on and after the Redemption Date. (viii) The Notes that have been redeemed pursuant to this Section 201(i) shall be cancelled and may not be reissued. (ix) The Company’s actions and determinations in determining the Redemption Price shall be conclusive and binding for all purposes, absent manifest error, and the Trustee shall have no responsibility for calculating or verifying the Redemption Price. (x) Prior to the dissolution and termination of the Trust, the Company may repurchase the Notes in compliance with Section 2.2 of the Facility Agreement. (j) The Notes shall not be subject to any sinking fund pursuant to Section 1201 of the Base Indenture. (k) The Notes are issuable only in the form of Registered Securities without coupons in minimum denominations of $2,000.00 and integral multiples of $1,000.00 in excess thereof. (l) Holders of the Notes will not have the option to have the Notes repaid prior to the Stated Maturity. (m) Paying Agent; Security Registrar. Initially, the Company shall act as Paying Agent and the Trustee shall act as Security Registrar. The office of the Company at 3700 South Stonebridge Drive, McKinney, Texas 75070 shall be the office or agency of the Paying Agent and the Corporate Trust Office shall be the office or agency of the Security Registrar for the Notes. If the Notes are distributed by the Trust to the holders of the Trust Securities upon the dissolution and termination of the Trust, the Trustee shall initially act as Paying Agent and Security Registrar and the Corporate Trust Office shall be the office or agency of the Paying Agent and the Security Registrar for the Notes. (n) Transfer and Exchanges (i) The Security Registrar shall not be required to effect any transfer (other than to the Company or DTC or its nominee) of any Notes on the Security Register unless (i) it receives a certificate substantially in the form of Exhibit B duly executed by the Holder or their attorney duly authorized in writing, or (ii) any other exemption from the registration requirements under the Securities Act is available and, in each case, the Company or the Trustee receives such documentation, including Opinions of Counsel, requested by the Company or the Trustee in order to confirm compliance with the transfer restrictions set
9 forth herein; provided that, if the requested transfer or exchange is made by the registered holder of a Note that does not bear the Restricted Legend, then no certification is required. (ii) No certification is required in connection with any transfer or exchange of any Note (or a beneficial interest therein) after such Note is eligible for resale pursuant to Rule 144 without being subject to any conditions as provided in Rule 144; provided that the Company has provided the Trustee with an Officers’ Certificate and Opinion of Counsel to that effect, and the Company may require from any Person requesting a transfer or exchange in reliance upon this clause an Opinion of Counsel and any other reasonable certifications and evidence in order to support such certificate. Any Note delivered in reliance upon this paragraph will not bear the Restricted Legend. (iii) The Trustee will retain copies of all certificates, opinions and other documents received in connection with the transfer or exchange of a Note that is not a Global Note (or a beneficial interest therein), and the Company will have the right to inspect and make copies thereof at any reasonable time upon prior written notice to the Trustee. (iv) The Trustee shall have no obligation or duty to monitor, determine or inquire as to compliance with any restrictions on transfer imposed under this Fifth Supplemental Indenture or under applicable law with respect to any transfer of any interest in any Note (including any transfers between or among Depositary participants or beneficial owners of interests in a Global Note) other than to require delivery of such certificates and other documentation or evidence as are expressly required by, and to do so if and when expressly required by the terms of, this Fifth Supplemental Indenture, and to examine the same to determine compliance on their face as to form with the express requirements hereof; provided that the Trustee shall have no duty to require such documents to the extent it has no knowledge of any such transfer. (v) In the event that a Depositor Affiliated Owner/Holder (as defined in the Trust Declaration) is the beneficial owner or holder of any Trust Securities and requests that the trustee of the Trust exchange Trust Securities for Notes pursuant to Section 5.4(e) of the Trust Declaration, the Trustee shall register the transfer of such Notes to such Depositor Affiliated Owner/Holder or, if requested, cancel such Notes in accordance with Section 309 of the Base Indenture. The Company shall provide the Trustee with a copy of any such request by any such Depositor Affiliated Owner/Holder under Section 5.4(e) of the Trust Declaration promptly after such a request is made. (o) Restricted Legend (i) Except as otherwise provided in paragraph (ii) of this Section 201(o), the proviso to Section 201(n)(i) or Section 201(n)(ii), each Note shall bear the Restricted Legend. (ii) If the Company determines (upon the advice of counsel and such other certifications and evidence as the Company may reasonably require (which shall also be addressed to the Trustee)) that a Note is eligible for resale pursuant to Rule 144 without compliance with any limits thereunder and that the Restricted Legend is no longer necessary or appropriate in order to ensure that subsequent transfers of the Note (or a
10 beneficial interest therein) are effected in compliance with the Securities Act, the Company may instruct the Trustee in an Officers’ Certificate to cancel the Note and issue to the holder thereof (or to its transferee) a new Note of like tenor and amount of the same series, registered in the name of the registered holder thereof (or its transferee), that does not bear the Restricted Legend, and the Trustee will comply with such instruction and shall incur no liability with complying with such instructions. (iii) By its acceptance of any Note bearing the Restricted Legend (or any beneficial interest in such a Note), each registered holder thereof and each owner of a beneficial interest therein acknowledges the restrictions on transfer of such Note (and any such beneficial interest) set forth in this Fifth Supplemental Indenture and in the Restricted Legend and agrees that it will transfer such Note (and any such beneficial interest) only in accordance with this Fifth Supplemental Indenture and such legend. ARTICLE III AMENDMENTS TO BASE INDENTURE Section 301 Except as may be provided in a Future Supplemental Indenture, for the benefit of the Holders of the Notes but no other series of Securities under the Indenture, whether now or hereafter issued and Outstanding, the definition of “Government Obligations” shall be amended and restated in entirety as set forth below: ““Government Obligations” means securities which are (i) direct obligations of the United States of America or, if specified as contemplated by Section 301, the government which issued the Foreign Currency in which the Securities of a particular series are payable, for the payment of which its full faith and credit is pledged, (ii) obligations of a Person controlled or supervised by and acting as an agency or instrumentality of the United States of America or, if specified as contemplated by Section 301, such government which issued the Foreign Currency in which the Securities of such series are payable, the payment of which is unconditionally guaranteed as a full faith and credit obligation by the United States of America or such other government, which, in either case, are not callable or redeemable at the option of the issuer thereof, and shall also include a depository receipt issued by a bank or trust company as custodian with respect to any such Government Obligation or a specific payment of interest on or principal of any such Government Obligation held by such custodian for the account of the holder of a depository receipt, provided that (except as required by law) such custodian is not authorized to make any deduction from the amount payable to the holder of such depository receipt from any amount received by the custodian in respect of the Government Obligation or the specific payment of interest on or principal of the Government Obligation evidenced by such depository receipt or (iii) money market funds that invest solely in such obligations referenced in clauses (i) or (ii) above.” Section 302 Except as may be provided in a Future Supplemental Indenture, for the benefit of the Holders of the Notes but no other series of Securities under the Indenture, whether now or hereafter issued and Outstanding, Article VII of the Base Indenture shall be amended by adding the following to Section 703 thereto, as set forth below:
