filings.toolsItem 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
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Item 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
Consolidated Financial Statements Index
GL 2025 FORM 10-K
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Shareholders and the Board of Directors of Globe Life Inc.
Opinion on the Financial Statements
We have audited the accompanying consolidated balance sheets of Globe Life Inc. and subsidiaries (the "Company") as of December 31, 2025 and 2024, the related consolidated statements of operations, comprehensive income (loss), shareholders’ equity, and cash flows, for each of the three years in the period ended December 31, 2025, and the related notes and the schedules listed in the Index at Item 15 (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025, in conformity with accounting principles generally accepted in the United States of America.
We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated February 25, 2026, expressed an unqualified opinion on the Company’s internal control over financial reporting.
Basis for Opinion
These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
Critical Audit Matter
The critical audit matter communicated below is a matter arising from the current-period audit of the financial statements that was communicated or required to be communicated to the audit committee and that (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.
Future Policy Benefits at Current Discount Rates and Amortization of Deferred Acquisition Costs — Certain Underlying Assumptions for Certain Products – Refer to Notes 1, 6 and 7 to the Financial Statements
Critical Audit Matter Description
The Company estimates the liability for future policy benefits based on the net level premium method, which requires a calculation of the present value of estimated future policyholder benefits and the related termination expenses, less the present value of estimated future net premiums to be collected from policyholders.
GL 2025 FORM 10-K
The Company estimates the amortization of deferred acquisition costs on a constant-level basis over the expected term of the grouped contracts.
The most significant assumptions used to estimate the liability for future policy benefits and amortization of deferred acquisition costs for certain products are mortality, morbidity and lapse. The Company regularly reviews these assumptions, which are updated as necessary in the third quarter of every year, or more frequently if suggested by experience. The mortality, morbidity, and lapse assumptions are determined based upon Company experience and industry data.
Given the inherent uncertainty and extent of specialized skill required in assessing the mortality, morbidity and lapse assumptions, auditing the development of these assumptions for certain products involved especially subjective judgment.
How the Critical Audit Matter Was Addressed in the Audit
Our audit procedures related to management’s judgments regarding the mortality, morbidity, and lapse assumptions used in the development of future policy benefits and the amortization of deferred acquisition costs for certain insurance products, included the following, among others:
-
We tested the effectiveness of controls over the development of these assumptions used in the valuation of future policy benefits and the amortization of deferred acquisition costs for certain insurance products, including the effectiveness of the controls over the underlying data.
-
We tested the underlying data used in the development of these assumptions as well as in the valuation of future policy benefits and the amortization of deferred acquisition costs for certain insurance products.
-
With the assistance of our actuarial specialists, we:
◦evaluated management’s methods, calculations and judgments regarding the development of these assumptions used in the valuation of future policy benefits and the amortization of deferred acquisition costs for certain products.
◦evaluated on a sample basis, through independent calculation of future policy benefits and amortization of deferred acquisition costs, the mathematical accuracy of management’s calculations, the appropriateness of valuation models, and whether these assumptions were properly applied.
/s/ Deloitte & Touche LLP
Dallas, Texas
February 25, 2026
We have served as the Company’s auditor since 1999.
GL 2025 FORM 10-K
Globe Life Inc.
Consolidated Balance Sheets
(Dollar amounts in thousands, except per share data)
| December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| Assets: | |||||||||||
| Investments: | |||||||||||
| Fixed maturities—available for sale, at fair value (amortized cost: 2025—$18,820,464; 2024—$18,835,809, allowance for credit losses: 2025— $3,297; 2024— $10,395) | $ | 17,589,342 | $ | 17,155,012 | |||||||
| Mortgage loans | 428,517 | 396,088 | |||||||||
| Policy loans | 741,375 | 699,669 | |||||||||
| Other long-term investments (includes: 2025—$1,109,719; 2024—$986,766 under the fair value option) | 1,396,064 | 1,235,759 | |||||||||
| Short-term investments | 314,711 | 85,035 | |||||||||
| Total investments | 20,470,009 | 19,571,563 | |||||||||
| Cash | 144,704 | 165,325 | |||||||||
| Accrued investment income | 272,818 | 269,791 | |||||||||
| Other receivables | 768,592 | 691,907 | |||||||||
| Deferred acquisition costs | 6,999,136 | 6,495,589 | |||||||||
| Goodwill | 490,446 | 490,446 | |||||||||
| Other assets | 1,667,987 | 1,391,560 | |||||||||
| Total assets | $ | 30,813,692 | $ | 29,076,181 | |||||||
| Liabilities: | |||||||||||
| Future policy benefits at current discount rates: (at original discount rates: 2025—$18,129,506; 2024—$17,552,564) | $ | 19,169,687 | $ | 18,457,263 | |||||||
| Unearned and advance premium | 270,663 | 257,631 | |||||||||
| Policy claims and other benefits payable | 540,832 | 532,832 | |||||||||
| Other policyholders' funds | 532,047 | 468,604 | |||||||||
| Total policy liabilities | 20,513,229 | 19,716,330 | |||||||||
| Current and deferred income taxes | 859,628 | 731,255 | |||||||||
| Short-term debt | 304,656 | 415,401 | |||||||||
| Long-term debt (estimated fair value: 2025—$2,225,320; 2024—$2,122,772) | 2,320,793 | 2,324,251 | |||||||||
| Other liabilities | 840,807 | 583,424 | |||||||||
| Total liabilities | 24,839,113 | 23,770,661 | |||||||||
| Commitments and Contingencies (Note 5) | |||||||||||
| Shareholders' equity: | |||||||||||
| Preferred stock, par value $1 per share—5,000,000 shares authorized; outstanding: 0 in 2025 and 2024 | — | — | |||||||||
| Common stock, par value $1 per share—320,000,000 shares authorized; outstanding: (2025—92,218,183 issued; 2024—97,218,183 issued) | 92,218 | 97,218 | |||||||||
| Additional paid-in-capital | 536,363 | 527,795 | |||||||||
| Accumulated other comprehensive income (loss) | (1,771,444) | (2,029,720) | |||||||||
| Retained earnings | 8,546,807 | 8,002,521 | |||||||||
| Treasury stock, at cost: (2025—13,125,082 shares; 2024—13,240,616 shares) | (1,429,365) | (1,292,294) | |||||||||
| Total shareholders' equity | 5,974,579 | 5,305,520 | |||||||||
| Total liabilities and shareholders' equity | $ | 30,813,692 | $ | 29,076,181 |
See accompanying Notes to Consolidated Financial Statements.
GL 2025 FORM 10-K
Globe Life Inc.
Consolidated Statements of Operations
(Dollar amounts in thousands, except per share data)
| Year Ended December 31, | ||||||||||||||||||||
| 2025 | 2024 | 2023 | ||||||||||||||||||
| Revenue: | ||||||||||||||||||||
| Life premium | $ | 3,363,470 | $ | 3,261,347 | $ | 3,137,244 | ||||||||||||||
| Health premium | 1,526,750 | 1,404,925 | 1,318,773 | |||||||||||||||||
| Total premium | 4,890,220 | 4,666,272 | 4,456,017 | |||||||||||||||||
| Net investment income | 1,130,198 | 1,135,631 | 1,056,884 | |||||||||||||||||
| Realized gains (losses) | (27,788) | (24,188) | (65,676) | |||||||||||||||||
| Other income | 1,688 | 354 | 308 | |||||||||||||||||
| Total revenue | 5,994,318 | 5,778,069 | 5,447,533 | |||||||||||||||||
| Benefits and expenses: | ||||||||||||||||||||
| Life policyholder benefits(1) | 1,924,929 | 2,000,977 | 2,050,789 | |||||||||||||||||
| Health policyholder benefits(2) | 931,141 | 851,577 | 776,362 | |||||||||||||||||
| Other policyholder benefits | 28,224 | 41,889 | 37,100 | |||||||||||||||||
| Total policyholder benefits | 2,884,294 | 2,894,443 | 2,864,251 | |||||||||||||||||
| Amortization of deferred acquisition costs | 447,760 | 410,001 | 379,700 | |||||||||||||||||
| Commissions, premium taxes, and non-deferred acquisition costs | 642,700 | 600,753 | 559,167 | |||||||||||||||||
| Other operating expense | 442,368 | 419,143 | 347,833 | |||||||||||||||||
| Interest expense | 141,221 | 127,092 | 102,316 | |||||||||||||||||
| Total benefits and expenses | 4,558,343 | 4,451,432 | 4,253,267 | |||||||||||||||||
| Income before income taxes | 1,435,975 | 1,326,637 | 1,194,266 | |||||||||||||||||
| Income tax benefit (expense) | (274,737) | (255,875) | (223,511) | |||||||||||||||||
| Net income | $ | 1,161,238 | $ | 1,070,762 | $ | 970,755 | ||||||||||||||
| Basic net income per common share | $ | 14.27 | $ | 11.99 | $ | 10.21 | ||||||||||||||
| Diluted net income per common share | $ | 14.07 | $ | 11.94 | $ | 10.07 |
(1)Net of total remeasurement, including both the impact of assumption changes and the effect of actual to expected experience adjustments, resulting in a gain (loss) of $192.2 million, $107.0 million, and $29.4 million for the year ended December 31, 2025, 2024, and 2023, respectively.
(2)Net of total remeasurement, including both the impact of assumption changes and the effect of actual to expected experience adjustments, resulting in a gain (loss) of $20.1 million, $(3.2) million, and $11.8 million for the year ended December 31, 2025, 2024, and 2023, respectively.
See accompanying Notes to Consolidated Financial Statements.
GL 2025 FORM 10-K
Globe Life Inc.
Consolidated Statements of Comprehensive Income (Loss)
(Dollar amounts in thousands)
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Net income | $ | 1,161,238 | $ | 1,070,762 | $ | 970,755 | |||||||||||
| Other comprehensive income (loss): | |||||||||||||||||
| Investments: | |||||||||||||||||
| Unrealized gains (losses) on fixed maturities: | |||||||||||||||||
| Unrealized holding gains (losses) arising during period | 429,290 | (630,042) | 671,211 | ||||||||||||||
| Other reclassification adjustments included in net income | 14,714 | 3,764 | 80,238 | ||||||||||||||
| Foreign exchange adjustment on fixed maturities recorded at fair value | (1,427) | 3,469 | (715) | ||||||||||||||
| Total unrealized investment gains (losses) | 442,577 | (622,809) | 750,734 | ||||||||||||||
| Less applicable tax (expense) benefit | (92,941) | 130,787 | (157,658) | ||||||||||||||
| Unrealized gains (losses) on investments, net of tax | 349,636 | (492,022) | 593,076 | ||||||||||||||
| Future Policy benefits: | |||||||||||||||||
| Change in discount rate on future policy benefits | (142,514) | 1,567,530 | (731,883) | ||||||||||||||
| Less applicable tax (expense) benefit | 29,928 | (329,181) | 153,696 | ||||||||||||||
| Future policy benefit adjustments, net of tax | (112,586) | 1,238,349 | (578,187) | ||||||||||||||
| Foreign exchange translation: | |||||||||||||||||
| Foreign exchange translation adjustments, other than securities | 16,094 | (33,516) | 8,102 | ||||||||||||||
| Less applicable tax (expense) benefit | (3,381) | 7,040 | (1,702) | ||||||||||||||
| Foreign exchange translation adjustments, other than securities, net of tax | 12,713 | (26,476) | 6,400 | ||||||||||||||
| Pension: | |||||||||||||||||
| Amortization of pension costs | 253 | 474 | (390) | ||||||||||||||
| Plan amendments | — | (1,212) | — | ||||||||||||||
| Experience gain (loss) | 10,522 | 29,659 | (3,907) | ||||||||||||||
| Pension adjustments | 10,775 | 28,921 | (4,297) | ||||||||||||||
| Less applicable tax (expense) benefit | (2,262) | (6,073) | 902 | ||||||||||||||
| Pension adjustments, net of tax | 8,513 | 22,848 | (3,395) | ||||||||||||||
| Other comprehensive income (loss) | 258,276 | 742,699 | 17,894 | ||||||||||||||
| Comprehensive income (loss) | $ | 1,419,514 | $ | 1,813,461 | $ | 988,649 |
See accompanying Notes to Consolidated Financial Statements.
GL 2025 FORM 10-K
Globe Life Inc.
Consolidated Statements of Shareholders' Equity
(Dollar amounts in thousands, except per share data)
| Preferred Stock | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Treasury Stock | Total Shareholders' Equity | |||||||||||||||||||||||||||||||||||
| Year Ended December 31, 2023 | |||||||||||||||||||||||||||||||||||||||||
| Balance at January 1, 2023 | $ | — | $ | 105,218 | $ | 529,661 | $ | (2,790,313) | $ | 6,894,535 | $ | (789,524) | $ | 3,949,577 | |||||||||||||||||||||||||||
| Comprehensive income (loss) | — | — | — | 17,894 | 970,755 | — | 988,649 | ||||||||||||||||||||||||||||||||||
| Common dividends declared ($0.90 per share) | — | — | — | — | (85,139) | — | (85,139) | ||||||||||||||||||||||||||||||||||
| Acquisition of treasury stock | — | — | — | — | — | (511,100) | (511,100) | ||||||||||||||||||||||||||||||||||
| Stock-based compensation | — | — | 18,466 | — | — | 12,270 | 30,736 | ||||||||||||||||||||||||||||||||||
| Exercise of stock options | — | — | — | — | (19,395) | 133,475 | 114,080 | ||||||||||||||||||||||||||||||||||
| Retirement of treasury stock | — | (3,000) | (15,653) | — | (281,943) | 300,596 | — | ||||||||||||||||||||||||||||||||||
| Balance at December 31, 2023 | — | 102,218 | 532,474 | (2,772,419) | 7,478,813 | (854,283) | 4,486,803 | ||||||||||||||||||||||||||||||||||
| Year Ended December 31, 2024 | |||||||||||||||||||||||||||||||||||||||||
| Balance at January 1, 2024 | — | 102,218 | 532,474 | (2,772,419) | 7,478,813 | (854,283) | 4,486,803 | ||||||||||||||||||||||||||||||||||
| Comprehensive income (loss) | — | — | — | 742,699 | 1,070,762 | — | 1,813,461 | ||||||||||||||||||||||||||||||||||
| Common dividends declared ($0.96 per share) | — | — | — | — | (84,539) | — | (84,539) | ||||||||||||||||||||||||||||||||||
| Acquisition of treasury stock | — | — | — | — | — | (1,002,109) | (1,002,109) | ||||||||||||||||||||||||||||||||||
| Stock-based compensation | — | — | 22,277 | — | (438) | 18,279 | 40,118 | ||||||||||||||||||||||||||||||||||
| Exercise of stock options | — | — | — | — | (6,358) | 58,144 | 51,786 | ||||||||||||||||||||||||||||||||||
| Retirement of treasury stock | — | (5,000) | (26,956) | — | (455,719) | 487,675 | — | ||||||||||||||||||||||||||||||||||
| Balance at December 31, 2024 | — | 97,218 | 527,795 | (2,029,720) | 8,002,521 | (1,292,294) | 5,305,520 | ||||||||||||||||||||||||||||||||||
| Year Ended December 31, 2025 | |||||||||||||||||||||||||||||||||||||||||
| Balance at January 1, 2025 | — | 97,218 | 527,795 | (2,029,720) | 8,002,521 | (1,292,294) | 5,305,520 | ||||||||||||||||||||||||||||||||||
| Comprehensive income (loss) | — | — | — | 258,276 | 1,161,238 | — | 1,419,514 | ||||||||||||||||||||||||||||||||||
| Common dividends declared ($1.08 per share) | — | — | — | — | (87,275) | — | (87,275) | ||||||||||||||||||||||||||||||||||
| Acquisition of treasury stock | — | — | — | — | — | (880,983) | (880,983) | ||||||||||||||||||||||||||||||||||
| Stock-based compensation | — | — | 37,404 | — | — | 15,951 | 53,355 | ||||||||||||||||||||||||||||||||||
| Exercise of stock options | — | — | — | — | (21,402) | 185,850 | 164,448 | ||||||||||||||||||||||||||||||||||
| Retirement of treasury stock | — | (5,000) | (28,836) | — | (508,275) | 542,111 | — | ||||||||||||||||||||||||||||||||||
| Balance at December 31, 2025 | $ | — | $ | 92,218 | $ | 536,363 | $ | (1,771,444) | $ | 8,546,807 | $ | (1,429,365) | $ | 5,974,579 |
See accompanying Notes to Consolidated Financial Statements.
GL 2025 FORM 10-K
Globe Life Inc.
Consolidated Statements of Cash Flows
(Dollar amounts in thousands)
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Net income | $ | 1,161,238 | $ | 1,070,762 | $ | 970,755 | |||||||||||
| Adjustments to reconcile net income to cash provided from operations: | |||||||||||||||||
| Increase (decrease) in future policy benefits | 582,136 | 731,417 | 834,366 | ||||||||||||||
| Increase (decrease) in other policy benefits | 21,124 | 19,268 | 5,448 | ||||||||||||||
| Deferral of policy acquisition costs | (941,922) | (913,544) | (850,169) | ||||||||||||||
| Amortization of deferred policy acquisition costs | 447,760 | 410,001 | 379,700 | ||||||||||||||
| Change in current and deferred income taxes | 98,887 | 77,930 | 101,448 | ||||||||||||||
| Realized (gains) losses | 27,788 | 24,188 | 65,676 | ||||||||||||||
| Other, net | (620) | (17,582) | (24,799) | ||||||||||||||
| Cash provided from (used for) operating activities | 1,396,391 | 1,402,440 | 1,482,425 | ||||||||||||||
| Cash provided from (used for) investing activities: | |||||||||||||||||
| Investments sold or matured: | |||||||||||||||||
| Fixed maturities available for sale—sold | 623,792 | 1,207,237 | 602,556 | ||||||||||||||
| Fixed maturities available for sale—matured or other redemptions | 313,676 | 214,442 | 250,652 | ||||||||||||||
| Mortgage loans | 65,724 | 54,157 | 44,004 | ||||||||||||||
| Other long-term investments | 128,281 | 43,362 | 151,262 | ||||||||||||||
| Total investments sold or matured | 1,131,473 | 1,519,198 | 1,048,474 | ||||||||||||||
| Acquisition of investments: | |||||||||||||||||
| Fixed maturities—available for sale | (921,339) | (1,379,238) | (1,536,409) | ||||||||||||||
| Mortgage loans | (139,817) | (174,665) | (158,823) | ||||||||||||||
| Other long-term investments | (247,052) | (459,660) | (155,700) | ||||||||||||||
| Total investments acquired | (1,308,208) | (2,013,563) | (1,850,932) | ||||||||||||||
| Net (increase) decrease in policy loans | (41,706) | (42,649) | (42,154) | ||||||||||||||
| Net (increase) decrease in short-term investments | (229,676) | (3,295) | 32,381 | ||||||||||||||
| Additions to property and equipment | (142,484) | (71,045) | (49,553) | ||||||||||||||
| Other investing activities | — | 96 | — | ||||||||||||||
| Investments in low-income housing interests | (53,017) | (30,258) | (64,365) | ||||||||||||||
| Cash provided from (used for) investing activities | (643,618) | (641,516) | (926,149) | ||||||||||||||
| Cash provided from (used for) financing activities: | |||||||||||||||||
| Issuance of common stock | 164,448 | 51,786 | 114,080 | ||||||||||||||
| Cash dividends paid to shareholders | (86,067) | (85,485) | (84,116) | ||||||||||||||
| Repayment of debt | — | — | (165,612) | ||||||||||||||
| Proceeds from issuance of debt | — | 530,000 | 170,000 | ||||||||||||||
| Payment for debt issuance costs | (6,399) | (7,253) | (757) | ||||||||||||||
| Net borrowing (repayment) of commercial paper | 102,638 | (13,878) | 32,961 | ||||||||||||||
| Proceeds from commercial paper with original maturities greater than 90 days | 487,610 | 484,726 | — | ||||||||||||||
| Repayment of commercial paper with original maturities greater than 90 days | (700,993) | (372,011) | — | ||||||||||||||
| Acquisition of treasury stock | (880,983) | (1,002,109) | (511,100) | ||||||||||||||
| Amounts paid to reinsurer | — | (413,779) | — | ||||||||||||||
| Net receipts (payments) from deposit-type products | 151,694 | 112,168 | (96,943) | ||||||||||||||
| Cash provided from (used for) financing activities | (768,052) | (715,835) | (541,487) | ||||||||||||||
| Effect of foreign exchange rate changes on cash | (5,342) | 17,080 | (4,192) | ||||||||||||||
| Net increase (decrease) in cash | (20,621) | 62,169 | 10,597 | ||||||||||||||
| Cash at beginning of year | 165,325 | 103,156 | 92,559 | ||||||||||||||
| Cash at end of year | $ | 144,704 | $ | 165,325 | $ | 103,156 |
See accompanying Notes to Consolidated Financial Statements.
GL 2025 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
Note 1—Significant Accounting Policies
Business*:* (Globe Life), (the Company), refers to Globe Life Inc., an insurance holding company incorporated in Delaware in 1979, and Globe Life Inc. subsidiaries and affiliates. Globe Life Inc.'s direct or indirect primary subsidiaries are Globe Life And Accident Insurance Company, American Income Life Insurance Company, Liberty National Life Insurance Company, Family Heritage Life Insurance Company of America, and United American Insurance Company. The underwriting companies are owned by their ultimate corporate parent, Globe Life Inc. (Parent Company).
Globe Life provides a variety of life and supplemental health insurance products to a broad base of customers. The Company is organized into three reportable segments: life insurance, supplemental health insurance, and investments.
Globe Life markets its insurance products through a number of distribution channels, each of which sells the products of one or more of Globe Life's insurance segments. Our distribution channels consist of the following exclusive agencies: American Income Life Division (American Income), Liberty National Division (Liberty National) and Family Heritage Division (Family Heritage); an independent agency, United American Division (United American); and our Direct to Consumer Division (DTC).
Basis of Presentation*:* The accompanying consolidated financial statements of Globe Life have been prepared in conformity with accounting principles generally accepted in the United States of America ("GAAP"), under guidance issued by the Financial Accounting Standards Board ("FASB"). The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period.
Use of Estimates: The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. See further documentation in the significant accounting policies or the accompanying notes.
Principles of Consolidation*:* The consolidated financial statements include the results of Globe Life Inc. and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. When Globe Life acquires a subsidiary or a block of business, the assets acquired and the liabilities assumed are measured at fair value at the acquisition date. Any excess of acquisition cost over the fair value of net assets is recorded as goodwill. Expenses incurred to effect the acquisition are charged to earnings as of the acquisition date. Upon acquisition, the accounts and results of operations are consolidated as of and subsequent to the acquisition date.
Investments*:* Globe Life classifies all of its fixed maturity investments as available for sale. Investments classified as available for sale are carried at fair value with unrealized gains and losses, net of taxes, reflected directly in accumulated other comprehensive income ("AOCI"). Income from investments is recorded in "Net investment income" on the Consolidated Statements of Operations. Gains and losses from sales, maturities, or other redemptions of investments are recorded in "Realized gains (losses)." Gains and losses realized on the disposition of investments are determined on a specific identification basis. Interest income and prepayment fees are recognized when earned. Premiums and discounts are amortized using the effective yield method. When amortized cost of a callable debt security exceeds the first call price, the premium is amortized to the earliest call date. Otherwise, the period of amortization or accretion generally extends from the purchase date to the maturity date.
"Policy loans," which represent loans provided to policyholders using cash values as collateral, are carried at unpaid principal balances.
GL 2025 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
"Mortgage loans" or commercial mortgage loans, are investments that may be either shared among investors or held solely by the Company, and accounted for as financing receivables. The commercial mortgage loans are managed by third parties. The Company purchased the legal rights to interests in commercial mortgage loans which are secured by properties such as hotels, retail, multiple family, or offices. The commercial mortgage loans typically have a term of 3 years with the option to extend up to 2 years. The commercial mortgage loans are recorded at unpaid principal balance, net of unamortized origination fees and net of allowance for loan losses. Interest income, net of the amortization of origination fees, is recorded in "Net investment income" under the effective yield method. Our unfunded commitment balance to the commercial loan borrowers was $21 million as of December 31, 2025.
"Other long-term investments" include investment funds, equity securities, company-owned life insurance ("COLI") and real estate. Investments in equity securities are reported at fair value with changes in fair value, net of taxes, reflected directly in "Realized gains (losses)" on the Consolidated Statements of Operations. COLI is reported at the cash surrender value; changes in the cash surrender value are recorded in net investment income. Investments in real estate are reported at cost less accumulated depreciation. Depreciation is recorded on a straight-line basis over the estimated useful life.
The investment funds consist of limited partnerships whereby the Company has a minority pro-rata share of ownership. For each investment, the Company has elected the fair value option, but would have been otherwise accounted for as an equity method investment. The fair value option is assessed for each individual investment at the inception of the investment.
Each limited partnership investment is evaluated under applicable GAAP to determine if it is a variable interest entity ("VIE") and would qualify for consolidation. Primary beneficiaries are required to consolidate VIEs. The investments are not consolidated because the Company has no power to control the activities that most significantly affect the economic performance of these entities and therefore the Company is not the primary beneficiary of any of these interests. Globe Life's involvement is limited to its limited partnership interest in the entities. The Company has not provided any other financial support to the entities beyond its commitments to fund its limited partnership interests, and there are no arrangements or agreements with any of the interests to provide other financial support. The maximum loss exposure relative to these interests is limited to their carrying value and future commitments. The Company has approximately 3% of total assets in low-income housing tax credits and certain limited partnerships (investment funds) that qualify as unconsolidated VIEs.
The limited partnership investments are reported at the Company's pro-rata share of the investment fund's net asset value or its equivalent ("NAV"), as a practical expedient for fair value. Changes in the NAV are recorded in net income and increase the carrying value on the balance sheet. The amount of change in NAV attributable to the net operating results of the fund is recorded in "Net investment income" with the remaining balance of the change reflected in "Realized gains (losses)." Distributions received from the funds reduce the carrying value. Our maximum exposure to loss is equal to the outstanding carrying value and future funding commitments. The Company had $251 million of capital called during the year from existing investment funds, reducing our unfunded commitments. Our unfunded commitments were $558 million as of December 31, 2025.
"Short-term investments" include investments in interest-bearing assets with original maturities of twelve months or less.
GL 2025 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
Fair Value Measurements, Investments in Securities: Globe Life measures the fair value of its "Fixed maturities" based on a hierarchy consisting of three levels which indicate the quality of the fair value measurements as described below:
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*Level 1—*fair values are based on quoted prices in active markets for identical assets or liabilities that the Company has the ability to access as of the measurement date.
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*Level 2—*fair values are based on inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability, or inputs that can otherwise be corroborated by observable market data.
