GL 10-K & 10-Q changes, risk factors and insider trading
Globe Life Inc. (also GL-PD) · NYSE · Life Insurance · CIK 320335 · All filings on SEC.gov
At a glance
What changed in the latest 10-K
Risk Factors
New heading “Our investment portfolio contains certain alternative investments that may be illiquid and volatile, which could negatively affect our investment income and liquidity.”
Largest changes
“Our investment portfolio contains certain alternative investments that may be illiquid and volatile, which could negatively affect our investment income and liquidity.”see in full comparison
Regulatory authorities also have the power to conduct investigations, and to bring administrative or judicial proceedings against us, which could result in suspension or revocation of our licenses, cease and desist orders, fines, civil penalties, disgorgement, criminal penalties or other disciplinary action that could have a material adverse impact on our business, financial condition or results of operation. Press coverage and other public statements that allege wrongdoing, even if untrue, can lead to increased regulatory inquiries orsee in full comparisoninvestigations including any that may arise in connection with the subpoenas from U.S. Attorney’s Office for the Western District of Pennsylvania seeking documents related to sales practices by certain of our independent sales agents contracted to sell American Income Life Insurance Company policies.investigations.
In April 2024, the trading price of our common stock dropped following the publication of certain short seller reports. As of the date of this Report, one putative securities class actionsee in full comparisonhasand five shareholder derivative lawsuits have been filed against Globe Life Inc.andrelatedwetoexpectthisthat other putative class action claims may be filed as well.event. While we intend to defend such actions vigorously, any judgment against us or any future stockholder litigation could have a material adverse effect on our business, financial condition or results of operations.
The failure to maintain effectivesee in full comparisonand efficientinformation systemsatorthemanageCompanyresponsible use of emerging technologies, including artificial intelligence, could adversely affect our financial condition and results ofoperations.operations at the Company.
“Over the past several years, we have increased our investment in alternative investments, such as limited partnerships. These and other similar investments may have different, more significant risk characteristics than investments in fixed maturity securities, may be more volatile and may be illiquid due to restrictions on sales, transfers and redemption terms, all of which could negatively affect our investment income and overall portfolio liquidity.”see in full comparison
“These alternative investments may not meet regulatory admissibility requirements or may result in increased regulatory capital charges to the insurance subsidiaries that hold these investments, which could limit those subsidiaries’ ability to pay dividends and negatively impact our liquidity.”see in full comparison
Full comparison: every changed paragraph (25)
Our future success depends, in substantial part, on our ability to recruit, hire, and motivate highly-skilled insurance personnel. Further, the development and retention of producing agents are critical to supporting sales growth in our agency operations because our insurance sales are primarily made toby these individuals.
A failure to effectively develop new methods of reaching consumers, realize cost efficiencies or generate an attractive value proposition in our Direct to Consumer Division business could result in reduced sales and profits. In addition, ifIf we do not provide an attractive career opportunity with competitive compensation as well as motivation for producing agents to increase sales of our products, our growth could be impeded. DoingProviding sosuch opportunity may be difficult due to many factors, including but not limited to, fluctuations in economic and industry conditions and the effectiveness of our compensation programs and competition among other companies.
In addition, a failure to effectively develop new methods of reaching consumers, realize cost efficiencies or generate an attractive value proposition in our Direct to Consumer Division business could result in reduced sales and profits.
A significant portion of our sales agents are independent contractors. Although we believe we have properly classified such individuals, a risk nevertheless exists that a court, the Internal Revenue Service or other authority will take the position that our sales agents are employees. From time-to-time,time to time, we are subject to civil litigation, including class and collective action litigation, alleging that we have improperly classified certain of our sales agents as independent contractors. In September 2024, the Equal Employment Opportunity Commission ("EEOC") notified us that it had determined that all sales agents affiliated with State General Agent Simon Arias were employees, not independent contractors, of Globe Life Inc. and/or AIL. Such determination is not binding but we expect any potential civil action brought by the EEOC would likely include such an allegation. A future adverse judgment in connection with any such civil litigation described above could result in substantial damages. Future changes in rules, regulations or interpretations of existing rules and regulations, or significant adverse judgments in litigation, could require us to reclassify all or a portion of our agents as employees and the impact could significantly increase our operating costs and negatively impact our insurance business.
The Company utilizes third-party vendors, including independent sales agents, to provide certain business services and functions, which exposes the Company to risks outside the control of theits Company.control. The reliance on these third-party vendors creates a number of business risks, such as the risk that the Company may not maintain service quality, control or effective management of the outsourced business operations and that the Company cannot control the data, informationfacilities, systems,networks, facilitiesemerging technology or networksinformation ofsystems suchused by third-party vendors. We employ controls and procedures designed to facilitate service quality of our thirdthird-party partyvendors and mitigate risks resulting from the use of third-party vendors; however, such controls and procedures cannot be 100% effective in all cases. The Company may be adversely affected by a third-party vendor who operates in a poorly controlled manner or fails to deliver contracted services, which could lower revenues, increase costs, reduce profits, disrupt business, or damage the Company’s reputation.
We cannot be assured that any particular issuer, regardless of industry, will be able to make required interest and principal payments on a timely basis or at all. Significant downgrades or defaults of issuers could negatively impact our risk-based capital and solvency ratios, leading to potential downgrades of the Company by rating agencies, potential reduction in future dividend capacity from our insurance subsidiaries, and/or higher financing costs at Globe Life Inc. (Parent Company) should additional statutory capital be required.
Our investment portfolio contains certain alternative investments that may be illiquid and volatile, which could negatively affect our investment income and liquidity.
Over the past several years, we have increased our investment in alternative investments, such as limited partnerships. These and other similar investments may have different, more significant risk characteristics than investments in fixed maturity securities, may be more volatile and may be illiquid due to restrictions on sales, transfers and redemption terms, all of which could negatively affect our investment income and overall portfolio liquidity.
These alternative investments may not meet regulatory admissibility requirements or may result in increased regulatory capital charges to the insurance subsidiaries that hold these investments, which could limit those subsidiaries’ ability to pay dividends and negatively impact our liquidity.
The principal sources of our insurance subsidiaries’ liquidity are insurance premiums, as well as investment income, maturities, repayments, and other cash flow from our investment portfolio. Our insurance subsidiaries are subject to various state statutory and regulatory restrictions applicable to insurance companies that limit the amount of cash dividends, loans, and advances that those subsidiaries may pay to us, including laws establishing minimum solvency and liquidity thresholds. in addition, our Bermuda reinsurance subsidiaries are subject to regulation established by the Bermuda Monetary Authority ("BMA"). For example, in the states where our companies are domiciled, an insurance company generally may pay dividends only out of its unassigned surplus as reflected in its statutory financial statements filed in that state. Additionally, dividends paid by insurance subsidiaries are restricted based on regulations by their states of domicile. Accordingly, impairments in assets or disruptions in our insurance subsidiaries’ operations that reduce their capital or cash flow could limit or disallow the payment of dividends, a principal source of our cash flow, to us.
Under an intercompany reinsurance agreement initiated in 2025, we have ceded approximately $1.2 billion of our life statutory reserves from Liberty National Life Insurance Company, Globe Life And Accident Insurance Company, and American Income Life Insurance Company to GL Re, as of December 31, 2025. Future regulatory changes made by the BMA or other events may impact the capital efficiency of the reinsurance structure and could require the holding company to contribute additional capital to GL Re or our U.S. insurance subsidiaries to recapture ceded business.
Other sources of liquidity include a variety of short-term and long-term instruments, including our credit facility, Pre-Capitalized Trust Securities ("P-CAPS") facility, commercial paper, long-term debt, Federal Home Loan Bank ("FHLB"), intercompany financing and reinsurance.
We are subject to liquidity risks associated with sourcing a concentration of our funding from the Federal Home Loan Bank (“FHLB”).FHLB.
Since April 2024, weWe have been and continue to be the target of several short sellers who have published reports making allegations about the Company, which resulted in a significant decline in the price of our common stock. In addition, these reports resulted in significant negative publicity against us, damaged our reputation, and exposedresulted usin toa putative securities class action litigation and derivative shareholder litigation. See Note 5—Commitments and Contingencies for a discussion of such litigation. We have already expended significant resources to defend and repair our reputation. We will continue to defend against any unfounded and unsubstantiated claims about our business, our disclosures, and the integrity of our financial statements, which may require us to expend significant resources.
In April 2024, the trading price of our common stock dropped following the publication of certain short seller reports. As of the date of this Report, one putative securities class action hasand five shareholder derivative lawsuits have been filed against Globe Life Inc. andrelated weto expectthis that other putative class action claims may be filed as well.event. While we intend to defend such actions vigorously, any judgment against us or any future stockholder litigation could have a material adverse effect on our business, financial condition or results of operations.