11 “At any time when the Company is not subject to Section 13 or 15(d) of the Securities Exchange Act of 1934, as amended, upon the request of a holder of a Note (or a beneficial interest therein) the Company shall promptly furnish or cause to be furnished Rule 144A Information (as defined below) to such holder, or to a prospective purchaser of such Note (or a beneficial interest therein) in order to permit compliance by such holder with Rule 144A under the Securities Act in connection with the resale of such Note by such holder (or a beneficial interest therein). “Rule 144A Information” shall be such information as is specified pursuant to paragraph (d)(4) of Rule 144A (or any successor provision thereto), as such provisions (or successor provision) may be amended from time to time. Notwithstanding the foregoing, the Company will be deemed to have furnished such financial and other information referred to above to the holders of the Notes (or beneficial interests therein) and to any prospective purchaser designated by such a holder, if the Company has filed reports containing such information with the U.S. Securities and Exchange Commission via the EDGAR filing system and such reports are publicly available.” Section 303 Except as may be provided in a Future Supplemental Indenture, for the benefit of the Holders of the Notes but no other series of Securities under the Indenture, whether now or hereafter issued and Outstanding, Article X of the Base Indenture shall be amended by adding the following new Sections 1006 and 1007 thereto, each as set forth below: “Section 1006. Limitations on Liens. As long as any of the Notes are outstanding, the Company will not, and will not permit any of its Subsidiaries to, directly or indirectly, create, incur, assume, guarantee or suffer to exist any indebtedness for borrowed money secured by a Lien, other than a Permitted Lien, on any Voting Securities of any of its Significant Subsidiaries that is owned directly or indirectly by the Company or any of its Subsidiaries, in each case whether owned at the date of the initial issuance of the Notes or thereafter acquired, or any interest therein or any income or profits therefrom, unless the Notes and, if the Company so elects, any other indebtedness of the Company ranking at least on an equal basis with the Notes, will be secured equally and ratably with, or prior to, such other indebtedness secured by such Lien until such time as such indebtedness is no longer secured by such Lien.” “Section 1007. Limitations on Sales of Capital Stock of Significant Subsidiaries. As long as any of the Notes are outstanding, the Company will not, and will not permit any of its Subsidiaries to sell, assign, transfer or otherwise dispose of and will not permit any of its Significant Subsidiaries to issue, directly or indirectly, any shares of Capital Stock of any Significant Subsidiary, unless: (1) the entire Capital Stock of such Significant Subsidiary is disposed of in a single transaction or series of related transactions for consideration consisting of cash or property, which, in the good faith opinion of the Board of Directors, is at least equal to the fair market value of such Capital Stock;
12 (2) such issuance, sale, assignment, transfer or other disposition is to the Company or one or more of the Company’s other Significant Subsidiaries; or (3) such issuance, sale, assignment, transfer or other disposition is required to comply with an order of a court or regulatory authority of competent jurisdiction, other than an order issued at the Company’s request or the request of any Significant Subsidiary.” ARTICLE IV MISCELLANEOUS Section 401 This Fifth Supplemental Indenture and the Notes shall be governed by and construed in accordance with the laws of the State of New York, without regard to principles of conflicts of laws. The parties hereby (i) irrevocably submit to the exclusive jurisdiction of any federal or state court sitting in the Borough of Manhattan, the city of New York, (ii) waive any objection to laying of venue in any such action or proceeding in such courts, and (iii) waive any objection that such courts are an inconvenient forum or do not have jurisdiction over any party. This Fifth Supplemental Indenture is subject to the provisions of the Trust Indenture Act that are required to be part of the Indenture and shall, to the extent applicable, be governed by such provisions. Section 402 In case any provision in this Fifth Supplemental Indenture or in the Notes shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby. Section 403 This Fifth Supplemental Indenture may be executed in counterparts, each of which will be an original, but such counterparts will together constitute but one and the same Fifth Supplemental Indenture. The exchange of copies of this Fifth Supplemental Indenture and pages by facsimile, .pdf transmission, email or other electronic means shall constitute effective execution and delivery of this Fifth Supplemental Indenture for all purposes. Signatures of the parties hereto transmitted by facsimile, .pdf transmission, email or other electronic means shall be deemed to be their original signatures for all purposes. Section 404 The Base Indenture, as supplemented and amended by this Fifth Supplemental Indenture, is in all respects ratified and confirmed, and the Base Indenture and this Fifth Supplemental Indenture shall be read, taken and construed as one and the same instrument with respect to the Notes. All provisions included in this Fifth Supplemental Indenture supersede any conflicting provisions included in the Base Indenture with respect to the Notes, unless not permitted by law. The Trustee accepts the trusts created by the Base Indenture, as supplemented by this Fifth Supplemental Indenture, and agrees to perform the same upon the terms and conditions of the Base Indenture, as supplemented by this Fifth Supplemental Indenture. Section 405 The provisions of this Fifth Supplemental Indenture shall become effective as of the date hereof. Section 406 Notwithstanding anything else to the contrary herein, the terms and provisions of this Fifth Supplemental Indenture shall apply only to the Notes and shall not apply to any other series of Securities under the Indenture and this Fifth Supplemental Indenture shall
13 not and does not otherwise affect, modify, alter, supplement or change the terms and provisions of any other series of Securities under the Indenture, whether now or hereafter issued and Outstanding. For the purposes of the applicability of Section 901(13) to the Notes and this Fifth Supplemental Indenture, the reference to the “offering memorandum” in Section 901(13) shall be deemed to be to the Offering Memorandum. Section 407 The recitals contained herein and in the Notes shall be taken as the statements of the Company, and the Trustee assumes no responsibility for their correctness. The Trustee makes no representations as to the validity or sufficiency of this Fifth Supplemental Indenture or the Notes, except that the Trustee represents that it is duly authorized to execute and deliver this Fifth Supplemental Indenture, authenticate the Notes and perform its obligations hereunder. The Trustee shall not be accountable for the use or application by the Company of the Notes or the proceeds thereof. Section 408 The Trustee is hereby authorized and directed to execute and deliver the Facility Agreement, and in connection with the foregoing, the Trustee shall enjoy all the benefits, rights, immunities, protections and indemnities granted to it under this Indenture. Section 409 EACH OF THE COMPANY, THE TRUSTEE AND THE HOLDERS BY THEIR ACCEPTANCE OF THE NOTES IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS INDENTURE OR THE TRANSACTIONS CONTEMPLATED HEREBY.