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*Level 3—*fair values are based on inputs that are considered unobservable where there is little, if any, market activity for the asset or liability as of the measurement date. In this circumstance, the Company has to rely on values derived by independent brokers or internally-developed assumptions. Unobservable inputs are developed based on the best information available to the Company which may include the Company’s own data or bid and ask prices in the dealer market.
Certain investments, such as investment funds, that are measured at fair value using the net asset value per share or its equivalent, as a practical expedient, have not been classified in the fair value hierarchy. The net asset value is provided by general partners or managers.
The great majority of Globe Life's "Fixed maturities" are not actively traded and direct quotes are not generally available. Management therefore determines the fair values of these securities after consideration of data provided by third-party pricing services, independent broker/dealers, and other resources. At December 31, 2025, the Company's investments in fixed maturities were primarily composed of the following significant security types: corporate securities, state and municipal securities, U.S. government direct, guaranteed, and government-sponsored enterprises securities. The remaining security types represented approximately 1% of the total in the aggregate.
Approximately 98% of the fair value of "Fixed maturities" reported at December 31, 2025 was determined using data provided by third-party pricing services. Prices provided by these services are not binding offers but are estimated exit values. Third-party pricing services use proprietary pricing models to determine security values by discounting cash flows using a market-adjusted spread to a benchmark yield.
For all asset classes within Globe Life's significant security types, third-party pricing services use a common valuation technique to model the price of the investments using observable market data. The foundation for these models consists of developing yield spreads based on multiple observable market inputs, including but not limited to: benchmark yield curves, actual trading activity, new issue yields, broker-dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, sector-specific data, economic data, and other inputs that are corroborated in the market. Pricing vendors monitor and review their pricing data continuously with current market and economic data feeds, augmented by ongoing communication within the dealer community.
Using the observable market inputs described above, spreads to an appropriate benchmark yield are further developed by the vendors for each security based on security-specific and/or sector-specific risk factors, such as a security’s terms and conditions (coupon, maturity, and call features), credit rating, sector, liquidity, collateral or other cash flow options, and other factors that could impact the risk of the security. Embedded repayment options, such as call and redemption features, are also taken into account in the pricing models. When the spread is determined, it is added to the security’s benchmark yield. The security's expected cash flows are discounted using this spread-adjusted yield, and the resulting present value of the discounted cash flows is the evaluated price.
When third-party vendor prices are not available, the Company attempts to obtain valuations from other sources, including but not limited to broker/dealers, broker quotes, and prices on comparable securities.
GL 2025 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
When valuations have been obtained for all securities in the portfolio, management reviews and analyzes the prices to ensure their reasonableness, taking into account available and observable information. The Company utilizes pricing from multiple pricing providers and applies a hierarchy of sources to determine price. When two or more valuations are available for a security and the variance between the prices is 10% or less, the close correlation suggests similar observable inputs were used in deriving the price, and the price is selected based on hierarchy of pricing providers. Securities valued in this manner are classified as Level 2. When the variance between two or more valuations for a security exceeds 10%, additional analysis is performed to evaluate the reasonableness of the fair value using the hierarchy and upon the evaluation company may elect to use the hierarchy of pricing providers or use additional resources such as broker quotes, prices on comparable securities, recent trades, and any other observable market data to corroborate the pricing provider. If fair value differences from pricing providers are determined to be unreasonable and additional pricing resources utilizing observable market data cannot corroborate the price within a reasonable tolerance, then the security will be classified as Level 3.
Globe Life invests in private placement fixed maturities. Private placement fixed maturities are generally not an active market. Private placement valuations are based on observable inputs, such as the benchmark treasury rate, published sector indices, and/or publicly traded comparables and unobservable inputs such as an internally-developed credit ratings, public private spreads and/or private letter ratings assigned by the nationally recognized statistical rating organizations. If observable inputs cannot be corroborated, the fair values are classified as Level 3. Refer to Note 4—Investments under the caption Quantitative Information about Level 3 Fair Value Measurements.
The fair values for each class of security and by valuation hierarchy level are indicated in Note 4—Investments under the caption Fair value measurements, and Note 10—Postretirement Benefits under the caption Pension Assets.
Fair Value Measurements, Other Financial Instruments*:* Fair values for cash and cash equivalents, short-term investments, short-term debt, receivables, and payables approximate carrying value. Cash and cash equivalents are classified as Level 1. Fair values of commercial mortgage loans are determined based upon expected cash flows discounted at an appropriate risk-adjusted rate and are classified as Level 3. The fair value of investments in limited partnerships that provide low-income housing tax credits is based on discounted projected cash flows and are classified as Level 3. Policy loans are an integral part of Globe Life's subsidiaries’ life insurance policies in force and their fair values cannot be valued separately from the insurance contracts. Investment funds are based on net asset value and are excluded from the fair value hierarchy.
The fair values of Globe Life's long and short-term debt issues are based on the same methodology as investments in fixed maturities. At December 31, 2025, observable inputs were available for these debt securities and as such were classified as Level 2 in the valuation hierarchy. The fair value for each debt instrument as of December 31, 2025 is disclosed in Note 12—Debt**.
As described in Note 10—Postretirement Benefits, Globe Life maintains a nonqualified supplemental retirement plan. Accordingly, the assets that support the liability for this plan are considered general assets of the Company. These assets consist of the cash value of company-owned life insurance policies and exchange traded funds ("ETFs"). Fair values for the ETFs are derived from direct quotes and are considered Level 1 in the fair value hierarchy.
Current Expected Credit Loss Reserve (fixed maturities)**: At the onset of the evaluation, the Company individually assesses each fixed maturity, on a quarterly basis, to determine whether it intends to sell, or it is more likely than not that it will be required to sell the security before recovery of its amortized cost basis. If either of the criteria are met, the Company will write down the fixed maturity's amortized cost basis to fair value through "Realized gains (losses)."
If neither of the aforementioned criteria are met, the Company will evaluate whether the decline in fair value has resulted from a credit event. The Company will evaluate many factors, as further described below, to determine the present value of the expected cash flows. A credit loss occurs when the present value of the expected cash flows is less than the amortized cost basis.
GL 2025 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
This will result in the recording of an allowance for credit losses as a contra asset account to the amortized cost basis with an offsetting provision for credit losses in *"*Realized gains (losses)" on the Consolidated Statements of Operations. Additionally, the current expected credit loss ("CECL") methodology includes a fair value floor where the allowance for credit loss for a security cannot exceed the difference between fair value and amortized cost. When it is determined that there is not a credit loss, the decline in fair value is recognized in Other Comprehensive Income.
All changes in the allowance for credit losses are recorded as provision for (or reversal of) credit loss expense. Losses recorded to the allowance for credit losses are management's best estimate of the uncollectibility of principal and interest of a fixed maturity.
The evaluation of Globe Life's securities for credit losses is a process that is undertaken at least quarterly and is overseen by a team of investment and accounting professionals. The process for making this determination is highly subjective and involves the careful consideration of many factors. The factors considered include, but are not limited to:
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The Company’s lack of intent to sell the debt security before recovery;
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Whether it is more likely than not the Company will be required to sell prior to maturity;
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The reason(s) for the credit related losses;
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The financial condition of the issuer and the prospects for recovery in fair value of the security; and
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Expected future cash flows.
The relative weight given to each of these factors can change over time as facts and circumstances change. In many cases, management believes it is appropriate to give more consideration to prospective factors than to retrospective factors. Prospective factors that are given more weight include prospects for recovery, the Company’s ability and general intent to hold the security until anticipated recovery, and expected future cash flows.
Among the facts and information considered in the process are:
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Financial statements of the issuer;
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Changes in credit ratings of the issuer;
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The value of underlying collateral;
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News and information included in press releases issued by the issuer;
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News and information reported in the media concerning the issuer;
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News and information published by or otherwise provided by securities, economic, or research analysts;
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The nature and amount of recent and expected future sources and uses of cash;
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Default on a required payment; and
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Issuer bankruptcy filings.
The expected cash flows are determined using judgment and the best information available to the Company. Inputs used to derive expected cash flows generally include expected default rates, current levels of subordination, and estimated recovery rate. The discount rate utilized in the discounted cash flows is the effective interest rate, which is the rate of return implicit in the asset at acquisition.
GL 2025 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
Current Expected Credit Loss Reserve (mortgage loans)**: The Company evaluates the performance and credit quality of the commercial mortgage loan portfolio at least on a quarterly basis, or as needed, by utilizing common metrics such as loan-to-value or debt-service ratios as well as covenants, local market conditions, borrower quality, and underlying collateral. The fair value of the underlying collateral is based on a third-party appraisal of the property at origination of the loan. The fair value is assessed on an annual basis or more frequently when a loan is materially underperforming, 30 days delinquent, or in technical default. The Company determines the probability of estimated losses for the performing commercial mortgage loan portfolio on a pool basis each quarter and records an allowance. The allowance for credit losses is based on estimates, historical experience, probability of loss, value of the underlying collateral, and macro factors that affect the collectability of the loan.
If management determines that foreclosure of a particular property is probable, or determines the loan is collateral dependent, the company may elect the practical expedient for an individual mortgage loan to estimate the expected credit losses, which are based on the fair value of the property less amortized cost, adjusted for selling and other associated costs. See Note 4—Investments for current activity.
Cash*: "*Cash" consists of balances on hand and on deposit in banks and financial institutions.
Accrued Investment Income*:* "Accrued investment income" consists of interest income or dividends earned on the investment portfolio, but which are yet to be received as of the balance sheet date. The Company will write off accrued investment income that is deemed to be uncollectible related to the fixed maturities.
"Accrued investment income" also consists of interest income earned on the commercial mortgage loan portfolio, but which is yet to be received as of the balance sheet date. Accrued investment income will be placed in non-accrual status at the time the loan is 90 days delinquent or otherwise deemed to be uncollectible by management. Accrued investment income that is deemed to be uncollectible will be written off. As of December 31, 2025, the accrued interest receivable for commercial mortgage loans was $2.4 million. Mortgage loans generally pay interest monthly, therefore accrued interest is typically for a period of less than 30 days.
As a practical expedient, the Company excludes the accrued investment income from the amortized cost basis of the investment and separately reports it in another financial statement line item, "Accrued investment income." Accordingly, the amount will be excluded from disclosures within Note 4—Investments.
Other Receivables*:* Agent debit balances primarily represent commissions advanced to insurance agents, a common industry practice. Generally, commissions are paid to an agent when due over the life of a policy as premiums are paid. However, when an agent sells a policy, the agent may qualify to have their commissions (primarily first-year commissions) paid in advance of when commissions are earned. When the commissions are advanced to the agent, the collection of the advance is made for as long as the policy stays in force or until fully repaid. To the extent an advance is made, we will generally advance up to 65% of first year commissions. This creates an agent debit balance which is classified within “Other receivables.” These balances are repaid to the Company over time, generally one year, as the premiums associated with the advanced commissions are collected by the Company and a portion of the agents' commissions on such premiums are retained in order to repay the balances. If an agent has an agent debit balance with the Company, commissions earned by that agent are generally first applied to reduce the amounts owed to the Company. Any excess will be paid to the agent in cash. The balances were $591 million at December 31, 2025 and $542 million at December 31, 2024. While there is a susceptibility to loss should an agent terminate or excessive policy lapses occur, the ability of the Company to continue to collect an agent's commission over time from in force policies reduces the Company's exposure to loss.
The Company has a very low inherent risk with regard to the collection of agent debit balances and views these balances as recoverable since they are, in aggregate, less than the estimated present value of future commissions discounted at a conservative rate which includes assumptions for lapses and mortality. The Company’s security, or collateral, is in the form of future commission streams collected over the life of the policies sold by the respective agents, which ultimately revert to the Company in the event an agent is terminated. The Company evaluated the agent debit balances on a pool basis to determine the allowance for credit losses, as the loans have similar characteristics. A provision for credit losses will be recorded in "Realized gains (losses)" on the Consolidated
GL 2025 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
Statements of Operations and the asset balance will be reflected in agent debit balances, net of allowance for credit losses ("Other receivables"). The allowance for credit losses was $1.4 million at December 31, 2025 and 2024.
Commissions are earned by the agent over the contract period as long as premium is paid by the policyholder and the policy stays in force. As the commissions are earned by the agent and commission expense is incurred by the Company the agent debit balance is reduced. The portion of commission expense incurred related to non-level commissions is deferred and recorded as “Deferred acquisition cost.” The portion of level commission is recognized as an expense within “Commissions, premium taxes, and non-deferred acquisition costs.”
Deferred Acquisition Costs: Certain costs of acquiring new insurance business are deferred and recorded as an asset. These costs are capitalized on a grouped contract basis and amortized over the expected term of the related contracts, and are essential for the acquisition of new insurance business. Deferred acquisition costs are directly related to the successful issuance of an insurance contract, and primarily include sales commissions, policy issue costs, direct to consumer advertising costs, and underwriting costs. Additionally, DAC includes the value of business acquired, which are the costs of acquiring blocks of insurance from other companies or through the acquisition of other companies. These costs represent the difference between the fair value of the contractual insurance assets acquired and liabilities assumed, compared against the assets and liabilities for insurance contracts that the company issues or holds measured in accordance with GAAP.
DAC is amortized on a constant-level basis over the expected term of the grouped contracts, with the related expense included in amortization of deferred acquisition costs on the Consolidated Statements of Operations. The in force metric used to compute the DAC amortization rate is annualized premium in force. The assumptions used to amortize acquisition costs include mortality, morbidity, and lapses. These assumptions are reviewed at least annually and revised in conjunction with any change in the future policy benefit assumptions. The effect of changes in the assumptions are recognized over the remaining expected contract term as a revision of future amortization amounts.
VOBA is amortized on a basis that is consistent with DAC, as described above, and is subject to periodic recoverability and loss recognition testing to determine if there is a premium deficiency. These tests evaluate whether the present value of future contract-related cash flows will support the capitalized VOBA asset. These cash flows consist primarily of premium income, less benefits and expenses. The present value of these cash flows, less the liability for future policy benefits, is then compared with the unamortized balance. In the event the estimated present value of net cash flows is less, the deficiency would be recognized by a charge to earnings and either a reduction of unamortized acquisition costs or an increase in the liability for future policy benefits. Refer to Note 7—Deferred Acquisition Costs.
Advertising Costs: Costs related to advertising are generally charged to expense as incurred. However, certain Direct to Consumer advertising costs are capitalized when there is a reliable and demonstrated relationship between total costs and future benefits that is a direct result of incurring these costs. Advertising costs consist primarily of internet advertising costs and the production and distribution costs of direct mail advertising materials, and when capitalized are included as a component of DAC. Additionally, they are amortized in the same manner as other DAC. Advertising costs charged to earnings and included in commissions, premium taxes, and non-deferred acquisition costs were $7.1 million, $15.7 million, and $19.2 million in 2025, 2024, and 2023, respectively. Unamortized capitalized advertising costs included within DAC were $1.62 billion at December 31, 2025 and $1.60 billion at December 31, 2024.
Goodwill*:* The excess cost of a business acquired over the fair value of net assets acquired is reported as goodwill. In accordance with the guidance, goodwill is subject to impairment testing on an annual basis, or whenever potential impairment triggers occur. Impairment testing involves the performance of a qualitative analysis, which involves assessing current events and circumstances to determine if it is more likely than not that the fair value of a reporting unit is less than its carrying amount. In the event the fair value is less than the carrying value, further testing is required to determine the amount of impairment, if any. If there is an impairment in the goodwill of any reporting unit, it is written down and charged to earnings in the period of the test. Globe Life tests its goodwill annually as of June 30th for each of the years 2023 through 2025. The Company's goodwill was not impaired in any of those periods.
GL 2025 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
The Company completed the acquisition of Evry Health during 2024 resulting in an increase in goodwill of $8.7 million.
Low-Income Housing Tax Credit Interests*:* Globe Life invests in limited partnerships that provide low-income housing tax credits and other related federal income tax benefits to the Company. Globe Life holds passive interests in limited partnerships that provide investment returns through the provision of tax benefits (principally from the transfer of federal or state tax credits related to federal low-income housing). These investments are considered to be VIEs and do not qualify for consolidation. The carrying value of the Company's investment in these entities was $476 million and $270 million at December 31, 2025 and 2024, respectively, and was included in "Other assets" on the Consolidated Balance Sheets**. As of December 31, 2025, Globe Life was obligated under future commitments of $255 million, which are recorded in "Other liabilities." For guaranteed investments acquired prior to January 1, 2015, the Company utilizes the effective-yield method of amortization, while the proportional method of amortization is utilized for all non-guaranteed and guaranteed investments acquired on or after January 1, 2015. All net amortization expense and income tax benefits are recorded in "Income tax benefit (expense)" on the Consolidated Statements of Operations for federal low-income housing investments, while tax benefits associated with state low-income housing investments are recorded in "Commissions, premium taxes, and non-deferred acquisition costs".
Property and Equipment*:* Property and equipment, included in “Other assets,” is reported at cost less accumulated depreciation. Depreciation is recorded primarily on the straight line method over the estimated useful lives of these assets which range from three to fifteen years for equipment and software, and fifteen to forty years for buildings and improvements. Ordinary maintenance and repairs are charged to income as incurred. Impairments, if any, are recorded when certain events and circumstances become evident that the fair value of the asset is less than its carrying amount. Original cost of property and equipment was $615 million at December 31, 2025 and $527 million at December 31, 2024. Accumulated depreciation was $245 million at the end of 2025 and $242 million at the end of 2024. Depreciation expense was $30 million in 2025, $27 million in 2024, and $21 million in 2023. Internally developed software costs are expensed as incurred in the preliminary project phase and post-implementation phase, and are capitalized during the application development stage. Additionally, implementation costs incurred in a hosting arrangement that is a service contract are capitalized. See below for a breakout of the net balance by asset class for the year ended December 31, 2025 and 2024:
| Year Ended December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| Property and equipment, net of accumulated depreciation: | |||||||||||
| Company occupied real estate | $ | 122,411 | $ | 36,656 | |||||||
| Data processing equipment | 245,357 | 219,614 | |||||||||
| Transportation equipment | — | 26,346 | |||||||||
| Furniture and equipment | 1,765 | 1,656 | |||||||||
| Total property and equipment, net of depreciation | $ | 369,533 | $ | 284,272 | |||||||
On July 3, 2025, Globe Life Inc. completed the acquisition of real estate located in McKinney, Texas for total consideration of $80 million. The acquisition was executed in order to support Company growth and efficiency through modern technological infrastructure and centralized operations. The acquisition includes land, a building structure, parking garage and building improvements. The transaction was executed pursuant to a purchase agreement and is accounted for as an asset acquisition. The purchase price was allocated based upon the relative fair value of land, building and building improvements. The building is being depreciated over its estimated useful life of 40 years on a straight-line basis and recorded as part of other operating expense on the Consolidated Statement of Operations. The Company expects to utilize the facility for its own operational needs.
As of the date of this filing, the current occupied facility does not qualify for held for sale classification and no impairment indicators have been identified.
Future Policy Benefits*:* The liability for future policy benefits for traditional and limited-payment long duration life and health products comprises approximately 93% of the total liability for future policy benefits. The liability is
GL 2025 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
determined each reporting period based on the net level premium method. This method requires the liability for future policy benefits be calculated as the present value of estimated future policyholder benefits and the related termination expenses, less the present value of estimated future net premiums to be collected from policyholders. Net level premiums reflect a recomputed net premium ratio using actual experience since the issue date or January 1, 2021, the Transition Date(1), and expected future experience. The liability is accrued as premium revenue is recognized and adjusted for differences between actual and expected experience. Long-duration insurance contracts issued by the Company are grouped into cohorts based on the contract issue year, distribution channel, legal entity, and product type.
Both the present value of expected future benefit payments and the present value of expected future net premiums are based primarily on assumptions of discount rates, mortality, morbidity, and lapses. Each quarter, the Company remeasures its liability for future policy benefits using current discount rates with the effect of the change recognized in Other Comprehensive Income, a component of shareholders’ equity. In addition, the Company recognizes a liability remeasurement gain or loss within the Consolidated Statements of Operations using original discount rates, and relating to actual experience under the net premium calculation, as compared to the prior reporting period assumptions.
The Company regularly reviews its cash flow assumptions (mortality, morbidity, and lapses) used to calculate the change in the liability for future policy benefits. These cash flow assumptions are updated as necessary in the third quarter of every year, or more frequently if suggested by experience. If cash flow assumptions are changed, the net premium ratio is recalculated from the original issue date, or the Transition Date, using actual experience and projected future cash flows. When the expected future net premiums exceed the expected future gross premiums (capping), or the present value of future policyholder benefits exceeds the present value of expected future gross premiums (flooring), the liability for future policy benefits is adjusted with changes recognized in policyholder benefits on the Consolidated Statements of Operations. The cash flow assumptions do not include an adjustment for adverse deviation. Mortality tables used for individual life insurance include various industry tables and reflect modifications based on Company experience. Morbidity assumptions for individual health are based on Company experience and industry data. Lapse assumptions are based on Company experience.
The liability for future policy benefits is discounted as noted above, using a current upper-medium grade fixed-income instrument yield that reflects the duration characteristics of the liability for future policy benefits. The methodology for determining current discount rates consists of constructing a discount rate curve intended to be reflective of the currency and tenor of the insurance liability cash flows. The methodology is designed to prioritize observable inputs based on market data available in the local debt markets denominated in the same currency as the policies. For the discount rates applicable to tenors for which the single-A debt market is not liquid or there is little or no observable market data, the Company will use estimation techniques consistent with the fair value guidance in ASC 820. We further accrete interest as a component of policyholder benefits using the original discount rate that is locked-in during the year of contract issuance. The original discount rates (or the locked-in discount rates) are used for interest accretion purposes and for the determination of net premiums, whereas the current discount rates are used for purposes of valuing the liability.
The liability for future policy benefits for annuity and interest sensitive life-type products is represented by policy account value. For limited-payment contracts, a deferred profit liability is also recorded, with changes recognized in income over the life of the contract in proportion to the amount of insurance in force. Refer to Note 6—Policy Liabilities.
(1) On January 1, 2023, the Company adopted ASU 2018-12, Financial Services - Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts (ASU 2018-12) on a modified retrospective basis as the transition date (Transition Date) of January 1, 2021.
GL 2025 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
Reinsurance and Recapture: In the normal course of business, Globe Life insurance subsidiaries will enter into reinsurance agreements to limit their exposure to the risk of loss as well as enhance their capital position. To qualify for reinsurance accounting in accordance with applicable guidance, the assuming company (reinsurer) must have the “reasonable possibility” that it may realize a “significant loss.” In instances where the ceding company does not transfer significant insurance risk to the reinsurer, deposit accounting is utilized. Any risk charges payable related to reinsurance agreements where deposit accounting is applicable are recorded within "Other liabilities" on the Consolidated Balance Sheets. Any balances due to the Company under the terms of the reinsurance agreement are recorded as a reinsurance recoverable within "Other assets" on the Consolidated Balance Sheets**. Any ceding commission due to the Company under the terms of the reinsurance agreement are recorded in income over the remaining life of the ceding contracts.
On March 6, 2025, the Company entered into a coinsurance transaction with funds withheld agreement with a third-party reinsurer with an agreement effective date of January 1, 2025. Under the terms of the agreement Globe Life ceded 100% of the liabilities, net of existing reinsurance, associated with certain term and whole life insurance policies. Reserves ceded under this agreement were $458 million. The contract is accounted for under deposit accounting as it did not pass the risk transfer requirements for reinsurance treatment on a GAAP basis. Since the agreement is subject to deposit accounting and meets the right of offset conditions outlined in the accounting policy the Company recorded the initial coinsurance, ceding commission and funds withheld balance on a net basis. At inception, no cash was exchanged between the parties and subsequently, a risk charge was recorded as a component of "Net investment income" on the Consolidated Statement of Operations, with net cash settlements occurring quarterly between the parties.
On March 31, 2025, the Company entered into a recapture and termination agreement with a third-party reinsurer to recapture certain policies that had previously been ceded under a reinsurance agreement dated November 12, 2001. The recapture was executed to accomplish common objectives between the Company and the reinsurer. As a result of the transaction, the Company received net proceeds of $39 million, which are reflected as operating cash flows on the Consolidated Statement of Cash Flows. The Company also recognized a gain of approximately $14 million in policyholder benefits on the Consolidated Statement of Operations.
The Company’s U.S. insurance subsidiaries entered into an affiliated 100% quota share coinsurance agreement with Globe Life Re Ltd, a Bermuda-domiciled reinsurer, effective December 1, 2025, under which certain in force whole life and term life policies were ceded to GL Re. In connection with the transaction, the affiliates transferred assets of $1.2 billion to a Regulation 114 Trust for their benefit, with the fair value equal to the statutory reserves on the reinsured business. GL Re accounts for the arrangement as assumed reinsurance and recognize assumed reserves and related deferred acquisition costs in accordance with Globe’s direct long-duration insurance accounting policies. Since GL Re and affiliates are under common control the effect of the affiliated reinsurance transaction is eliminated in the accompanying consolidated financial statements of Globe Life.
In the fourth quarter of 2024, the Company entered into a coinsurance agreement to cede a majority of its annuity business to a third-party reinsurer. The annuity reserves ceded totaled $462 million. The pre-tax ceding commission under the agreement was approximately $50 million and is being recognized into income over the remaining life of the ceded contracts. Amounts paid to the reinsurer upon entering into the coinsurance agreement were $413 million, which were reflected as a cash outflow within financing activities in the Consolidated Statement of Cash Flows**. The underlying policies ceded are deposit-type contracts and the coinsurance agreement transfers only timing risk to the reinsurer. Net amounts paid to the reinsurer and reimbursements for losses after inception of the coinsurance agreement are reported as financing activities within "Net receipts (payments) from deposit-type products." Under the terms of the agreement, the assuming company will be required to maintain assets in trust at 105% of reserves.
Unearned and Advanced Premium: Premium collected from both life and health policies that have not been earned and recognized in accordance with applicable GAAP. Refer to Recognition of Premium Revenue below.
Policy Claims and Other Benefits Payable*:* Globe Life establishes a liability for known policy benefits payable and an estimate of claims that have been incurred but not yet reported to the Company. Globe Life makes an estimate of
GL 2025 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
unreported claims after careful evaluation of all information available to the Company. This estimate is based on prior experience and is reviewed quarterly. However, there is no certainty the stated liability for claims and other benefits, including the estimate of unsubmitted claims, will be Globe Life's ultimate obligation. For more information, see Note 8—Liability for Unpaid Claims.
Current and Deferred Income Taxes*:* Current and deferred income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the consolidated financial statement book values and tax bases of assets and liabilities. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.
Postretirement Benefits*:* Globe Life accounts for its postretirement defined benefit plans by recognizing the funded status of those plans on its Consolidated Balance Sheets in accordance with accounting guidance. Periodic gains and losses attributable to changes in plan assets and liabilities that are not recognized as components of net periodic benefit costs are recognized as components of other comprehensive income, net of tax. The supplemental executive retirement plan is accounted for consistent with the qualified noncontributory pension plan. The assets are included in a Rabbi Trust and recorded in Other Assets on the Consolidated Balance Sheets**. More information concerning the accounting and disclosures for postretirement benefits is found in Note 10—Postretirement Benefits**.