Insurance companies, including our insurance subsidiaries, are subject to extensive supervision and regulation in the states in which they conduct business. The primary purpose of this supervision and regulation is the protection of policyholders, not investors. Regulatory agencies have broad administrative power over numerous aspects of our business, including premium rates for our life, Medicare Supplement and other supplementsupplemental health products, as well as other terms and conditions included in the insurance policies offered by our insurance subsidiaries, marketing practices, advertising, use of emerging technologies, agent licensing, independent agent practices, policy forms, capital adequacy, solvency, reserves and permitted investments.
Regulatory authorities also have the power to conduct investigations, and to bring administrative or judicial proceedings against us, which could result in suspension or revocation of our licenses, cease and desist orders, fines, civil penalties, disgorgement, criminal penalties or other disciplinary action that could have a material adverse impact on our business, financial condition or results of operation. Press coverage and other public statements that allege wrongdoing, even if untrue, can lead to increased regulatory inquiries or investigations including any that may arise in connection with the subpoenas from U.S. Attorney’s Office for the Western District of Pennsylvania seeking documents related to sales practices by certain of our independent sales agents contracted to sell American Income Life Insurance Company policies.investigations.
Our financial statements are subject to the application of GAAP and accounting practices as promulgated by the National Association of Insurance Commissioners’ statutory accounting practices ("NAIC SAP"), which principles are periodically revised and/or expanded. Accordingly, from time to time we are required to adopt new or revised accounting standards or guidance issued by recognized authoritative bodies. Future accounting standards that we are required to adopt could change the current accounting treatment that we apply to our consolidated financial statements. These changes, including underlying assumptions, projections, estimates or judgments/interpretations by management, could have a material adverse effect on our business, financial condition, and results of operations. (Refer to Note 1—Significant Accounting Policies under the caption Accounting Pronouncements Yet to be Adopted)Adopted.
The collection, maintenance, use, disclosure, and disposal of personally identifiable information by our insurance subsidiaries are regulated at the international, federal, and state levels. Applicable laws and rules are subject to change by legislation or administrative or judicial interpretation. We are subject to the privacy and security provisions of federal laws including, but not limited to, the Gramm-Leach-Biley Act of 1999 ("GLBA"), the Health Information Technology for Economic and Clinical Health Act ("HITECH"), and the Health Insurance Portability and Accountability Act of 1996 ("HIPAA"). HIPAA additionally requires that we impose privacy and security requirements on our third-party business associates. Various state laws also address the use and disclosure of personally identifiable information, to the extent they are more restrictive than these and other federal laws. Further, approximately half of the states have adopted a form of the National Association of Insurance Commissioners’ data security model law, which imposes security requirements. Noncompliance with these laws, whether by us or by one of our business associates, could have a material adverse effect on our business, reputation, and results of operations and could result in material fines and penalties, various forms of damages, consent orders regarding our privacy and security practices, adverse actions against our licenses to do business, and injunctive relief.
The failure to maintain effective and efficient information systems ator themanage Companyresponsible use of emerging technologies, including artificial intelligence, could adversely affect our financial condition and results of operations.operations at the Company.
Our business is highly dependent upon the internet, third-party service providers, and information systems to operate in an efficient and resilient manner. We gather and maintain data for the purpose of conducting marketing, actuarial analysis, sales, and policy administration functions. Our ability to modernize and maintain our information technology systems and infrastructure requires us to commit significant resources and effective planning and execution. This modernization includes the responsibleinnovative, responsible, and secure use of emerging technologies like artificial intelligence.intelligence ("AI").
Malicious third parties, employee or agent errors or disasters affecting our information systems could impair our business operations, regulatory compliance, and financial condition. Employee or agent malfeasance or errors in the handling of our information systems may result in unauthorized access to customer or proprietary information, or an inability to use our information systems to efficiently support business operations. As a result of increasingly complex AI risks, more frequent and sophisticated cyberattacks and the highly regulated nature of the insurance industry, we must continually implement new, and maintain existing, technology or adapt existing technology to protect against security and privacy incidents and to meet compliance requirements of new and proposed regulations.
Negative publicity through traditional media, internet, social media, and other public forums, including short seller reports and allegations of independent agent misconduct could damage our brand or reputation, which could adversely impact our ability to recruit and retain agents, our ability to market our products, and the persistency of in-forcein force policies. A reduction in the number of agents selling our products, or the rate of growth of the number of agents selling our products may have an adverse impact on product sales and profit, and such impact may be material.
We may fail tonot meet expectations relating to corporate responsibility and sustainability standards and practices.
We may fail tonot meet ourthese corporate responsibility and sustainability expectations. Failure to meet, or achieve progress on, ourthese expectations, on a timely basis, or at all, could adversely affect our reputation, business, financial performance, and growth. We may face adverse regulatory, investor, customer, media, or public scrutiny leading to business, reputational, or legal challenges. In addition, our policies, and processes to evaluate and manage these standards in coordination with other business priorities may not prove completely effective or satisfy investors, customers, regulators, or others.
Management's Discussion & Analysis (MD&A)
New heading “Summary of Operations.”
New heading “December 31, 2025”
Removed heading “December 31, 2023”
Largest changes
“Normalized life underwriting margin is a non-GAAP financial measure defined as insurance underwriting margin excluding the impacts of assumption unlocking recognized in the period. Management believes this measure provides investors and other users of the financial statements with additional insight into the underlying profitability and trends of the in force life business by removing the effects of assumption changes that vary by period. On a normalized basis, life underwriting margin for 2025 was $1.4 billion or 41% of premium, compared with $1.3 billion or 40% of premium in 2024. …”see in full comparison
The life insurance segment is our primary segment and is the largest contributor to earnings in each year presented. Insee in full comparison2024,2025, the life insurance segment underwriting margin increased$160$157millionmillion, compared with2023.2024. This was primarily a result of increased premiums and favorable policy obligations as a percent of premium due to a remeasurement gain resulting from the assumption updates in2024.2025. In2023,2024, the life insurance segment underwriting margin increased$63$160 million when compared with2022.2023.The increaseThis wasdueprimarilytoa result of increasedpremiums,premiums and favorable policy obligations as a percent ofpremium,premiumandin addition to alowerremeasurementlossgainresultingasfroma result of assumptionupdateschanges in2023.2024. Excess investment incomeincreaseddecreased$34$26 million in20242025 compared with2023,2024, resulting from lower average invested asset growthinand lower average earned yields on ourinvestedshort-term,assetsdirect commercial mortgage loan andincreasedlimitedyieldspartnershipdue to higher interest rates.investments. In2023, excess investment income increased $26 million compared with 2022. In 2024,2025, underwriting margin in the health segmentdecreasedincreased to$372$390 million due tohigherincreasedclaimsalesutilization,and rate increases in our Medicare supplement business, compared with $372 million in 2024 and $378 million in2023 and $377 million in 2022.2023.
“During 2025, shareholders’ equity increased as a result of net income of $1.2 billion, but was offset by share repurchases of $685 million and an additional $190 million in share repurchases to offset the dilution from stock option exercises. Additionally, the balance of AOCI increased $258 million primarily due to increased interest rates and discount rates over the period. …”see in full comparison
Full comparison: every changed paragraph (119)
Globe Life serves the lower-middle to middle-income market. We believe this market is underserved, has significant growth potential, and provides us with a distinct competitive advantage. This advantage is protected due not only to our ability to efficiently reach this market through both exclusive and direct to consumer distribution channels, but also due to the amount of data and experience we possess, as we have been in this same market for over 60 years with essentially the same products. The basic protection life and health insurance products we offer are specifically designed to help provide financial security to consumers in this market.
•Total premium increased 5% over the same period in the prior year. Life premium increased 4%3% for the period from $3.14$3.3 billion in 20232024 to $3.26$3.4 billion in 2024.2025. Health premium increased 9% to $1.5 billion over the prior-year period of $1.4 billion.
•Net investment income increased 7% over the same period in the prior year.
The following graphs represent net income and net operating income(1) for the threetwelve yearsmonth periods ended December 31, 2025 and 2024.
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 $(2.031.8) billion and $(2.772.0) billion for the year ended December 31, 20242025 and 2023,2024, 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 $(23.9021.99) and $(29.1123.90) per share for the year ended December 31, 20242025 and 2023,2024, respectively.
Summary of Operations.
•Net income totaled $1.16 billion in 2025, compared with $1.07 billion in 2024 and $971 million in 2023.