IN WITNESS WHEREOF, the parties hereto have caused this Fifth Supplemental Indenture to be duly executed as of the date first above written. GLOBE LIFE INC. By: Name: M. Shane Henrie Title: Corporate Senior Vice President and Chief Accounting Officer B N T 15
A-1 #100567116v10 #100567116v13 Exhibit A [Form of Global Note][Form of Initial Note Certificate] [RESTRICTED LEGEND — THE SECURITIES EVIDENCED HEREBY HAVE NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR UNDER ANY STATE SECURITIES LAWS AND MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN APPLICABLE EXEMPTION THEREFROM. EACH PURCHASER OF THIS SECURITY IS HEREBY NOTIFIED THAT THE SELLER OF THIS SECURITY MAY BE RELYING ON THE EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF THE SECURITIES ACT PROVIDED BY RULE 144 OR RULE 144A THEREUNDER. THIS SECURITY MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT (A) TO A PERSON WHO THE TRANSFEROR REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER WITHIN THE MEANING OF RULE 144A UNDER THE SECURITIES ACT ACQUIRING FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF ONE OR MORE QUALIFIED INSTITUTIONAL BUYERS IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A OR PURSUANT TO RULE 144 UNDER THE SECURITIES ACT, IF APPLICABLE OR ANOTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND (B) IN ACCORDANCE WITH ALL APPLICABLE SECURITIES LAWS OF THE STATES OF THE UNITED STATES AND OTHER JURISDICTIONS. ANY PURCHASER OR HOLDER OF THE SECURITIES OR ANY INTEREST THEREIN REPRESENTS BY ITS PURCHASE AND HOLDING OF THE SECURITIES THAT EITHER (1) IT IS NOT (A) AN EMPLOYEE BENEFIT PLAN AS DEFINED IN SECTION 3(3) OF THE U.S. EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”), THAT IS SUBJECT TO TITLE I OF ERISA, (B) A PLAN AS DEFINED IN AND SUBJECT TO SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “CODE”), (C) A GOVERNMENTAL PLAN (AS DEFINED IN SECTION 3(32) OF ERISA), A CHURCH PLAN (AS DEFINED IN SECTION 3(33) OF ERISA) OR A NON-U.S. PLAN (AS DESCRIBED IN SECTION 4(B)(4) OF ERISA) THAT IS NOT SUBJECT TO THE PROVISIONS OF TITLE I OF ERISA OR SECTION 4975 OF THE CODE BUT THAT, IN EACH CASE, IS SUBJECT TO SIMILAR PROVISIONS UNDER APPLICABLE FEDERAL, STATE, LOCAL, NON-U.S. OR OTHER LAWS (“SIMILAR LAWS”) OR (D) AN ENTITY WHOSE UNDERLYING ASSETS ARE CONSIDERED TO INCLUDE “PLAN ASSETS” OF ANY SUCH PLANS PURSUANT TO SECTION 3(42) OF ERISA, DEPARTMENT OF LABOR REGULATIONS OR OTHERWISE, OR (2) THE PURCHASE, HOLDING AND SUBSEQUENT DISPOSITION OF THE SECURITIES WILL NOT CONSTITUTE OR RESULT IN A NON-EXEMPT PROHIBITED TRANSACTION UNDER SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE OR VIOLATE ANY APPLICABLE SIMILAR LAWS.
GLOBE LIFE INC. RESERVES THE RIGHT TO MODIFY THE FORM OF CERTIFICATES REPRESENTING THE SECURITIES FROM TIME TO TIME TO REFLECT ANY CHANGES IN APPLICABLE LAW OR REGULATION (OR THE INTERPRETATION THEREOF) OR IN PRACTICES RELATING TO THEIR PURCHASE OR RESALE. THE SECURITIES AND RELATED DOCUMENTATION, INCLUDING THIS LEGEND, MAY BE AMENDED OR SUPPLEMENTED FROM TIME TO TIME TO MODIFY RESTRICTIONS ON AND PROCEDURES FOR RESALES AND OTHER TRANSFERS OF THE SECURITIES TO REFLECT ANY CHANGE IN APPLICABLE LAW OR REGULATION (OR THE INTERPRETATION THEREOF) OR IN PRACTICES RELATING TO THE RESALE OR TRANSFER OF SECURITIES SUCH AS THE SECURITIES GENERALLY. EACH HOLDER OF THIS CERTIFICATE SHALL BE DEEMED, BY THE ACCEPTANCE OF THIS CERTIFICATE, TO HAVE AGREED TO ANY SUCH AMENDMENT OR SUPPLEMENT.] [Include if the securities are distributed by the Trust - THIS SECURITY IS A GLOBAL NOTE WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE THEREOF. THIS SECURITY MAY NOT BE EXCHANGED IN WHOLE OR IN PART FOR A SECURITY REGISTERED, AND NO TRANSFER OF THIS SECURITY IN WHOLE OR IN PART MAY BE REGISTERED, IN THE NAME OF ANY PERSON OTHER THAN SUCH DEPOSITARY OR A NOMINEE THEREOF, EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE. UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO GLOBE LIFE INC. OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IN EXCHANGE FOR THIS CERTIFICATE IS REGISTERED IN THE NAME OF CEDE & CO., OR SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.] A-2
A-3 Globe Life Inc. No. [•] U.S. $[•] CUSIP No. 37959E AD4 ISIN No. US37959EAD40 6.580% Senior Notes due 2055 Globe Life Inc. (f/k/a Torchmark Corporation), a corporation duly organized and existing under the laws of Delaware (herein called the “Company,” which term includes any successor Person under the Indenture hereinafter referred to), for value received, hereby promises to pay to [•]*, or registered assigns, the principal sum [of [•] U.S. DOLLARS (U.S. $[•])] [reflected on the attached Schedule of Increases and Decreases (which amount shall not exceed the Maximum Amount at any time)] on May 15, 2055, and to pay interest thereon each year at a rate of 6.580% per annum, until the principal hereof is paid or made available for payment, from and including the date that this Security is delivered to the Trust or, if such date is not a May 15 or November 15, the immediately preceding May 15 or November 15 (or, if such date is prior to November 15, 2025, the date of the initial issuance of the Trust Securities). The Company will pay interest on this Security semi-annually in arrears on May 15 and November 15 of each year, beginning on the May 15 or November 15 next following the date on which this Security is delivered to the Trust, to the Person in whose name this Security is registered at the close of business on the preceding Regular Record Date for such interest, which shall be May 1 or November 1, as the case may be (whether or not a Business Day); provided that (a) interest payable at maturity or upon redemption will be paid to the Person in whose name the principal of this Security is payable and (b) if a payment date would fall on a day that is not a Business Day, then the applicable interest payment will be made on the next succeeding Business Day and no additional interest will accrue as a result of such delayed payment. Notwithstanding the foregoing or Section 307 of the Base Indenture, (a) at any time that this Security is held by the Trust or in book-entry form only, interest will be paid to the Person in whose name this Security is registered at the close of business on the Business Day immediately preceding the relevant date of payment and (b) if this Security is issued as a certificated Note to holders of Trust Securities on or after a Regular Record Date and prior to the related Interest Payment Date, interest shall be payable to the Person in whose name the Trust Securities were registered at the close of business on such Regular Record Date (and notified in writing by the Company to the Trustee). This Security may be issued as part of a series. Payment of principal of and interest on (and premium and Make-Whole Amounts, if any, on) this Security will initially be made at the office of the Company located at 3700 South Stonebridge Drive, McKinney, Texas 75070 (provided that if the Notes are distributed by the Trust to the holders of the Trust Securities upon the dissolution and termination of the Trust, then such payments shall be made at the Corporate Trust Office of the Trustee) in such coin or * Insert “Henneman Trust” if the Initial Note Certificate. Insert “Cede & Co.” if the Notes are in global form.