Treasury Stock*:* Globe Life accounts for purchases of treasury stock on the cost method. Issuance of treasury stock is accounted for using the weighted-average cost method. More information is found in Note 13—Shareholders' Equity**.
Recognition of Premium Revenue*:* Premium income for traditional long-duration life and health insurance products is recognized evenly over the contract period and when due from the policyholder. Premiums for short-duration health contracts are recognized as revenue over the contract period in proportion to the insurance protection provided. Premiums for universal life-type and annuity contracts are added to the policy account value, and revenues for such products are recognized as charges to the policy account value for mortality, administration, and surrenders (retrospective deposit method). Life premium includes policy charges of $11.7 million, $12.3 million, and $12.9 million for the years ended December 31, 2025, 2024, and 2023, respectively. Other premium consists of annuity policy charges in each year. For limited-payment life insurance products, the profits are recognized over the contract period.
Commission, Premium Taxes, and Non-Deferred Acquisition Costs*:* Commissions represent commission-related amounts that are not deferred. Premium taxes are taxes incurred on premiums written within a state jurisdiction. Non-deferred acquisition costs relate to expenses incurred in the selling or issuing of business which are non-deferrable.
| 2025 | 2024 | 2023 | |||||||||||||||
| Commissions | $ | 342,189 | $ | 317,576 | $ | 295,877 | |||||||||||
| Premium taxes | 97,966 | 96,790 | 91,021 | ||||||||||||||
| Non-deferred acquisition costs | 202,545 | 186,387 | 172,269 | ||||||||||||||
| Total | $ | 642,700 | $ | 600,753 | $ | 559,167 |
Stock-Based Compensation*:* Globe Life accounts for stock-based compensation by recognizing an expense in the consolidated financial statements based on the “fair value method.” The fair value method requires that a fair value be assigned to a stock option or other stock grant on its grant date and that this value be amortized over the grantees’ service period.
The fair value method requires the use of an option valuation model to value employee stock options. Globe Life has elected to use the Black-Scholes valuation model for option expensing.
GL 2025 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
A summary of assumptions for options granted in each of the three years 2023 through 2025 is as follows:
| 2025 | 2024 | 2023 | |||||||||||||||
| Volatility factor | 29.9 | % | 22.0 | % | 23.0 | % | |||||||||||
| Dividend yield | 0.8 | % | 0.7 | % | 0.7 | % | |||||||||||
| Expected term (in years) | 5.13 | 5.10 | 5.10 | ||||||||||||||
| Risk-free rate | 4.0 | % | 4.3 | % | 4.1 | % |
The expected term is generally derived from Company experience. However, expected terms are determined based on the simplified method as permitted under the ASC 718, Stock Compensation, topic when Company experience is insufficient. On April 26, 2018, the shareholders approved the Globe Life Inc. 2018 Incentive Plan, formerly the Torchmark Corporation 2018 Incentive Plan (the "2018 Incentive Plan"). The 2018 Incentive Plan replaced all previous plans. The 2018 Incentive Plan allows for option grants for employees with a seven-year contractual term which vest over three years in addition to ten-year grants which vest over five years as permitted by the previous plans. Director grants vest over six months. Volatility and risk-free interest rates are assumed over a period of time consistent with the expected term of the option. Volatility is measured on a historical basis. Monthly data points are utilized to derive volatility for periods three years and longer. Expected dividend yield is based on current dividend yield held constant over the expected term. Once the fair value of an option has been determined, it is amortized on a straight-line basis over the employee’s service period for that grant (from the grant date to the date the grant is fully vested).
Expenses for restricted stock and restricted stock units are based on the grant date fair value allocated on a straight-line basis over the service period. Performance share expense is recognized based on management’s estimate of the probability of meeting the metrics identified in the performance share award agreement, assigned to each service period as these estimates develop.
Stock-based compensation expense is included in “Other operating expense” on the Consolidated Statements of Operations. Globe Life management views all stock-based compensation expense as part of insurance administration expense and, therefore, presents as such in its segment analysis. More information concerning the Company's segments is provided in Note 15—Business Segments.
Earnings per Share*:* Globe Life presents basic and diluted earnings per common share (EPS) on the face of the Consolidated Statements of Operations for income from operations. Basic EPS is computed by dividing income available to common shareholders by the weighted average common shares outstanding for the period. Diluted EPS is calculated by adding to shares outstanding the additional net effect of potentially dilutive securities or contracts, such as stock options, which could be exercised or converted into common shares. For more information on earnings per share, see Note 13—Shareholders' Equity**.
Accounting Pronouncements Adopted in the Current Year: ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, adds disclosure requirements to disaggregate information related to the effective tax rate reconciliation and information on income taxes paid. The disclosures enhance the assessment of an entity’s operations and related tax risks.
This standard is effective for the Company for annual periods beginning on January 1, 2025, and has been implemented on a prospective basis. The standard did not have a material impact on the consolidated financial statements. The guidance requires only additional disclosure, and as a result there has been no effects on our financial position, results of operations or cash flows.
GL 2025 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
Accounting Pronouncements Yet to be Adopted: ASU No. 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses, adds disclosure requirements to disaggregate information related to an entity's income statement. The disclosures will allow for enhanced transparency of an entity's expenses.
This standard is effective for the Company for annual periods beginning on January 1, 2027. The Company is evaluating the standard.
ASU No. 2025-06, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software, provides guidance for the evaluation of determining whether criteria is met to begin the capitalization of internal-use software costs. ASC 350 (Intangibles—Goodwill and Other) requires the capitalization of internal-use software costs begin when both of the following criteria are met: (1) when management has authorized and committed to funding the software project and (2) the probability that the project will be completed and will be used to perform the function intended. If uncertainty exists under the guidance issued in Subtopic 350-40 then a probable to complete threshold will not exist and any costs would be expensed until uncertainties are resolved.
The updated guidance also requires the application of disclosure requirements in ASC 360 (Plant, Property, and Equipment) for all capitalized costs regardless of presentation in the financial statements. This standard is effective for the Company for annual periods beginning on January 1, 2028 and interim periods within the annual reporting periods. The Company is evaluating the standard.
GL 2025 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
Note 2—Statutory Accounting
U.S. based life insurance subsidiaries of Globe Life are required to file statutory financial statements with state insurance regulatory authorities. Accounting principles used to prepare these statutory financial statements differ from GAAP. Consolidated net income and shareholders’ equity (capital and surplus) on a statutory basis for the insurance subsidiaries were as follows:
| Net Income | Shareholders’ Equity | ||||||||||||||||||||||||||||
| Year Ended December 31, | At December 31, | ||||||||||||||||||||||||||||
| 2025 | 2024 | 2023 | 2025 | 2024 | |||||||||||||||||||||||||
| U.S. Life insurance subsidiaries | $ | 748,754 | $ | 688,665 | $ | 434,952 | $ | 1,614,929 | $ | 1,690,663 |
The excess, if any, of shareholders' equity of the insurance subsidiaries on a GAAP basis over that determined on a statutory basis is not available for distribution by the insurance subsidiaries to the Parent Company without regulatory approval. Insurance subsidiaries’ statutory capital and surplus necessary to satisfy regulatory requirements in the aggregate was $590 million at December 31, 2025. More information on the restrictions on the payment of dividends can be found in Note 13—Shareholders' Equity**.
The Company's statutory financial statements are presented on the basis of accounting practices prescribed by the insurance department of the state of domicile of each insurance subsidiary. While all states have adopted the National Association of Insurance Commissioners’ ("NAIC") statutory accounting practices ("NAIC SAP") as the basis for statutory accounting, certain states have retained prescribed practices of their respective insurance code or administrative code which can differ from NAIC SAP. For Globe Life's life insurance companies, there are no significant differences between NAIC SAP and the accounting practices prescribed by the states of domicile.
Our Bermuda-based insurance subsidiaries are subject to regulation in Bermuda and the BMA has capital requirements and solvency standards including limitations on dividends or distributions to shareholders, The minimum solvency margin that must be maintained by a Class C insurer is the greater of : (i) $0.5 million; or (ii) 1.5 percent of assets; or (iii) 25 percent of its enhanced capital requirement ("ECR") as reported at the end of the relevant year.
A Class C insurer is also required to maintain available statutory economic capital and surplus at a level equal to or in excess of its ECR, which is established by reference to either the Bermuda Solvency Capital Requirement ("BSCR") model or a Bermuda-approved internal capital model. While not specifically referred to in the Insurance Act, the BMA has also established a target capital level ("TCL") equal to 120 percent of an insurer's ECR. The TCL serves as an early warning tool for the BMA and failure to maintain statutory capital at least equal to the TCL will likely result in increased regulatory oversight.
We are in the process of completing Bermuda subsidiaries capital and solvency return in respect to the year ended December 31, 2025, which includes the BSCR. We expect that our Bermuda subsidiaries' level of capitalization will exceed the minimum solvency margin and result in its statutory economic capital and surplus being in excess of the TCL. Statutory capital and surplus of our Bermuda subsidiaries, based on Bermuda statutory accounting practices, was $609.8 million and $142.5 million at December 31, 2025 and 2024, respectively.
GL 2025 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
Note 3—Supplemental Information about Changes to Accumulated Other Comprehensive Income
Components of Accumulated Other Comprehensive Income: An analysis of the change in balance by component of Accumulated Other Comprehensive Income is as follows for each of the years 2023 through 2025:
| Available for Sale Assets | Future Policy Benefits | Foreign Exchange | Pension Adjustments | Total | |||||||||||||||||||||||||
| For the year ended December 31, 2023: | |||||||||||||||||||||||||||||
| Balance at January 1, 2023 | $ | (1,420,672) | $ | (1,369,204) | $ | (1,681) | $ | 1,244 | $ | (2,790,313) | |||||||||||||||||||
| Other comprehensive income (loss) before reclassifications, net of tax | 529,688 | (578,187) | 6,400 | (3,087) | (45,186) | ||||||||||||||||||||||||
| Reclassifications, net of tax | 63,388 | — | — | (308) | 63,080 | ||||||||||||||||||||||||
| Other comprehensive income (loss) | 593,076 | (578,187) | 6,400 | (3,395) | 17,894 | ||||||||||||||||||||||||
| Balance at December 31, 2023 | (827,596) | (1,947,391) | 4,719 | (2,151) | (2,772,419) | ||||||||||||||||||||||||
| For the year ended December 31, 2024: | |||||||||||||||||||||||||||||
| Other comprehensive income (loss) before reclassifications, net of tax | (494,996) | 1,238,349 | (26,476) | 22,474 | 739,351 | ||||||||||||||||||||||||
| Reclassifications, net of tax | 2,974 | — | — | 374 | 3,348 | ||||||||||||||||||||||||
| Other comprehensive income (loss) | (492,022) | 1,238,349 | (26,476) | 22,848 | 742,699 | ||||||||||||||||||||||||
| Balance at December 31, 2024 | (1,319,618) | (709,042) | (21,757) | 20,697 | (2,029,720) | ||||||||||||||||||||||||
| For the year ended December 31, 2025: | |||||||||||||||||||||||||||||
| Other comprehensive income (loss) before reclassifications, net of tax | 338,012 | (112,586) | 12,713 | 8,312 | 246,451 | ||||||||||||||||||||||||
| Reclassifications, net of tax | 11,624 | — | — | 201 | 11,825 | ||||||||||||||||||||||||
| Other comprehensive income (loss) | 349,636 | (112,586) | 12,713 | 8,513 | 258,276 | ||||||||||||||||||||||||
| Balance at December 31, 2025 | $ | (969,982) | $ | (821,628) | $ | (9,044) | $ | 29,210 | $ | (1,771,444) |
GL 2025 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
Reclassification adjustments: Reclassification adjustments out of accumulated other comprehensive Income are presented below for the three years ended December 31, 2025.
| Year Ended December 31, | Affected line items in the Statement of Operations | |||||||||||||||||||||||||
| Component Line Item | 2025 | 2024 | 2023 | |||||||||||||||||||||||
| Unrealized investment (gains) losses on available for sale assets: | ||||||||||||||||||||||||||
| Realized (gains) losses | $ | 23,348 | $ | 14,843 | $ | 84,416 | Realized (gains) losses | |||||||||||||||||||
| Amortization of (discount) premium | (8,634) | (11,079) | (4,178) | Net investment income | ||||||||||||||||||||||
| Total before tax | 14,714 | 3,764 | 80,238 | |||||||||||||||||||||||
| Tax | (3,090) | (790) | (16,850) | Income taxes | ||||||||||||||||||||||
| Total after-tax | 11,624 | 2,974 | 63,388 | |||||||||||||||||||||||
| Pension adjustments: | ||||||||||||||||||||||||||
| Amortization of prior service cost | 1,168 | 1,071 | 1,075 | Other operating expense | ||||||||||||||||||||||
| Amortization of actuarial (gain) loss | (915) | (597) | (1,465) | Other operating expense | ||||||||||||||||||||||
| Total before tax | 253 | 474 | (390) | |||||||||||||||||||||||
| Tax | (52) | (100) | 82 | Income taxes | ||||||||||||||||||||||
| Total after-tax | 201 | 374 | (308) | |||||||||||||||||||||||
| Total reclassification (after-tax) | $ | 11,825 | $ | 3,348 | $ | 63,080 |
GL 2025 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
Note 4—Investments
Portfolio Composition*:* Summaries of fixed maturities available for sale by amortized cost, fair value, and allowance for credit losses at December 31, 2025 and 2024, and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income (loss) are as follows. Redeemable preferred stock is included within "Corporates, by sector."
| At December 31, 2025 | |||||||||||||||||||||||||||||||||||
| Amortized Cost | Allowance for Credit Losses | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value**(1)** | % of Total Fixed Maturities**(2)** | ||||||||||||||||||||||||||||||
| Fixed maturities available for sale: | |||||||||||||||||||||||||||||||||||
| U.S. Government direct, guaranteed, and government-sponsored enterprises | $ | 409,170 | $ | — | $ | 161 | $ | (25,478) | $ | 383,853 | 2 | ||||||||||||||||||||||||
| States, municipalities, and political subdivisions | 3,385,433 | — | 26,955 | (531,762) | 2,880,626 | 16 | |||||||||||||||||||||||||||||
| Foreign governments | 47,448 | — | 138 | (8,040) | 39,546 | — | |||||||||||||||||||||||||||||
| Corporates, by sector: | |||||||||||||||||||||||||||||||||||
| Industrials | 7,787,885 | — | 175,164 | (645,363) | 7,317,686 | 42 | |||||||||||||||||||||||||||||
| Financial | 4,982,187 | — | 134,105 | (333,966) | 4,782,326 | 27 | |||||||||||||||||||||||||||||
| Utilities | 2,093,010 | — | 71,582 | (93,086) | 2,071,506 | 12 | |||||||||||||||||||||||||||||
| Total corporates | 14,863,082 | — | 380,851 | (1,072,415) | 14,171,518 | 81 | |||||||||||||||||||||||||||||
| Collateralized debt obligations | — | — | — | — | — | — | |||||||||||||||||||||||||||||
| Other asset-backed securities | 115,331 | (3,297) | 1,877 | (112) | 113,799 | 1 | |||||||||||||||||||||||||||||
| Total fixed maturities | $ | 18,820,464 | $ | (3,297) | $ | 409,982 | $ | (1,637,807) | $ | 17,589,342 | 100 |
(1)Amount reported in the balance sheet.
(2)At fair value.
| At December 31, 2024 | |||||||||||||||||||||||||||||||||||
| Amortized Cost | Allowance for Credit Losses | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value**(1)** | % of Total Fixed Maturities**(2)** | ||||||||||||||||||||||||||||||
| Fixed maturities available for sale: | |||||||||||||||||||||||||||||||||||
| U.S. Government direct, guaranteed, and government-sponsored enterprises | $ | 401,753 | $ | — | $ | 1 | $ | (42,794) | $ | 358,960 | 2 | ||||||||||||||||||||||||
| States, municipalities, and political subdivisions | 3,300,901 | — | 20,662 | (534,759) | 2,786,804 | 16 | |||||||||||||||||||||||||||||
| Foreign governments | 36,883 | — | 18 | (8,870) | 28,031 | — | |||||||||||||||||||||||||||||
| Corporates, by sector: | |||||||||||||||||||||||||||||||||||
| Industrials | 7,889,074 | (7,098) | 105,610 | (805,330) | 7,182,256 | 42 | |||||||||||||||||||||||||||||
| Financial | 5,006,375 | — | 82,598 | (413,043) | 4,675,930 | 27 | |||||||||||||||||||||||||||||
| Utilities | 2,081,366 | — | 39,716 | (118,007) | 2,003,075 | 12 | |||||||||||||||||||||||||||||
| Total corporates | 14,976,815 | (7,098) | 227,924 | (1,336,380) | 13,861,261 | 81 | |||||||||||||||||||||||||||||
| Collateralized debt obligations | 36,923 | — | 5,943 | — | 42,866 | — | |||||||||||||||||||||||||||||
| Other asset-backed securities | 82,534 | (3,297) | 39 | (2,186) | 77,090 | 1 | |||||||||||||||||||||||||||||
| Total fixed maturities | $ | 18,835,809 | $ | (10,395) | $ | 254,587 | $ | (1,924,989) | $ | 17,155,012 | 100 |
(1)Amount reported in the balance sheet.
(2)At fair value.
The Company had unfunded commitments of $313 million and $167 million in fixed maturities at December 31, 2025 and 2024, respectively.
GL 2025 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
A schedule of fixed maturities available for sale by contractual maturity date at December 31, 2025, is shown below on an amortized cost basis, net of allowance for credit losses, and on a fair value basis. Actual disposition dates could differ from contractual maturities due to call or prepayment provisions.
| At December 31, 2025 | |||||||||||
| Amortized Cost, net | Fair Value | ||||||||||
| Fixed maturities available for sale: | |||||||||||
| Due in one year or less | $ | 121,194 | $ | 122,154 | |||||||
| Due after one year through five years | 816,125 | 847,246 | |||||||||
| Due after five years through ten years | 1,873,144 | 1,938,627 | |||||||||
| Due after ten years through twenty years | 8,965,771 | 8,521,420 | |||||||||
| Due after twenty years | 6,928,887 | 6,046,084 | |||||||||
| Mortgage-backed and asset-backed securities | 112,046 | 113,811 | |||||||||
| $ | 18,817,167 | $ | 17,589,342 |
Analysis of investment operations: "Net investment income" for the three years ended December 31, 2025 is summarized as follows:
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Fixed maturities available for sale | $ | 974,111 | $ | 981,439 | $ | 944,628 | |||||||||||
| Policy loans | 55,876 | 52,625 | 49,011 | ||||||||||||||
| Mortgage loans | 28,064 | 27,809 | 19,541 | ||||||||||||||
| Other long-term investments(1) | 90,321 | 81,834 | 54,655 | ||||||||||||||
| Short-term investments | 9,178 | 11,151 | 6,322 | ||||||||||||||
| 1,157,550 | 1,154,858 | 1,074,157 | |||||||||||||||
| Less investment expense | (27,352) | (19,227) | (17,273) | ||||||||||||||
| Net investment income | $ | 1,130,198 | $ | 1,135,631 | $ | 1,056,884 |
(1)For the years ended 2025, 2024, and 2023, the investment funds, accounted for under the fair value option method, recorded $76.2 million, $74.8 million, and $52.3 million, respectively, in net investment income. Refer to Other Long-Term Investments below for further discussion on the investment funds.
Selected information about sales of fixed maturities available for sale is as follows:
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Fixed maturities available for sale: | |||||||||||||||||
| Proceeds from sales(1) | $ | 623,792 | $ | 1,207,237 | $ | 602,556 | |||||||||||
| Gross realized gains | 8,378 | 21,196 | 5,554 | ||||||||||||||
| Gross realized losses | (20,551) | (32,956) | (80,823) |
(1)Includes unsettled trades of $0, $866 thousand, and $0 as of December 31, 2025, 2024, and 2023, respectively.
GL 2025 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
An analysis of "realized gains (losses)" is as follows:
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Realized investment gains (losses): | |||||||||||||||||
| Fixed maturities available for sale: | |||||||||||||||||
| Sales and other(1) | $ | (30,447) | $ | (11,563) | $ | (77,301) | |||||||||||
| Provision for credit losses | 7,098 | (3,280) | (7,115) | ||||||||||||||
| Fair value option—change in fair value | (10,074) | (16,717) | 15,102 | ||||||||||||||
| Mortgage loans | (2,817) | (3,972) | (5,603) | ||||||||||||||
| Other investments | (1,642) | 2,936 | 1,792 | ||||||||||||||
| Realized gains (losses) from investments | (37,882) | (32,596) | (73,125) | ||||||||||||||
| Other gains (losses) | 10,094 | 8,408 | 7,449 | ||||||||||||||
| Total realized gains (losses) | (27,788) | (24,188) | (65,676) | ||||||||||||||
| Applicable tax | 5,836 | 5,080 | 13,792 | ||||||||||||||
| Realized gains (losses), net of tax | $ | (21,952) | $ | (19,108) | $ | (51,884) |
(1)For the years ended 2025, 2024, and 2023, the Company recorded $288.5 million, $105.6 million, and $50.9 million of issuer-initiated exchanges of fixed maturities (noncash transactions) that resulted in $(3.0) million, $0, and $(1.9) million, respectively, in realized gains (losses). During the year ended December 31, 2023, the Company sold $66 million in securities relating to holdings in Signature Bank New York and First Republic Bank, which entered receivership during the first half of 2023.
An analysis of the net change in unrealized investment gains (losses) is as follows:
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Change in unrealized investment gains (losses) on: | |||||||||||||||||
| Fixed maturities available for sale | $ | 442,577 | $ | (622,809) | $ | 750,734 |
Fair value measurements: The following tables represent the fair value of fixed maturities measured on a recurring basis at December 31, 2025 and 2024:
| Fair Value Measurement at December 31, 2025: | |||||||||||||||||||||||
| Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total Fair Value | ||||||||||||||||||||
| Fixed maturities available for sale | |||||||||||||||||||||||
| U.S. Government direct, guaranteed, and government-sponsored enterprises | $ | — | $ | 383,853 | $ | — | $ | 383,853 | |||||||||||||||
| States, municipalities, and political subdivisions | — | 2,880,626 | — | 2,880,626 | |||||||||||||||||||
| Foreign governments | — | 39,546 | — | 39,546 | |||||||||||||||||||
| Corporates, by sector: | |||||||||||||||||||||||
| Industrials | — | 7,232,179 | 85,507 | 7,317,686 | |||||||||||||||||||
| Financial | — | 4,661,175 | 121,151 | 4,782,326 | |||||||||||||||||||
| Utilities | — | 1,968,840 | 102,666 | 2,071,506 | |||||||||||||||||||
| Total corporates | — | 13,862,194 | 309,324 | 14,171,518 | |||||||||||||||||||
| Collateralized debt obligations | — | — | — | — | |||||||||||||||||||
| Other asset-backed securities | — | 27,898 | 85,901 | 113,799 | |||||||||||||||||||
| Total fixed maturities | $ | — | $ | 17,194,117 | $ | 395,225 | $ | 17,589,342 | |||||||||||||||
| Percentage of total | — | % | 98 | % | 2 | % | 100 | % |
GL 2025 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
| Fair Value Measurement at December 31, 2024: | |||||||||||||||||||||||
| Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total Fair Value | ||||||||||||||||||||
| Fixed maturities available for sale | |||||||||||||||||||||||
| U.S. Government direct, guaranteed, and government-sponsored enterprises | $ | — | $ | 358,960 | $ | — | $ | 358,960 | |||||||||||||||
| States, municipalities, and political subdivisions | — | 2,786,804 | — | 2,786,804 | |||||||||||||||||||
| Foreign governments | — | 28,031 | — | 28,031 | |||||||||||||||||||
| Corporates, by sector: | |||||||||||||||||||||||
| Industrials | — | 6,998,900 | 183,356 | 7,182,256 | |||||||||||||||||||
| Financial | — | 4,551,737 | 124,193 | 4,675,930 | |||||||||||||||||||
| Utilities | — | 1,890,559 | 112,516 | 2,003,075 | |||||||||||||||||||
| Total corporates | — | 13,441,196 | 420,065 | 13,861,261 | |||||||||||||||||||
| Collateralized debt obligations | — | — | 42,866 | 42,866 | |||||||||||||||||||
| Other asset-backed securities | — | 65,907 | 11,183 | 77,090 | |||||||||||||||||||
| Total fixed maturities | $ | — | $ | 16,680,898 | $ | 474,114 | $ | 17,155,012 | |||||||||||||||
| Percentage of total | — | % | 97 | % | 3 | % | 100 | % |
GL 2025 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
The following tables represent changes in fixed maturities measured at fair value on a recurring basis using significant unobservable inputs (Level 3):
| Analysis of Changes in Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | |||||||||||||||||||||||
| Asset- backed Securities | Collateralized Debt Obligations | Corporates | Total | ||||||||||||||||||||
| Balance at January 1, 2023 | $ | — | $ | 50,364 | $ | 478,083 | $ | 528,447 | |||||||||||||||
| Included in realized gains / losses | — | — | — | — | |||||||||||||||||||
| Included in other comprehensive income | — | (8,230) | 4,541 | (3,689) | |||||||||||||||||||
| Acquisitions(1) | — | — | — | — | |||||||||||||||||||
| Sales | — | — | — | — | |||||||||||||||||||
| Amortization | — | 4,569 | 155 | 4,724 | |||||||||||||||||||
| Other(2) | — | (4,557) | (28,046) | (32,603) | |||||||||||||||||||
| Transfers into Level 3(3) | — | — | — | — | |||||||||||||||||||
| Transfers out of Level 3(3) | — | — | — | — | |||||||||||||||||||
| Balance at December 31, 2023 | — | 42,146 | 454,733 | 496,879 | |||||||||||||||||||
| Included in realized gains / losses | — | — | 740 | 740 | |||||||||||||||||||
| Included in other comprehensive income | 37 | 907 | (4,607) | (3,663) | |||||||||||||||||||
| Acquisitions(1) | 8,948 | — | 14,800 | 23,748 | |||||||||||||||||||
| Sales | — | — | — | — | |||||||||||||||||||
| Amortization | — | 4,548 | 217 | 4,765 | |||||||||||||||||||
| Other(2) | — | (4,735) | (45,818) | (50,553) | |||||||||||||||||||
| Transfers into Level 3(3) | 2,198 | — | — | 2,198 | |||||||||||||||||||
| Transfers out of Level 3(3) | — | — | — | — | |||||||||||||||||||
| Balance at December 31, 2024 | 11,183 | 42,866 | 420,065 | 474,114 | |||||||||||||||||||
| Included in realized gains / losses | — | (588) | (2,563) | (3,151) | |||||||||||||||||||
| Included in other comprehensive income | 350 | (5,943) | 10,618 | 5,025 | |||||||||||||||||||
| Acquisitions(1) | 74,368 | — | 44,015 | 118,383 | |||||||||||||||||||
| Sales | — | (36,398) | (118,379) | (154,777) | |||||||||||||||||||
| Amortization | — | 1,512 | (209) | 1,303 | |||||||||||||||||||
| Other(2) | — | (1,449) | (44,223) | (45,672) | |||||||||||||||||||
| Transfers into Level 3(3) | — | — | — | — | |||||||||||||||||||
| Transfers out of Level 3(3) | — | — | — | — | |||||||||||||||||||
| Balance at December 31, 2025 | $ | 85,901 | $ | — | $ | 309,324 | $ | 395,225 | |||||||||||||||
| (1)Acquisitions of Level 3 investments in each of the years 2023 through 2025 are comprised of private placement fixed maturities and equities. (2)Includes capitalized interest, foreign exchange adjustments, and principal repayments. (3)Considered to be transferred at the end of the period. Transfers into Level 3 occur when observable inputs are no longer available. Transfers out of Level 3 occur when observable inputs become available. | |||||||||||||||||||||||
| Changes in unrealized gains and losses for Level 3 securities during the period included in accumulated other comprehensive income for assets held at the end of the reporting period: | |||||||||||||||||||||||
| Asset- backed Securities | Collateralized Debt Obligations | Corporates | Total | ||||||||||||||||||||
| 2023 | $ | — | $ | (8,230) | $ | 4,541 | $ | (3,689) | |||||||||||||||
| 2024 | 37 | 907 | (4,607) | (3,663) | |||||||||||||||||||
| 2025 | 350 | (5,943) | 10,618 | 5,025 |
GL 2025 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
Transfers between levels within the hierarchy occur when there are changes in the observability of the inputs and market data. Transfers into Level 3 occur when there is little observable market activity for the asset/liability as of the measurement date and the Company is required to rely upon internally-developed assumptions or third parties. Transfers out of Level 3 occur when quoted prices in active markets become available for identical assets/liabilities or the ability to corroborate by observable market data.