Summary of Operations. Net income increased 10% to $1.07 billion in 2024, compared with $971 million in 2023. In 2023, net income increased 9% from $894 million in 2022. •On a diluted per common share basis, net income per common share for 20242025 increased from $10.0718% to $11.94.$14.07. In 2023, netNet income per common share, on a diluted per common share basis,basis increasedwas 11% from $9.04$11.94 in 2022.2024 and $10.07 in 2023.
•Net operating income was $1.20 billion in 2025, compared with $1.11 billion in 2024 and $1.03 billion in 2023.
•On a diluted per common share basis, net operating income per common share for 2025 increased 17% to $14.52. Net operating income per common share, on a diluted per common share basis, was $12.37 in 2024 and $10.65 in 2023.
Net remeasurement gains of $134.3 million in 2025, $46.3 million in 2024, and $3.2 million in 2023 were attributable to the Company's annual third-quarter review and unlocking of life and health long-term assumptions, including lapses, mortality and morbidity. See the remeasurement gain/loss table in Note 6—Policy Liabilities for additional information.
Net operating income increased 8% to $1.11 billion in 2024, compared with $1.03 billion in 2023, due to a 26% increase in excess investment income as well as a 13% increase in life underwriting margin. In 2023, net operating income increased 7% from $961 million in 2022. On a diluted per common share basis, net operating income per common share for 2024 increased from $10.65 to $12.37, an increase of 16%. In 2023, net income per common share, on a diluted per common share basis, increased 10% from $9.71 in 2022. Net operating income is primarily comprised of insurance underwriting margin plus excess investment income and annuity and other income, offset by operating expenses, after tax and, as such, is considered a non-GAAP measure. Net income is the most directly comparable GAAP measure. We do not consider realized gains and losses to be a component of our core insurance operations or operating segments. Additionally, net income in 2024, 2023, and 2022 was affected by certain non-operating items. We do not view these items as components of core operating results because they are not indicative of past performance or future prospects of the insurance operations. We remove items such as these that relate to prior periods or are non-operating items when evaluating the results of current operations, and therefore exclude such items from our segment analysis for current periods.
As previously noted, a component of insurance underwriting margin is policy obligations, which includes for each reporting period the change in the liability for future policy benefits (LFPB). The LFPB is determined each reporting period based on the net level premium method. Net level premiums reflect a recomputed net premium ratio using actual experience since the issue date, and expected future experience based on future cash-flow assumptions. See Note 6—Policy Liabilities for additional information. The policy liability is accrued as premium revenue is recognized and adjusted for differences between actual and expected experience in the form of remeasurement gains and losses during the period. If actual mortality, morbidity, and lapse experience equals our expected assumptions used in the development of our liability for future policy benefits, there would be no impact to our financial results. Actual experience can have a material impact on financial results to the extent it significantly deviates from the expected assumptions which are used to develop our estimates of the liability for future policy benefits and amortization of the deferred acquisition cost asset (DAC). For example, deviations in actual versus expected lapses in the early policy years tend to have a larger impact on DAC amortization than LFPB change in reserves. Conversely, deviations in actual versus expected lapses in the later policy years typically have a larger impact on LFPB change in reserves than DAC amortization. This is due to the release of DAC and LFPB where DAC capitalization in earlier years is amortizing over time and the LFPB is increasing over time as the policy stays inforce. Disaggregated rollforwards of our present value of expected future net premiums and our expected future policy benefits are presented within Note 6—Policy Liabilities, which include disclosure of remeasurement gain (loss) for the effect of actual variances from expected experience and the changes in assumptions (mortality, morbidity, and lapses) on future cash flows.
The Company performed an annual review of its assumptions in the third quarter of 2024 that resulted in favorable changes to its mortality and lapse assumptions on life and unfavorable changes to morbidity assumptions on health. In our life segment mortality assumptions generally decreased across most channels in line with recent experience consistent with decreasing levels of excess deaths. Lapse rate assumptions in the life segment were slightly increased across all channels. For the health segment, morbidity assumptions were increased, causing higher future policy benefit reserves. The assumption review process of the life and health segments resulted in a $46.3 million net remeasurement gain for the period ended December 31, 2024 as compared to a $3.2 million net remeasurement gain for the period ended December 31, 2023 and a $36.5 million net remeasurement loss for the period ended December 31, 2022.
Excluding the impact of assumption changes, the Company's results for actual variances from expected experience for both life and health produced a $57.4 million net remeasurement gain for the period ended December 31, 2024, as compared to a $38.0 million net remeasurement gain for the period ended December 31, 2023 and a $4.6 million net remeasurement gain for the period ended December 31, 2022.
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 is 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.
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.
The life insurance segment is our primary segment and is the largest contributor to earnings in each year presented. In 2024,2025, the life insurance segment underwriting margin increased $160$157 millionmillion, compared with 2023.2024. This was primarily a result of increased premiums and favorable policy obligations as a percent of premium due to a remeasurement gain resulting from the assumption updates in 2024.2025. In 2023,2024, the life insurance segment underwriting margin increased $63$160 million when compared with 2022.2023. The increaseThis was dueprimarily toa result of increased premiums,premiums and favorable policy obligations as a percent of premium,premium andin addition to a lower remeasurement lossgain resultingas froma result of assumption updateschanges in 2023.2024. Excess investment income increaseddecreased $34$26 million in 20242025 compared with 2023,2024, resulting from lower average invested asset growth inand lower average earned yields on our investedshort-term, assetsdirect commercial mortgage loan and increasedlimited yieldspartnership due to higher interest rates.investments. In 2023, excess investment income increased $26 million compared with 2022. In 2024,2025, underwriting margin in the health segment decreasedincreased to $372$390 million due to higherincreased claimsales utilization,and rate increases in our Medicare supplement business, compared with $372 million in 2024 and $378 million in 2023 and $377 million in 2022.2023.
Total premium income rose 5% for the year ended December 31, 20242025 to $4.67$4.9 billion. Total net sales increased 9%13% to $840$948 million,million when compared with 2023.2024. Total first-year collected premium (defined in the following section) increased 11%5% to $704 million for 2025, compared to $674 million for 2024, compared to $605 million in 2023.2024.
Life insurance premium income increased 4%3% to $3.26$3.4 billion over the prior-year total of $3.14$3.3 billion. Life net sales roseincreased 9%3% to $595$615 million for the year ended 2024.2025 as compared to the year ago period. First-year collected life premium increased 8%2% to $455$463 million. Life underwriting margin, as a percent of premium, increased to 41%45% for 20242025 from 38%41% in 2023.2024. Underwriting margin increased to $1.35$1.5 billion in 2024,2025, compared to $1.19$1.4 billion in 2023.2024.
Health insurance premium income increased 7%9% to $1.40$1.5 billion over the prior-year total of $1.32$1.4 billion. Health net sales rose 10%36% to $245$333 million for the year ended 2024.2025. First-year collected health premium rose 18%10% to $219$241 million. Health underwriting margin, as a percent of premium, was 27%26% for 20242025 anddown 29%from for27% 2023.in 2024. Health underwriting margin declinedincreased to $372$390 million for the year ended 2024,2025, compared to $378$372 million in 2023.2024.
Excess investment income, the measure of profitability of our investment segment, increaseddeclined 26%16% during the year ended 20242025 to $164.4$138 million from $130.4$164 million in 2023.2024. Excess investment income per common share, reflecting the impact of our share repurchase programprogram, anddeclined increased net investment income, increased 36%8% to $1.83$1.68 from $1.35$1.83 when compared with the same period in 2023.2024.
Insurance administrative expenses increased 14%4% primarily due to higher employee costs, which include salaries and other costs in 2024addition to higher information technology expenses in 2025 when compared with the prior-year period. These expenses were 7.3% as a percent of premium duringfor 20242025, comparedunchanged tofrom 6.8% in 2023.2024.
For the year ended December 31, 2024,2025, the Company repurchased 10.15.4 million shares of Globe Life Inc. sharescommon stock at a total cost of $946$685 million for an average share price of $93.76.$126.41.
We use three measures as indicators of premium growth and sales over the near term: “annualized premium in force,force”, “"net sales,” and “first-year collected premium.”
•Annualized premium in force is defined as the premium income that would be received over the following twelve months at any given date on all active policies if those policies remain in force throughout the twelve-month12-month period.
•Net sales is calculated as annualized premium issued, net of cancellations generally in the first thirty30 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 1one 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 excludesis before cancellations, andas cancellations do not contribute to premium income.