A-4 currency of the United States of America as at the time of payment is legal tender for payment of public and private debts; provided, however, that at the option of the Company payment of interest may be made by check mailed to the address of the Person entitled thereto as such address shall appear in the Security Register; provided, further, however, that at any time that this Security is registered to Cede & Co., such payment will be made by wire transfer in accordance with the procedures established by The Depository Trust Company. Reference is hereby made to the further provisions of this Security set forth on the reverse hereof, which further provisions shall for all purposes have the same effect as if set forth at this place. Unless the certificate of authentication hereon has been executed by the Trustee referred to on the reverse hereof by manual signature, this Security shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose.
A-5 IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed. Dated: GLOBE LIFE INC. By: Name: Title:
A-6 TRUSTEE’S CERTIFICATE OF AUTHENTICATION This is one of the Securities of the series designated therein referred to in the within- mentioned Indenture. Dated: REGIONS BANK, as Trustee By: Authorized Signatory
(REVERSE OF NOTE) GLOBE LIFE INC. 6.580% Senior Notes due 2055 This Security is one of a duly authorized issue of debt securities of the Company (herein called the “Securities”), issued and to be issued in one or more series under an Indenture, dated as of September 24, 2018 (herein called the “Base Indenture,” which term shall have the meaning assigned to it in such instrument), between the Company and Regions Bank, as Trustee (herein called the “Trustee,” which term includes any successor trustee under the Base Indenture), and reference is hereby made to the Base Indenture for a statement of the respective rights, limitations of rights, duties and immunities thereunder of the Company, the Trustee, and the Holders of the Securities and of the terms upon which the Securities are, and are to be, authenticated and delivered, as supplemented by the Fifth Supplemental Indenture relating to the Securities, dated as of July 1, 2025, by and between the Company and the Trustee (herein called the “Fifth Supplemental Indenture;” the Fifth Supplemental Indenture and the Base Indenture collectively are herein called the “Indenture”). In the event of any conflict between the Base Indenture and the Fifth Supplemental Indenture, the Fifth Supplemental Indenture shall govern and control. In the event of a conflict between the Indenture and this Security, the Indenture shall govern and control. 1. Defined Terms. All terms used in this Security which are defined in the Indenture shall have the meanings assigned to them in the Indenture. 2. Aggregate Principal Amount. This Security is one of the series designated on the face hereof, which series is initially limited in aggregate principal amount to the Maximum Amount. The aggregate amount of outstanding Securities represented hereby may from time to time be reduced or increased, as appropriate, to reflect issuances, repurchases, exchanges and redemptions. 3. Optional Redemption. The Securities shall be redeemable at the option of the Company in accordance with Section 201(i) of the Fifth Supplemental Indenture. 4. No Sinking Fund. The Securities are not entitled to the benefit of any sinking fund. 5. Indenture; Copies. The terms of this Security include those stated in the Indenture and those made part of the Indenture by reference to the Trust Indenture Act of 1939, as amended (“TIA”), as in effect on the date hereof. This Security is subject to all such terms, and Holders are referred to the Indenture and TIA for a statement of such terms. This Security is a senior, unsecured, unsubordinated obligation of the Company and constitutes a Security in the series designated on the face hereof as the “6.580% Senior Notes due 2055.” The Company will furnish to any Holder upon written request and without charge a copy of the Base Indenture and A-7
the Fifth Supplemental Indenture. Requests may be made to: Globe Life Inc., 3700 South Stonebridge Dr., McKinney, TX 75070, attention of General Counsel. 6. Amendment. The Indenture permits, with certain exceptions as therein provided, the amendment thereof and the modification of the rights and obligations of the Company and the rights of the Holders of the Securities of each series to be affected under the Indenture at any time by the Company and the Trustee with the consent of the Holders of not less than a majority in aggregate principal amount of the Securities at the time Outstanding of each series to be affected. Any such consent or waiver by the Holder of this Security shall be conclusive and binding upon such Holder and upon all future Holders of this Security and of any Security issued upon the registration of transfer hereof or in exchange herefor or in lieu hereof, whether or not notation of such consent or waiver is made upon this Security. 7. Limitations on Suits. As provided in and subject to the provisions of the Indenture, the Holder of this Security shall not have the right to institute any proceeding with respect to the Indenture or for the appointment of a receiver or trustee or for any other remedy thereunder, unless: (i) such Holder has previously given written notice to the Trustee of a continuing Event of Default with respect to the Securities of this series; (ii) the Holders of not less than 25% in aggregate principal amount of the Securities of this series at the time Outstanding shall have made written request to the Trustee to institute proceedings in respect of such Event of Default as Trustee hereunder; (iii) such Holder or Holders have offered to the Trustee indemnity satisfactory to the Trustee against the costs, expenses and liabilities to be incurred in compliance with such request; (iv) the Trustee, for 60 days after its receipt of such notice, request and offer of indemnity, has failed to institute any such proceeding; and (v) no direction inconsistent with such written request has been given to the Trustee during such 60-day period by the Holders of a majority in aggregate principal amount of the Securities of this series at the time Outstanding. The foregoing shall not apply to any suit instituted by the Holder of this Security for the enforcement of any payment of principal hereof or any premium, Make-Whole Amount or interest hereon on or after the respective due dates expressed herein. 8. Obligations Absolute. No reference herein to the Indenture and no provision of this Security or of the Indenture shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay the principal of and any premium, Make-Whole Amount and interest on this Security at the times, place and rate, and in the coin or currency, herein prescribed. A-8
- Registration and Transfer. As provided in the Indenture and subject to certain limitations therein set forth, the transfer of this Security is registrable in the Security Register, upon surrender of this Security for registration of transfer at the Corporate Trust Office, duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Company and the Security Registrar duly executed by, the Holder hereof or his attorney duly authorized in writing, and thereupon one or more new Securities of this series and of like tenor, of authorized denominations and for the same aggregate principal amount, will be issued to the designated transferee or transferees. No service charge shall be made for any such registration of transfer or exchange, but the Company or Trustee may require payment of a sum sufficient to cover any tax or other governmental charge payable in connection therewith. 10. Denominations. The Securities of this series are issuable only in registered form without coupons in minimum denominations of $2,000.00 and any integral multiples of $1,000.00 in excess thereof. As provided in the Indenture and subject to certain limitations therein set forth, Securities of this series are exchangeable for a like aggregate principal amount of Securities of this series and of like tenor of a different authorized denomination, as requested by the Holder surrendering the same. 11. Persons Deemed Owners. Prior to due presentment of this Security for registration of transfer, the Company, the Trustee and any agent of the Company or the Trustee may treat the Person in whose name this Security is registered as the owner hereof for all purposes, whether or not this Security be overdue, and neither the Company, the Trustee nor any such agent shall be affected by notice to the contrary. 12. Defeasance. The Indenture contains provisions for defeasance at any time of the entire indebtedness of this Security or certain restrictive covenants and Events of Default with respect to this Security, in each case upon compliance with certain conditions set forth in the Indenture. 13. Event of Default. Subject to the provisions of the Indenture, if an Event of Default with respect to Securities of this series shall occur and be continuing, the principal of, or accrued and unpaid interest, premium, if any, the Make-Whole Amount on the Securities of this series may be declared due and payable in the manner and with the effect provided in the Indenture. 14. Governing Law. The Indenture and this Security shall be governed by and construed in accordance with the laws of the State of New York, without regard to principles of conflicts of laws. 15. Transfer Restriction. This Security (and if this Security is a Global Note, any beneficial interest herein) may not be offered, sold, pledged or otherwise transferred except in compliance with the requirements set forth in the legends hereof. The Security Registrar shall not be required to effect any transfer (other than to the Company or The Depository Trust Company or its nominee) of this Security on the Security Register unless it receives a certificate substantially in the form set forth in Exhibit B and duly executed by the Holder hereof or its A-9
A-10 attorney duly authorized in writing, or any other exemption from the registration requirements under the Securities Act is available and, in each case, the Company or the Trustee receives such documentation, including Opinions of Counsel and Officers’ Certificate, as applicable, requested by the Company or the Trustee in order to confirm compliance with the transfer restrictions set forth herein.
