Item 1. Business

Globe Life and the Company refer to Globe Life Inc., an insurance holding company incorporated in Delaware in 1979, and its subsidiaries and affiliates. Its primary subsidiaries are Globe Life And Accident Insurance Company, American Income Life Insurance Company, Liberty National Life Insurance Company, Family Heritage Life Insurance Company of America, and United American Insurance Company.

Globe Life's website is: www.globelifeinsurance.com. Globe Life makes available free of charge through its website, its annual report on Form 10-K, its quarterly reports on Form 10-Q, current reports on Form 8-K, and amendments to those reports as soon as reasonably practicable after they have been electronically filed with or furnished to the Securities and Exchange Commission. Other information included in Globe Life's website is not incorporated into this filing.

GL 2022 FORM 10-K

The following table presents Globe Life's business by primary marketing distribution method. Additional information concerning industry segments may be found in Management’s Discussion and Analysis and in Note 14—Business Segments within the Notes to the Consolidated Financial Statements**.

						Primary Distribution Method						Underwriting Company						Products and Target Markets						Distribution
						Direct to Consumer Division						Globe Life And Accident Insurance Company McKinney, Texas						Individual life and supplemental health insurance including juvenile and senior life coverage and Medicare Supplement to lower middle-income to middle-income Americans.						Nationwide distribution through direct to consumer channels: including direct mail, electronic media, and insert media.
						American Income Life Division						American Income Life Insurance Company Waco, Texas						Individual life and supplemental health insurance marketed to working families.						9,444 average producing agents in the U.S., Canada, and New Zealand.
						Liberty National Division						Liberty National Life Insurance Company McKinney, Texas						Life and supplemental health insurance distributed through in-home and worksite channels.						2,775 average producing agents in the U.S.
						Family Heritage Division						Family Heritage Life Insurance Company of America Cleveland, Ohio						Supplemental limited-benefit health insurance to lower middle-income to middle-income families.						1,210 average producing agents in the U.S.
						United American Division						United American Insurance Company McKinney, Texas						Medicare Supplement coverage to Medicare beneficiaries and, to a lesser extent, supplemental limited-benefit health coverage to people under age 65.						3,327 independent producing agents in the U.S.

GL 2022 FORM 10-K

Insurance

Life Insurance

The distribution channels for life insurance products include direct to consumer, exclusive agents, and independent agents. These methods are described in greater detail within the primary marketing distribution channel chart as seen above. The following table presents annualized premium in force for the three years ended December 31, 2022 by distribution method:

			Annualized Premium in Force**(1)** (Dollar amounts in thousands)
			2022						2021						2020
Direct to Consumer			$	936,507					$	929,197					$	881,012
Exclusive agents:
American Income			1,553,003						1,458,408						1,325,293
Liberty National			360,963						341,332						318,545
Independent agents:
United American			7,609						8,426						9,314
Other			203,438						205,822						205,785
			$	3,061,520					$	2,943,185					$	2,739,949

(1)See definition of annualized premium in force under Results of Operations in Management's Discussion & Analysis**.

Globe Life's insurance subsidiaries write a variety of nonparticipating ordinary life insurance products. These include traditional whole life, term life, and other life insurance. The Company does not currently sell interest-sensitive whole life products. The following tables present selected information about Globe Life's life insurance products.

			Annualized Premium in Force (Dollar amounts in thousands)
			2022												2021												2020
			Amount						% of Total						Amount						% of Total						Amount						% of Total
Whole life:
Traditional			$	2,106,878					69						$	2,011,349					68						$	1,857,106					68
Interest-sensitive			31,838						1						33,912						1						36,297						1
Term			756,471						25						750,005						26						716,698						26
Other			166,333						5						147,919						5						129,848						5
			$	3,061,520					100						$	2,943,185					100						$	2,739,949					100

			Policy Count and Average Face Amount Per Policy (Dollar amounts in thousands)
			2022												2021												2020
			Policy Count						Average Face Amount per Policy						Policy Count						Average Face Amount per Policy						Policy Count						Average Face Amount per Policy
Whole life:
Traditional			9,011,227						$	15.7					8,963,774						$	15.3					8,717,785						$	14.7
Interest-sensitive			183,887						20.4						191,536						20.4						199,975						20.3
Term			4,720,870						15.3						4,731,044						15.3						4,526,172						15.1
Other			453,515						16.1						432,372						15.3						408,859						14.3
			14,369,499						$	15.6					14,318,726						$	15.3					13,852,791						$	14.9

GL 2022 FORM 10-K

Health Insurance

The following table presents Globe Life's health insurance annualized premium in force for the three years ended December 31, 2022 by distribution channel.