Approximately 90% of our premiums are collected monthly; however, other premium payment options such as quarterly and annual are offered by the Company and may be elected by the policyholder. The majority of premiums are paid by way of automatic draft or electronic payment from our policyholders and to a lesser extent from other payment methods such as check, credit card, and worksite payroll deduction.
Excluding our Direct to Consumer Division, we sell our policies primarily through independently contracted agents (“agents”) who earn commissions in accordance with contracts they have with the respective insurance subsidiary of the Company. These contract arrangements with agents cover commission structures and rates, contract periods, credit terms for settlement of agent advance accounts, vesting rights in future renewal commissions upon termination of contracts and responsibility for certain premium collections. Contract terms with agents vary, but generally commissions are earned over the life of the policy as premiums are paid. Commissions are calculated on a policy-by-policy basis and vary by product type and policy year. Commission rates are higher for the first-year premium when a policy is issued and are generally reduced for policies that remain in effect for renewal periods (e.g., commission rates may reduce in years 2-10 and again in year 11 and after). After a certain period (typically 10 years), commission rates become constant over the remaining life of the policy and are considered level commissions.
Life insurance is the Company's predominant segment. During 2024,2025, life premium represented 70%69% of total premium and life underwriting margin represented 78%79% of the total underwriting margin. Additionally, investments supporting the reserves for life products produce the majority of excess investment income attributable to the investment segment.
Net policy obligations amounted to 37%32% of premiums for the year ended December 31, 2024,2025, compared to 37% in 2024 and 41% in 2023, and 43% in 2022.2023. This improvement was primarily due to improved mortality and the assumptionsannual updatedassumption changes which were based upon our review of lapses, mortality, and morbidity resulting in a remeasurement gain of $130.9 million in 2025 compared to a remeasurement gain of $56.8 million comparedin to2024 and a remeasurement loss of $2.0 million in 2023 and a remeasurement loss of $47.2 million in 2022.2023. Refer to Note 6—Policy Liabilities for further discussion of the Company's annual assumptions review.
To enhance comparability of underlying operating performance across periods, the Company also evaluates life underwriting margin on a normalized basis that excludes the impacts of annual assumption updates. As discussed above, assumption unlocking results in a cumulative catch-up remeasurement gain or loss recognized in policy obligations. While required under GAAP, these remeasurement effects can introduce volatility unrelated to current-period underwriting performance.
Normalized life underwriting margin is a non-GAAP financial measure defined as insurance underwriting margin excluding the impacts of assumption unlocking recognized in the period. Management believes this measure provides investors and other users of the financial statements with additional insight into the underlying profitability and trends of the in force life business by removing the effects of assumption changes that vary by period. On a normalized basis, life underwriting margin for 2025 was $1.4 billion or 41% of premium, compared with $1.3 billion or 40% of premium in 2024. In 2023, assumption unlocking had minimal impact with underwriting margin remaining unchanged at 38% of premium. This increase in normalized life underwriting margin in the current year reflects improved underlying mortality and persistency experience and favorable expense efficiency across our Divisions.
(1) Includes a gain of $14 million related to the recapture of reinsurance for the year ended December 31, 2025 as disclosed in Note 1—Significant Accounting Policies under the caption Reinsurance and Recapture.
The American Income Life Division is an exclusive agency that markets to members of labor unions and other affinity groups and continues to diversify its lead sources by utilizing internally generated leads, third-party internet vendor leads and obtaining referrals to facilitate sustainable growth. This divisionDivision is Globe Life's largest contributor of life premium of any distribution channel at 52%53% of the Company's 20242025 total life premium. In 2024,2025, the average monthly life premium issued per policy was $56$60 as compared to $54$56 in 2023.2024. Net sales were $394 million in 2025, up from $382 million in 2024, up from $323 million in 2023.2024. The underwriting margin, as a percent of premium, was 47%49% in 2024,2025, up from 45%47% in 2023.2024.
The average producing agent count increased 11%2% over the year-ago period. Over 65% of the Division's net sales are driven by agents that have been producing for the Division for six months or more. The increase in average producing agent count was driven by an increase in new agent recruiting along with continued improvement in new agent retention.recruiting. 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.
American Income Life continues to focus on growing and strengthening the agency force, specifically through emphasis on agency middle-management growth and additional agency office openings.growth. 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, manager dashboards, and new agent recruiting. Additionally, this Division has invested in and successfully implemented technology that allows the agency force to engage in virtual recruiting, training, and sales activity. The agents have shifted to primarily a virtual experience with customers and have generated the vast majority of sales through virtual presentations. We find this flexibility to be attractive to new recruits as well as a driver of sustainabilityretention forin our agency force.
The Direct to Consumer Division ("DTC") markets adult and juvenile life insurance through a variety of mediums,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 inas 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 divisionDivision provides valuable support to our agency business through brand impressions and inquiresinquiries that may lead to sales in our exclusive agency channels. This Division has implemented new technology to enhance the underwriting process which has improved the conversion of customer inquiries into sales. 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 parentparents and grandparent marketgrandparents of existing juvenile policyholders,insureds, who are more likely to respond favorably to a direct to consumer solicitation for life insurance.insurance 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.
It is also a vehicle to reach the parents and grandparents of juvenile policyholders, who are more likely to respond favorably to a seamless customer experience solicitation for life coverage on themselves in comparison to the general adult population. Also, future offerings to juvenile policyholders and their parents are sources of lower acquisition-cost life insurance sales in the future.
DTC net sales declinedincreased 9%5% to $106$112 million in 20242025, compared with $116$106 million for the same period a year ago. This declineincrease is due primarily to the management of costs relative to direct mail and mailing insert marketing activity as a result of inflationnew related to postage, paper,technology and onlineimprovement advertisingin costs.conversion Whileof totalcustomer salesinquiries haveinto declined,sales, as noted above, with the focusexpectation that we are not incurring incremental underwriting risk. This Division has been focused on improving profitability and improving the underwriting margin. In 2024,2025, DTC’s underwriting margin, as a percent of premium, was 29%33%, compared with 24%29% in 2023.2024. In 2025, the average monthly life premium issued for DTC adults was $18 as compared to $15 for the same period in the prior year.
The Liberty National Division is an exclusive agency that markets individual life insurance to middle-income householdhouseholds and worksite customers. Recent investments in new sales technologies as well as recent growth in agency middle management within the agencyDivision are expected to support increased sales. Underwriting margin increased 22% from the year ago period to $171 million and premium increased 5% to $390 million. The underwriting margin as a percent of premium wasincreased to 44% in 2025, compared to 38% in 2024, compared with 33% in 2023. The increase is primarily attributable to increased premiums and lower policy obligations as a percent of premium during the year compared with the same year ago period.2024. In 2024,2025, the average monthly life premium issued per policy was $43$45 as compared to $44$43 in 2023. Net sales rose 3% in 2024 over the same period in 2023 due primarily to increased agent count.2024.
The Liberty National DivisionDivision's average producing agent count increased significantlywhen compared with the prior-year comparable periods. WeThis continueDivision continues to execute oura long-term plan to grow this agency through expansion from small-town markets in the Southeast to more densely populated areas with larger pools of potential agent recruits and customerscustomers. as we serve communities, regions, and cities. Continued expansionExpansion of this Division’s presence in larger geographic cities,cities with less penetrated areas will help create long-term sustainable agency growth. Additionally, the Division continues to help improve the ability of agents to develop new worksite marketing business. Systems that have been put in place, including the addition of aA CRM platform and enhanced analytical capabilities,capabilities have helped the agents develop additional worksite marketing opportunities as well asand improve the productivity of agents selling in the individual life market. As thethis Division continues to gain momentum in its sales and recruiting initiatives,initiatives as well asthrough advances in its technology and utilization of a CRM platform, the Divisionit anticipates continued growth in recruiting activity, average producing agent countcount, and net sales.
Health insurance sold by the Company primarily includes Medicare Supplement insurance includingas well as retiree health insurance business,insurance, accident coverage, and other limited-benefit supplemental health products includingsuch as cancer, critical illness, heart disease, accident, intensive care, and other health products.
Health premium accounted for 30%31% of our total premium in 2024,2025, while the health underwriting margin accounted for 22%21% of total underwriting margin. Health underwriting margin declinedincreased to $372$390 million compared to $378$372 million in the prior year. While the Company continues to emphasize life insurance sales relative to healthhealth, 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.
Health premium increased 9% in 2025 as compared to 2024. This increase was attributable to significant sales growth in our Medicare supplement plans as a result of what we believe is a consumer shift from Medicare Advantage plans to Medicare supplement plans during the current year. Premium growth in 2025 was also the result of Medicare supplement rate increases that went into effect in 2025 in addition to an increase in agent count and productivity on other health business. Refer to Note 6—Policy Liabilities for further discussion of the Company's annual assumptions review.