A-11 ASSIGNMENT FORM To assign and transfer this Security, fill in the form below: (I) or (the Company) assign and transfer this Security to ____________________________________________________________ (Insert assignee’s social security or tax I.D. no.) ____________________________________________________________ (Print or type assignee’s name, address and postal code) and irrevocably appoint __________________________________ agent to transfer this Security on the books of the Company. The agent may substitute another to act for him. Your Signature: ____________________________________________________________ (Sign exactly as your name appears on the other side of this Security) Signature Guaranty: ____________________________________________________________ (Participant in a recognized signature guaranty medallion program) Date: ____________________________________________________________ Certifying Signature: In connection with any transfer of any Security evidenced by this certificate occurring prior to the date that is one year after the later of the date of original issuance of such Security and the last date, if any, on which the Security was owned by the Company or any Affiliate of the Company, the undersigned confirms that such Security is being transferred in accordance with the transfer restrictions set forth in such Security and: CHECK ONE BOX BELOW (1)□ to the Company or any Subsidiary thereof; or (2)□ pursuant to and in compliance with Rule 144A under the U.S. Securities Act of 1933; or (3)□ pursuant to and in compliance with Regulation S under the U.S. Securities Act of 1933; or (4)□ pursuant to another available exemption from the registration requirements of the U.S. Securities Act of 1933; or
(5) □ pursuant to an effective registration statement under the U.S. Securities Act of 1933. Unless one of the boxes is checked, the Trustee will refuse to register any of the Security evidenced by this certificate in the name of any person other than the registered Holder thereof; provided, however, that if box (2) is checked, by executing this form, the Transferor is deemed to have certified that such Security are being transferred to a person it reasonably believes is a “qualified institutional buyer” as defined in Rule 144A under the U.S. Securities Act of 1933 who has received notice that such transfer is being made in reliance on Rule 144A; if box (3) is checked, by executing this form, the Transferor is deemed to have certified that such transfer is made pursuant to an offer and sale that occurred outside the United States in compliance with Regulation S under the U.S. Securities Act of 1933; and if box (4) is checked, the Trustee may require, prior to registering any such transfer of the Security, such legal opinions, certifications and other information as the Company reasonably requests to confirm that such transfer is being made pursuant to an exemption from or in a transaction not subject to, the registration requirements of the U.S. Securities Act of 1933. Signature: ___________________________________________________ Signature Guaranty: ____________________________________________________________ (Participant in a recognized signature guaranty medallion program) Certifying Signature: _______________ Date: _______________ Signature Guaranty: ____________________________________________ (Participant in a recognized signature guaranty medallion program) A-12
SCHEDULE OF INCREASES OR DECREASES IN [INITIAL NOTE CERTIFICATE] [GLOBAL NOTE] The initial aggregate principal amount of this [Initial Note Certificate is $0] [Global Note is $[ ]]. The following increases or decreases in this [Initial Note Certificate][Global Note] have been made: Date Amount of decrease in Principal Amount of Notes evidenced by this [Initial Note Certificate][Global Note] Amount of increase in Principal Amount of Notes evidenced by this [Initial Note Certificate][Global Note] Principal Amount of Notes evidenced by this [Initial Note Certificate][Global Note] following such decrease or increase Signature of authorized officer of Trustee or Security Registrar
B-1 EXHIBIT B RULE 144A CERTIFICATE Globe Life Inc. 3700 South Stonebridge Drive McKinney, Texas 75070 Regions Bank 1717 McKinney Avenue, 11th Floor Dallas, Texas 75202 Attn: Corporate Trust Re: 6.580% Senior Notes due 2055 (the “Notes”) of Globe Life Inc. (the “Company”) Reference is made to the Indenture, dated as of September 24, 2018 (the “Base Indenture”), as supplemented by a Fifth Supplemental Indenture, dated as of July 1, 2025 (the “Fifth Supplemental Indenture” and, together with the Base Indenture, the “Indenture”), relating to the Notes. Terms used herein and defined in the Indenture or in Rule 144A under the U.S. Securities Act of 1933, as amended (the “Securities Act”), are used herein as so defined. This certificate relates to U.S.$_____________ principal amount of Notes, which are evidenced by the following certificate(s) (the “Specified Notes”): CUSIP No.: 37959E AD4 Certificate No(s). _____________________ The person in whose name this certificate is executed below (the “Undersigned”) hereby certifies that (i) it is the sole registered holder of the Specified Notes, or (ii) it is acting on behalf of all the registered holders of the Specified Notes and is duly authorized by them to do so. Such registered holder or holders are referred to herein collectively as the “Holder”. The Holder has requested that the Specified Notes be transferred. In connection with such transfer, the Holder hereby certifies that the transfer is being effected in accordance with Rule 144A under the Securities Act and all applicable securities laws of the states of the United States and other jurisdictions. Accordingly, the Holder hereby further certifies as follows: 1. the Specified Notes are being transferred to a person that the Holder and any person acting on its behalf reasonably believe is a “qualified institutional buyer” within the meaning of Rule 144A, acquiring for its own account or for the account of a qualified institutional buyer; and
B-2 2. the Holder and any person acting on its behalf have taken reasonable steps to ensure that such transferee of the Specified Notes is aware that the Holder may be relying on Rule 144A in connection with the transfer. This certificate and the statements contained herein are made for your benefit and the benefit of the Company. Date: _________________ Very truly yours, By: Name: Title: Address: (If the Undersigned, as such term is defined in the third paragraph of this certificate, is a corporation, partnership or fiduciary, the title of the person signing on behalf of the Undersigned must be stated.) (Participant in a recognized signature guaranty medallion program) Certifying Signature: _______________ Date: _______________ Signature Guaranty: ____________________________________________ (Participant in a recognized signature guaranty medallion program)
globelife-2025revolverxf