			Annualized Premium in Force (Dollar amounts in thousands)
			2022						2021						2020
Direct to Consumer			$	72,161					$	74,627					$	77,522
Exclusive agents:
Liberty National			196,336						196,783						196,534
American Income			113,087						111,102						104,701
Family Heritage			387,897						363,226						338,309
Independent agents:
United American			558,373						540,340						476,296
			$	1,327,854					$	1,286,078					$	1,193,362

Globe Life offers Medicare Supplement and limited-benefit supplemental health insurance products that include primarily critical illness and accident plans. These products are designed to supplement health coverage that applicants already own. Medicare Supplements are offered to enrollees in the traditional fee-for-service Medicare program. Medicare Supplement plans are standardized by federal regulation and are designed to pay deductibles and co-payments not paid by Medicare.

The following table presents supplemental health annualized premium in force information for the three years ended December 31, 2022 by product category.

			Annualized Premium in Force (Dollar amounts in thousands)
			2022												2021												2020
			Amount						% of Total						Amount						% of Total						Amount						% of Total
Limited-benefit plans			$	735,858					55						$	700,767					54						$	617,759					52
Medicare Supplement			591,996						45						585,311						46						575,603						48
			$	1,327,854					100						$	1,286,078					100						$	1,193,362					100

Annuities

Annuity products include single-premium and flexible-premium deferred annuities. Annuities in each of the three years ended December 31, 2022, comprised less than 1% of premium. The Company does not currently market stand-alone fixed or deferred annuity products.

Pricing

Premium rates for life and health insurance products are established using assumptions as to future mortality, morbidity, persistency, investment income, expenses, and target profit margins. These assumptions are based on Company experience and projected investment earnings rates. Revenues for individual life and health insurance products are primarily derived from premium income, and, to a lesser extent, through policy charges to the policyholder account values on annuity products and certain individual life products. Profitability is affected by actual experience deviations from the established assumptions and to the extent investment income varies from that required for policy reserves.

Collections for annuity products and certain life products are not recognized as revenues, but are added to policyholder account values. Revenues from these products are derived from charges to the account balances for insurance risk and administrative costs. Profits are earned to the extent these revenues exceed actual costs. Profits are also earned from investment income in excess of the amounts required for policy reserves.

GL 2022 FORM 10-K

Underwriting

The underwriting standards of Globe Life's insurance subsidiaries are established by management. Each subsidiary uses information obtained from the application, and in some cases, telephone interviews with applicants, inspection reports, pharmacy data, motor vehicle records, responses to both medical and non-medical questions, doctors’ statements and/or medical examinations. This information is used to determine whether a policy should be issued in accordance with the application, with a different rating, with a rider, with reduced coverage, or rejected.

Reserves

The life insurance policy reserves reflected in Globe Life's consolidated financial statements as future policy benefits are calculated based on accounting principles generally accepted in the United States of America (GAAP). These reserves, with future premiums and the associated interest compounded at assumed rates, must be sufficient to cover policy and contract obligations as they mature. Generally, the mortality and persistency assumptions used in the calculations of reserves are based on Company experience. Similar reserves are held on most of the health insurance policies written by Globe Life's insurance subsidiaries, since these policies generally are issued on a guaranteed-renewable basis. The assumptions used in the calculation of Globe Life's reserves are reported in Note 1—Significant Accounting Policies**. Reserves for annuity products and certain life products consist of the policyholders’ account values and are increased by policyholder deposits and interest credited and are decreased by policy charges and benefit payments.

Reinsurance

Globe Life has historically participated in very limited third-party reinsurance as a result of the low face amounts of the policies sold by the Company. See Schedule IV and Note 6—Commitments and Contingencies for more information.

Investments

The nature, quality, and percentage mix of insurance company investments are regulated by state laws. The investments of Globe Life insurance subsidiaries consist predominantly of high-quality, investment-grade securities. Approximately 91% of our invested assets, at fair value, are fixed maturities at December 31, 2022 (see Note 4—Investments and Management’s Discussion and Analysis).