Consistent with the life segment, the Company also evaluates health underwriting margin on a normalized basis that excludes the impacts of annual assumptions unlocking recognized in policy obligations. Normalized health underwriting margin is a non-GAAP financial measure and should not be considered a substitute for GAAP underwriting margin. Management believes this measure provides useful supplemental information regarding underlying health underwriting performance by removing period specific assumption update effects.
On a normalized basis, health underwriting margin for 2025 was $387 million or 25% of premium, compared with $383 million or 27% of premium in 2024 and $373 million or 28% of premium in 2023. The percentage of premium decline primarily reflects higher claims experience and an increase in the proportion of overall health premium from United American. As with life, reported GAAP underwriting margin for all periods presented was affected by assumption unlocking as discussed above.
Net policy obligations amounted to 53% of premium in 2024 compared to 51% in both 2023 and 2022. This increase was primarily due to the assumptions review of lapses and morbidity resulting in a remeasurement loss of $10.5 million compared to a remeasurement gain of $5.2 million and $10.7 million in 2023 and 2022, respectively. Refer to Note 6—Policy Liabilities for further discussion of the Company's annual assumptions review.
Premium related to limited-benefit supplemental health products comprisecomprises $786$851 million, or 56%, of the total health premiums for 20242025, compared with $743$786 million, or 56%, in 2023.2024. Premium from Medicare Supplement products comprises the remaining $619$676 million, or 44%, for 20242025, compared with $576$619 million, or 44%, in 2023.2024.
Health net sales related to limited-benefit supplemental health products,products comprise $175$207 million, or 71%,62%, of the total health net sales for 20242025, compared with $161$175 million, or 72%,71%, in 2023.2024. Medicare Supplement sales make up the remaining $126 million, or 38%, for 2025, compared with $70 million, or 29%, for 2024 compared with $63 million, or 28%, in 2023.2024.
The United American Division consists of non-exclusive independent agenciesagents and brokers who may also sell for other companies. The United American Division was Globe Life's largest health agencyDivision in terms of health premium income,revenue, with net sales up 11%92% from the same period in the prior year.
This Division includes three different units:
•Globe Life Group Benefits, which offers group worksite supplemental limited benefit health insurance through brokers.
The majority of the premium revenue comes from Medicare Supplement which has seen increased demand primarily due to changes in the Medicare Advantage market. Underwriting margin as a percent of premium for the Division was 6% in 2025 and 8% in 2024. The decline in underwriting margin as a percent of premium when compared to prior years 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 rates for approval to the insurance department regulators and the new premium rates generally become effective in the following year on new business issued.
The majority of the premium revenue comes from Medicare Supplement. Underwriting margin as a percent of premium for the Division was 8% in 2024, declining due to increased claims utilization, 11% in 2023, and 12% in 2022.
The Family Heritage Division is an exclusive agency that primarily markets individual limited-benefit supplemental health insurance into small to medium sizedmedium-sized businesses. Most of its policies include a cash-back feature, such as a return of premium,premium feature, where any excess of premiums over claimspremium 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 37% in 2025 and 34% in 2024, the same as in 2023 and 2022.2024.
The divisionDivision experienced a 10%14% rise in health net sales in 20242025 as compared with 2023,2024, primarily due to anincreased increaseagent in producing agentscount and improvedincreased agent productivity and training.productivity. The Division will continue to implement incentive and retention programs to further these increases in the number of producing agents.
Below is the average producing agent count as of the indicated periods for the Family Heritage Division. The average producing agent count wasis upbased 5%on the actual count at the beginning and end of each week during the year. The average producing agent count increased 9% compared with the same period a year ago. TheAlong Divisionwith hasthe recentlyDivision's increased efforts to grow agent count, it is also focused on the further training and development of its agency middle management, which also positively impacts average producing agent count.management. While growth in net sales and earned premium is impacted by agent productivity, growth in the number of average producing agents is the primary driver of future growth in sales, similar to other exclusive agencies.
Below is the average producing agent count as of the indicated periods for the Family Heritage Division. The average producing agent count is based on the actual count at the beginning and end of each week during the year.
What changed in the latest 10-Q
Risk Factors
The Company had no material changes to its risk factors.
No wording changes found in this section.
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Management's Discussion & Analysis (MD&A)
Largest changes
“DTC net sales declined 4% to $54 million for the six months ended June 30, 2026, compared to the year-ago period. The Division is navigating a transition driven by the growing use of Artificial Intelligence ("AI") in consumer search behavior, which has reduced paid search volume from internet marketing. DTC is actively adapting a digital content strategy to remain visible and accessible within AI-driven environments.”see in full comparison
“This Division includes units that sell Medicare Supplement insurance to individuals through independent general agents and group retiree medical and other health insurance through brokers. The majority of the premium revenue comes from Medicare Supplement which has seen increased demand primarily due to the changes in the Medicare Advantage market. Underwriting margin as a percent of premium for the Division was 3% for the three months ended March 31, 2026 and 1% for the same period in 2025. …”see in full comparison
Net investment income for thesee in full comparisonthreesix months endedMarchJune31,30, 2026 was$290$584 million, or3%4% greater than the prior year quarter period. Mean invested assets increased 2% during the firstthreesix months of 2026 over the same period last year. Net investment income increased in the current period due to higher earned yields on fixed maturities, commercial mortgage loans and other long-term investments compared to the prior year period. The effective annual yield earned on the fixed maturity portfolio was5.32%5.31% in the firstthreesix months of 2026, compared to5.25%5.27% for the comparable period in 2025. The earned yield on total long-term invested assets, which includes our fixed maturity, commercial mortgage loan and other long-term non-fixed maturity investments, was5.50%5.51% for the firstthreesix months of 2026 compared to5.40%5.38% for the comparable period of 2025.While our core investments are fixed maturities, the Company also invests 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 three months ended March 31, 2026 was 6.96% compared with 6.53% in the prior year period. The higher earned yield on commercial mortgage loans is due to a lower number of non-accrual loans in the current quarter compared to the prior year period. The earned yield on limited partnership investments for the three months ended March 31, 2026 was 7.95%, the same as in the comparable prior-year period. See additional information in Note 4—Investments.
“While our core investments are fixed maturities, the Company also invests 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, 2026 was 7.20% compared with 5.62% in the prior-year period. The higher earned yield on commercial mortgage loans is due to a lower number of non-accrual loans in the first six months compared to the prior-year period. …”see in full comparison
“Beyond direct sales, DTC continues to deliver significant value through agency support with lead generation expected to exceed one million this year. Improved conversion rates on leads shared with our agencies have contributed to margin improvement. Despite the decline in net sales, DTC’s underwriting margin grew to $149.5 million, or 31% of premium, for the six months ended June 30, 2026, compared to $133.2 million, or 27% of premium, for the same period in 2025 driven by favorable mortality in the current period. …”see in full comparison
“This Division includes units that sell Medicare Supplement insurance to individuals through independent general agents and group retiree medical as well as other health insurance through brokers. The past acquisition of Evry Health supports additional incremental growth of our group health products. Due to the infancy of this business, we may experience volatility related to operating results as the business scales. The majority of the premium revenue in the United American Division comes from Medicare Supplement. …”see in full comparison
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•On a diluted basis, net income per common share increased 16% from $6.07 to $7.04 and net operating income per common share increased from $6.34 to $7.04, an 11% increase as of June 30, 2026 and 2025, respectively.
•Net income as a return on equity (ROE) for the threesix months ended MarchJune 31,30, 2026 was 17.9%18.4% and net operating income as an ROE, excluding accumulated other comprehensive income(1), was 14.0%.14.3%.
•Total premium increased 6% over the same period in the prior year. Life premium increased 3% for the period from $830$1.67 millionbillion in 2025 to $853$1.71 millionbillion in 2026. Health premium increased 13%14% to $417$854 million from $370$748 million over the prior-year period.
•Total net sales increased 22%10% over the same period in the prior year from $216$439 million in 2025 to $264$484 million in 2026. TheAverage producing agent count increased by 9% at both Liberty National and Family Heritage Divisions. However, total average producing agent count across all of the exclusive agencies remained flatdecreased over the prior year.year primarily related to a decrease in the American Income Division.
•For the threesix months ended MarchJune 31,30, 2026, the Company repurchased 1.42.6 million shares of Globe Life Inc. common stock at a total cost of $203$378 million for an average share price of $141.24.$146.99.
The following graphs represent net income and net operating income(1) for the threesix month periods ended MarchJune 31,30, 2026 and 2025.