Execution Version FIRST AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT This FIRST AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT (this “Amendment”), dated as of June 20, 2025, is entered into by and among GLOBE LIFE INC., a Delaware corporation (the “Borrower”), and TMK RE, LTD., a Bermuda exempted company registered as a class C insurer under the Insurance Act 1978 of Bermuda (“TMK” and collectively with the Borrower, the “Loan Parties”), the Lenders party hereto, and BANK OF AMERICA, N.A., as Administrative Agent. RECITALS A. The Loan Parties, the several lenders from time to time party thereto (the “Lenders”), and the Administrative Agent are party to the Second Amended and Restated Credit Agreement dated as of March 29, 2024 (as amended from time to time prior to the date hereof, the “Existing Credit Agreement”). Capitalized terms used but not defined herein shall have the meanings assigned to such terms in the Existing Credit Agreement as amended by this Amendment. B. The Loan Parties have requested that the Lenders amend the Existing Credit Agreement and each of the undersigned Lenders have agreed to such amendments to the Existing Credit Agreement on the terms and subject to conditions set forth herein. STATEMENT OF AGREEMENT NOW, THEREFORE, in consideration of the foregoing and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: ARTICLE I AMENDMENTS TO EXISTING CREDIT AGREEMENT 1.1 Effective upon the Amendment Effective Date, Section 8.01(e) of the Existing Credit Agreement is hereby amended by deleting the figure “$50,000,000” and substituting therefor the figure “$85,000,000.” 1.2 Effective upon the Amendment Effective Date, Section 8.01(h) is amended and restated in its entirety as follows: “(h) Judgments. There is entered against the Borrower or any Subsidiary one or more final judgments or orders for the payment of money in an aggregate amount (as to all such judgments or orders) exceeding $85,000,000 (to the extent not covered by independent third-party insurance as to which the insurer does not dispute coverage), and (A) enforcement proceedings are commenced by any creditor upon any such judgment or order, or (B) there is a period of 45 consecutive days during which a stay of enforcement of any such judgment, by reason of payment, a pending appeal or otherwise, is not in effect; or”
2 1.3 Effective upon the Amendment Effective Date, Section 8.01(i) of the Existing Credit Agreement is hereby amended by (a) deleting the figure “$50,000,000” and substituting therefor the figure “$85,000,000” in clause (i) thereof and (b) deleting the figure “$25,000,000” and substituting therefor the figure “$85,000,000” in clause (ii) thereof. ARTICLE II CONDITIONS OF EFFECTIVENESS 2.1 The amendments set forth in ARTICLE I shall become effective as of the date (the “Amendment Effective Date”) when, and only when, each of the following conditions precedent shall have been satisfied: (a) The Administrative Agent shall have received an executed counterpart of this Amendment from each Loan Party and Lenders constituting Required Lenders, each of which shall be originals, telecopies, facsimile, “.pdf” or other electronically transmitted copies (followed promptly by originals). (b) The Administrative Agent shall have received an executed certificate signed by a Responsible Officer of the Borrower certifying that (A) the representations and warranties of the Borrower contained in this Amendment, Article V of the Existing Credit Agreement or any other Loan Document, shall be true and correct in all material respects (or if qualified by materiality or material adverse effect, in all respects) as of the Amendment Effective Date (except for any such representation and warranty that by its terms is made only as of an earlier date, which representation and warranty shall remain true and correct in all material respects as of such earlier date, except for any representation and warranty that is qualified by materiality or reference to Material Adverse Effect, which such representation and warranty shall be true and correct in all respects as of such earlier date), (B) no Default or Event of Default shall have occurred and be continuing under the Existing Credit Agreement, as amended by this Amendment, as of the Amendment Effective Date or will occur after giving effect to the Amendment Effective Date or any extension of credit to the Borrower on the Amendment Effective Date, (C) there has been no event or circumstance since the date of the Audited Financial Statements that has had or could be reasonably expected to have, either individually or in the aggregate, a Material Adverse Effect, and (D) the current Debt Ratings. (c) The Borrower shall have paid all fees, charges and disbursements of counsel to the Administrative Agent to the extent invoiced prior to or on the Amendment Effective Date. (d) There shall not have occurred a material adverse change (i) in the business, assets, properties, liabilities (actual or contingent), operations, conditions (financial or otherwise) or prospects of either of the Loan Parties, or the Borrower and its Subsidiaries, taken as a whole, since December 31, 2024 or (ii) in the facts and information regarding such entities as represented by the Borrower or any of its Subsidiaries, or any representatives of any of them, to date. (e) The absence of any action, suit, investigation or proceeding pending or, to the knowledge of the Borrower or any of its Subsidiaries, threatened, in any court or before any arbitrator or governmental authority that could reasonably be expected to have a Material Adverse Effect.
3 ARTICLE III REPRESENTATIONS AND WARRANTIES To induce the Administrative Agent and the Lenders to enter into this Amendment, each Loan Party represents and warrants to the Administrative Agent and the Lenders on and as of the date hereof, that: (i) it has taken all necessary action to authorize the execution, delivery and performance of this Amendment, (ii) this Amendment has been duly executed and delivered by such Loan Party and constitutes such Loan Party’s legal, valid and binding obligation, enforceable in accordance with its terms, except as such enforcement may be limited by bankruptcy, insolvency, reorganization, moratorium or similar state or federal debtor relief laws from time to time in effect which affect the enforcement of creditors’ rights in general and the availability of equitable remedies, (iii) no consent, approval, authorization or order of, or filing, registration or qualification with, any court or Governmental Authority or third party is required in connection with the execution, delivery or performance by such Loan Party of this Amendment, (iv) the representations and warranties set forth in Article V of the Existing Credit Agreement are true and correct in all material respects (or if qualified by materiality or material adverse effect, in all respects) as of the date hereof (except for any such representation and warranty that by its terms is made only as of an earlier date, which representation and warranty shall remain true and correct in all material respects as of such earlier date, except for any representation and warranty that is qualified by materiality or reference to Material Adverse Effect, which such representation and warranty shall be true and correct in all respects as of such earlier date), (v) both before and after giving effect to this Amendment, no event has occurred and is continuing which constitutes a Default or an Event of Default and (vi) the Loans are not reduced by this Amendment and are not subject to any offsets, defenses or counterclaims. ARTICLE IV ACKNOWLEDGEMENT AND CONFIRMATION Each Loan Party hereby confirms and agrees that, after giving effect to this Amendment and the amendments contemplated hereby, and except as expressly modified hereby, the Existing Credit Agreement and the other Loan Documents to which it is a party remain in full force and effect and enforceable against such Loan Party in accordance with their respective terms and shall not be discharged, diminished, limited or otherwise affected in any respect. ARTICLE V MISCELLANEOUS 5.1 Governing Law. This Amendment shall be governed by and construed and enforced in accordance with the laws of the State of New York. 5.2 Loan Document. As used in the Existing Credit Agreement, “hereinafter,” “hereto,” “hereof,” and words of similar import shall, unless the context otherwise requires, mean the Existing Credit Agreement after amendment by this Amendment. Any reference to the Existing Credit Agreement or any of the other Loan Documents herein or in any such documents shall refer to the Existing Credit Agreement and the other Loan Documents as amended hereby.