The following table represents quantitative information about Level 3 fair value measurements:
| Quantitative Information about Level 3 Fair Value Measurements | |||||||||||||||||||||||||||||
| As of December 31, 2025 | |||||||||||||||||||||||||||||
| Fair Value | Valuation Techniques | Significant Unobservable Input | Range | Weighted- Average**(1)** | |||||||||||||||||||||||||
| Private placement fixed maturities | $ | 309,324 | Determination of credit spread | Credit rating | B to AA | BBB+ | |||||||||||||||||||||||
| Asset-backed securities | 85,901 | Determination of credit spread | Credit rating | CC to A- | BBB- | ||||||||||||||||||||||||
| $ | 395,225 |
(1)Unobservable inputs were weighted by the relative fair value of the instruments.
Private placement fixed maturities and asset-backed securities are valued based on the contractual cash flows discounted by a yield determined as a treasury benchmark rate adjusted for a credit spread. The credit spread is developed from observable indices for similar securities and unobservable indices for private securities or private comparable securities for corresponding credit ratings. The credit ratings for the securities may be considered unobservable inputs, as they are private letter ratings issued by a nationally recognized statistical rating organization or are assigned by the third-party investment manager based on a quantitative and qualitative assessment of the credit underwritten. A higher (lower) credit rating would result in a higher (lower) valuation.
The collateral underlying collateralized debt obligations consists primarily of trust preferred securities issued by banks and insurance companies. Collateralized debt obligations are valued at the present value of expected future cash flows using an unobservable discount rate. Expected cash flows are determined by scheduling the projected repayment of the collateral assuming no future defaults, deferrals, or recoveries. The discount rate is risk-adjusted to take these items into account. A significant increase (decrease) in the discount rate will produce a significant decrease (increase) in fair value. Additionally, a significant increase (decrease) in the cash flow expectations would result in a significant increase (decrease) in fair value. For more information regarding valuation procedures, please refer to Note 1—Significant Accounting Policies under the caption Fair Value Measurements, Investments in Securities.
Unrealized Loss Analysis*:* The following table discloses information about fixed maturities available for sale in an unrealized loss position.
| Less than Twelve Months | Twelve Months or Longer | Total | |||||||||||||||
| Number of issues (CUSIPs) held: | |||||||||||||||||
| As of December 31, 2025 | 395 | 1,583 | 1,978 | ||||||||||||||
| As of December 31, 2024 | 705 | 1,498 | 2,203 |
Globe Life's entire fixed maturity portfolio consisted of 2,576 issues by 1,010 different issuers at December 31, 2025 and 2,552 issues by 1,014 different issuers at December 31, 2024. The weighted-average quality rating of all unrealized loss positions at amortized cost was A as of December 31, 2025 and A- as of December 31, 2024.
GL 2025 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
The following tables disclose unrealized investment losses by class and major sector of fixed maturities available for sale at December 31, 2025 and December 31, 2024.
Analysis of Gross Unrealized Investment Losses
| At December 31, 2025 | |||||||||||||||||||||||||||||||||||
| Less than Twelve Months | Twelve Months or Longer | Total | |||||||||||||||||||||||||||||||||
| Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | ||||||||||||||||||||||||||||||
| Fixed maturities available for sale: | |||||||||||||||||||||||||||||||||||
| Investment grade securities: | |||||||||||||||||||||||||||||||||||
| U.S. Government direct, guaranteed, and government-sponsored enterprises | $ | 4,894 | $ | (454) | $ | 368,750 | $ | (25,024) | $ | 373,644 | $ | (25,478) | |||||||||||||||||||||||
| States, municipalities, and political subdivisions | 535,186 | (12,491) | 1,731,104 | (519,061) | 2,266,290 | (531,552) | |||||||||||||||||||||||||||||
| Foreign governments | 5,616 | (26) | 25,370 | (8,014) | 30,986 | (8,040) | |||||||||||||||||||||||||||||
| Corporates, by sector: | |||||||||||||||||||||||||||||||||||
| Industrials | 680,126 | (14,131) | 3,667,956 | (591,006) | 4,348,082 | (605,137) | |||||||||||||||||||||||||||||
| Financial | 469,436 | (29,118) | 1,806,739 | (294,440) | 2,276,175 | (323,558) | |||||||||||||||||||||||||||||
| Utilities | 302,325 | (4,274) | 555,085 | (82,694) | 857,410 | (86,968) | |||||||||||||||||||||||||||||
| Total corporates | 1,451,887 | (47,523) | 6,029,780 | (968,140) | 7,481,667 | (1,015,663) | |||||||||||||||||||||||||||||
| Other asset-backed securities | 18,217 | (62) | 1,379 | (50) | 19,596 | (112) | |||||||||||||||||||||||||||||
| Total investment grade securities | 2,015,800 | (60,556) | 8,156,383 | (1,520,289) | 10,172,183 | (1,580,845) | |||||||||||||||||||||||||||||
| Below investment grade securities: | |||||||||||||||||||||||||||||||||||
| States, municipalities, and political subdivisions | — | — | 1,751 | (210) | 1,751 | (210) | |||||||||||||||||||||||||||||
| Industrials | 35,564 | (6,631) | 141,446 | (33,595) | 177,010 | (40,226) | |||||||||||||||||||||||||||||
| Financial | 6,185 | (36) | 101,427 | (10,372) | 107,612 | (10,408) | |||||||||||||||||||||||||||||
| Utilities | 5,025 | (60) | 38,121 | (6,058) | 43,146 | (6,118) | |||||||||||||||||||||||||||||
| Total corporates | 46,774 | (6,727) | 280,994 | (50,025) | 327,768 | (56,752) | |||||||||||||||||||||||||||||
| Other asset-backed securities | — | — | — | — | — | — | |||||||||||||||||||||||||||||
| Total below investment grade securities | 46,774 | (6,727) | 282,745 | (50,235) | 329,519 | (56,962) | |||||||||||||||||||||||||||||
| Total fixed maturities | $ | 2,062,574 | $ | (67,283) | $ | 8,439,128 | $ | (1,570,524) | $ | 10,501,702 | $ | (1,637,807) |
GL 2025 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
| At December 31, 2024 | |||||||||||||||||||||||||||||||||||
| Less than Twelve Months | Twelve Months or Longer | Total | |||||||||||||||||||||||||||||||||
| Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | ||||||||||||||||||||||||||||||
| Fixed maturities available for sale: | |||||||||||||||||||||||||||||||||||
| Investment grade securities: | |||||||||||||||||||||||||||||||||||
| U.S. Government direct, guaranteed, and government-sponsored enterprises | $ | 11,268 | $ | (290) | $ | 347,527 | $ | (42,504) | $ | 358,795 | $ | (42,794) | |||||||||||||||||||||||
| States, municipalities, and political subdivisions | 778,244 | (32,894) | 1,532,264 | (501,865) | 2,310,508 | (534,759) | |||||||||||||||||||||||||||||
| Foreign governments | — | — | 24,925 | (8,870) | 24,925 | (8,870) | |||||||||||||||||||||||||||||
| Corporates, by sector: | |||||||||||||||||||||||||||||||||||
| Industrials | 1,487,940 | (73,404) | 3,433,034 | (690,920) | 4,920,974 | (764,324) | |||||||||||||||||||||||||||||
| Financial | 961,932 | (52,946) | 1,785,130 | (333,873) | 2,747,062 | (386,819) | |||||||||||||||||||||||||||||
| Utilities | 546,965 | (20,214) | 540,077 | (90,996) | 1,087,042 | (111,210) | |||||||||||||||||||||||||||||
| Total corporates | 2,996,837 | (146,564) | 5,758,241 | (1,115,789) | 8,755,078 | (1,262,353) | |||||||||||||||||||||||||||||
| Other asset-backed securities | 23,231 | (95) | 42,639 | (2,091) | 65,870 | (2,186) | |||||||||||||||||||||||||||||
| Total investment grade securities | 3,809,580 | (179,843) | 7,705,596 | (1,671,119) | 11,515,176 | (1,850,962) | |||||||||||||||||||||||||||||
| Below investment grade securities: | |||||||||||||||||||||||||||||||||||
| States, municipalities, and political subdivisions | — | — | — | — | — | — | |||||||||||||||||||||||||||||
| Corporates, by sector: | |||||||||||||||||||||||||||||||||||
| Industrials | 54,199 | (2,656) | 142,638 | (38,350) | 196,837 | (41,006) | |||||||||||||||||||||||||||||
| Financial | 2,990 | (53) | 126,811 | (26,171) | 129,801 | (26,224) | |||||||||||||||||||||||||||||
| Utilities | 19,263 | (1,113) | 24,003 | (5,684) | 43,266 | (6,797) | |||||||||||||||||||||||||||||
| Total corporates | 76,452 | (3,822) | 293,452 | (70,205) | 369,904 | (74,027) | |||||||||||||||||||||||||||||
| Other asset-backed securities | — | — | 2,198 | — | 2,198 | — | |||||||||||||||||||||||||||||
| Total below investment grade securities | 76,452 | (3,822) | 295,650 | (70,205) | 372,102 | (74,027) | |||||||||||||||||||||||||||||
| Total fixed maturities | $ | 3,886,032 | $ | (183,665) | $ | 8,001,246 | $ | (1,741,324) | $ | 11,887,278 | $ | (1,924,989) |
Gross unrealized losses may fluctuate quarter over quarter due to factors in the market that affect the holdings, such as changes in interest rates or credit spreads. The Company considers many factors when determining whether an allowance for a credit loss should be recorded. While the Company holds securities that may be in an unrealized loss position, Globe Life does not generally intend to sell and it is unlikely that the Company will be required to sell the fixed maturities prior to their anticipated recovery or maturity due to the strong cash flows generated by its insurance operations.
Gross unrealized losses decreased from $1.92 billion at December 31, 2024 to $1.64 billion at December 31, 2025, a decrease of $287 million. The decrease in the gross unrealized losses from the prior year was primarily attributable to the change in market interest rates.
GL 2025 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
Fixed Maturities, Allowance for Credit Losses*:* A summary of the activity in the allowance for credit losses is as follows. Refer to Note 1—Significant Accounting Policies for factors considered in the recording of the allowance for credit losses.
| Year Ended December 31, | ||||||||||||||
| 2025 | 2024 | |||||||||||||
| Allowance for credit losses beginning balance | $ | 10,395 | $ | 7,115 | ||||||||||
| Additions to allowance for which credit losses were not previously recorded | — | 3,297 | ||||||||||||
| Additions (reductions) to allowance for fixed maturities that previously had an allowance | 20 | (17) | ||||||||||||
| Reduction of allowance for which the Company intends to sell or more likely than not will be required to sell or sold during the period | (7,118) | — | ||||||||||||
| Allowance for credit losses ending balance | $ | 3,297 | $ | 10,395 |
As of December 31, 2025, the Company had two fixed maturity securities in non-accrual status with an amortized cost of $9.2 million and an allowance of $3.3 million. As of December 31, 2024, there was one fixed maturity security in non-accrual status with an amortized cost of $5.5 million and an allowance of $3.3 million.
Concentrations of Credit Risk*:* Globe Life maintains a diversified investment portfolio with limited concentration in any given issuer. At December 31, 2025, the investment portfolio, at fair value, consisted of the following:
| Investment grade fixed maturities: | |||||
| Corporates | 67 | % | |||
| States, municipalities, and political subdivisions | 14 | ||||
| U.S. Government direct, guaranteed, and government-sponsored enterprises | 2 | ||||
| Other | 1 | ||||
| Below investment grade fixed maturities: | |||||
| Corporates | 2 | ||||
| 86 | |||||
| Other | |||||
| Policy loans, which are secured by the underlying insurance policy values | 4 | ||||
| Other investments | 10 | ||||
| 100 | % |
As of December 31, 2025, state and municipal governments represented 14% of invested assets at fair value. Such investments are made throughout the U.S. At December 31, 2025, the state and municipal bond portfolio at fair value was invested in securities issued within the following states: Texas (21%), California (9%), New York (8%), Florida (4%), and Pennsylvania (4%). Otherwise, there was no concentration within any given state greater than 4%.
GL 2025 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
Corporate fixed maturities represent 69% of Globe Life's invested assets. These investments are spread across a wide range of industries. Below are the ten largest industry concentrations held in the portfolio of corporate fixed maturities at December 31, 2025, based on fair value:
| Insurance | 19 | % | |||
| Electric utilities | 11 | ||||
| Banks | 6 | ||||
| Oil and natural gas pipelines | 6 | ||||
| Chemicals | 5 | ||||
| Transportation | 4 | ||||
| Diversified financial services | 3 | ||||
| Food | 3 | ||||
| Telecommunications | 3 | ||||
| Gas utilities | 3 |
At December 31, 2025, 2% of invested assets at fair value were represented by fixed maturities rated below investment grade. Par value of these investments was $624 million, amortized cost was $521 million, and fair value was $469 million. While these investments could be subject to additional credit risk, such risk should generally be reflected in their fair value.
Securities, cash, and short-term investments held on deposit with various state and federal regulatory authorities had an amortized cost and fair value, respectively, of $1.0 billion and $983 million at December 31, 2025 and $1.0 billion and $955 million at December 31, 2024.
Mortgage Loans (commercial mortgage loans): Summaries of commercial mortgage loans by property type and geographical location at December 31, 2025 and 2024 are as follows:
| 2025 | 2024 | ||||||||||||||||||||||
| Carrying Value | % of Total | Carrying Value | % of Total | ||||||||||||||||||||
| Property type: | |||||||||||||||||||||||
| Industrial | $ | 155,208 | 36 | $ | 110,456 | 28 | |||||||||||||||||
| Hospitality | 99,492 | 23 | 73,931 | 19 | |||||||||||||||||||
| Multi-family | 99,212 | 23 | 111,234 | 28 | |||||||||||||||||||
| Retail | 76,059 | 18 | 65,612 | 16 | |||||||||||||||||||
| Office | 3,061 | 1 | 6,539 | 2 | |||||||||||||||||||
| Mixed use | — | — | 35,960 | 9 | |||||||||||||||||||
| Total recorded investment | 433,032 | 101 | 403,732 | 102 | |||||||||||||||||||
| Less allowance for credit losses | (4,515) | (1) | (7,644) | (2) | |||||||||||||||||||
| Carrying value, net of allowance for credit losses | $ | 428,517 | 100 | $ | 396,088 | 100 |
GL 2025 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
| 2025 | 2024 | ||||||||||||||||||||||
| Carrying Value | % of Total | Carrying Value | % of Total | ||||||||||||||||||||
| Geographic location: | |||||||||||||||||||||||
| Florida | $ | 88,681 | 21 | $ | 63,308 | 16 | |||||||||||||||||
| Texas | 66,597 | 15 | 75,131 | 19 | |||||||||||||||||||
| North Carolina | 42,358 | 10 | 23,253 | 6 | |||||||||||||||||||
| New Jersey | 37,130 | 9 | 51,744 | 13 | |||||||||||||||||||
| Alabama | 36,750 | 9 | 35,850 | 9 | |||||||||||||||||||
| New York | 31,948 | 7 | 34,975 | 9 | |||||||||||||||||||
| Other | 129,568 | 30 | 119,471 | 30 | |||||||||||||||||||
| Total recorded investment | 433,032 | 101 | 403,732 | 102 | |||||||||||||||||||
| Less allowance for credit losses | (4,515) | (1) | (7,644) | (2) | |||||||||||||||||||
| Carrying value, net of allowance for credit losses | $ | 428,517 | 100 | $ | 396,088 | 100 |
The following tables are reflective of the key factors, debt service coverage ratios, and loan-to-value ("LTV") ratios that are utilized by management to monitor the performance of the portfolios. The Company only makes new investments in commercial mortgage loans that have a LTV ratio less than 80%. LTV ratios that exceed 80% are generally as a result of decreases in the valuation of the underlying property. Generally, a higher LTV ratio and a lower debt service coverage ratio can potentially equate to higher risk of loss.
| December 31, 2025 | |||||||||||||||||||||||||||||
| Recorded Investment | |||||||||||||||||||||||||||||
| Debt Service Coverage Ratios**(1)** | |||||||||||||||||||||||||||||
| <1.00x | 1.00x—1.20x | >1.20x | Total | % of Gross Total | |||||||||||||||||||||||||
| Loan-to-value ratio**(2)****:** | |||||||||||||||||||||||||||||
| Less than 70% | $ | 61,159 | $ | 50,009 | $ | 313,634 | $ | 424,802 | 98 | ||||||||||||||||||||
| 70% to 80% | — | — | — | — | — | ||||||||||||||||||||||||
| 81% to 90% | — | — | — | — | — | ||||||||||||||||||||||||
| Greater than 90% | 8,230 | — | — | 8,230 | 2 | ||||||||||||||||||||||||
| Total | $ | 69,389 | $ | 50,009 | $ | 313,634 | 433,032 | 100 | |||||||||||||||||||||
| Less allowance for credit losses | (4,515) | ||||||||||||||||||||||||||||
| Total, net of allowance for credit losses | $ | 428,517 |
(1)Annual net operating income divided by annual mortgage debt service (principal and interest).
(2)Loan balance divided by stabilized appraised value at origination, including planned renovations and stabilized occupancy. Updated internal valuations are used when a loan is materially underperforming.
GL 2025 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
| December 31, 2024 | |||||||||||||||||||||||||||||
| Recorded Investment | |||||||||||||||||||||||||||||
| Debt Service Coverage Ratios**(1)** | |||||||||||||||||||||||||||||
| <1.00x | 1.00x—1.20x | >1.20x | Total | % of Gross Total | |||||||||||||||||||||||||
| Loan-to-value ratio**(2)****:** | |||||||||||||||||||||||||||||
| Less than 70% | $ | 88,507 | $ | 64,494 | $ | 196,867 | $ | 349,868 | 87 | ||||||||||||||||||||
| 70% to 80% | — | — | — | — | — | ||||||||||||||||||||||||
| 81% to 90% | — | — | — | — | — | ||||||||||||||||||||||||
| Greater than 90% | 16,136 | 37,728 | — | 53,864 | 13 | ||||||||||||||||||||||||
| Total | $ | 104,643 | $ | 102,222 | $ | 196,867 | 403,732 | 100 | |||||||||||||||||||||
| Less allowance for credit losses | (7,644) | ||||||||||||||||||||||||||||
| Total, net of allowance for credit losses | $ | 396,088 |
(1)Annual net operating income divided by annual mortgage debt service (principal and interest).
(2)Loan balance divided by stabilized appraised value at origination, including planned renovations and stabilized occupancy. Updated internal valuations are used when a loan is materially underperforming.
As of December 31, 2025, the Company had 36 loans in the portfolio. During the quarter, the Company evaluated its commercial mortgage loan portfolio on both an individual and pooling basis to determine the allowance for credit losses and determined three loans were collateral dependent or likely to foreclose. The allowance for credit losses on the three loans was determined using the practical expedient which was based on an estimate of fair value of the underlying collateral plus costs to sell the asset. The total principal balance of the three loans was $4.3 million and the allowance, determined using the practical expedient, was $659 thousand as of December 31, 2025. One loan with an outstanding principal value of $7.0 million was removed from the evaluation and returned to the pool assessment during the year ended December 31, 2025. Additionally, four loans with an outstanding principal balance of $45.8 million were removed due to foreclosure and transferred into limited partnerships, held under the fair value option, in other long-term investments. For the year ended December 31, 2025, the allowance for credit losses decreased by $3.1 million to $4.5 million.
| Year Ended December 31, | ||||||||||||||
| 2025 | 2024 | |||||||||||||
| Allowance for credit losses beginning balance | $ | 7,644 | $ | 3,672 | ||||||||||
| Provision (reversal) for credit losses | (852) | 3,972 | ||||||||||||
| Loans charged-off | (2,277) | — | ||||||||||||
| Allowance for credit losses ending balance | $ | 4,515 | $ | 7,644 |
As of December 31, 2025, the Company had two commercial mortgage loans in non-accrual status with an outstanding principal balance of $3 million and no commercial mortgage loans were delinquent. At December 31, 2024, there were five commercial mortgage loans in non-accrual status with an outstanding principal balance of $53 million and one delinquent commercial mortgage loan with outstanding interest of $31 thousand. The Company's unfunded commitment balance to commercial loan borrowers was $21 million as of December 31, 2025.
GL 2025 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
Other Long-Term Investments*:* Other long-term investments consist of the following assets:
| December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| Investment funds | $ | 1,109,719 | $ | 986,766 | |||||||
| Company-owned life insurance(1) | 243,721 | 202,734 | |||||||||
| Other | 42,624 | 46,259 | |||||||||
| Total | $ | 1,396,064 | $ | 1,235,759 |
(1) Company-owned life insurance is reported at cash surrender value.
The following table presents additional information about the Company's investment funds as of December 31, 2025 and December 31, 2024 at fair value:
| Fair Value | Unfunded Commitments**(2)** | ||||||||||||||||||||||||||||
| Investment Category | 2025 | 2024 | 2025 | Redemption Term/Notice**(1)** | |||||||||||||||||||||||||
| Commercial mortgage loans | $ | 614,080 | $ | 566,142 | $ | 260,229 | Fully redeemable and non-redeemable with varying terms. | ||||||||||||||||||||||
| Opportunistic and private credit | 223,665 | 202,008 | 222,080 | Fully redeemable and non-redeemable with varying terms. | |||||||||||||||||||||||||
| Infrastructure | 187,964 | 179,627 | 21,791 | Fully redeemable and non-redeemable with varying terms. | |||||||||||||||||||||||||
| Other | 84,010 | 38,989 | 53,665 | Non-redeemable with varying terms | |||||||||||||||||||||||||
| Total investment funds | $ | 1,109,719 | $ | 986,766 | $ | 557,765 |
(1) Non-redeemable funds generally have an expected life of 7 to 12 years from fund closing with extension options of 1 to 4 years. Redemptions are paid out throughout the life of the funds at the General Partner's discretion. Redeemable funds can generally be redeemed over 6 to 36 months upon request from limited partners.
(2) Unfunded commitments include unfunded balances during the investment period. After an investment period ends, the fund can call capital based on limited and specified reasons. As of December 31, 2025, unfunded commitments totaled $716 million, including funds past the investment period.
The Company had $251 million of capital called during the period from existing investment funds. The Company's unfunded commitments were $558 million as of December 31, 2025.
GL 2025 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
Note 5—Commitments and Contingencies
Reinsurance*:* Insurance affiliates of Globe Life reinsure a portion of insurance risk that is in excess of their retention limits with unaffiliated reinsurers. Current retention limits for new business written on ordinary life insurance range up to $500 thousand per life. Life insurance ceded to unaffiliated reinsurers represented 0.2% and 0.3% of total life insurance in force at December 31, 2025 and 2024, respectively. Insurance ceded on life and accident and health products represented 0.8% and 0.2% of premium income for 2025 and 2024, respectively. In the fourth quarter of 2024, the Company entered into a coinsurance agreement to cede a majority of its annuity business to a third-party insurer. Annuities ceded represented 69% of the direct annuity fund balance as of December 31, 2025. Effective January 1, 2025, Globe Life entered into a 100% coinsurance with funds withheld agreement with a third party reinsurer covering certain term and whole life policies. The insurance affiliates of Globe Life would be liable for the reinsured risks ceded to other companies to the extent that such reinsuring companies are unable to meet their obligations.
Insurance affiliates also assume insurance risks of other external companies. Life reinsurance assumed represented approximately 0.8% of life insurance in force at December 31, 2025 and 2024 and reinsurance assumed on life and accident and health products represented 0.6% and 0.9% of premium income for 2025 and 2024, respectively.
Leases*:* Globe Life leases office space and other equipment under a variety of operating lease arrangements.
Rental expense for the three years ended December 31, 2025 is as follows:
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Rental expense | $ | 3,494 | $ | 3,208 | $ | 3,519 |
Future minimum rental commitments required under operating leases having remaining noncancelable lease terms in excess of one year at December 31, 2025 were as follows:
| Year Ended December 31, | |||||||||||||||||||||||||||||||||||
| 2026 | 2027 | 2028 | 2029 | 2030 | Thereafter | ||||||||||||||||||||||||||||||
| Operating lease commitments | $ | 6,962 | $ | 7,144 | $ | 6,527 | $ | 5,923 | $ | 5,453 | $ | 33,367 |
Purchase Commitments: Globe Life has various long-term noncancelable purchase commitments as well as commitments to provide capital for low-income housing tax credit interests. See further discussion related to tax credits in Note 1—Significant Accounting Policies**.
| Year Ended December 31, | |||||||||||||||||||||||||||||||||||
| 2026 | 2027 | 2028 | 2029 | 2030 | Thereafter | ||||||||||||||||||||||||||||||
| Purchase commitments(1) | $ | 74,111 | $ | 113,814 | $ | 87,983 | $ | 30,065 | $ | 24,693 | $ | 204,093 |
(1) Includes low-income housing tax credits with non-funded commitments of $255 million at December 31, 2025.