(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. ItNet operating income 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 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 $(1.7) billion and $(2.0) billion for the threesix months ended MarchJune 31,30, 2026 and 2025, 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 $(21.5321.86) and $(23.4224.19) per share for the threesix months ended MarchJune 31,30, 2026 and 2025, respectively.
•Net income totaled $271$558 million during the threesix months ended MarchJune 31,30, 2026, compared with $255$507 millionmillion, in the same period in 2025.2025, an increase of 10%.
•On a diluted per common share basis, net income per common share for the threesix months ended MarchJune 31,30, 2026 increased 13%16% from $3.01$6.07 to $3.39.$7.04.
•Net operating income was $274$558 million for the threesix months ended MarchJune 31,30, 2026, compared with $259$530 million for the same period in 2025.2025, an increase of 5%.
•On a diluted per common share basis, net operating income per common share for the threesix months ended MarchJune 31,30, 2026 increased from $3.07$6.34 to $3.43,$7.04, aan 12%11% increase.
The Company continues to see positive signs in itsCompany's core operations,operations remain strong, including sales and premium growth, and continueswe continue to achieve an operating ROE (excluding accumulated other comprehensive income) generally in the mid-teens.
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 $12$31 million compared with the prior period, driven by premium growth and lower policy obligations as a percent of premium. Excess investment income increased $1$4 million compared with the prior period, as net investment income increased slightly primarily due to higher yields on fixed maturitiesmaturities, commercial mortgage loans and other long-term investments. The health segment experienced favorable underwriting margin as a result of higher premiums from strong growth in Medicare Supplement sales in addition to the positive impact of higher premium rates on individual Medicare Supplement policies.policies as a result of approved rate increases.
In 2026, the largest contributor of total underwriting margin was the life insurance segment and the primary distribution channel was American Income. The following charts represent the breakdown of total underwriting margin by operating segment and distribution channel for the threesix months ended MarchJune 31,30, 2026.
Total premium income rose 6% for the threesix months ended MarchJune 31,30, 2026 to $1.3$2.6 billion. Total net sales increased 22%10% to $264$484 million when compared with 2025. Total first-year collected premium (defined in the following section) increased 16%19% to $196$408 million for 2026, compared to $169$343 million in 2025.
Life insurance premium income increased 3% to $853$1.71 millionbillion overcompared to $1.67 billion in the prior-year total of $830 million.period. Life net sales increased 6%1% to $157$307 million for the first threesix months ofended June 30, 2026 as compared to the year-ago period. First-year collected life premium increased 2% to $116$234 million. Life underwriting margin, as a percent of premium, was flat at 41% for 2026. Underwriting margin increased to $349$708 million in 2026, compared to $337$677 million in 2025.
Health insurance premium income increased 13%14% to $417$854 million overcompared to $748 million in the prior-year total of $370 million.period. Health net sales rose 58%30% to $106$177 million for the first threesix months ofended June 30, 2026. First-year collected health premium rose 46%54% to $80$174 million. Health underwriting margin, as a percent of premium, was 23% for 20262026, unchangeda 1% decrease from 2025.2025 as a result of increased group claims experience. Health underwriting margin increased to $95$194 million for the first threesix months ofended June 30, 2026, compared to $85$183 million in 2025.
Excess investment income, the measure of profitability of our investment segment, increased 2%6% during the first threesix months ofended June 30, 2026 to $37$75 million from $36$71 million in 2025. Excess investment income per common share, reflecting the impact of our share repurchase program, increased 10%11% to $0.46$0.94 from $0.42$0.85 when compared with the same period in 2025.
Insurance administrative expenses increased 8%7% primarily due to higher employee costs, which include salaries and other costs in addition to higher information technology expenses in 2026 when compared with the prior-year period. These expenses were 7.4%7.2% as a percent of premium for 2026, comparedunchanged with 7.3% forfrom 2025.
For the threesix months ended MarchJune 31,30, 2026, the Company repurchased 1.42.6 million shares of Globe Life Inc. common stock at a total cost of $203$378 million for an average share price of $141.24.$146.99.
We use three measures as indicators of premium growth and sales over the near term: “annualized premium in forceforce,”, "net sales,” and “first-year collected premium.”
•Net sales is calculated as annualized premium issued, net of cancellations 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 ofincremental premium growth than annualized premium issued since annualizednet premiumsales issuedare is beforeafter cancellations, as 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. In addition, cancellations are not considered as lapses related to net sales and first-year collected premiums.
Cancellations are not included in lapses.
Net policy obligations decreased to 35% of premium for the six months ended June 30, 2026 reflecting improved mortality results when compared with 37% of premium in the year-ago period.
(1) Includes a gain of $14 million related to the recapture of reinsurance for threesix months ended MarchJune 31,30, 2025.
Annualized life premium in force was $3.44$3.46 billion at MarchJune 31,30, 2026, an increase of 3%2% over $3.34$3.38 billion a year earlier.
The American Income Life Division is an exclusive agency that markets to members of affinity groups, including labor unions and other affinity groupsunions, and continues to diversify its lead sources by 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 54% of the Company's MarchJune 31,30, 2026 total life premium. For the threesix months ended MarchJune 31,30, 2026, life premium was $459$926 millionmillion, an increase of 5% when compared with the year agoyear-ago period. For the threesix months ended MarchJune 31,30, 2026, the average monthly life premium issued per policy was $62$63 as compared to $59 for the same period in the prior year. Net sales were $101$196 million for the threesix months ended MarchJune 31,30, 2026, up from $99$195 million in the year-ago period. The underwriting margin, as a percent of premium, was 46% for the threesix months ended MarchJune 31,30, 2026 and 45% for the same period in the prior year.
The average producing agent count decreased 4%5% over the year-ago period driven by lower retention of new agents. However, we have seen incremental agent count growth from first quarter to the second quarter in 2026. While long termlong-term sales growth in this Division,Division and our other exclusive agencies is generally tied to expansion of the agency force, short-term declines in agent count providesprovide an opportunity for improved sales productivity among veteran agents as theytheir primary focus additional timeis on sales activities.
American Income Life continues to focus on growing and strengthening the agency force, with particular emphasis on strengthening agency middle-management growth. The Division has made considerable investments in both financial incentives and agent training, as well as in information technology. A customer relationship management ("CRM") tool equips agents with intuitive dashboards to drive productivity across lead distribution, business conservation, and new agent recruiting. The Division also continues to enhance technology enabling the agency force to recruit, sell and train virtually. This has benefited our agents as a vast majority of sales are now generated through virtual presentations. We find this flexibility to be enticingattractive for new recruits as well as a driver of retention in our agency force.
DTC net sales declined 4% to $54 million for the six months ended June 30, 2026, compared to the year-ago period. The Division is navigating a transition driven by the growing use of Artificial Intelligence ("AI") in consumer search behavior, which has reduced paid search volume from internet marketing. DTC is actively adapting a digital content strategy to remain visible and accessible within AI-driven environments.
Beyond direct sales, DTC continues to deliver significant value through agency support with lead generation expected to exceed one million this year. Improved conversion rates on leads shared with our agencies have contributed to margin improvement. Despite the decline in net sales, DTC’s underwriting margin grew to $149.5 million, or 31% of premium, for the six months ended June 30, 2026, compared to $133.2 million, or 27% of premium, for the same period in 2025 driven by favorable mortality in the current period. For the six months ended June 30, 2026, the average monthly life premium issued for DTC adults increased to $19 as compared to $17 for the same period in the prior year.
DTC net sales increased 8% to $27 million for the three months ended March 31, 2026, compared to the year-ago period. This increase is the result of new underwriting tools and improved conversion of customer inquiries into sales, without incurring incremental underwriting risk. The Division has remained focused on improving profitability and underwriting margin improvement. DTC’s underwriting margin grew to $73.6 million or 30% of premium, for the three months ended March 31, 2026, compared to $64.2 million, or 26% of premium for the same period in 2025.
For the three months ended March 31, 2026, the average monthly life premium issued for DTC adults increased to $19 as compared to $17 for the same period in the prior year.
The Liberty National Division is an exclusive agency serving middle-income households and worksite customers withby providing individual life insurance products. Recent investments in new sales technologies, combined with growth in agency middle management, are expected to drive continued sales momentum. Underwriting margin rose 11%10% from the year ago period to $35$72 million and premium increased 4% to $100$200 million. The underwriting margin as a percent of premium increased for the threesix months ended MarchJune 31,30, 2026, to 35%,36%, compared to 33%34% in the year-ago period.period, as the Division experienced favorable mortality. For the threesix months ended MarchJune 31,30, 2026, the average monthly life premium per policy issued increased compared to the prior year to $48 from $44.