Competition

Globe Life competes with other insurance carriers through policyholder service, price, product design, and sales efforts. While there are insurance companies competing with Globe Life, no individual company dominates any of Globe Life's life or health insurance markets.

Globe Life's health insurance products compete with, in addition to the products of other health insurance carriers, health maintenance organizations, preferred provider organizations, and other health care-related institutions which provide medical benefits based on contractual agreements.

The Company effectively competes with other carriers, in part, due to its ability to operate at lower policy acquisition and administrative expense levels than peer companies. This allows Globe Life to have competitive rates while maintaining higher underwriting margins.

Regulation

Insurance—Insurance companies are subject to regulation and supervision in the states in which they do business. The laws of the various states establish agencies with broad administrative and supervisory powers which include, among other things, granting and revoking licenses to transact business, regulating trade practices, licensing agents, approving policy forms, approving certain premium rates, setting minimum reserve and loss ratio requirements, determining the form and content of required financial statements, and prescribing the type and amount of investments permitted. Insurance companies are also required to file detailed annual reports with supervisory agencies, and records of their business are subject to examination at any time. Under the rules of the

GL 2022 FORM 10-K

National Association of Insurance Commissioners (NAIC), insurance companies are examined periodically by one or more of the supervisory agencies.

Risk-Based Capital (RBC)—The NAIC requires that a risk-based capital formula be applied to all life and health insurers. The risk-based capital formula is a threshold formula rather than a target capital formula. It is designed only to identify companies that require regulatory attention and is not to be used to rate or rank companies that are adequately capitalized. All Globe Life's insurance subsidiaries are more than adequately capitalized under the risk-based capital formula. See further discussion of RBC in Capital Resources**.

Holding Company—States have enacted legislation requiring registration and periodic reporting by insurance companies domiciled within their respective jurisdictions that control or are controlled by other corporations so as to constitute a holding company system. Globe Life Inc. and its subsidiaries have registered as a holding company system pursuant to such legislation in Indiana, Nebraska, Ohio, and New York.

Insurance holding company system statutes and regulations impose various limitations on investments in subsidiaries, and may require prior regulatory approval for material transactions between insurers and affiliates and for the payment of certain dividends and other distributions.

Environmental, Social, and Governance (ESG)

Globe Life’s sustainable business practices are a driver of the success and longevity that our Company has experienced since its origin. We plan to advance our sustainable business practices by further developing the Company's ESG strategy and have aligned disclosures with the Sustainability Accounting Standards Board (SASB) standards and the Task Force on Climate-related Financial Disclosures (TCFD) recommendations.

Environmental responsibility and sustainability are key components of our overall corporate responsibility efforts. We strive to reduce our impact on the environment by implementing green building initiatives at our corporate facilities, placing a company-wide emphasis on recycling and reducing waste generally, and focusing on efforts to reduce the use of paper and water. With respect to social matters, our focus continues to be on supporting a culture that is inclusive and attractive for all of our employees and independent sales agents. We are committed to maintaining a diverse workforce that reflects the communities in which we work. In addition, to enable the Company to appropriately respond to ESG-related challenges and opportunities, the Company has in place an ESG Committee, and the Board and its committees regularly engage with senior management on relevant ESG-related issues.

Human Capital Management

Globe Life's talent base encompasses a broad range of experience that possesses the depth of critical skills to efficiently and effectively accomplish our business purpose and mission, serve our policyholders, and protect our shareholders' interests. Maintaining superior human capital is a key driver to the success and longevity that our Company has experienced since its origins dating back to the early 1900s. As of December 31, 2022, the Company had 3,543 full time, part-time, and temporary employees, a 10% increase over the prior year. The increase in headcount in 2022 was primarily to support the increased growth in recent periods, as well as lower attrition levels than normal. The Company engages over 13,700 independently-contracted insurance agents. Refer to Management's Discussion & Analysis for exclusive agent counts.

People, Culture, and Community

At Globe Life, we are united by our mission to—Make Tomorrow Better**1 and this starts with our employees and agents. Beyond providing insurance protection for millions of individuals, serving our policyholders and generating financial results for our shareholders, we focus on cultivating a healthy, positive culture and a thriving community within and among our campuses that is inclusive of and attractive for all. Globe Life promotes a diverse work force, where differences are celebrated and inclusiveness is embraced, to better enable our employees to consistently achieve outstanding individual and collective results. Our commitment to diversity starts at the top; of the 10 independent Board members, 50% are women and 20% are racial/ethnic minorities as of December 31, 2022.