Investments: Globe Life is committed to invest under certain contracts related to investments in fixed maturities, limited partnerships and commercial mortgage loans. See Note 4—Investments for unfunded commitments.
GL 2025 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
Guarantees*:* At December 31, 2025, the Company had one performance guarantee in effect. Per the Pre-capitalized Trust Securities agreement signed on July 1, 2025, Globe Life Inc. is required to purchase any treasury securities in default. Management believes it is unlikely the Company will have to make any material payments under this agreement due to default.
Globe Life has guaranteed letters of credit in connection with its credit facility with a group of banks as disclosed in Note 12—Debt. The letters of credit were issued by TMK Re, Ltd., a wholly-owned subsidiary, to secure TMK Re, Ltd.’s obligation for claims on certain policies reinsured by TMK Re, Ltd. that were sold by other Globe Life insurance companies. These letters of credit facilitate TMK Re, Ltd.’s ability to reinsure the business of Globe Life's insurance carriers. The agreement was amended on March 29, 2024 and now expires in 2029. The maximum amount of letters of credit available is $250 million. The Parent Company would be liable to the extent that TMK Re, Ltd. does not pay the reinsured party. The amount of letters of credit outstanding at December 31, 2025 was $115 million.
Unclaimed Property Audits*:* Globe Life subsidiaries are currently the subject of audits regarding the identification, reporting and escheatment of unclaimed property arising from life insurance policies and a limited number of annuity contracts. These audits are being conducted by private entities that have contracted with forty-seven states through their respective Departments of Revenue, and have not resulted in any financial assessment from any state nor indicated any liability. The audits are wide-ranging and seek large amounts of data regarding claims handling, procedures, and payments of contract benefits arising from unreported death claims. No estimate of range can be made at this time for loss contingencies related to possible administrative penalties or amounts that could be payable to the states for the escheatment of abandoned property.
Litigation: Globe Life Inc. and its subsidiaries, in common with the insurance industry in general, are subject to litigation, including: putative class action litigation; alleged breaches of contract; torts, including bad faith and fraud claims based on alleged wrongful or fraudulent acts of agents of Globe Life Inc.'s insurance subsidiaries; alleged employment discrimination; alleged worker misclassification; and miscellaneous other causes of action. Based upon information presently available, and in light of legal and other factual defenses available to Globe Life Inc. and its subsidiaries, management does not believe that it is reasonably possible that such litigation will have a material adverse effect on Globe Life Inc.'s financial condition, future operating results or liquidity; however, assessing the eventual outcome of litigation necessarily involves forward-looking speculation as to judgments to be made by judges, juries and appellate courts in the future. This bespeaks caution, particularly in states with reputations for high punitive damage verdicts.
On April 30, 2024, a putative securities class action was filed against Globe Life Inc. and six of its current/former executives and directors in the United States District Court for the Eastern District of Texas (City of Miami Gen. Emp. & Sanitation Emp. Ret. Trust, et al. v. Globe Life Inc., et al., Case No. 4:24-cv-00376). On July 24, 2024, the Court appointed Lead Plaintiffs and Lead Counsel for the putative class of shareholders. The Lead Plaintiffs filed a Consolidated Complaint on October 4, 2024 that asserts claims under §§ 10(b), 20(a), and 20(A) of the Securities Exchange Act of 1934 and SEC Rules 10b-5(a), 10b-5(b), and 10b-5(c) promulgated thereunder, on behalf of a putative class of purchasers of Globe Life Inc.'s securities from May 8, 2019 through April 10, 2024. The Consolidated Complaint added four additional executives as defendants and alleges that certain of Globe Life Inc.'s disclosures about financial performance and certain other public statements during the putative class period were materially false or misleading. Pursuant to Globe Life Inc.'s Restated Certificate of Incorporation and indemnification agreements with the individual defendants, Globe Life Inc. has agreed to indemnify the defendants for all expenses and losses related to the litigation, subject to the terms of those indemnification agreements. Defendants filed a motion to dismiss the litigation on December 3, 2024, which motion was denied on September 29, 2025. Globe Life Inc. plans to vigorously defend against the lawsuit. The outcome of litigation of this type is inherently uncertain, and there is always the possibility that a court rules in a manner that is adverse to the interests of Globe Life Inc. and the individual defendants. However, the amount of any such loss in that outcome cannot be reasonably estimated at this time.
Also pending in the Eastern District of Texas is a consolidated shareholder derivative suit that is closely related to the putative securities class action disclosed above (the “City of Miami Matter”). On November 7, 2024, Globe Life
GL 2025 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
Inc. shareholder Jui Cheng Hsiao (“Hsiao”) filed a shareholder derivative complaint against Globe Life Inc. as a nominal defendant, as well as certain current and former Globe Life Inc. executives and members of its Board of Directors. On November 14, 2024, Globe Life Inc. shareholder Gautam Jadhav (“Jadhav”) filed a shareholder derivative complaint against the same set of defendants. Each shareholder derivative complaint asserts one claim for breach of fiduciary duty against the individual defendants and alleges that the individual defendants breached their fiduciary duties to Globe Life Inc. by causing or permitting Globe Life Inc. to make misleading statements about its performance and financial results. The allegations are substantially similar to the allegations made in the City of Miami Matter and derive from a short seller report. Pursuant to Globe Life Inc.'s Restated Certificate of Incorporation and indemnification agreements with the individual defendants, Globe Life Inc. has agreed to indemnify them for all expenses and losses related to the litigation, subject to the terms of those indemnification agreements. On January 3, 2025, the Court consolidated the two actions and appointed Hsiao and Jadhav as Lead Plaintiffs and their counsel as Lead Counsel for the consolidated derivative action (In re Globe Life Inc. Stockholder Derivative Litigation, Lead Case No. 4:24-cv-00993-ALM (E.D. Tex.)). On January 25, 2025, the Court granted the parties’ joint motion to stay such proceedings pending the Court’s resolution of the motion to dismiss filed by Globe Life Inc. in the City of Miami Matter. On October 14, 2025, the parties informed the Court that the motion to dismiss in the City of Miami Matter was denied and of their agreement for the terms of the stay to remain in place as they coordinated a schedule. On October 27, 2025 and December 5, 2025, the parties again notified the Court of their continued agreement for the terms of the stay to remain in place and further notified the Court of two related derivative cases filed in the Eastern District of Texas by Globe Life Inc. shareholders, as referenced below.
On November 19, 2025, Globe Life Inc. shareholder Plymouth County Retirement Association (“Plymouth”) filed a Verified Shareholder Derivative Action Complaint in the United States District Court for the Eastern District of Texas against Globe Life Inc. as a nominal defendant, as well as certain current and former Globe Life Inc. executives and members of its Board of Directors (Plymouth County Retirement Association v. Darden, et al., No. 4:25-cv-01246-ALM (E.D. Tex.)). On November 21, 2025, Globe Life Inc. shareholder Catherine M. Sugarbaker Family Trust (“Sugarbaker”) filed a Verified Shareholder Derivative Action Complaint against Globe Life Inc. as a nominal defendant, as well as certain current and former Globe Life Inc. executives and members of its Board of Directors (Catherine M. Sugarbaker Family Trust v. Gary L. Coleman, et al., No. 4:25-cv-01274-ALM (E.D. Tex.)). Both the Plymouth and the Sugarbaker shareholder derivative complaints assert a claim for breach of fiduciary duty against the individual defendants and allege that the individual defendants breached their fiduciary duties to Globe Life Inc. by causing or permitting Globe Life Inc. to make misleading statements about its performance and financial results, as well as a claim against the individual defendants under Section 14(A) of the Securities Exchange Act of 1934, and SEC Rule 14a-9 promulgated thereunder, for allegedly causing Globe Life Inc. to make false and misleading statements in its 2024 Proxy Statement and Notice of Annual Meeting of Shareholders. In addition, Plymouth’s shareholder derivative complaint asserts claims for violation of § 10(b) of the Securities Exchange Act of 1934, and SEC Rule 10b-5(b) promulgated thereunder, on behalf of a putative class of purchasers of Globe Life Inc.'s securities from January 1, 2022 through April 11, 2024, alleging that certain of Globe Life Inc.'s disclosures about financial performance and certain other public statements during the putative class period were materially false or misleading, and that certain individuals traded in Globe Life Inc.’s securities while in possession of material non-public information. The allegations in both complaints are substantially similar to the allegations made in the City of Miami Matter and the consolidated federal derivative action and derive from a short seller report. Pursuant to Globe Life Inc.'s Restated Certificate of Incorporation and indemnification agreements with the individual defendants, Globe Life Inc. has agreed to indemnify them for all expenses and losses related to the Plymouth and Sugarbaker litigation, subject to the terms of those indemnification agreements. On December 11, 2025, defendants filed a notice of related case in the action filed by Plymouth to inform the Court that the matter should be consolidated with the consolidated federal derivative action. On December 9, 2025, Sugarbaker filed notices of related case in its own action and in the consolidated federal derivative action to inform the respective courts that Sugarbaker’s action should be consolidated with the consolidated federal derivative action.
On September 19, 2025, a shareholder filed a derivative lawsuit in the Business Court for Dallas County, Texas, against Globe Life Inc. as a nominal defendant, as well as certain current and former Globe Life Inc. executives and members of its Board of Directors (James E. Walker v. Gary L. Coleman, et al., Case No. 25-BC01B-0041). Like the consolidated shareholder derivative lawsuit disclosed above, this litigation is largely similar to the City of Miami Matter and derives in part from a short seller report. The petition asserts three causes of action relating to the 2019
GL 2025 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
through 2024 time period, including: (i) a breach of fiduciary duty claim for failing to provide adequate oversight to prevent purportedly widespread corporate misconduct including fraud, discrimination and harassment; (ii) a breach of fiduciary duty claim against certain individual defendants who allegedly engaged in insider trading; and (iii) a claim for wasting corporate assets by paying excessive compensation and/or bonuses to certain of its executive officers. The petition alleges that Globe Life Inc. was thus exposed to potential legal liability and costs, and that Globe Life Inc. repurchased shares at an artificially inflated price. The petition seeks monetary damages as well as restitution, governance reforms, and accountability for executives and board members. Pursuant to Globe Life Inc.'s Restated Certificate of Incorporation and indemnification agreements with the individual defendants, Globe Life Inc. has agreed to indemnify them for all expenses and losses related to the litigation, subject to the terms of those indemnification agreements. Globe Life Inc. intends to mount a robust defense against the litigation. Defendants filed a motion to dismiss the petition on November 20, 2025 for failure to plead demand futility, and a motion to stay the proceedings in the Texas Business Court pending final resolution of the related City of Miami Matter if the Court determines that demand futility is satisfied. On November 19, 2025, Plymouth filed a motion to intervene in the matter and requested that the Court stay the action in favor of the consolidated derivative action in the Eastern District of Texas, or in the alternative, to limit the preclusive effect of the Court’s order on the motion to dismiss for lack of demand futility. On December 1, 2025, the Lead Plaintiffs in the consolidated federal derivative action (Hsiao and Jadhav) also filed a motion to intervene and stay the Texas Business Court proceedings in favor of their consolidated federal derivative action, or in the alternative, to limit the preclusive effect of the Court’s order on the motion to dismiss the petition for lack of demand futility. On December 4, 2025, plaintiff James E. Walker Jr. (“Walker”) filed a motion to strike Plymouth’s motion to intervene. On December 15, 2025, Walker filed a motion to strike the motion to intervene filed by the Lead Plaintiffs in the consolidated federal derivative action. On February 5, 2026, the Court cancelled the hearing it had scheduled for February 6, 2026 to hear all of the above motions and stayed the case pending further order of the Court.
On September 26, 2024, Globe Life Inc. and its subsidiary, American Income Life Insurance Company, were notified by the Equal Employment Opportunity Commission (EEOC) that the EEOC conducted an investigation of charges filed against Globe Life Inc. and/or American Income Life Insurance Company by five former sales agents and one then-current sales agent. The EEOC asserts that there is reasonable cause to believe the six complainants were employees, not independent contractors, of Globe Life Inc. and/or American Income Life Insurance Company and were discriminated against on the basis of sex, and that one complainant was also discriminated against on the basis of race. In addition, the EEOC asserts that there is reasonable cause to believe that a class of female workers were employees, not independent contractors, and were subject to unlawful conduct which also constitutes a pattern-or-practice of discrimination. The EEOC’s investigative findings are not binding on Globe Life Inc. The EEOC’s procedures provide for a conciliation process that has concluded without achieving a resolution. The EEOC may elect to file a lawsuit in federal court on behalf of the workers based on the alleged statutory violations. However, since the conclusion of the conciliation process on October 31, 2024, Globe Life Inc. and American Income Life Insurance Company have not received any further communication from the EEOC regarding the aforementioned investigative findings. As a result, Globe Life Inc. intends to remove disclosures related to this matter from future filings unless there are any material updates.
GL 2025 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
Note 6—Policy Liabilities
The liability for future policy benefits is determined based on the net level premium method, which requires the liability be calculated as the present value of estimated future policyholder benefits and the related termination expenses, less the present value of estimated future net premiums to be collected from policyholders.
The following tables summarize balances and changes in the net liability for future policy benefits, before reinsurance, for traditional life long-duration contracts for the three years ended December 31, 2025:
| Life | ||||||||||||||||||||||||||||||||
| Present value of expected future net premiums | ||||||||||||||||||||||||||||||||
| American Income | DTC | Liberty National | Other | Total | ||||||||||||||||||||||||||||
| Balance at January 1, 2023 | $ | 4,273,156 | $ | 5,910,224 | $ | 1,094,407 | $ | 470,741 | $ | 11,748,528 | ||||||||||||||||||||||
| Beginning balance at original discount rates | 4,246,723 | 5,680,864 | 1,066,123 | 449,209 | 11,442,919 | |||||||||||||||||||||||||||
| Effect of changes in assumptions on future cash flows | 14,265 | 36,170 | 5,178 | 8,419 | 64,032 | |||||||||||||||||||||||||||
| Effect of actual variances from expected experience | (155,293) | (306,004) | (40,961) | (18,441) | (520,699) | |||||||||||||||||||||||||||
| Adjusted balance at January 1, 2023 | 4,105,695 | 5,411,030 | 1,030,340 | 439,187 | 10,986,252 | |||||||||||||||||||||||||||
| Issuances(1) | 733,702 | 579,363 | 127,048 | 27,959 | 1,468,072 | |||||||||||||||||||||||||||
| Interest accrual(2) | 200,363 | 287,615 | 54,147 | 22,804 | 564,929 | |||||||||||||||||||||||||||
| Net premiums collected(3) | (521,521) | (613,749) | (133,704) | (46,001) | (1,314,975) | |||||||||||||||||||||||||||
| Effect of changes in the foreign exchange rate | 5,090 | — | — | — | 5,090 | |||||||||||||||||||||||||||
| Ending balance at original discount rates | 4,523,329 | 5,664,259 | 1,077,831 | 443,949 | 11,709,368 | |||||||||||||||||||||||||||
| Effect of change from original to current discount rates | 158,559 | 388,392 | 51,885 | 34,103 | 632,939 | |||||||||||||||||||||||||||
| Balance at December 31, 2023 | $ | 4,681,888 | $ | 6,052,651 | $ | 1,129,716 | $ | 478,052 | $ | 12,342,307 | ||||||||||||||||||||||
| Balance at January 1, 2024 | $ | 4,681,888 | $ | 6,052,651 | $ | 1,129,716 | $ | 478,052 | $ | 12,342,307 | ||||||||||||||||||||||
| Beginning balance at original discount rates | 4,523,329 | 5,664,259 | 1,077,831 | 443,949 | 11,709,368 | |||||||||||||||||||||||||||
| Effect of changes in assumptions on future cash flows | (82,348) | (28,366) | (29,292) | (982) | (140,988) | |||||||||||||||||||||||||||
| Effect of actual variances from expected experience | (229,772) | (311,659) | (42,620) | (14,436) | (598,487) | |||||||||||||||||||||||||||
| Adjusted balance at January 1, 2024 | 4,211,209 | 5,324,234 | 1,005,919 | 428,531 | 10,969,893 | |||||||||||||||||||||||||||
| Issuances(1) | 798,952 | 491,440 | 120,683 | 23,911 | 1,434,986 | |||||||||||||||||||||||||||
| Interest accrual(2) | 220,959 | 292,843 | 55,198 | 22,875 | 591,875 | |||||||||||||||||||||||||||
| Net premiums collected(3) | (551,066) | (603,605) | (134,778) | (45,041) | (1,334,490) | |||||||||||||||||||||||||||
| Effect of changes in the foreign exchange rate | (23,344) | — | — | — | (23,344) | |||||||||||||||||||||||||||
| Ending balance at original discount rates | 4,656,710 | 5,504,912 | 1,047,022 | 430,276 | 11,638,920 | |||||||||||||||||||||||||||
| Effect of change from original to current discount rates | (10,793) | 117,994 | 1,425 | 9,771 | 118,397 | |||||||||||||||||||||||||||
| Balance at December 31, 2024 | $ | 4,645,917 | $ | 5,622,906 | $ | 1,048,447 | $ | 440,047 | $ | 11,757,317 | ||||||||||||||||||||||
GL 2025 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
| Life | ||||||||||||||||||||||||||||||||
| Present value of expected future net premiums | ||||||||||||||||||||||||||||||||
| American Income | DTC | Liberty National | Other | Total | ||||||||||||||||||||||||||||
| Balance at January 1, 2025 | $ | 4,645,917 | $ | 5,622,906 | $ | 1,048,447 | $ | 440,047 | $ | 11,757,317 | ||||||||||||||||||||||
| Beginning balance at original discount rates | 4,656,710 | 5,504,912 | 1,047,022 | 430,276 | 11,638,920 | |||||||||||||||||||||||||||
| Effect of changes in assumptions on future cash flows | (136,473) | (89,711) | (52,204) | (5,160) | (283,548) | |||||||||||||||||||||||||||
| Effect of actual variances from expected experience | (216,259) | (292,327) | (37,586) | (18,358) | (564,530) | |||||||||||||||||||||||||||
| Adjusted balance at January 1, 2025 | 4,303,978 | 5,122,874 | 957,232 | 406,758 | 10,790,842 | |||||||||||||||||||||||||||
| Issuances(1) | 730,495 | 496,861 | 110,014 | 23,370 | 1,360,740 | |||||||||||||||||||||||||||
| Interest accrual(2) | 225,062 | 285,411 | 52,794 | 22,044 | 585,311 | |||||||||||||||||||||||||||
| Net premiums collected(3) | (562,742) | (584,033) | (131,197) | (43,223) | (1,321,195) | |||||||||||||||||||||||||||
| Effect of changes in the foreign exchange rate | 13,510 | — | — | — | 13,510 | |||||||||||||||||||||||||||
| Ending balance at original discount rates | 4,710,303 | 5,321,113 | 988,843 | 408,949 | 11,429,208 | |||||||||||||||||||||||||||
| Effect of change from original to current discount rates | 81,850 | 221,503 | 19,695 | 16,389 | 339,437 | |||||||||||||||||||||||||||
| Balance at December 31, 2025 | $ | 4,792,153 | $ | 5,542,616 | $ | 1,008,538 | $ | 425,338 | $ | 11,768,645 |
(1)Issuances represent the present value, using the original discount rate, of the expected net premiums related to new policies issued during each respective period.
(2)The interest accrual is the interest earned on the beginning present value of the expected net premiums, as well as the interest on actual net premiums earned during the period, using the original interest rate.
(3)Net premiums collected represent the product of the current period net premium ratio and the gross premiums collected during the period on the in force business.
GL 2025 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
| Life | ||||||||||||||||||||||||||||||||
| Present value of expected future policy benefits | ||||||||||||||||||||||||||||||||
| American Income | DTC | Liberty National | Other | Total | ||||||||||||||||||||||||||||
| Balance at January 1, 2023 | $ | 9,119,104 | $ | 9,225,451 | $ | 3,429,256 | $ | 3,976,150 | $ | 25,749,961 | ||||||||||||||||||||||
| Beginning balance at original discount rates | 8,409,761 | 8,477,892 | 3,272,980 | 3,403,704 | 23,564,337 | |||||||||||||||||||||||||||
| Effect of changes in assumptions on future cash flows | 13,344 | 34,407 | 6,156 | 11,661 | 65,568 | |||||||||||||||||||||||||||
| Effect of actual variances from expected experience | (164,900) | (318,687) | (46,341) | (24,195) | (554,123) | |||||||||||||||||||||||||||
| Adjusted balance at January 1, 2023 | 8,258,205 | 8,193,612 | 3,232,795 | 3,391,170 | 23,075,782 | |||||||||||||||||||||||||||
| Issuances(1) | 733,700 | 579,365 | 127,062 | 27,959 | 1,468,086 | |||||||||||||||||||||||||||
| Interest accrual(2) | 452,640 | 458,587 | 174,995 | 204,083 | 1,290,305 | |||||||||||||||||||||||||||
| Benefit payments(3) | (396,031) | (574,812) | (196,600) | (116,353) | (1,283,796) | |||||||||||||||||||||||||||
| Effect of changes in the foreign exchange rate | 13,319 | — | — | — | 13,319 | |||||||||||||||||||||||||||
| Ending balance at original discount rates | 9,061,833 | 8,656,752 | 3,338,252 | 3,506,859 | 24,563,696 | |||||||||||||||||||||||||||
| Effect of change from original to current discount rates | 1,101,794 | 1,057,764 | 267,140 | 732,764 | 3,159,462 | |||||||||||||||||||||||||||
| Balance at December 31, 2023 | $ | 10,163,627 | $ | 9,714,516 | $ | 3,605,392 | $ | 4,239,623 | $ | 27,723,158 | ||||||||||||||||||||||
| Balance at January 1, 2024 | $ | 10,163,627 | $ | 9,714,516 | $ | 3,605,392 | $ | 4,239,623 | $ | 27,723,158 | ||||||||||||||||||||||
| Beginning balance at original discount rates | 9,061,833 | 8,656,752 | 3,338,252 | 3,506,859 | 24,563,696 | |||||||||||||||||||||||||||
| Effect of changes in assumptions on future cash flows | (104,498) | (50,106) | (41,836) | (2,027) | (198,467) | |||||||||||||||||||||||||||
| Effect of actual variances from expected experience | (251,310) | (335,087) | (50,759) | (20,954) | (658,110) | |||||||||||||||||||||||||||
| Adjusted balance at January 1, 2024 | 8,706,025 | 8,271,559 | 3,245,657 | 3,483,878 | 23,707,119 | |||||||||||||||||||||||||||
| Issuances(1) | 794,225 | 491,437 | 120,702 | 23,912 | 1,430,276 | |||||||||||||||||||||||||||
| Interest accrual(2) | 492,966 | 474,451 | 178,617 | 210,344 | 1,356,378 | |||||||||||||||||||||||||||
| Benefit payments(3) | (426,723) | (576,499) | (204,757) | (136,066) | (1,344,045) | |||||||||||||||||||||||||||
| Effect of changes in the foreign exchange rate | (57,904) | — | — | — | (57,904) | |||||||||||||||||||||||||||
| Ending balance at original discount rates | 9,508,589 | 8,660,948 | 3,340,219 | 3,582,068 | 25,091,824 | |||||||||||||||||||||||||||
| Effect of change from original to current discount rates | 362,103 | 464,164 | 37,298 | 378,895 | 1,242,460 | |||||||||||||||||||||||||||
| Balance at December 31, 2024 | $ | 9,870,692 | $ | 9,125,112 | $ | 3,377,517 | $ | 3,960,963 | $ | 26,334,284 | ||||||||||||||||||||||
| Balance at January 1, 2025 | $ | 9,870,692 | $ | 9,125,112 | $ | 3,377,517 | $ | 3,960,963 | $ | 26,334,284 | ||||||||||||||||||||||
| Beginning balance at original discount rates | 9,508,589 | 8,660,948 | 3,340,219 | 3,582,068 | 25,091,824 | |||||||||||||||||||||||||||
| Effect of changes in assumptions on future cash flows | (189,172) | (129,189) | (89,154) | (9,081) | (416,596) | |||||||||||||||||||||||||||
| Effect of actual variances from expected experience | (240,487) | (319,650) | (49,507) | (27,496) | (637,140) | |||||||||||||||||||||||||||
| Adjusted balance at January 1, 2025 | 9,078,930 | 8,212,109 | 3,201,558 | 3,545,491 | 24,038,088 | |||||||||||||||||||||||||||
| Issuances(1) | 730,489 | 496,856 | 110,030 | 23,370 | 1,360,745 | |||||||||||||||||||||||||||
| Interest accrual(2) | 514,553 | 476,278 | 177,656 | 214,860 | 1,383,347 | |||||||||||||||||||||||||||
| Benefit payments(3) | (451,405) | (568,314) | (197,354) | (140,329) | (1,357,402) | |||||||||||||||||||||||||||
| Effect of changes in the foreign exchange rate | 32,864 | — | — | — | 32,864 | |||||||||||||||||||||||||||
| Ending balance at original discount rates | 9,905,431 | 8,616,929 | 3,291,890 | 3,643,392 | 25,457,642 | |||||||||||||||||||||||||||
| Effect of change from original to current discount rates | 452,623 | 588,687 | 79,285 | 410,608 | 1,531,203 | |||||||||||||||||||||||||||
| Balance at December 31, 2025 | $ | 10,358,054 | $ | 9,205,616 | $ | 3,371,175 | $ | 4,054,000 | $ | 26,988,845 |
(1)Issuances represent the present value, using the original discount rate, of the expected future policy benefits related to new policies issued during each respective period.
(2)The interest accrual is the interest earned on the beginning present value of the expected future policy benefits, as well as the interest on actual benefits and expenses paid during the period, using the original interest rate.
(3)Benefit payments represent the release of the present value, using the original discount rate, of the actual future policy benefits incurred during the period due to death, surrender, and maturity benefit payments based on the revised expected assumptions.