Below is the average producing agent count for the threesix months ended MarchJune 31,30, 2026 and 2025 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.
The Other agency distribution channels primarily include non-exclusive independent agencies selling primarily life insurance. The Other distribution channels contributed $50$100 million of life premium income, or 6% of Globe Life's total life premium income in the threesix months ended MarchJune 31,30, 2026, and contributed 2% of net sales for the period. Life underwriting margin for Other agency distribution increased in the first quarter of 2025 due to the recapture of an unaffiliated reinsurance treaty, this non-recurring transaction led to an elevated underwriting margin as of March 31, 2025.
Health premium accounted for 33% of our total premium in 2026, while the health underwriting margin accounted for 21% of total underwriting margin. Health underwriting margin increased to $95$194 million compared to $85$183 million in the prior year. The Company continues to value the life insurance segment due to life’s long-term profitability and its greater contribution to excess investment income, and the health segment, as it provides a significant contribution to return on equity, as it does not require a substantial amount of up-front capital.
Net policy obligations amounted to 56% of premium for the six months ended June 30, 2026 compared to 55% in the year-ago period. The increase in policy obligations is driven by the growth of the United American Division in relation to total health premium, as the United American Division products tend to have higher policy obligations as a percent of premium compared to other limited-benefit health products within our other divisions.
Net policy obligations amounted to 56% of premium for the three months ended March 31, 2026 compared to 55% in the year ago period.
Premiums from Medicare Supplement products totaled $191$400 million, or 46%,47%, of the total health premiums for the threesix months ended MarchJune 31,30, 2026, compared to $162$331 million, or 44%, in the same period in the prior year. Premium increases are driven primarily from increased sales and approved premium rate increases on our Medicare Supplement business. Premiums primarily related to limited-benefit supplemental health products comprise $226$454 million, or 54%,53%, of the total health premiums for the threesix months ended MarchJune 31,30, 2026, compared with $208$417 million, or 56%, in the same period in the prior year.
Annualized health premium in force was $1.72$1.80 billion at MarchJune 31,30, 2026, an increase of 14%16% over $1.51$1.54 billion a year earlier.
Health net sales related to limited-benefit supplemental health products and other health products comprise $76$122 million, or 72%,69%, of the total health net sales for the threesix months ended MarchJune 31,30, 2026, compared with $48$101 million, or 72%,74%, in the same period in the prior year. Medicare Supplement sales make up the remaining $30$55 million, or 28%,31%, for 2026, compared to $19$35 million, or 28%,26%, in the same period in the prior year.
First-year collected premium related to limited-benefit supplemental health products and other health products is $52$113 million, or 65%, of total first-year collected premium for the threesix months ended MarchJune 31,30, 2026, compared with $38$77 million, or 69%, in the same period in the prior year. First-year collected premium from Medicare Supplement policies make up the remaining $28$61 million, or 35%, for the threesix months ended MarchJune 31,30, 2026, compared to $17$35 million, or 31%, in the same period in the prior year.
The United American Division consists of non-exclusive independent general agents and brokers who may also sell for other companies. The United American Division was Globe Life's largest health division in terms of health premium income, with net sales up 122%68% from the same period in the prior year. Medicare Supplement sales growth remained strong for the quarter ended June 30, 2026, supported by demographic expansion within the eligible population, a notable migration of Medicare beneficiaries from Medicare Advantage to Medicare Supplement plans, and rate increases that took effect during the quarter.
This Division includes units that sell Medicare Supplement insurance to individuals through independent general agents and group retiree medical as well as other health insurance through brokers. The past acquisition of Evry Health supports additional incremental growth of our group health products. Due to the infancy of this business, we may experience volatility related to operating results as the business scales. The majority of the premium revenue in the United American Division comes from Medicare Supplement. Underwriting margin as a percent of premium for the Division was 4% for the six months ended June 30, 2026, unchanged for the same period in 2025.
This Division includes units that sell Medicare Supplement insurance to individuals through independent general agents and group retiree medical and other health insurance through brokers. The majority of the premium revenue comes from Medicare Supplement which has seen increased demand primarily due to the changes in the Medicare Advantage market. Underwriting margin as a percent of premium for the Division was 3% for the three months ended March 31, 2026 and 1% for the same period in 2025. The increase in underwriting margin as a percent of premium when compared to prior year is primarily attributable to premium from Medicare Supplement rate increases which were effective in 2025. We adjust premium rates periodically based upon an annual review of utilization and claim cost trends and submit proposed revisions for approval to the insurance department regulators. Approved premium rates generally become effective in the following year. For the United American Division, additional rate increases will be effective in the second quarter of 2026 from our annual rate review and approval process that are expected to improve margins over the remainder of the year.
The Family Heritage Division is an exclusive agency that primarily markets individual 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 36% for the threesix months ended MarchJune 31,30, 2026 and 35% for the same period in the prior year.
The Division experienced a 22%13% increase in health net sales as compared with the same threesix 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.
Below is the average producing agent count for the threesix months ended MarchJune 31,30, 2026 and 2025 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 Liberty National Division represented 11% of all Globe Life health premium income for the threesix months ended MarchJune 31,30, 2026. 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 $47.6$95.0 million for the threesix months ended MarchJune 31,30, 2026 down slightly from $47.9$95.6 million for the same period in 2025. Liberty National's first-year collected premium remaineddeclined flatslightly atto $7.0$13.8 million in the threesix months ended MarchJune 31,30, 2026, compared with the same period in 2025. Health net sales for the threesix months ended MarchJune 31,30, 2026 fell 3%9% from the comparable period in 2025. For the threesix months ended MarchJune 31,30, 2026, underwriting margin as a percent of premium was 54%,51%, unchangeda decrease from the same period in the prior year. These declines reflect a greater emphasis toward the sale of life insurance products. While the agency will continue to focus on life sales, it is currently implementing updates to its sales presentation to reinvigorate health sales going forward.
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 12% of health premium for the threesix months ended MarchJune 31,30, 2026 and 13% for the same period in 2025.
(1)InterestRequired interest on policy liabilities, at original rates, is a component of total policyholder benefits, a GAAP measure.
Excess investment income increased $1$4 million, or 2%,6%, compared with the year-ago period. Excess investment income per diluted common share was $0.46$0.94 for the threesix months ended MarchJune 31,30, 2026, an increase of 10%11% 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 threesix months ended MarchJune 31,30, 2026 was $290$584 million, or 3%4% greater than the prior year quarter period. Mean invested assets increased 2% during the first threesix months of 2026 over the same period last year. Net investment income increased in the current period due to higher earned yields on fixed maturities, commercial mortgage loans and other long-term investments compared to the prior year period. The effective annual yield earned on the fixed maturity portfolio was 5.32%5.31% in the first threesix months of 2026, compared to 5.25%5.27% for the comparable period in 2025. The earned yield on total long-term invested assets, which includes our fixed maturity, commercial mortgage loan and other long-term non-fixed maturity investments, was 5.50%5.51% for the first threesix months of 2026 compared to 5.40%5.38% for the comparable period of 2025. While our core investments are fixed maturities, the Company also invests 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 three months ended March 31, 2026 was 6.96% compared with 6.53% in the prior year period. The higher earned yield on commercial mortgage loans is due to a lower number of non-accrual loans in the current quarter compared to the prior year period. The earned yield on limited partnership investments for the three months ended March 31, 2026 was 7.95%, the same as in the comparable prior-year period. See additional information in Note 4—Investments.
While our core investments are fixed maturities, the Company also invests 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, 2026 was 7.20% compared with 5.62% in the prior-year period. The higher earned yield on commercial mortgage loans is due to a lower number of non-accrual loans in the first six months compared to the prior-year period. The earned yield on limited partnership investments for the six months ended June 30, 2026 was 8.06%, compared with 7.60% 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 MarchJune 31,30, 2026, 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.
(1)During the threesix months ended MarchJune 31,30, 2026 and 2025, the Company recorded $281$29.0 thousandmillion and $55.7$128.3 million, respectively, of exchanges of fixed maturity securities (noncash transactions) that resulted in net realized gains (losses) of $0 and $42$(2.5) thousandmillion net of tax, respectively.