4 This Amendment is limited to the matters expressly set forth herein, and shall not constitute or be deemed to constitute an amendment, modification or waiver of any provision of the Existing Credit Agreement except as expressly set forth herein. This Amendment shall constitute a Loan Document under the terms of the Existing Credit Agreement. 5.3 Expenses. The Borrower shall pay all reasonable and documented fees and expenses of counsel to the Administrative Agent in connection with the preparation, negotiation, execution and delivery of this Amendment. 5.4 Severability. To the extent any provision of this Amendment is prohibited by or invalid under the applicable law of any jurisdiction, such provision shall be ineffective only to the extent of such prohibition or invalidity and only in any such jurisdiction, without prohibiting or invalidating such provision in any other jurisdiction or the remaining provisions of this Amendment in any jurisdiction. 5.5 Successors and Assigns. This Amendment shall be binding upon, inure to the benefit of and be enforceable by the respective successors and permitted assigns of the parties hereto. 5.6 Construction. The headings of the various sections and subsections of this Amendment have been inserted for convenience only and shall not in any way affect the meaning or construction of any of the provisions hereof. 5.7 Counterparts; Integration. This Amendment may be executed and delivered via facsimile or electronic format with the same force and effect as if an original were executed and may be signed in any number of counterparts, each of which shall be an original, with the same effect as if the signatures hereto were upon the same instrument. The words “executed,” “signed,” “signature,” and words of like import in shall be deemed to include electronic signatures or the keeping of records in electronic form, each of which shall be of the same legal effect, validity or enforceability as a manually executed signature or the use of a paper-based recordkeeping system, as the case may be, to the extent and as provided for in any Applicable Law, including the Federal Electronic Signatures in Global and National Commerce Act, the New York State Electronic Signatures and Records Act, or any other similar state laws based on the Uniform Electronic Transactions Act. This Amendment constitutes the entire contract among the parties hereto with respect to the subject matter hereof and supersedes any and all prior agreements and understandings, oral or written, relating to the subject matter hereof. [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
SIGNATURE PAGE TO FIRST AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT WELLS FARGO BANK, NATIONAL ASSOCIATION, as a Lender By: Name: Eva Sverdlova Title: Vice President, Portfolio Manager
SIGNATURE PAGE TO FIRST AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT Internal Use REGIONS BANK, as a Lender By: Name: William Soo Title: Managing Director
SIGNATURE PAGE TO FIRST AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT Internal Use Huntington National Bank, as a Lender By: Name: Austin G. Love Title: Managing Director
SIGNATURE PAGE TO FIRST AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT The Northern Trust Company, as a Lender By: Name: Peter Romanchuk Title: Vice President, Commercial Banker
SIGNATURE PAGE TO FIRST AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT COMERICA BANK, as a Lender By: Name: John Smithson Title: Vice President
globelife-2025termloanxs
Execution Version SECOND AMENDMENT TO DELAYED DRAW TERM LOAN AGREEMENT This SECOND AMENDMENT TO DELAYED DRAW TERM LOAN AGREEMENT (this “Amendment”), dated as of June 20, 2025, is entered into by and among GLOBE LIFE INC., a Delaware corporation (the “Borrower”), the Lenders party hereto, and BANK OF AMERICA, N.A., as Administrative Agent. RECITALS A. The Borrower, the several lenders from time to time party thereto (the “Lenders”), and the Administrative Agent are party to the Delayed Draw Term Loan Agreement dated as of April 14, 2023 (as amended by the First Amendment to Delayed Draw Term Loan Agreement dated as of August 15, 2025, the “Term Loan Agreement”). Capitalized terms used but not defined herein shall have the meanings assigned to such terms in the Term Loan Agreement as amended by this Amendment. B. The Borrower has requested that the Lenders amend the Term Loan Agreement and each of the undersigned Lenders have agreed to such amendments to the Term Loan Agreement on the terms and subject to conditions set forth herein. STATEMENT OF AGREEMENT NOW, THEREFORE, in consideration of the foregoing and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: ARTICLE I AMENDMENTS TO TERM LOAN AGREEMENT 1.1 Effective upon the Amendment Effective Date, Section 8.01(e) of the Existing Credit Agreement is hereby amended by deleting the figure “$50,000,000” and substituting therefor the figure “$85,000,000.” 1.2 Effective upon the Amendment Effective Date, Section 8.01(h) is amended and restated in its entirety as follows: “(h) Judgments. There is entered against the Borrower or any Subsidiary one or more final judgments or orders for the payment of money in an aggregate amount (as to all such judgments or orders) exceeding $85,000,000 (to the extent not covered by independent third-party insurance as to which the insurer does not dispute coverage), and (A) enforcement proceedings are commenced by any creditor upon any such judgment or order, or (B) there is a period of 45 consecutive days during which a stay of enforcement of any such judgment, by reason of payment, a pending appeal or otherwise, is not in effect; or” 1.3 Effective upon the Amendment Effective Date, Section 8.01(i) of the Existing Credit Agreement is hereby amended by (a) deleting the figure “$50,000,000” and substituting
2 therefor the figure “$85,000,000” in clause (i) thereof and (b) deleting the figure “$25,000,000” and substituting therefor the figure “$85,000,000” in clause (ii) thereof. ARTICLE II CONDITIONS OF EFFECTIVENESS 2.1 The amendments set forth in ARTICLE I shall become effective as of the date (the “Amendment Effective Date”) when, and only when, each of the following conditions precedent shall have been satisfied: (a) The Administrative Agent shall have received an executed counterpart of this Amendment from the Borrower and Lenders constituting Required Lenders, each of which shall be originals, telecopies, facsimile, “.pdf” or other electronically transmitted copies (followed promptly by originals). (b) The Administrative Agent shall have received an executed certificate signed by a Responsible Officer of the Borrower certifying that (A) the representations and warranties of the Borrower contained in this Amendment, Article V of the Term Loan Agreement or any other Loan Document, shall be true and correct in all material respects (or if qualified by materiality or material adverse effect, in all respects) as of the Amendment Effective Date (except for any such representation and warranty that by its terms is made only as of an earlier date, which representation and warranty shall remain true and correct in all material respects as of such earlier date, except for any representation and warranty that is qualified by materiality or reference to Material Adverse Effect, which such representation and warranty shall be true and correct in all respects as of such earlier date), (B) no Default or Event of Default shall have occurred and be continuing under the Term Loan Agreement, as amended by this Amendment, as of the Amendment Effective Date or will occur after giving effect to the Amendment Effective Date or any extension of credit to the Borrower on the Amendment Effective Date, (C) there has been no event or circumstance since the date of the Audited Financial Statements that has had or could be reasonably expected to have, either individually or in the aggregate, a Material Adverse Effect, and (D) the current Debt Ratings. (c) The Borrower shall have paid all fees, charges and disbursements of counsel to the Administrative Agent to the extent invoiced prior to or on the Amendment Effective Date. (d) There shall not have occurred a material adverse change (i) in the business, assets, properties, liabilities (actual or contingent), operations, conditions (financial or otherwise) or prospects of the Borrower and its Subsidiaries, taken as a whole, since December 31, 2024 or (ii) in the facts and information regarding such entities as represented by the Borrower or any of its Subsidiaries, or any representatives of any of them, to date. (e) The absence of any action, suit, investigation or proceeding pending or, to the knowledge of the Borrower or any of its Subsidiaries, threatened, in any court or before any arbitrator or governmental authority that could reasonably be expected to have a Material Adverse Effect.