GL 2025 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
| Life | ||||||||||||||||||||||||||||||||
| Net liability for future policy benefits as of December 31, 2023 | ||||||||||||||||||||||||||||||||
| American Income | DTC | Liberty National | Other | Total | ||||||||||||||||||||||||||||
| Net liability for future policy benefits at original discount rates | $ | 4,538,504 | $ | 2,992,493 | $ | 2,260,421 | $ | 3,062,910 | $ | 12,854,328 | ||||||||||||||||||||||
| Effect of changes in discount rate assumptions | 943,235 | 669,372 | 215,255 | 698,661 | 2,526,523 | |||||||||||||||||||||||||||
| Other adjustments(1) | 297 | 3,315 | 5,764 | 62 | 9,438 | |||||||||||||||||||||||||||
| Net liability for future policy benefits, after other adjustments, at current discount rates | 5,482,036 | 3,665,180 | 2,481,440 | 3,761,633 | 15,390,289 | |||||||||||||||||||||||||||
| Reinsurance recoverable | (141) | — | (7,719) | (37,848) | (45,708) | |||||||||||||||||||||||||||
| Net liability for future policy benefits, after reinsurance recoverable, at current discount rates | $ | 5,481,895 | $ | 3,665,180 | $ | 2,473,721 | $ | 3,723,785 | $ | 15,344,581 |
(1)Other adjustments include the effects of capping and flooring the liability (guidance requires an amount not less than zero at the calculation level of the liability for future policy benefits).
| Life | ||||||||||||||||||||||||||||||||
| Net liability for future policy benefits as of December 31, 2024 | ||||||||||||||||||||||||||||||||
| American Income | DTC | Liberty National | Other | Total | ||||||||||||||||||||||||||||
| Net liability for future policy benefits at original discount rates | $ | 4,851,879 | $ | 3,156,036 | $ | 2,293,197 | $ | 3,151,792 | $ | 13,452,904 | ||||||||||||||||||||||
| Effect of changes in discount rate assumptions | 372,896 | 346,170 | 35,873 | 369,124 | 1,124,063 | |||||||||||||||||||||||||||
| Other adjustments(1) | 122 | 18 | — | 33 | 173 | |||||||||||||||||||||||||||
| Net liability for future policy benefits, after other adjustments, at current discount rates | 5,224,897 | 3,502,224 | 2,329,070 | 3,520,949 | 14,577,140 | |||||||||||||||||||||||||||
| Reinsurance recoverable | (167) | — | (7,953) | (35,368) | (43,488) | |||||||||||||||||||||||||||
| Net liability for future policy benefits, after reinsurance recoverable, at current discount rates | $ | 5,224,730 | $ | 3,502,224 | $ | 2,321,117 | $ | 3,485,581 | $ | 14,533,652 |
(1)Other adjustments include the effects of capping and flooring the liability (guidance requires an amount not less than zero at the calculation level of the liability for future policy benefits).
| Life | ||||||||||||||||||||||||||||||||
| Net liability for future policy benefits as of December 31, 2025 | ||||||||||||||||||||||||||||||||
| American Income | DTC | Liberty National | Other | Total | ||||||||||||||||||||||||||||
| Net liability for future policy benefits at original discount rates | $ | 5,195,128 | $ | 3,295,816 | $ | 2,303,047 | $ | 3,234,443 | $ | 14,028,434 | ||||||||||||||||||||||
| Effect of changes in discount rate assumptions | 370,773 | 367,184 | 59,590 | 394,219 | 1,191,766 | |||||||||||||||||||||||||||
| Other adjustments(1) | 160 | — | — | 26 | 186 | |||||||||||||||||||||||||||
| Net liability for future policy benefits, after other adjustments, at current discount rates | 5,566,061 | 3,663,000 | 2,362,637 | 3,628,688 | 15,220,386 | |||||||||||||||||||||||||||
| Reinsurance recoverable | (184) | — | (8,103) | (14) | (8,301) | |||||||||||||||||||||||||||
| Net liability for future policy benefits, after reinsurance recoverable, at current discount rates | $ | 5,565,877 | $ | 3,663,000 | $ | 2,354,534 | $ | 3,628,674 | $ | 15,212,085 |
(1)Other adjustments include the effects of capping and flooring the liability (guidance requires an amount not less than zero at the calculation level of the liability for future policy benefits).
GL 2025 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
The following tables summarize balances and changes in the net liability for future policy benefits for long-duration health contracts for the three years ended December 31, 2025:
| Health | ||||||||||||||||||||||||||||||||||||||
| Present value of expected future net premiums | ||||||||||||||||||||||||||||||||||||||
| United American | Family Heritage | Liberty National | American Income | DTC | Total | |||||||||||||||||||||||||||||||||
| Balance at January 1, 2023 | $ | 2,908,501 | $ | 1,594,992 | $ | 423,490 | $ | 190,296 | $ | 90,143 | $ | 5,207,422 | ||||||||||||||||||||||||||
| Beginning balance at original discount rates | 2,941,262 | 1,729,219 | 415,442 | 192,631 | 87,751 | 5,366,305 | ||||||||||||||||||||||||||||||||
| Effect of changes in assumptions on future cash flows | 466,883 | (30,255) | (56,964) | (6,061) | 16,553 | 390,156 | ||||||||||||||||||||||||||||||||
| Effect of actual variances from expected experience | (27,178) | (69,878) | (36,850) | (11,152) | (2,850) | (147,908) | ||||||||||||||||||||||||||||||||
| Adjusted balance at January 1, 2023 | 3,380,967 | 1,629,086 | 321,628 | 175,418 | 101,454 | 5,608,553 | ||||||||||||||||||||||||||||||||
| Issuances(1) | 377,097 | 266,375 | 59,768 | 39,825 | 14,467 | 757,532 | ||||||||||||||||||||||||||||||||
| Interest accrual(2) | 139,824 | 67,743 | 18,255 | 8,528 | 4,616 | 238,966 | ||||||||||||||||||||||||||||||||
| Net premiums collected(3) | (272,085) | (180,031) | (51,081) | (22,325) | (10,657) | (536,179) | ||||||||||||||||||||||||||||||||
| Effect of changes in the foreign exchange rate | — | — | — | 423 | — | 423 | ||||||||||||||||||||||||||||||||
| Ending balance at original discount rates | 3,625,803 | 1,783,173 | 348,570 | 201,869 | 109,880 | 6,069,295 | ||||||||||||||||||||||||||||||||
| Effect of change from original to current discount rates | 71,968 | (71,432) | 9,902 | 4,512 | 5,483 | 20,433 | ||||||||||||||||||||||||||||||||
| Balance at December 31, 2023 | $ | 3,697,771 | $ | 1,711,741 | $ | 358,472 | $ | 206,381 | $ | 115,363 | $ | 6,089,728 | ||||||||||||||||||||||||||
| Balance at January 1, 2024 | $ | 3,697,771 | $ | 1,711,741 | $ | 358,472 | $ | 206,381 | $ | 115,363 | $ | 6,089,728 | ||||||||||||||||||||||||||
| Beginning balance at original discount rates | 3,625,803 | 1,783,173 | 348,570 | 201,869 | 109,880 | 6,069,295 | ||||||||||||||||||||||||||||||||
| Effect of changes in assumptions on future cash flows | 9,892 | (8,117) | (3,463) | 12,207 | 4,449 | 14,968 | ||||||||||||||||||||||||||||||||
| Effect of actual variances from expected experience | (43,846) | (56,720) | (29,652) | (16,088) | (2,937) | (149,243) | ||||||||||||||||||||||||||||||||
| Adjusted balance at January 1, 2024 | 3,591,849 | 1,718,336 | 315,455 | 197,988 | 111,392 | 5,935,020 | ||||||||||||||||||||||||||||||||
| Issuances(1) | 480,412 | 265,166 | 58,538 | 44,350 | 26,149 | 874,615 | ||||||||||||||||||||||||||||||||
| Interest accrual(2) | 174,269 | 75,188 | 16,566 | 9,787 | 5,838 | 281,648 | ||||||||||||||||||||||||||||||||
| Net premiums collected(3) | (297,675) | (190,817) | (52,284) | (24,852) | (11,460) | (577,088) | ||||||||||||||||||||||||||||||||
| Effect of changes in the foreign exchange rate | — | — | — | (2,132) | — | (2,132) | ||||||||||||||||||||||||||||||||
| Ending balance at original discount rates | 3,948,855 | 1,867,873 | 338,275 | 225,141 | 131,919 | 6,512,063 | ||||||||||||||||||||||||||||||||
| Effect of change from original to current discount rates | (63,325) | (132,998) | (1,156) | (1,894) | 1,458 | (197,915) | ||||||||||||||||||||||||||||||||
| Balance at December 31, 2024 | $ | 3,885,530 | $ | 1,734,875 | $ | 337,119 | $ | 223,247 | $ | 133,377 | $ | 6,314,148 | ||||||||||||||||||||||||||
| Balance at January 1, 2025 | $ | 3,885,530 | $ | 1,734,875 | $ | 337,119 | $ | 223,247 | $ | 133,377 | $ | 6,314,148 | ||||||||||||||||||||||||||
| Beginning balance at original discount rates | 3,948,855 | 1,867,873 | 338,275 | 225,141 | 131,919 | 6,512,063 | ||||||||||||||||||||||||||||||||
| Effect of changes in assumptions on future cash flows | 625,460 | (72,130) | 29 | 12,588 | 25,985 | 591,932 | ||||||||||||||||||||||||||||||||
| Effect of actual variances from expected experience | (30,520) | (52,503) | (25,751) | (17,214) | (1,304) | (127,292) | ||||||||||||||||||||||||||||||||
| Adjusted balance at January 1, 2025 | 4,543,795 | 1,743,240 | 312,553 | 220,515 | 156,600 | 6,976,703 | ||||||||||||||||||||||||||||||||
| Issuances(1) | 858,558 | 277,165 | 56,531 | 39,969 | 51,254 | 1,283,477 | ||||||||||||||||||||||||||||||||
| Interest accrual(2) | 207,580 | 79,122 | 15,883 | 10,912 | 7,481 | 320,978 | ||||||||||||||||||||||||||||||||
| Net premiums collected(3) | (336,658) | (203,724) | (53,553) | (27,353) | (13,886) | (635,174) | ||||||||||||||||||||||||||||||||
| Effect of changes in the foreign exchange rate | — | — | — | 1,257 | — | 1,257 | ||||||||||||||||||||||||||||||||
| Ending balance at original discount rates | 5,273,275 | 1,895,803 | 331,414 | 245,300 | 201,449 | 7,947,241 | ||||||||||||||||||||||||||||||||
| Effect of change from original to current discount rates | 56,806 | (73,791) | 5,429 | 3,100 | 5,874 | (2,582) | ||||||||||||||||||||||||||||||||
| Balance at December 31, 2025 | $ | 5,330,081 | $ | 1,822,012 | $ | 336,843 | $ | 248,400 | $ | 207,323 | $ | 7,944,659 |
(1)Issuances represent the present value, using the original discount rate, of the expected net premiums related to new policies issued during each respective period.
(2)The interest accrual is the interest earned on the beginning present value of the expected net premiums, as well as the interest on actual net premiums earned during the period, using the original interest rate.
(3)Net premiums collected represent the product of the current period net premium ratio and the gross premiums collected during the period on the in force business.
GL 2025 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
| Health | ||||||||||||||||||||||||||||||||||||||
| Present value of expected future policy benefits | ||||||||||||||||||||||||||||||||||||||
| United American | Family Heritage | Liberty National | American Income | DTC | Total | |||||||||||||||||||||||||||||||||
| Balance at January 1, 2023 | $ | 3,046,829 | $ | 3,005,664 | $ | 941,574 | $ | 312,750 | $ | 87,532 | $ | 7,394,349 | ||||||||||||||||||||||||||
| Beginning balance at original discount rates | 3,080,633 | 3,336,344 | 904,865 | 303,713 | 85,212 | 7,710,767 | ||||||||||||||||||||||||||||||||
| Effect of changes in assumptions on future cash flows | 464,652 | (32,428) | (60,437) | (6,407) | 15,930 | 381,310 | ||||||||||||||||||||||||||||||||
| Effect of actual variances from expected experience | (26,718) | (74,797) | (36,910) | (12,661) | (3,325) | (154,411) | ||||||||||||||||||||||||||||||||
| Adjusted balance at January 1, 2023 | 3,518,567 | 3,229,119 | 807,518 | 284,645 | 97,817 | 7,937,666 | ||||||||||||||||||||||||||||||||
| Issuances(1) | 376,573 | 266,375 | 59,158 | 39,825 | 14,446 | 756,377 | ||||||||||||||||||||||||||||||||
| Interest accrual(2) | 147,082 | 134,107 | 45,614 | 15,070 | 4,616 | 346,489 | ||||||||||||||||||||||||||||||||
| Benefit payments(3) | (300,692) | (122,912) | (95,471) | (24,987) | (12,378) | (556,440) | ||||||||||||||||||||||||||||||||
| Effect of changes in the foreign exchange rate | — | — | — | 878 | — | 878 | ||||||||||||||||||||||||||||||||
| Ending balance at original discount rates | 3,741,530 | 3,506,689 | 816,819 | 315,431 | 104,501 | 8,484,970 | ||||||||||||||||||||||||||||||||
| Effect of change from original to current discount rates | 72,798 | (190,809) | 48,989 | 20,073 | 4,981 | (43,968) | ||||||||||||||||||||||||||||||||
| Balance at December 31, 2023 | $ | 3,814,328 | $ | 3,315,880 | $ | 865,808 | $ | 335,504 | $ | 109,482 | $ | 8,441,002 | ||||||||||||||||||||||||||
| Balance at January 1, 2024 | $ | 3,814,328 | $ | 3,315,880 | $ | 865,808 | $ | 335,504 | $ | 109,482 | $ | 8,441,002 | ||||||||||||||||||||||||||
| Beginning balance at original discount rates | 3,741,530 | 3,506,689 | 816,819 | 315,431 | 104,501 | 8,484,970 | ||||||||||||||||||||||||||||||||
| Effect of changes in assumptions on future cash flows | 10,680 | (5,054) | (2,775) | 20,293 | 7,733 | 30,877 | ||||||||||||||||||||||||||||||||
| Effect of actual variances from expected experience | (35,532) | (63,595) | (30,258) | (18,601) | (2,420) | (150,406) | ||||||||||||||||||||||||||||||||
| Adjusted balance at January 1, 2024 | 3,716,678 | 3,438,040 | 783,786 | 317,123 | 109,814 | 8,365,441 | ||||||||||||||||||||||||||||||||
| Issuances(1) | 479,653 | 265,166 | 57,862 | 44,353 | 26,116 | 873,150 | ||||||||||||||||||||||||||||||||
| Interest accrual(2) | 180,235 | 147,615 | 42,809 | 16,577 | 5,837 | 393,073 | ||||||||||||||||||||||||||||||||
| Benefit payments(3) | (349,706) | (138,777) | (93,317) | (25,214) | (13,792) | (620,806) | ||||||||||||||||||||||||||||||||
| Effect of changes in the foreign exchange rate | — | — | — | (4,128) | — | (4,128) | ||||||||||||||||||||||||||||||||
| Ending balance at original discount rates | 4,026,860 | 3,712,044 | 791,140 | 348,711 | 127,975 | 9,006,730 | ||||||||||||||||||||||||||||||||
| Effect of change from original to current discount rates | (66,428) | (375,498) | 13,555 | 6,592 | 1,302 | (420,477) | ||||||||||||||||||||||||||||||||
| Balance at December 31, 2024 | $ | 3,960,432 | $ | 3,336,546 | $ | 804,695 | $ | 355,303 | $ | 129,277 | $ | 8,586,253 | ||||||||||||||||||||||||||
| Balance at January 1, 2025 | $ | 3,960,432 | $ | 3,336,546 | $ | 804,695 | $ | 355,303 | $ | 129,277 | $ | 8,586,253 | ||||||||||||||||||||||||||
| Beginning balance at original discount rates | 4,026,860 | 3,712,044 | 791,140 | 348,711 | 127,975 | 9,006,730 | ||||||||||||||||||||||||||||||||
| Effect of changes in assumptions on future cash flows | 622,917 | (79,615) | 210 | 16,611 | 22,160 | 582,283 | ||||||||||||||||||||||||||||||||
| Effect of actual variances from expected experience | (38,119) | (60,780) | (27,632) | (21,464) | (1,653) | (149,648) | ||||||||||||||||||||||||||||||||
| Adjusted balance at January 1, 2025 | 4,611,658 | 3,571,649 | 763,718 | 343,858 | 148,482 | 9,439,365 | ||||||||||||||||||||||||||||||||
| Issuances(1) | 857,105 | 277,163 | 55,935 | 39,967 | 51,187 | 1,281,357 | ||||||||||||||||||||||||||||||||
| Interest accrual(2) | 210,924 | 157,549 | 41,117 | 18,370 | 7,481 | 435,441 | ||||||||||||||||||||||||||||||||
| Benefit payments(3) | (383,504) | (160,713) | (94,806) | (24,496) | (15,878) | (679,397) | ||||||||||||||||||||||||||||||||
| Effect of changes in the foreign exchange rate | — | — | — | 2,383 | — | 2,383 | ||||||||||||||||||||||||||||||||
| Ending balance at original discount rates | 5,296,183 | 3,845,648 | 765,964 | 380,082 | 191,272 | 10,479,149 | ||||||||||||||||||||||||||||||||
| Effect of change from original to current discount rates | 49,270 | (258,740) | 27,891 | 13,517 | 5,460 | (162,602) | ||||||||||||||||||||||||||||||||
| Balance at December 31, 2025 | $ | 5,345,453 | $ | 3,586,908 | $ | 793,855 | $ | 393,599 | $ | 196,732 | $ | 10,316,547 |
(1)Issuances represent the present value, using the original discount rate, of the expected future policy benefits related to new policies issued during each respective period.
(2)The interest accrual is the interest earned on the beginning present value of the expected future policy benefits, as well as the interest on actual benefits and expenses paid during the period, using the original interest rate.
(3)Benefit payments represent the release of the present value, using the original discount rate, of the actual future policy benefits incurred during the period based on the revised expected assumptions.
GL 2025 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
| Health | ||||||||||||||||||||||||||||||||||||||
| Net liability for future policy benefits as of December 31, 2023 | ||||||||||||||||||||||||||||||||||||||
| United American | Family Heritage | Liberty National | American Income | Direct to Consumer | Total | |||||||||||||||||||||||||||||||||
| Net liability for future policy benefits at original discount rates | $ | 115,727 | $ | 1,723,516 | $ | 468,249 | $ | 113,562 | $ | (5,379) | $ | 2,415,675 | ||||||||||||||||||||||||||
| Effect of changes in discount rate assumptions | 830 | (119,377) | 39,087 | 15,561 | (502) | (64,401) | ||||||||||||||||||||||||||||||||
| Other adjustments(1) | 10,980 | 84 | 9,567 | 857 | 6,653 | 28,141 | ||||||||||||||||||||||||||||||||
| Net liability for future policy benefits, after other adjustments, at current discount rates | 127,537 | 1,604,223 | 516,903 | 129,980 | 772 | 2,379,415 | ||||||||||||||||||||||||||||||||
| Reinsurance recoverable | (3,287) | (10,718) | (1,317) | — | — | (15,322) | ||||||||||||||||||||||||||||||||
| Net liability for future policy benefits, after reinsurance recoverable, at current discount rates | $ | 124,250 | $ | 1,593,505 | $ | 515,586 | $ | 129,980 | $ | 772 | $ | 2,364,093 |
(1)Other adjustments include the effects of capping and flooring the liability (guidance requires an amount not less than zero at the calculation level of the liability for future policy benefits).
| Health | ||||||||||||||||||||||||||||||||||||||
| Net liability for future policy benefits as of December 31, 2024 | ||||||||||||||||||||||||||||||||||||||
| United American | Family Heritage | Liberty National | American Income | Direct to Consumer | Total | |||||||||||||||||||||||||||||||||
| Net liability for future policy benefits at original discount rates | $ | 78,005 | $ | 1,844,171 | $ | 452,865 | $ | 123,570 | $ | (3,944) | $ | 2,494,667 | ||||||||||||||||||||||||||
| Effect of changes in discount rate assumptions | (3,103) | (242,500) | 14,711 | 8,486 | (156) | (222,562) | ||||||||||||||||||||||||||||||||
| Other adjustments(1) | 24,920 | 22 | 10,310 | 814 | 4,865 | 40,931 | ||||||||||||||||||||||||||||||||
| Net liability for future policy benefits, after other adjustments, at current discount rates | 99,822 | 1,601,693 | 477,886 | 132,870 | 765 | 2,313,036 | ||||||||||||||||||||||||||||||||
| Reinsurance recoverable | (2,768) | — | (986) | — | — | (3,754) | ||||||||||||||||||||||||||||||||
| Net liability for future policy benefits, after reinsurance recoverable, at current discount rates | $ | 97,054 | $ | 1,601,693 | $ | 476,900 | $ | 132,870 | $ | 765 | $ | 2,309,282 |
(1)Other adjustments include the effects of capping and flooring the liability (guidance requires an amount not less than zero at the calculation level of the liability for future policy benefits).
| Health | ||||||||||||||||||||||||||||||||||||||
| Net liability for future policy benefits as of December 31, 2025 | ||||||||||||||||||||||||||||||||||||||
| United American | Family Heritage | Liberty National | American Income | Direct to Consumer | Total | |||||||||||||||||||||||||||||||||
| Net liability for future policy benefits at original discount rates | $ | 22,908 | $ | 1,949,845 | $ | 434,550 | $ | 134,782 | $ | (10,177) | $ | 2,531,908 | ||||||||||||||||||||||||||
| Effect of changes in discount rate assumptions | (7,536) | (184,949) | 22,462 | 10,417 | (414) | (160,020) | ||||||||||||||||||||||||||||||||
| Other adjustments(1) | 63,806 | 122 | 14,274 | 766 | 11,216 | 90,184 | ||||||||||||||||||||||||||||||||
| Net liability for future policy benefits, after other adjustments, at current discount rates | 79,178 | 1,765,018 | 471,286 | 145,965 | 625 | 2,462,072 | ||||||||||||||||||||||||||||||||
| Reinsurance recoverable | (2,144) | — | (729) | — | — | (2,873) | ||||||||||||||||||||||||||||||||
| Net liability for future policy benefits, after reinsurance recoverable, at current discount rates | $ | 77,034 | $ | 1,765,018 | $ | 470,557 | $ | 145,965 | $ | 625 | $ | 2,459,199 |
(1)Other adjustments include the effects of capping and flooring the liability (guidance requires an amount not less than zero at the calculation level of the liability for future policy benefits).
GL 2025 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
Remeasurement Gain or Loss—In accordance with the accounting guidance, the Company reviews, and updates as necessary, its assumptions utilized in the calculation of the liability for future benefits annually in the third quarter and recalculates the net premium ratio. The revised net premium ratio is used to update the liability for future policy benefits as of the beginning of the current reporting period, and is compared to the liability using prior cash flow assumptions. The difference is recorded as a component of the remeasurement gain or loss for the current period, along with the effect of the difference between actual and expected experience for the period. The total remeasurement gain or loss is within life and health policyholder benefits included in the Consolidated Statements of Operations**.
The following tables include the total remeasurement gain or loss, bifurcated between the gain or loss due to differences between actual and expected experience and the amount due to assumption updates, for the three years ended December 31, 2025:
| Year Ended December 31, | |||||||||||||||||||||||||||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||||||||||||||||||||||||||
| Life Remeasurement Gain (Loss)—Experience: | |||||||||||||||||||||||||||||||||||||||||
| American Income | $ | 22,903 | $ | 19,606 | $ | 9,430 | |||||||||||||||||||||||||||||||||||
| Direct to Consumer | 25,121 | 21,681 | 12,201 | ||||||||||||||||||||||||||||||||||||||
| Liberty National | 6,327 | 3,966 | 5,013 | ||||||||||||||||||||||||||||||||||||||
| Other | 6,934 | 4,872 | 4,760 | ||||||||||||||||||||||||||||||||||||||
| Total Life Remeasurement Gain (Loss)—Experience | 61,285 | 50,125 | 31,404 | ||||||||||||||||||||||||||||||||||||||
| Life Remeasurement Gain (Loss)—Assumption Updates: | |||||||||||||||||||||||||||||||||||||||||
| American Income | 52,731 | 21,974 | 308 | ||||||||||||||||||||||||||||||||||||||
| Direct to Consumer | 39,480 | 21,744 | 1,763 | ||||||||||||||||||||||||||||||||||||||
| Liberty National | 35,068 | 12,224 | (1,248) | ||||||||||||||||||||||||||||||||||||||
| Other | 3,647 | 904 | (2,836) | ||||||||||||||||||||||||||||||||||||||
| Total Life Remeasurement Gain (Loss)—Assumption Updates | 130,926 | 56,846 | (2,013) | ||||||||||||||||||||||||||||||||||||||
| Total Life Remeasurement Gain (Loss) | 192,211 | 106,971 | 29,391 | ||||||||||||||||||||||||||||||||||||||
| Health Remeasurement Gain (Loss)—Experience: | |||||||||||||||||||||||||||||||||||||||||
| United American | 576 | (4,890) | (134) | ||||||||||||||||||||||||||||||||||||||
| Family Heritage | 7,821 | 6,756 | 4,638 | ||||||||||||||||||||||||||||||||||||||
| Liberty National | 4,047 | 2,640 | 628 | ||||||||||||||||||||||||||||||||||||||
| American Income | 4,186 | 2,742 | 1,461 | ||||||||||||||||||||||||||||||||||||||
| Direct to Consumer | 106 | 22 | 23 | ||||||||||||||||||||||||||||||||||||||
| Total Health Remeasurement Gain (Loss)—Experience | 16,736 | 7,270 | 6,616 | ||||||||||||||||||||||||||||||||||||||
| Health Remeasurement Gain (Loss)—Assumption Updates: | |||||||||||||||||||||||||||||||||||||||||
| United American | 279 | 1,205 | 762 | ||||||||||||||||||||||||||||||||||||||
| Family Heritage | 7,492 | (3,063) | 2,173 | ||||||||||||||||||||||||||||||||||||||
| Liberty National | (339) | (234) | 2,171 | ||||||||||||||||||||||||||||||||||||||
| American Income | (4,094) | (8,036) | 119 | ||||||||||||||||||||||||||||||||||||||
| Direct to Consumer | 19 | (373) | 8 | ||||||||||||||||||||||||||||||||||||||
| Health Remeasurement Gain (Loss)—Assumption Updates | 3,357 | (10,501) | 5,233 | ||||||||||||||||||||||||||||||||||||||
| Total Health Remeasurement Gain (Loss) | $ | 20,093 | $ | (3,231) | $ | 11,849 |
The Company performed its annual review of assumptions during the third quarter, resulting in favorable changes to its mortality and lapse assumptions on life and health. The assumption review process of the life and health segments resulted in a $134.3 million net remeasurement gain ($130.9 million and $3.4 million gains related to life and health, respectively) before tax for the year ended December 31, 2025 as compared to a $46.3 million net remeasurement gain ($56.8 million gain and $10.5 million loss related to life and health, respectively) before tax in 2024, and a $3.2 million net remeasurement gain ($2.0 million loss and $5.2 million gain related to life and health, respectively) before tax in 2023.
GL 2025 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
For the year ended December 31, 2025, life assumption changes reflect continued favorable mortality experience along with slightly higher lapse rates which resulted in lower life policy obligations compared to our previous assumptions anticipated. Health assumption changes reflect slightly higher lapse rates and benefit enhancements implemented last year.