1Per the Globe Life Employee Handbook, the Globe Life mission statement is "We help families Make Tomorrow Better by working to protect their financial future."

GL 2022 FORM 10-K

As of December 31, 2022 and 2021, the Globe Life employees, (excluding independently-contracted agents) identify as follows:

2022
Ethnicity/Race									Gender									Generations
White			54		%				Female			68		%				Baby Boomers (1946-1964)			18		%
Black or African American			22						Male			32						Gen X (1965-1977)			30
Hispanic or Latino			13															Millennials (1978-1995)			43
Asian			9															Gen Z (1996-2012)			9
American Indian or Alaskan Native			1
Native Hawaiian or Pacific Islander			—
Other or Not Specified			1
Total			100		%							100		%							100		%

2021
Ethnicity/Race									Gender									Generations
White			56		%				Female			66		%				Baby Boomers (1946-1964)			20		%
Black or African American			21						Male			34						Gen X (1965-1977)			31
Hispanic or Latino			12															Millennials (1978-1995)			41
Asian			9															Gen Z (1996-2012)			8
American Indian or Alaskan Native			1
Native Hawaiian or Pacific Islander			—
Other or Not Specified			1
Total			100		%							100		%							100		%

We conduct a confidential survey biennially to give our employees the opportunity to provide candid feedback about their experiences at the Company, including but not limited to, confidence in the Company and leadership, competitiveness of our compensation and benefit package, and departmental relationships. The results are shared with our employees, reviewed by senior leadership, and used to identify areas for improvement and create action plans based on the employee feedback received.

We strive to Make Tomorrow Better, in part by giving financial and service contributions to programs that provide hands-on assistance in the communities where we live, work, serve, and visit. We focus our charitable giving on organizations that support children, families, veterans, and seniors, as well as those that work to ensure people are able to live full, healthy lives. These categories align with our mission to help families Make Tomorrow Better by working to protect their financial future. In 2022, we provided financial support of approximately $4.0 million to organizations within that focus, including charities that support underserved communities, provide scholarships to youth, and advance equity and diversity efforts.

Talent Development

At Globe Life, we believe investing in our employees through training and development is paramount to their success. We have developed a learning ecosystem that includes a multitude of professional development opportunities, including online, self-directed, and instructor-led courses on a variety of topics. An education assistance program is also offered to facilitate growth in an area related to one's current position with the Company.

Health, Safety, and Wellness

We strive to provide a safe and healthy work environment for every employee. We furnish employees with numerous tools and trainings throughout the year to help ensure they have, at their fingertips, the best information to safely engage with co-workers, customers, and third parties. In furtherance of our commitment to our employees, we offer a comprehensive employee benefits package that includes competitive monetary benefits, retirement

GL 2022 FORM 10-K

benefits through a Section 401(k) plan and a qualified pension to eligible employees, fitness center reimbursement, paid-time-off (based on years of service), health insurance, dental and vision insurance, employee resource program, health savings and flexible spending accounts, family leave, and tuition assistance.

The Company remains committed to the well-being and safety of its employees, agents, customers, guests, vendors and shareholders in our resolve to maintain a stable and secure business environment. In response to the COVID-19 pandemic, our crisis management and incident response teams guided the Company through an expedited, yet smooth, transition towards working remotely. In 2022, the Company continued to implement steps that were effective during the pandemic to ensure the health and safety of our employees, including:

• Continuation of business operations, both in a remote and hybrid work environment;

• Maintaining workplace health and safety protocols to allow employees to safely return to Company facilities on a voluntary basis;

• Enhancements to “Resilient@Globe Life,” an intra-company website dedicated to COVID-19 issues, which provides employees with relevant and timely information, and interactive employee guides;

• Extension of our short-term disability benefits to support employees unable to work as a result of contracting or being exposed to COVID-19; and

• Communication with employees on pandemic-related policies and procedures, implementation of emergency business operations (such as social distancing and enhanced cleaning protocols at company facilities), and provision of pandemic health and wellness resources (including seminars regarding mental health).

GL 2022 FORM 10-K