GL insider buying and selling (Form 4)
Since 2026-04-11, insiders reported open-market purchases in 0 Form 4 filings and open-market sales in 24 filings (10 insiders, 23 trade dates, 380,540 shares, about $63.4M). Net open-market shares: -380,540 (purchases minus sales); net value about -$63.4M.Totals add up every open-market (code P and S) line in those filings, using the prices reported in the filings. Awards, option exercises, tax withholding and gifts are listed below but not counted.
| Trade date | Insider | Transaction | Shares | Price | Value |
|---|---|---|---|---|---|
| 2026-09-22 | Hensley Robert Edward |
Open-market sale | 3,344 | $169.53 | $566.9K |
| 2026-09-22 | Hensley Robert Edward |
Option exercise | 10,000 | $103.23 | $1.0M |
| 2026-09-22 | Hensley Robert Edward |
Open-market sale | 6,656 | $170.34 | $1.1M |
| 2026-08-07 | Mitchell Robert Brian |
Open-market sale | 10,529 | $183.83 | $1.9M |
| 2026-08-07 | Mitchell Robert Brian |
Open-market sale | 11,454 | $182.77 | $2.1M |
| 2026-08-07 | Mitchell Robert Brian |
Open-market sale | 1,017 | $184.75 | $187.9K |
| 2026-08-07 | Mitchell Robert Brian |
Option exercise | 23,000 | $103.23 | $2.4M |
| 2026-07-31 | Darden James Matthew |
Option exercise | 50,000 | $98.32 | $4.9M |
| 2026-07-31 | Darden James Matthew |
Open-market sale | 400 | $183.36 | $73.3K |
| 2026-07-31 | Darden James Matthew |
Open-market sale | 49,600 | $182.43 | $9.0M |
| 2026-07-30 | Kalmbach Thomas Peter |
Open-market sale | 2,650 | $181.23 | $480.3K |
| 2026-07-30 | Kalmbach Thomas Peter |
Open-market sale | 2,790 | $181.81 | $507.2K |
| 2026-07-30 | Kalmbach Thomas Peter |
Open-market sale | 4,840 | $180.08 | $871.6K |
| 2026-07-30 | Kalmbach Thomas Peter |
Option exercise | 11,000 | $120.49 | $1.3M |
| 2026-07-30 | Kalmbach Thomas Peter |
Open-market sale | 10,720 | $179.30 | $1.9M |
| 2026-07-30 | Kalmbach Thomas Peter |
Option exercise | 10,000 | $103.23 | $1.0M |
| 2026-07-29 | Majors Michael Clay |
Option exercise | 37,000 | $103.23 | $3.8M |
| 2026-07-29 | Majors Michael Clay |
Open-market sale | 33,500 | $178.56 | $6.0M |
| 2026-07-29 | Majors Michael Clay |
Open-market sale | 3,500 | $179.35 | $627.7K |
| 2026-07-28 | Kalmbach Thomas Peter |
Option exercise | 14,100 | $120.49 | $1.7M |
| 2026-07-28 | Kalmbach Thomas Peter |
Option exercise | 11,550 | $128.40 | $1.5M |
| 2026-07-28 | Kalmbach Thomas Peter |
Open-market sale | 12,303 | $178.73 | $2.2M |
| 2026-07-28 | Kalmbach Thomas Peter |
Open-market sale | 3,797 | $179.42 | $681.3K |
| 2026-07-28 | Kalmbach Thomas Peter |
Open-market sale | 9,550 | $178.06 | $1.7M |
| 2026-06-30 | Skarjune Dolores L |
Option exercise | 1,850 | $103.23 | $191.0K |
| 2026-06-30 | Skarjune Dolores L |
Open-market sale | 1,850 | $179.18 | $331.5K |
| 2026-06-25 | Alston Cheryl |
Option exercise | 14,017 | $105.56 | $1.5M |
| 2026-06-25 | Alston Cheryl |
Open-market sale | 2,750 | $177.56 | $488.3K |
| 2026-06-25 | Alston Cheryl |
Open-market sale | 1,010 | $178.71 | $180.5K |
| 2026-06-25 | Alston Cheryl |
Open-market sale | 1,934 | $180.13 | $348.4K |
| 2026-06-25 | Alston Cheryl |
Open-market sale | 2,564 | $180.57 | $463.0K |
| 2026-06-18 | Zorn Rebecca E |
Open-market sale | 2,000 | $170.10 | $340.2K |
| 2026-06-18 | Zorn Rebecca E |
Option exercise | 2,000 | $98.32 | $196.6K |
| 2026-06-12 | Skarjune Dolores L |
Open-market sale | 2,198 | $165.58 | $363.9K |
| 2026-06-12 | Skarjune Dolores L |
Open-market sale | 874 | $167.25 | $146.2K |
| 2026-06-12 | Skarjune Dolores L |
Option exercise | 1,700 | $103.23 | $175.5K |
| 2026-06-12 | Skarjune Dolores L |
Option exercise | 2,475 | $98.32 | $243.3K |
| 2026-06-12 | Skarjune Dolores L |
Open-market sale | 1,103 | $166.51 | $183.7K |
| 2026-06-12 | Mitchell Robert Brian |
Gift | 1,250 | — | — |
| 2026-06-12 | Svoboda Frank M |
Option exercise | 10,000 | $100.74 | $1.0M |
| 2026-06-12 | Svoboda Frank M |
Open-market sale | 4,366 | $166.36 | $726.3K |
| 2026-06-12 | Svoboda Frank M |
Open-market sale | 5,634 | $166.93 | $940.5K |
| 2026-06-11 | Svoboda Frank M |
Option exercise | 10,000 | $100.74 | $1.0M |
| 2026-06-11 | Svoboda Frank M |
Open-market sale | 2,630 | $164.20 | $431.8K |
| 2026-06-11 | Svoboda Frank M |
Open-market sale | 7,370 | $165.13 | $1.2M |
| 2026-05-29 | Mitchell Robert Brian |
Open-market sale | 100 | $155.57 | $15.6K |
| 2026-05-29 | Mitchell Robert Brian |
Open-market sale | 500 | $155.55 | $77.8K |
| 2026-05-27 | Mitchell Robert Brian |
Gift | 320 | — | — |
| 2026-05-22 | Kalmbach Thomas Peter |
Option exercise | 10,000 | $103.23 | $1.0M |
| 2026-05-22 | Kalmbach Thomas Peter |
Open-market sale | 7,936 | $156.59 | $1.2M |
| 2026-05-22 | Svoboda Frank M |
Open-market sale | 18,410 | $156.65 | $2.9M |
| 2026-05-22 | Svoboda Frank M |
Option exercise | 20,000 | $100.74 | $2.0M |
| 2026-05-22 | Svoboda Frank M |
Open-market sale | 1,590 | $157.05 | $249.7K |
| 2026-05-19 | Kalmbach Thomas Peter |
Open-market sale | 11,903 | $156.61 | $1.9M |
| 2026-05-19 | Kalmbach Thomas Peter |
Option exercise | 15,000 | $103.23 | $1.5M |
| 2026-05-11 | Kalmbach Thomas Peter |
Option exercise | 20,000 | $98.32 | $2.0M |
| 2026-05-11 | Kalmbach Thomas Peter |
Open-market sale | 13,876 | $153.59 | $2.1M |
| 2026-05-11 | Kalmbach Thomas Peter |
Open-market sale | 1,761 | $154.16 | $271.5K |
| 2026-05-08 | Kalmbach Thomas Peter |
Option exercise | 15,000 | $98.32 | $1.5M |
| 2026-05-08 | Kalmbach Thomas Peter |
Open-market sale | 11,349 | $152.01 | $1.7M |
Well-known investors holding GL (13F)
| Investor | Quarter | Shares | Reported value | % of their 13F | Change vs prior quarter |
|---|---|---|---|---|---|
| AQR Capital Management (Cliff Asness) | 2026-06-30 | 1,515,987 | $270.9M | 0.09% | Added 27% |
| Two Sigma Investments | 2026-06-30 | 308,323 | $55.1M | 0.04% | Added 197% |
| Gotham Asset Management (Joel Greenblatt) | 2026-06-30 | 253,272 | $45.3M | 0.11% | Added 57% |
| Millennium Management (Israel Englander) | 2026-06-30 | 184,772 | $33.0M | 0.02% | Added 20% |
| Citadel Advisors (Ken Griffin) | 2026-06-30 | 125,122 | $22.4M | 0.01% | Reduced 50% |
| Bridgewater Associates | 2026-06-30 | 66,120 | $11.8M | 0.05% | Added 1190% |
| Soros Fund Management | 2026-06-30 | 59,695 | $8.3M | — | Sold out |
| Point72 Asset Management (Steve Cohen) | 2026-06-30 | 42,063 | $5.9M | — | Sold out |
| Tweedy, Browne | 2026-06-30 | 22,364 | $4.0M | 0.3% | Reduced 20% |
| D. E. Shaw & Co. | 2026-06-30 | 3,605 | $644.1K | 0.0% | Added 19% |