Excluding the impact of assumption changes, the Company's results for actual variances from expected experience for both life and health produced a $78.0 million net remeasurement gain ($61.3 million and $16.7 million gains related to life and health, respectively) before tax for the year ended December 31, 2025, a $57.4 million net remeasurement gain before tax in 2024 ($50.1 million and $7.3 million gains related to life and health, respectively), and a $38.0 million net remeasurement gain ($31.4 million and $6.6 million gains related to life and health, respectively) before tax in 2023.
The following table reconciles the liability for future policy benefits to the Consolidated Balance Sheets as of December 31, 2025, 2024, and 2023:
| At Original Discount Rates | At Current Discount Rates | |||||||||||||||||||||||||||||||||||||
| As of December 31, | As of December 31, | |||||||||||||||||||||||||||||||||||||
| 2025 | 2024 | 2023 | 2025 | 2024 | 2023 | |||||||||||||||||||||||||||||||||
| Life(1): | ||||||||||||||||||||||||||||||||||||||
| American Income | $ | 5,195,264 | $ | 4,851,995 | $ | 4,538,775 | $ | 5,566,061 | $ | 5,224,897 | $ | 5,482,036 | ||||||||||||||||||||||||||
| Direct to Consumer | 3,295,819 | 3,156,039 | 2,992,493 | 3,663,000 | 3,502,224 | 3,665,180 | ||||||||||||||||||||||||||||||||
| Liberty National | 2,303,047 | 2,293,197 | 2,260,421 | 2,362,637 | 2,329,070 | 2,481,440 | ||||||||||||||||||||||||||||||||
| Other | 3,234,468 | 3,151,824 | 3,062,966 | 3,628,688 | 3,520,949 | 3,761,633 | ||||||||||||||||||||||||||||||||
| Net liability for future policy benefits—long duration life | 14,028,598 | 13,453,055 | 12,854,655 | 15,220,386 | 14,577,140 | 15,390,289 | ||||||||||||||||||||||||||||||||
| Health(1): | ||||||||||||||||||||||||||||||||||||||
| United American | 79,700 | 100,480 | 124,021 | 79,178 | 99,822 | 127,537 | ||||||||||||||||||||||||||||||||
| Family Heritage | 1,949,955 | 1,844,186 | 1,723,581 | 1,765,018 | 1,601,693 | 1,604,223 | ||||||||||||||||||||||||||||||||
| Liberty National | 447,908 | 462,712 | 476,559 | 471,286 | 477,886 | 516,903 | ||||||||||||||||||||||||||||||||
| American Income | 135,514 | 124,309 | 114,407 | 145,965 | 132,870 | 129,980 | ||||||||||||||||||||||||||||||||
| Direct to Consumer | 603 | 738 | 737 | 625 | 765 | 772 | ||||||||||||||||||||||||||||||||
| Net liability for future policy benefits—long duration health | 2,613,680 | 2,532,425 | 2,439,305 | 2,462,072 | 2,313,036 | 2,379,415 | ||||||||||||||||||||||||||||||||
| Deferred profit liability | 186,088 | 178,199 | 174,717 | 186,088 | 178,199 | 174,717 | ||||||||||||||||||||||||||||||||
| Deferred annuity | 580,669 | 656,573 | 773,039 | 580,669 | 656,573 | 773,039 | ||||||||||||||||||||||||||||||||
| Interest sensitive life | 711,687 | 723,389 | 732,948 | 711,687 | 723,389 | 732,948 | ||||||||||||||||||||||||||||||||
| Other | 8,784 | 8,923 | 9,951 | 8,785 | 8,926 | 9,945 | ||||||||||||||||||||||||||||||||
| Total future policy benefits | $ | 18,129,506 | $ | 17,552,564 | $ | 16,984,615 | $ | 19,169,687 | $ | 18,457,263 | $ | 19,460,353 |
(1)Balances are presented net of the effects of capping and flooring the liability (guidance requires an amount not less than zero at the calculation level of the liability for future policy benefits).
GL 2025 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
The following tables provide the weighted-average original and current discount rates for the liability for future policy benefits and the additional insurance liabilities as of December 31, 2025, 2024, and 2023:
| As of December 31, | ||||||||||||||||||||||||||||||||||||||
| 2025 | 2024 | 2023 | ||||||||||||||||||||||||||||||||||||
| Original discount rate | Current discount rate | Original discount rate | Current discount rate | Original discount rate | Current discount rate | |||||||||||||||||||||||||||||||||
| Life | ||||||||||||||||||||||||||||||||||||||
| American Income | 5.7 | % | 5.4 | % | 5.7 | % | 5.4 | % | 5.7 | % | 4.9 | % | ||||||||||||||||||||||||||
| Direct to Consumer | 6.0 | % | 5.4 | % | 6.0 | % | 5.5 | % | 6.0 | % | 5.0 | % | ||||||||||||||||||||||||||
| Liberty National | 5.6 | % | 5.4 | % | 5.6 | % | 5.5 | % | 5.6 | % | 5.0 | % | ||||||||||||||||||||||||||
| Other | 6.2 | % | 5.5 | % | 6.2 | % | 5.5 | % | 6.2 | % | 5.0 | % | ||||||||||||||||||||||||||
| Health | ||||||||||||||||||||||||||||||||||||||
| United American | 5.1 | % | 5.2 | % | 5.1 | % | 5.2 | % | 5.1 | % | 4.8 | % | ||||||||||||||||||||||||||
| Family Heritage | 4.2 | % | 5.3 | % | 4.2 | % | 5.3 | % | 4.3 | % | 4.9 | % | ||||||||||||||||||||||||||
| Liberty National | 5.8 | % | 5.2 | % | 5.8 | % | 5.4 | % | 5.8 | % | 4.9 | % | ||||||||||||||||||||||||||
| American Income | 5.8 | % | 5.2 | % | 5.8 | % | 5.2 | % | 5.8 | % | 4.8 | % | ||||||||||||||||||||||||||
| Direct to Consumer | 5.1 | % | 5.2 | % | 5.1 | % | 5.2 | % | 5.1 | % | 4.8 | % |
The following table provides the weighted-average durations of the liability for future policy benefits and the additional insurance liabilities as of December 31, 2025, 2024, and 2023:
| As of December 31, | ||||||||||||||||||||||||||||||||||||||
| 2025 | 2024 | 2023 | ||||||||||||||||||||||||||||||||||||
| At original discount rates | At current discount rates | At original discount rates | At current discount rates | At original discount rates | At current discount rates | |||||||||||||||||||||||||||||||||
| Life | ||||||||||||||||||||||||||||||||||||||
| American Income | 22.32 | 22.06 | 22.73 | 22.76 | 23.01 | 23.45 | ||||||||||||||||||||||||||||||||
| Direct to Consumer | 18.67 | 19.38 | 19.24 | 20.31 | 19.58 | 21.21 | ||||||||||||||||||||||||||||||||
| Liberty National | 15.26 | 15.04 | 15.30 | 15.33 | 15.13 | 15.81 | ||||||||||||||||||||||||||||||||
| Other | 15.56 | 16.16 | 15.99 | 16.92 | 16.26 | 17.92 | ||||||||||||||||||||||||||||||||
| Health | ||||||||||||||||||||||||||||||||||||||
| United American | 12.43 | 11.13 | 11.72 | 10.65 | 11.46 | 10.89 | ||||||||||||||||||||||||||||||||
| Family Heritage | 16.25 | 14.86 | 15.33 | 14.23 | 14.99 | 14.54 | ||||||||||||||||||||||||||||||||
| Liberty National | 9.53 | 9.33 | 9.31 | 9.19 | 9.17 | 9.49 | ||||||||||||||||||||||||||||||||
| American Income | 13.25 | 13.12 | 12.49 | 12.56 | 12.21 | 12.84 | ||||||||||||||||||||||||||||||||
| Direct to Consumer | 12.43 | 11.13 | 11.72 | 10.65 | 11.46 | 10.89 |
GL 2025 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
The following tables summarize the amount of gross premiums and interest related to long duration life and health contracts that are recognized on the Consolidated Statements of Operations for the three years ended December 31, 2025:
| Life | ||||||||||||||||||||||||||||||||||||||
| Year Ended December 31, 2025 | Year Ended December 31, 2024 | Year Ended December 31, 2023 | ||||||||||||||||||||||||||||||||||||
| Gross Premiums | Required Interest Expense | Gross Premiums | Required Interest Expense | Gross Premiums | Required Interest Expense | |||||||||||||||||||||||||||||||||
| American Income | $ | 1,790,023 | $ | 289,491 | $ | 1,696,918 | $ | 272,007 | $ | 1,587,304 | $ | 252,277 | ||||||||||||||||||||||||||
| Direct to Consumer | 970,233 | 190,793 | 977,302 | 181,470 | 979,739 | 170,745 | ||||||||||||||||||||||||||||||||
| Liberty National | 387,167 | 124,370 | 367,278 | 122,727 | 345,196 | 120,083 | ||||||||||||||||||||||||||||||||
| Other | 199,746 | 192,340 | 202,234 | 185,619 | 205,998 | 179,513 | ||||||||||||||||||||||||||||||||
| Total | $ | 3,347,169 | $ | 796,994 | $ | 3,243,732 | $ | 761,823 | $ | 3,118,237 | $ | 722,618 |
| Health | ||||||||||||||||||||||||||||||||||||||
| Year Ended December 31, 2025 | Year Ended December 31, 2024 | Year Ended December 31, 2023 | ||||||||||||||||||||||||||||||||||||
| Gross Premiums | Required Interest Expense | Gross Premiums | Required Interest Expense | Gross Premiums | Required Interest Expense | |||||||||||||||||||||||||||||||||
| United American | $ | 493,272 | $ | 3,133 | $ | 439,125 | $ | 5,739 | $ | 401,834 | $ | 7,002 | ||||||||||||||||||||||||||
| Family Heritage | 468,063 | 78,425 | 427,640 | 71,900 | 396,211 | 65,892 | ||||||||||||||||||||||||||||||||
| Liberty National | 189,690 | 25,130 | 189,650 | 26,144 | 187,095 | 27,248 | ||||||||||||||||||||||||||||||||
| American Income | 119,209 | 7,457 | 117,644 | 6,790 | 113,605 | 6,542 | ||||||||||||||||||||||||||||||||
| Direct to Consumer | 17,073 | — | 15,033 | — | 14,283 | — | ||||||||||||||||||||||||||||||||
| Total | $ | 1,287,307 | $ | 114,145 | $ | 1,189,092 | $ | 110,573 | $ | 1,113,028 | $ | 106,684 |
Gross premiums are included within life and health premium on the Consolidated Statements of Operations, while the related interest expense is included in life and health policyholder benefits.
GL 2025 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
The following tables provide the undiscounted and discounted expected future net premiums, expected future gross premiums, and expected future policy benefits, at both original and current discount rates, for life and health contracts for the three years ended December 31, 2025:
| Life | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| As of December 31, 2025 | As of December 31, 2024 | As of December 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Not discounted | At original discount rates | At current discount rates | Not discounted | At original discount rates | At current discount rates | Not discounted | At original discount rates | At current discount rates | ||||||||||||||||||||||||||||||||||||||||||||||||
| American Income | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| PV of expected future gross premiums | $ | 26,709,794 | $ | 15,068,860 | $ | 15,424,780 | $ | 25,492,032 | $ | 14,410,088 | $ | 14,471,277 | $ | 24,265,464 | $ | 13,695,495 | $ | 14,264,077 | ||||||||||||||||||||||||||||||||||||||
| PV of expected future net premiums | 8,350,443 | 4,710,303 | 4,792,153 | 8,233,110 | 4,656,710 | 4,645,917 | 8,001,107 | 4,523,329 | 4,681,888 | |||||||||||||||||||||||||||||||||||||||||||||||
| PV of expected future policy benefits | 33,211,854 | 9,905,431 | 10,358,054 | 31,831,310 | 9,508,589 | 9,870,692 | 30,623,947 | 9,061,833 | 10,163,627 | |||||||||||||||||||||||||||||||||||||||||||||||
| DTC | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| PV of expected future gross premiums | $ | 17,249,507 | $ | 9,027,497 | $ | 9,390,147 | $ | 17,372,446 | $ | 9,077,304 | $ | 9,258,880 | $ | 17,506,091 | $ | 9,150,049 | $ | 9,761,706 | ||||||||||||||||||||||||||||||||||||||
| PV of expected future net premiums | 10,110,468 | 5,321,113 | 5,542,616 | 10,481,376 | 5,504,912 | 5,622,906 | 10,774,655 | 5,664,259 | 6,052,651 | |||||||||||||||||||||||||||||||||||||||||||||||
| PV of expected future policy benefits | 25,607,204 | 8,616,929 | 9,205,616 | 25,841,419 | 8,660,948 | 9,125,112 | 25,723,752 | 8,656,752 | 9,714,516 | |||||||||||||||||||||||||||||||||||||||||||||||
| Liberty National | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| PV of expected future gross premiums | $ | 4,980,287 | $ | 2,900,642 | $ | 2,917,146 | $ | 4,837,598 | $ | 2,817,204 | $ | 2,775,304 | $ | 4,660,783 | $ | 2,720,264 | $ | 2,784,916 | ||||||||||||||||||||||||||||||||||||||
| PV of expected future net premiums | 1,744,779 | 988,843 | 1,008,538 | 1,849,200 | 1,047,022 | 1,048,447 | 1,897,696 | 1,077,831 | 1,129,716 | |||||||||||||||||||||||||||||||||||||||||||||||
| PV of expected future policy benefits | 9,008,086 | 3,291,890 | 3,371,175 | 9,073,624 | 3,340,219 | 3,377,517 | 8,905,815 | 3,338,252 | 3,605,392 | |||||||||||||||||||||||||||||||||||||||||||||||
| Other | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| PV of expected future gross premiums | $ | 3,473,311 | $ | 1,783,847 | $ | 1,912,248 | $ | 3,627,855 | $ | 1,844,670 | $ | 1,942,849 | $ | 3,726,111 | $ | 1,889,930 | $ | 2,088,668 | ||||||||||||||||||||||||||||||||||||||
| PV of expected future net premiums | 838,315 | 408,949 | 425,338 | 885,362 | 430,276 | 440,047 | 910,786 | 443,949 | 478,052 | |||||||||||||||||||||||||||||||||||||||||||||||
| PV of expected future policy benefits | 12,293,519 | 3,643,392 | 4,054,000 | 12,466,943 | 3,582,068 | 3,960,963 | 12,431,963 | 3,506,859 | 4,239,623 | |||||||||||||||||||||||||||||||||||||||||||||||
| Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| PV of expected future gross premiums | $ | 52,412,899 | $ | 28,780,846 | $ | 29,644,321 | $ | 51,329,931 | $ | 28,149,266 | $ | 28,448,310 | $ | 50,158,449 | $ | 27,455,738 | $ | 28,899,367 | ||||||||||||||||||||||||||||||||||||||
| PV of expected future net premiums | 21,044,005 | 11,429,208 | 11,768,645 | 21,449,048 | 11,638,920 | 11,757,317 | 21,584,244 | 11,709,368 | 12,342,307 | |||||||||||||||||||||||||||||||||||||||||||||||
| PV of expected future policy benefits | 80,120,663 | 25,457,642 | 26,988,845 | 79,213,296 | 25,091,824 | 26,334,284 | 77,685,477 | 24,563,696 | 27,723,158 |
As of December 31, 2025 for the life segment using current discount rates, the Company anticipates $29.6 billion of expected future gross premiums and $11.8 billion of expected future net premiums. As of December 31, 2024 and 2023 using current discount rates, the Company anticipated $28.4 billion and $28.9 billion of expected future gross premiums and $11.8 billion and $12.3 billion in expected future net premiums, respectively. For each respective period, only expected future net premiums are included in the determination of the liability for future policy benefits on the balance sheet, while the difference between the expected future gross premiums and the expected future net premiums is not.
GL 2025 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
| Health | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| As of December 31, 2025 | As of December 31, 2024 | As of December 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Not discounted | At original discount rates | At current discount rates | Not discounted | At original discount rates | At current discount rates | Not discounted | At original discount rates | At current discount rates | ||||||||||||||||||||||||||||||||||||||||||||||||
| United American | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| PV of expected future gross premiums | $ | 12,730,369 | $ | 7,651,632 | $ | 7,732,883 | $ | 9,350,851 | $ | 5,738,332 | $ | 5,643,454 | $ | 8,682,707 | $ | 5,295,148 | $ | 5,396,402 | ||||||||||||||||||||||||||||||||||||||
| PV of expected future net premiums | 8,782,379 | 5,273,275 | 5,330,081 | 6,442,648 | 3,948,855 | 3,885,530 | 5,955,294 | 3,625,803 | 3,697,771 | |||||||||||||||||||||||||||||||||||||||||||||||
| PV of expected future policy benefits | 8,864,386 | 5,296,183 | 5,345,453 | 6,584,800 | 4,026,860 | 3,960,432 | 6,148,565 | 3,741,530 | 3,814,328 | |||||||||||||||||||||||||||||||||||||||||||||||
| Family Heritage | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| PV of expected future gross premiums | $ | 7,541,348 | $ | 4,394,554 | $ | 4,239,286 | $ | 7,242,884 | $ | 4,220,293 | $ | 3,938,234 | $ | 6,739,913 | $ | 3,982,571 | $ | 3,844,287 | ||||||||||||||||||||||||||||||||||||||
| PV of expected future net premiums | 3,238,994 | 1,895,803 | 1,822,012 | 3,188,017 | 1,867,873 | 1,734,875 | 2,997,954 | 1,783,173 | 1,711,741 | |||||||||||||||||||||||||||||||||||||||||||||||
| PV of expected future policy benefits | 7,540,691 | 3,845,648 | 3,586,908 | 7,176,690 | 3,712,044 | 3,336,546 | 6,655,694 | 3,506,689 | 3,315,880 | |||||||||||||||||||||||||||||||||||||||||||||||
| Liberty National | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| PV of expected future gross premiums | $ | 2,004,452 | $ | 1,277,288 | $ | 1,320,341 | $ | 2,039,441 | $ | 1,299,234 | $ | 1,316,967 | $ | 2,089,005 | $ | 1,325,869 | $ | 1,390,066 | ||||||||||||||||||||||||||||||||||||||
| PV of expected future net premiums | 492,640 | 331,414 | 336,843 | 500,297 | 338,275 | 337,119 | 518,008 | 348,570 | 358,472 | |||||||||||||||||||||||||||||||||||||||||||||||
| PV of expected future policy benefits | 1,345,596 | 765,964 | 793,855 | 1,374,959 | 791,140 | 804,695 | 1,413,211 | 816,819 | 865,808 | |||||||||||||||||||||||||||||||||||||||||||||||
| American Income | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| PV of expected future gross premiums | $ | 2,001,778 | $ | 1,059,232 | $ | 1,100,150 | $ | 1,770,862 | $ | 992,641 | $ | 1,012,919 | $ | 1,768,231 | $ | 991,448 | $ | 1,047,348 | ||||||||||||||||||||||||||||||||||||||
| PV of expected future net premiums | 462,290 | 245,300 | 248,400 | 400,512 | 225,141 | 223,247 | 359,248 | 201,869 | 206,381 | |||||||||||||||||||||||||||||||||||||||||||||||
| PV of expected future policy benefits | 821,453 | 380,082 | 393,599 | 709,637 | 348,711 | 355,303 | 640,326 | 315,431 | 335,504 | |||||||||||||||||||||||||||||||||||||||||||||||
| Direct to Consumer | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| PV of expected future gross premiums | $ | 419,608 | $ | 249,370 | $ | 257,172 | $ | 248,646 | $ | 157,812 | $ | 159,862 | $ | 236,776 | $ | 149,119 | $ | 156,612 | ||||||||||||||||||||||||||||||||||||||
| PV of expected future net premiums | 339,996 | 201,449 | 207,323 | 208,577 | 131,919 | 133,377 | 174,738 | 109,880 | 115,363 | |||||||||||||||||||||||||||||||||||||||||||||||
| PV of expected future policy benefits | 316,089 | 191,272 | 196,732 | 204,099 | 127,975 | 129,277 | 163,087 | 104,501 | 109,482 | |||||||||||||||||||||||||||||||||||||||||||||||
| Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| PV of expected future gross premiums | $ | 24,697,555 | $ | 14,632,076 | $ | 14,649,832 | $ | 20,652,684 | $ | 12,408,312 | $ | 12,071,436 | $ | 19,516,632 | $ | 11,744,155 | $ | 11,834,715 | ||||||||||||||||||||||||||||||||||||||
| PV of expected future net premiums | 13,316,299 | 7,947,241 | 7,944,659 | 10,740,051 | 6,512,063 | 6,314,148 | 10,005,242 | 6,069,295 | 6,089,728 | |||||||||||||||||||||||||||||||||||||||||||||||
| PV of expected future policy benefits | 18,888,215 | 10,479,149 | 10,316,547 | 16,050,185 | 9,006,730 | 8,586,253 | 15,020,883 | 8,484,970 | 8,441,002 |
As of December 31, 2025 for the health segment using current discount rates, the Company anticipates $14.6 billion of expected future gross premiums and $7.9 billion of expected future net premiums. As of December 31, 2024 and 2023 using current discount rates, the Company anticipated $12.1 billion and $11.8 billion of expected future gross premiums and $6.3 billion and $6.1 billion in expected future net premiums, respectively. For each respective period, only expected future net premiums are included in the determination of the liability for future policy benefits on the balance sheet, while the difference between the expected future gross premiums and the expected future net premiums is not.
GL 2025 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
The following table summarizes the balances of, and changes in, policyholders’ account balances for the three years ended December 31, 2025:
| Policyholders' Account Balances | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2025 | 2024 | 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest Sensitive Life | Deferred Annuity**(1)** | Other Policy-holders' Funds | Interest Sensitive Life | Deferred Annuity | Other Policy-holders' Funds | Interest Sensitive Life | Deferred Annuity | Other Policy-holders' Funds | ||||||||||||||||||||||||||||||||||||||||||||||||
| Balance at January 1, | $ | 723,389 | $ | 656,573 | $ | 468,604 | $ | 732,948 | $ | 773,039 | $ | 236,958 | $ | 739,105 | $ | 954,318 | $ | 123,236 | ||||||||||||||||||||||||||||||||||||||
| Issuances | — | 1,040 | — | — | 875 | — | — | 896 | — | |||||||||||||||||||||||||||||||||||||||||||||||
| Premiums and deposits received | 19,653 | 12,584 | 191,812 | 20,928 | 11,332 | 240,802 | 22,036 | 13,209 | 122,136 | |||||||||||||||||||||||||||||||||||||||||||||||
| Policy charges | (11,730) | — | — | (12,295) | — | — | (12,926) | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
| Surrenders and withdrawals | (23,007) | (64,145) | (132,566) | (22,479) | (107,707) | (13,897) | (21,215) | (165,584) | (13,042) | |||||||||||||||||||||||||||||||||||||||||||||||
| Benefit payments | (30,565) | (46,070) | — | (30,512) | (43,955) | — | (29,909) | (57,937) | — | |||||||||||||||||||||||||||||||||||||||||||||||
| Interest credited | 27,344 | 20,589 | 22,617 | 27,790 | 23,634 | 21,165 | 28,320 | 28,150 | 9,314 | |||||||||||||||||||||||||||||||||||||||||||||||
| Other | 6,603 | 98 | (18,420) | 7,009 | (645) | (16,424) | 7,537 | (13) | (4,686) | |||||||||||||||||||||||||||||||||||||||||||||||
| Balance at December 31, | $ | 711,687 | $ | 580,669 | $ | 532,047 | $ | 723,389 | $ | 656,573 | $ | 468,604 | $ | 732,948 | $ | 773,039 | $ | 236,958 | ||||||||||||||||||||||||||||||||||||||
| Weighted-average credit rate | 3.81 | % | 3.33 | % | 4.52 | % | 3.82 | % | 3.31 | % | 6.00 | % | 3.85 | % | 3.26 | % | 5.17 | % | ||||||||||||||||||||||||||||||||||||||
| Net amount at risk | $ | 1,560,633 | N/A | N/A | $ | 1,663,496 | N/A | N/A | $ | 1,766,170 | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||||||
| Cash surrender value | $ | 667,217 | $ | 580,669 | $ | 532,047 | $ | 677,111 | $ | 656,573 | $ | 468,604 | $ | 671,596 | $ | 773,039 | $ | 236,958 |
(1) At December 31, 2025, $400 million has been reinsured with third-party reinsurers under existing reinsurance agreements.
GL 2025 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
The following tables present the policyholders' account balances by range of guaranteed minimum crediting rates and the related range of difference, if any, in basis points between rates being credited to policyholders and the respective guaranteed minimums as of December 31, 2025, 2024, and 2023:
| At December 31, 2025 | ||||||||||||||||||||
| Range of guaranteed minimum crediting rates | Interest Sensitive Life | Deferred Annuity**(1)** | Other Policyholders' Funds | |||||||||||||||||
| At guaranteed minimum: | ||||||||||||||||||||
| Less than 3.00% | $ | — | $ | 2,115 | $ | 438,586 | ||||||||||||||
| 3.00%-3.99% | 29,355 | 406,105 | 3,128 | |||||||||||||||||
| 4.00%-4.99% | 592,935 | 172,449 | 55,299 | |||||||||||||||||
| Greater than 5.00% | 89,397 | — | 35,034 | |||||||||||||||||
| Total | 711,687 | 580,669 | 532,047 | |||||||||||||||||
| 51-150 basis points above: | ||||||||||||||||||||
| Less than 3.00% | — | — | — | |||||||||||||||||
| 3.00%-3.99% | — | — | — | |||||||||||||||||
| 4.00%-4.99% | — | — | — | |||||||||||||||||
| Greater than 5.00% | — | — | — | |||||||||||||||||
| Total | — | — | — | |||||||||||||||||
| Grand Total | $ | 711,687 | $ | 580,669 | $ | 532,047 |
(1) At December 31, 2025, $400 million has been reinsured with third-party reinsurers under existing reinsurance agreements.
| At December 31, 2024 | ||||||||||||||||||||
| Range of guaranteed minimum crediting rates | Interest Sensitive Life | Deferred Annuity**(1)** | Other Policyholders' Funds | |||||||||||||||||
| At guaranteed minimum: | ||||||||||||||||||||
| Less than 3.00% | $ | — | $ | 1,812 | $ | 373,584 | ||||||||||||||
| 3.00%-3.99% | 29,251 | 473,191 | 3,182 | |||||||||||||||||
| 4.00%-4.99% | 604,412 | 181,570 | 55,876 | |||||||||||||||||
| Greater than 5.00% | 89,726 | — | 35,962 | |||||||||||||||||
| Total | 723,389 | 656,573 | 468,604 | |||||||||||||||||
| 51-150 basis points above: | ||||||||||||||||||||
| Less than 3.00% | — | — | — | |||||||||||||||||
| 3.00%-3.99% | — | — | — | |||||||||||||||||
| 4.00%-4.99% | — | — | — | |||||||||||||||||
| Greater than 5.00% | — | — | — | |||||||||||||||||
| Total | — | — | — | |||||||||||||||||
| Grand Total | $ | 723,389 | $ | 656,573 | $ | 468,604 |
(1) At December 31, 2024, $449 million has been reinsured with third-party reinsurers under existing reinsurance agreements.