3 ARTICLE III REPRESENTATIONS AND WARRANTIES To induce the Administrative Agent and the Lenders to enter into this Amendment, the Borrower represents and warrants to the Administrative Agent and the Lenders on and as of the date hereof, that: (i) it has taken all necessary action to authorize the execution, delivery and performance of this Amendment, (ii) this Amendment has been duly executed and delivered by the Borrower and constitutes the Borrower’s legal, valid and binding obligation, enforceable in accordance with its terms, except as such enforcement may be limited by bankruptcy, insolvency, reorganization, moratorium or similar state or federal debtor relief laws from time to time in effect which affect the enforcement of creditors’ rights in general and the availability of equitable remedies, (iii) no consent, approval, authorization or order of, or filing, registration or qualification with, any court or Governmental Authority or third party is required in connection with the execution, delivery or performance by the Borrower of this Amendment, (iv) the representations and warranties set forth in Article V of the Term Loan Agreement are true and correct in all material respects (or if qualified by materiality or material adverse effect, in all respects) as of the date hereof (except for any such representation and warranty that by its terms is made only as of an earlier date, which representation and warranty shall remain true and correct in all material respects as of such earlier date, except for any representation and warranty that is qualified by materiality or reference to Material Adverse Effect, which such representation and warranty shall be true and correct in all respects as of such earlier date), (v) both before and after giving effect to this Amendment, no event has occurred and is continuing which constitutes a Default or an Event of Default and (vi) the Loans are not reduced by this Amendment and are not subject to any offsets, defenses or counterclaims. ARTICLE IV ACKNOWLEDGEMENT AND CONFIRMATION The Borrower hereby confirms and agrees that, after giving effect to this Amendment and the amendments contemplated hereby, and except as expressly modified hereby, the Term Loan Agreement and the other Loan Documents to which it is a party remain in full force and effect and enforceable against the Borrower in accordance with their respective terms and shall not be discharged, diminished, limited or otherwise affected in any respect. ARTICLE V MISCELLANEOUS 5.1 Governing Law. This Amendment shall be governed by and construed and enforced in accordance with the laws of the State of New York. 5.2 Loan Document. As used in the Term Loan Agreement, “hereinafter,” “hereto,” “hereof,” and words of similar import shall, unless the context otherwise requires, mean the Term Loan Agreement after amendment by this Amendment. Any reference to the Term Loan Agreement or any of the other Loan Documents herein or in any such documents shall refer to the Term Loan Agreement and the other Loan Documents as amended hereby. This Amendment is
4 limited to the matters expressly set forth herein, and shall not constitute or be deemed to constitute an amendment, modification or waiver of any provision of the Term Loan Agreement except as expressly set forth herein. This Amendment shall constitute a Loan Document under the terms of the Term Loan Agreement. 5.3 Expenses. The Borrower shall pay all reasonable and documented fees and expenses of counsel to the Administrative Agent in connection with the preparation, negotiation, execution and delivery of this Amendment. 5.4 Severability. To the extent any provision of this Amendment is prohibited by or invalid under the applicable law of any jurisdiction, such provision shall be ineffective only to the extent of such prohibition or invalidity and only in any such jurisdiction, without prohibiting or invalidating such provision in any other jurisdiction or the remaining provisions of this Amendment in any jurisdiction. 5.5 Successors and Assigns. This Amendment shall be binding upon, inure to the benefit of and be enforceable by the respective successors and permitted assigns of the parties hereto. 5.6 Construction. The headings of the various sections and subsections of this Amendment have been inserted for convenience only and shall not in any way affect the meaning or construction of any of the provisions hereof. 5.7 Counterparts; Integration. This Amendment may be executed and delivered via facsimile or electronic format with the same force and effect as if an original were executed and may be signed in any number of counterparts, each of which shall be an original, with the same effect as if the signatures hereto were upon the same instrument. The words “executed,” “signed,” “signature,” and words of like import in shall be deemed to include electronic signatures or the keeping of records in electronic form, each of which shall be of the same legal effect, validity or enforceability as a manually executed signature or the use of a paper-based recordkeeping system, as the case may be, to the extent and as provided for in any Applicable Law, including the Federal Electronic Signatures in Global and National Commerce Act, the New York State Electronic Signatures and Records Act, or any other similar state laws based on the Uniform Electronic Transactions Act. This Amendment constitutes the entire contract among the parties hereto with respect to the subject matter hereof and supersedes any and all prior agreements and understandings, oral or written, relating to the subject matter hereof. [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
Signature Page to Second Amendment to Delayed Draw Term Loan Agreement WELLS FARGO BANK, NATIONAL ASSOCIATION, as a Lender By: Name: Eva Sverdlova Title: Vice President, Portfolio Manager
Signature Page to Second Amendment to Delayed Draw Term Loan Agreement Internal Use REGIONS BANK, as a Lender By: Name: William Soo Title: Managing Director
Signature Page to Second Amendment to Delayed Draw Term Loan Agreement Internal Use Huntington National Bank, as a Lender By: Name: Austin G. Love Title: Managing Director
Signature Page to Second Amendment to Delayed Draw Term Loan Agreement The Northern Trust Company, as a Lender By: Name: Peter Romanchuk Title: Vice President, Commercial Banker
Signature Page to Second Amendment to Delayed Draw Term Loan Agreement COMERICA BANK, as a Lender By: Name: John Smithson Title: Vice President
Document
Exhibit 31.1
CERTIFICATIONS
I, J. Matthew Darden, certify that:
1.I have reviewed this quarterly report on Form 10-Q of Globe Life Inc.;
2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, 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;
c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5.The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):
a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
| Date: | August 6, 2025 | /s/ J. Matthew Darden |
|---|---|---|
| J. Matthew Darden<br>Co-Chairman and Chief Executive Officer |
Document
Exhibit 31.2
CERTIFICATIONS
I, Frank M. Svoboda, certify that:
1.I have reviewed this quarterly report on Form 10-Q of Globe Life Inc.;
2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, 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;
c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5.The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):
a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
| Date: August 6, 2025 | /s/ Frank M. Svoboda |
|---|---|
| Frank M. Svoboda<br>Co-Chairman and Chief Executive Officer |
Document
Exhibit 31.3
CERTIFICATIONS
I, Thomas P. Kalmbach, certify that:
1.I have reviewed this quarterly report on Form 10-Q of Globe Life Inc.;
2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, 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;
c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5.The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):
a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
| Date: | August 6, 2025 | /s/ Thomas P. Kalmbach |
|---|---|---|
| Thomas P. Kalmbach<br>Executive Vice President and Chief Financial Officer |
Document
Exhibit 32.1
CERTIFICATION OF PERIODIC REPORT
We, J. Matthew Darden, Co-Chairman and Chief Executive Officer, Frank M. Svoboda, Co-Chairman and Chief Executive Officer, and Thomas P. Kalmbach, Executive Vice President and Chief Financial Officer, of Globe Life Inc., certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350, that, to the best of our knowledge:
(1)the Quarterly Report on Form 10-Q of the Company for the period ended June 30, 2025 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
(2)the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
Dated: August 6, 2025
| /s/ J. Matthew Darden |
|---|
| J. Matthew Darden<br>Co-Chairman and Chief Executive Officer |
| /s/ Frank M. Svoboda |
| Frank M. Svoboda<br>Co-Chairman and Chief Executive Officer |
| /s/ Thomas P. Kalmbach |
| Thomas P. Kalmbach<br>Executive Vice President and <br>Chief Financial Officer |