GL 2025 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
| At December 31, 2023 | ||||||||||||||||||||
| Range of guaranteed minimum crediting rates | Interest Sensitive Life | Deferred Annuity | Other Policyholders' Funds | |||||||||||||||||
| At guaranteed minimum: | ||||||||||||||||||||
| Less than 3.00% | $ | — | $ | 1,945 | $ | 138,684 | ||||||||||||||
| 3.00%-3.99% | 29,086 | 574,939 | 3,790 | |||||||||||||||||
| 4.00%-4.99% | 613,704 | 195,390 | 6,861 | |||||||||||||||||
| Greater than 5.00% | 90,158 | 765 | 37,556 | |||||||||||||||||
| Total | 732,948 | 773,039 | 186,891 | |||||||||||||||||
| 51-150 basis points above: | ||||||||||||||||||||
| Less than 3.00% | — | — | — | |||||||||||||||||
| 3.00%-3.99% | — | — | — | |||||||||||||||||
| 4.00%-4.99% | — | — | 50,067 | |||||||||||||||||
| Greater than 5.00% | — | — | — | |||||||||||||||||
| Total | — | — | 50,067 | |||||||||||||||||
| Grand Total | $ | 732,948 | $ | 773,039 | $ | 236,958 |
GL 2025 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
Note 7—Deferred Acquisition Costs
The following tables roll forward the deferred policy acquisition costs for the three years ended December 31, 2025:
| Life | ||||||||||||||||||||||||||||||||
| American Income | DTC | Liberty National | Other | Total | ||||||||||||||||||||||||||||
| Balance at January 1, 2023 | $ | 2,258,291 | $ | 1,676,931 | $ | 610,723 | $ | 298,346 | $ | 4,844,291 | ||||||||||||||||||||||
| Capitalizations | 471,771 | 159,650 | 107,230 | 13,053 | 751,704 | |||||||||||||||||||||||||||
| Amortization expense | (159,898) | (99,464) | (51,534) | (16,530) | (327,426) | |||||||||||||||||||||||||||
| Foreign exchange adjustment | 3,206 | — | — | — | 3,206 | |||||||||||||||||||||||||||
| Balance at December 31, 2023 | $ | 2,573,370 | $ | 1,737,117 | $ | 666,419 | $ | 294,869 | $ | 5,271,775 | ||||||||||||||||||||||
| Balance at January 1, 2024 | $ | 2,573,370 | $ | 1,737,117 | $ | 666,419 | $ | 294,869 | $ | 5,271,775 | ||||||||||||||||||||||
| Capitalizations | 524,980 | 145,538 | 119,203 | 12,172 | 801,893 | |||||||||||||||||||||||||||
| Amortization expense | (181,431) | (101,425) | (56,832) | (16,535) | (356,223) | |||||||||||||||||||||||||||
| Foreign exchange adjustment | (16,690) | — | — | — | (16,690) | |||||||||||||||||||||||||||
| Balance at December 31, 2024 | $ | 2,900,229 | $ | 1,781,230 | $ | 728,790 | $ | 290,506 | $ | 5,700,755 | ||||||||||||||||||||||
| Balance at January 1, 2025 | $ | 2,900,229 | $ | 1,781,230 | $ | 728,790 | $ | 290,506 | $ | 5,700,755 | ||||||||||||||||||||||
| Capitalizations | 546,709 | 140,809 | 124,461 | 12,443 | 824,422 | |||||||||||||||||||||||||||
| Amortization expense | (207,054) | (103,919) | (62,264) | (13,213) | (386,450) | |||||||||||||||||||||||||||
| Foreign exchange adjustment | 9,023 | — | — | — | 9,023 | |||||||||||||||||||||||||||
| Balance at December 31, 2025 | $ | 3,248,907 | $ | 1,818,120 | $ | 790,987 | $ | 289,736 | $ | 6,147,750 |
| Health | ||||||||||||||||||||||||||||||||||||||
| United American | Family Heritage | Liberty National | American Income | DTC | Total | |||||||||||||||||||||||||||||||||
| Balance at January 1, 2023 | $ | 77,394 | $ | 416,608 | $ | 133,096 | $ | 57,811 | $ | 1,854 | $ | 686,763 | ||||||||||||||||||||||||||
| Capitalizations | 1,941 | 63,366 | 20,309 | 12,849 | — | 98,465 | ||||||||||||||||||||||||||||||||
| Amortization expense | (5,846) | (27,131) | (13,464) | (3,982) | (175) | (50,598) | ||||||||||||||||||||||||||||||||
| Foreign exchange adjustment | — | — | — | 105 | — | 105 | ||||||||||||||||||||||||||||||||
| Balance at December 31, 2023 | $ | 73,489 | $ | 452,843 | $ | 139,941 | $ | 66,783 | $ | 1,679 | $ | 734,735 | ||||||||||||||||||||||||||
| Balance at January 1, 2024 | $ | 73,489 | $ | 452,843 | $ | 139,941 | $ | 66,783 | $ | 1,679 | $ | 734,735 | ||||||||||||||||||||||||||
| Capitalizations | 2,608 | 70,311 | 23,775 | 14,955 | 2 | 111,651 | ||||||||||||||||||||||||||||||||
| Amortization expense | (5,567) | (27,035) | (14,796) | (4,678) | (148) | (52,224) | ||||||||||||||||||||||||||||||||
| Foreign exchange adjustment | — | — | — | (741) | — | (741) | ||||||||||||||||||||||||||||||||
| Balance at December 31, 2024 | $ | 70,530 | $ | 496,119 | $ | 148,920 | $ | 76,319 | $ | 1,533 | $ | 793,421 | ||||||||||||||||||||||||||
| Balance at January 1, 2025 | $ | 70,530 | $ | 496,119 | $ | 148,920 | $ | 76,319 | $ | 1,533 | $ | 793,421 | ||||||||||||||||||||||||||
| Capitalizations | 2,852 | 80,747 | 18,951 | 14,949 | 1 | 117,500 | ||||||||||||||||||||||||||||||||
| Amortization expense | (5,430) | (33,487) | (15,661) | (5,184) | (135) | (59,897) | ||||||||||||||||||||||||||||||||
| Foreign exchange adjustment | — | — | — | 362 | — | 362 | ||||||||||||||||||||||||||||||||
| Balance at December 31, 2025 | $ | 67,952 | $ | 543,379 | $ | 152,210 | $ | 86,446 | $ | 1,399 | $ | 851,386 | ||||||||||||||||||||||||||
GL 2025 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
The following table presents a reconciliation of deferred policy acquisition costs to the Consolidated Balance Sheets the three years ended December 31, 2025:
| December 31, | ||||||||||||||||||||
| 2025 | 2024 | 2023 | ||||||||||||||||||
| Life | ||||||||||||||||||||
| American Income | $ | 3,248,907 | $ | 2,900,229 | $ | 2,573,370 | ||||||||||||||
| Direct to Consumer | 1,818,120 | 1,781,230 | 1,737,117 | |||||||||||||||||
| Liberty National | 790,987 | 728,790 | 666,419 | |||||||||||||||||
| Other | 289,736 | 290,506 | 294,869 | |||||||||||||||||
| Total DAC—Life | 6,147,750 | 5,700,755 | 5,271,775 | |||||||||||||||||
| Health | ||||||||||||||||||||
| United American | 67,952 | 70,530 | 73,489 | |||||||||||||||||
| Family Heritage | 543,379 | 496,119 | 452,843 | |||||||||||||||||
| Liberty National | 152,210 | 148,920 | 139,941 | |||||||||||||||||
| American Income | 86,446 | 76,319 | 66,783 | |||||||||||||||||
| Direct to Consumer | 1,399 | 1,533 | 1,679 | |||||||||||||||||
| Total DAC—Health | 851,386 | 793,421 | 734,735 | |||||||||||||||||
| Annuity | — | 1,413 | 2,967 | |||||||||||||||||
| Total | $ | 6,999,136 | $ | 6,495,589 | $ | 6,009,477 |
GL 2025 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
Note 8—Liability for Unpaid Claims
Activity in the liability for unpaid health claims is summarized as follows:
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Balance at January 1, | $ | 210,994 | $ | 194,809 | $ | 184,286 | |||||||||||
| Less reinsurance recoverables | (1,521) | (2,157) | (2,084) | ||||||||||||||
| Net balance at January 1, | 209,473 | 192,652 | 182,202 | ||||||||||||||
| Incurred related to: | |||||||||||||||||
| Current year | 851,946 | 767,076 | 697,521 | ||||||||||||||
| Prior years | (1,831) | (10,460) | (4,853) | ||||||||||||||
| Total incurred | 850,115 | 756,616 | 692,668 | ||||||||||||||
| Paid related to: | |||||||||||||||||
| Current year | 659,556 | 587,473 | 535,971 | ||||||||||||||
| Prior years | 176,028 | 152,322 | 146,247 | ||||||||||||||
| Total paid | 835,584 | 739,795 | 682,218 | ||||||||||||||
| Net balance at December 31, | 224,004 | 209,473 | 192,652 | ||||||||||||||
| Plus reinsurance recoverables | 1,233 | 1,521 | 2,157 | ||||||||||||||
| Balance at December 31, | $ | 225,237 | $ | 210,994 | $ | 194,809 |
At the end of each period, the liability for unpaid health claims includes an estimate of claims incurred but not yet reported to the Company. Such estimates are updated regularly based upon the Company’s most recent claims data with recognition of emerging experience trends. Due to the nature of the Company’s health business, the payment lags are relatively short and most claims are fully paid within a year from the time incurred. Fluctuations in claims experience can lead to either over or under estimation of the liability for any given year. The difference between the estimate made at the end of the prior period and the actual experience during the period is reflected above under the caption "Incurred related to: Prior years."
Below is the reconciliation of the liability of "Policy claims and other benefits payable" on the Consolidated Balance Sheets.
| December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| Policy claims and other benefits payable: | |||||||||||
| Life insurance | $ | 315,595 | $ | 321,838 | |||||||
| Health insurance | 225,237 | 210,994 | |||||||||
| Total | $ | 540,832 | $ | 532,832 |
GL 2025 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
Note 9—Income Taxes
The following table discloses significant components of income taxes for each year presented:
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Income tax expense (benefit) from operations: | |||||||||||||||||
| Current income tax expense (benefit)*—*federal | $ | 196,988 | $ | 217,929 | $ | 145,700 | |||||||||||
| Current income tax expense (benefit)*—*state | 219 | 206 | 180 | ||||||||||||||
| Deferred income tax expense (benefit)*—*federal | 77,530 | 37,740 | 77,631 | ||||||||||||||
| Provision for income tax expense (benefit) | 274,737 | 255,875 | 223,511 | ||||||||||||||
| Shareholders’ equity: | |||||||||||||||||
| Other comprehensive income (loss) | 68,656 | 197,427 | 4,762 | ||||||||||||||
| $ | 343,393 | $ | 453,302 | $ | 228,273 |
In each of the years 2023 through 2025, deferred income tax expense (benefit) was incurred because of certain differences between net income before income tax expense (benefit) as reported on the Consolidated Statements of Operations and taxable income as reported on Globe Life's income tax returns. As explained in Note 1—Significant Accounting Policies**, these differences caused the consolidated financial statement book values of some assets and liabilities to be different from their respective tax bases.
The effective income tax rate differed from the expected U.S. federal statutory rate of 21.0% as shown below:
| Year Ended December 31, | |||||||||||||||||||||||||||||||||||
| 2025 | % | 2024 | % | 2023 | % | ||||||||||||||||||||||||||||||
| U.S. federal statutory tax rate | $ | 301,555 | 21.0 | $ | 278,594 | 21.0 | $ | 250,796 | 21.0 | ||||||||||||||||||||||||||
| State and local income taxes, net of federal income tax effect**(1)** | 173 | — | 163 | — | 142 | — | |||||||||||||||||||||||||||||
| Tax credits: | |||||||||||||||||||||||||||||||||||
| LIH credits | (11,906) | (0.8) | (9,700) | (0.7) | (14,291) | (1.2) | |||||||||||||||||||||||||||||
| Purchased solar credits | (4,988) | (0.3) | (3,000) | (0.2) | — | — | |||||||||||||||||||||||||||||
| Increasing research activities credit | (1,400) | (0.1) | (2,000) | (0.2) | — | — | |||||||||||||||||||||||||||||
| Nontaxable or nondeductible items: | |||||||||||||||||||||||||||||||||||
| Share-based awards | 377 | — | 1,341 | 0.1 | (4,724) | (0.4) | |||||||||||||||||||||||||||||
| Tax exempt investment income | (9,522) | (0.7) | (9,644) | (0.7) | (9,644) | (0.8) | |||||||||||||||||||||||||||||
| Other adjustments | 448 | — | 121 | — | 1,232 | 0.1 | |||||||||||||||||||||||||||||
| Effective tax rate | $ | 274,737 | 19.1 | $ | 255,875 | 19.3 | $ | 223,511 | 18.7 |
(1)State taxes in Texas and California made up the majority (greater than 50 percent) of the tax effect in this category.
GL 2025 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
The amount of income taxes paid (net of refunds received) disaggregated by federal (national), state and foreign taxes:
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Federal | $ | 140,527 | $ | 128,005 | $ | 120,658 | |||||||||||
| State | 173 | 189 | 144 | ||||||||||||||
| Foreign | 226 | 201 | 232 | ||||||||||||||
| Total income taxes paid (received) | $ | 140,926 | $ | 128,395 | $ | 121,034 |
The amount of income taxes paid (net of refunds received) disaggregated by individual jurisdiction in which income taxes paid (net of refunds received) is equal to or greater than 5 percent of total income taxes paid (net of refunds received):
| Year Ended December 31, | |||||||||||||||||||||||||||||||||||
| 2025 | % | 2024 | % | 2023 | % | ||||||||||||||||||||||||||||||
| Federal | $ | 140,527 | 99.7 | $ | 128,005 | 99.7 | $ | 120,658 | 99.7 | ||||||||||||||||||||||||||
| Other | 399 | 0.3 | 390 | 0.3 | 376 | 0.3 | |||||||||||||||||||||||||||||
| Total | $ | 140,926 | 100.0 | $ | 128,395 | 100.0 | $ | 121,034 | 100.0 |
Domestic income from continuing operations before income tax expense was $1.4 billion, $1.3 billion, and $1.2 billion for the year ended December 31, 2025, 2024, and 2023, respectively. The Company had no income from foreign operations.
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Income tax expense (or benefit) from continuing operations: | |||||||||||||||||
| Federal | $ | 274,518 | $ | 255,669 | $ | 223,331 | |||||||||||
| State | 219 | 206 | 180 | ||||||||||||||
| Total | $ | 274,737 | $ | 255,875 | $ | 223,511 |
GL 2025 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
The tax effects of temporary differences that gave rise to significant portions of the deferred tax assets and deferred tax liabilities are presented below:
| December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| Deferred tax assets: | |||||||||||
| Unrealized losses | $ | 460,158 | $ | 532,756 | |||||||
| Carryover of tax losses | 15,052 | 10,342 | |||||||||
| Total gross deferred tax assets | 475,210 | 543,098 | |||||||||
| Less valuation allowance | (2,632) | (3,383) | |||||||||
| Net deferred tax assets | 472,578 | 539,715 | |||||||||
| Deferred tax liabilities: | |||||||||||
| Employee and agent compensation | 115,604 | 104,385 | |||||||||
| Deferred acquisition costs | 961,915 | 961,406 | |||||||||
| Future policy benefits, unearned and advance premiums, and policy claims | 254,277 | 228,117 | |||||||||
| Other liabilities | 75,843 | 24,432 | |||||||||
| Total gross deferred tax liabilities | 1,407,639 | 1,318,340 | |||||||||
| Net deferred tax liability | $ | 935,061 | $ | 778,625 |
Bermuda Corporate Income Tax Act: The Bermuda Corporate Income Tax Act (the "Act") was enacted on December 27, 2023, and included a new corporate income tax ("CIT"). The CIT is in effect for years beginning after January 1, 2025. The CIT is applicable to the Company; however, due to having a small international footprint, the Company is out of scope for 2025 and will be subject to the CIT beginning in 2030. Additionally, the Company does not expect the Act to have a material impact on the consolidated financials.
Income Tax Return: Globe Life Inc. and its subsidiaries file a life-nonlife consolidated federal income tax return. The statutes of limitations for the Internal Revenue Service's examination and assessment of additional tax are closed for all tax years prior to 2017 with respect to Globe Life's consolidated federal income tax returns. Management concludes that adequate provision has been made in the consolidated financial statements for any potential assessments that may result from current or future tax examinations and other tax-related matters for all open years. The Company's Bermuda subsidiaries have made, or intend to make, the election under Internal Revenue Code Section 953(d) to be taxed as a U.S. Corporation effective with their date of incorporation.
Valuations: Globe Life has a $71.7 million net operating loss ("NOL") carryforward at December 31, 2025, of which $7.2 million was created prior to 2018 and will begin to expire in 2035 if not otherwise used to offset future taxable income. The remaining NOL carryforward of $64.5 million may be carried forward indefinitely. A valuation allowance is to be recorded when it is more likely than not that deferred tax assets will not be realized by the Company. A valuation allowance has been established in the amount of $2.6 million related to pre-acquisition and post-acquisition NOL carryforward deferred tax assets from an acquisition in 2024 as management has determined that the acquired companies will more than likely not have sufficient taxable income in future periods to realize the deferred tax assets.
Globe Life's tax liability is adjusted to include a provision for uncertain tax positions taken or expected to be taken in a tax return. However, during the years 2023 through 2025, Globe Life did not have any uncertain tax positions which resulted in unrecognized tax benefits.
GL 2025 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
Note 10—Postretirement Benefits
Globe Life has qualified noncontributory defined benefit pension plans (the "Pension Plans") and contributory savings plans that cover substantially all employees. There is also a nonqualified noncontributory supplemental executive retirement plan ("SERP") that covers a limited number of officers. The tables included herein will focus on the Pension Plans and SERP.
The total cost of these retirement plans charged to operations was as follows:
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Plan Type: | |||||||||||||||||
| Defined Contribution Plans(1) | $ | 6,870 | $ | 6,605 | $ | 6,390 | |||||||||||
| Defined Benefit Pension Plans(2) | 15,984 | 16,458 | 15,225 |
(1)401K plans.
(2)Qualified pension plans and SERP.
Globe Life accrues expense for the defined contribution plans based on a percentage of the employees’ contributions. The plans are funded by the employee contributions and a Globe Life contribution equal to the amount of accrued expense. Plan contributions are both mandatory and discretionary, depending on the terms of the plan.
Pension Plans: Cost for the Pension Plans has been calculated on the projected unit credit actuarial cost method. All plan measurements for the pension plans are as of December 31 of the respective year. The pension plans covering the majority of employees are qualified and funded. Contributions are made to funded pension plans subject to minimums required by regulation and maximums allowed for tax purposes.
Globe Life's SERP provides an additional supplemental defined pension benefit to a limited number of officers. The supplemental benefit is based on the participant’s qualified plan benefit without consideration to the regulatory limits on compensation and benefit payments applicable to qualified plans, except that eligible compensation is capped at $1 million. The SERP is nonqualified and unfunded. However, a Rabbi Trust has been established to support the liability for this plan. The Rabbi Trust consists of life insurance policies on the lives of plan participants with an unaffiliated insurance carrier as well as an investment account. Since this plan is nonqualified, the investments and the policyholder value of the insurance policies in the Rabbi Trust are not included as defined benefit plan assets, but rather assets of the Company. They are included in “Other Assets” on the Consolidated Balance Sheets.
Defined benefit and SERP plan contributions were $26.5 million in 2025, $24.8 million in 2024, and $24.4 million in 2023. In 2026, the Company does not expect to increase contributions to the plans from what was contributed in 2025.
GL 2025 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
Pension Assets: Plan assets in the funded plans consist primarily of investments in marketable fixed maturities and equity securities that are valued at fair value. Globe Life measures the fair value of its financial assets, including the assets in its benefit plans, in accordance with accounting guidance which establishes a hierarchy for asset values and provides a methodology for the measurement of value. Please refer to Note 1—Significant Accounting Policies under the caption Fair Value Measurements, Investments in Securities for a complete discussion of valuation procedures.
The following table presents the assets of the Company's Pension Plans at December 31, 2025 and 2024:
Pension Assets by Component at December 31, 2025
| Fair Value Determined by: | |||||||||||||||||||||||||||||
| Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total Amount | % of Total | |||||||||||||||||||||||||
| Exchange traded fund(4) | $ | 53,437 | $ | — | $ | — | $ | 53,437 | 8 | ||||||||||||||||||||
| Equity exchange traded fund(1) | 344,409 | — | — | 344,409 | 50 | ||||||||||||||||||||||||
| U.S. Government and Agency | — | 180,974 | — | 180,974 | 26 | ||||||||||||||||||||||||
| Other bonds | — | 3 | — | 3 | — | ||||||||||||||||||||||||
| Guaranteed annuity contract(2) | — | 46,341 | — | 46,341 | 7 | ||||||||||||||||||||||||
| Short-term investments | 6,957 | — | — | 6,957 | 1 | ||||||||||||||||||||||||
| Other | 3,747 | — | — | 3,747 | 1 | ||||||||||||||||||||||||
| $ | 408,550 | $ | 227,318 | $ | — | 635,868 | 93 | ||||||||||||||||||||||
| Other long-term investments(3) | 48,411 | 7 | |||||||||||||||||||||||||||
| Total pension assets | $ | 684,279 | 100 |
(1)A fund including marketable securities that mirror the S&P 500 index.
(2)Representing a guaranteed annuity contract issued by Globe Life Inc.'s subsidiary, American Income Life Insurance Company, to fund the obligations of the American Income Life Insurance Company Collective Bargaining Agreement Employees Pension Plan.
(3)Includes non-redeemable investment funds that report the Globe Life Inc. Pension Plan's pro-rata share of the limited partnership's net asset value (NAV) per share, or its equivalent, as a practical expedient for fair value. As of December 31, 2025, the Globe Life Inc. Pension Plan owned less than 1% of three long-term investment funds.
(4)A fund including U.S. dollar-denominated investment-grade securities issued by industrial, utility, and financial companies with maturities greater than 10 years.
GL 2025 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
Pension Assets by Component at December 31, 2024
| Fair Value Determined by: | |||||||||||||||||||||||||||||
| Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total Amount | % of Total | |||||||||||||||||||||||||
| Exchange traded fund(4) | $ | 35,483 | $ | — | $ | — | $ | 35,483 | 6 | ||||||||||||||||||||
| Equity exchange traded fund(1) | 322,846 | — | — | 322,846 | 53 | ||||||||||||||||||||||||
| U.S. Government and Agency | — | 179,418 | — | 179,418 | 29 | ||||||||||||||||||||||||
| Other bonds | — | 4 | — | 4 | — | ||||||||||||||||||||||||
| Guaranteed annuity contract(2) | — | 43,893 | — | 43,893 | 7 | ||||||||||||||||||||||||
| Short-term investments | 1,235 | — | — | 1,235 | — | ||||||||||||||||||||||||
| Other | 1,420 | — | — | 1,420 | — | ||||||||||||||||||||||||
| $ | 360,984 | $ | 223,315 | $ | — | 584,299 | 95 | ||||||||||||||||||||||
| Other long-term investments(3) | 30,546 | 5 | |||||||||||||||||||||||||||
| Total pension assets | $ | 614,845 | 100 |
(1)A fund including marketable securities that mirror the S&P 500 index.
(2)Representing a guaranteed annuity contract issued by Globe Life Inc.'s subsidiary, American Income Life Insurance Company, to fund the obligations of the American Income Life Insurance Company Collective Bargaining Agreement Employees Pension Plan.
(3)Includes non-redeemable investment funds that report the Globe Life Inc. Pension Plan's pro-rata share of the limited partnership's net asset value (NAV) per share, or its equivalent, as a practical expedient for fair value. As of December 31, 2024, the Globe Life Inc. Pension Plan owned less than 1% of two long-term investment funds.
(4)A fund including U.S. dollar-denominated investment-grade securities issued by industrial, utility, and financial companies with maturities greater than 10 years.
Globe Life's investment objectives and goals for its plan assets include generating strong risk-adjusted returns, maintaining diversification, investing in accordance with the liabilities of the plan, and satisfying the liquidity needs of the plan. Globe Life seeks to accomplish these objectives by investing in public and private markets and diversifying across asset classes, industries, sectors, and entities. Globe Life intends to maintain an asset mix that when combined with future plan contributions will produce adequate long-term risk adjusted returns relative to expected changes in the liability as a result of changes to interest rates or earned benefits.
The majority of the securities in the portfolio are highly marketable so that there will be adequate liquidity to meet projected payments. There are no specific policies calling for asset durations to match those of benefit obligations.
Allowed investments include equity, fixed income, real assets, and short-term investments. Equity securities include common stocks or equivalents, preferred stocks, and/or funds investing primarily in private or public equity investments. Fixed income securities include loans of corporations or commercial real estate as well as marketable debt securities issued by either the U.S. Government, Agencies of the U.S. Government, state, local and municipal governments, domestic and foreign corporations, Special Purpose Vehicles secured by pools of financial assets, and other U.S. financial institutions. Real Assets include equity interest in core or non-core real estate or infrastructure with U.S. or non-U.S. exposure. Short-term investments consist of fixed income securities maturing in one year or less.
The assets are to be invested in a mix of allowed investments that best serve the objectives of the pension plan. Factors to be considered in determining the asset mix include funded status, annual pension expense, annual pension contributions, and balance sheet liability. The investment portfolio is well diversified to avoid undue exposure to an asset class, sector, industry, business, or security. The Company does not employ any other special risk management techniques, such as derivatives, in managing the pension investment portfolio.
Globe Life's public equity within the pension plan assets consists of an exchange traded fund that mirrors the S&P 500 index which better aligns with a passive approach rather than an actively managed portfolio.
GL 2025 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
At December 31, 2025, there were no restricted investments contained in the portfolio. Plan contributions have been invested primarily in fixed maturity and equity securities during the three years ended December 31, 2025.
The following table presents additional information about the Company's other long-term investments included in pension plan assets as of December 31, 2025 and December 31, 2024 at fair value:
| Fair Value | Unfunded Commitments**(2)** | ||||||||||||||||||||||||||||
| Investment Category | 2025 | 2024 | 2025 | Redemption Term/Notice**(1)** | |||||||||||||||||||||||||
| Multi-asset class | $ | 7,541 | $ | 12,383 | $ | — | Non-redeemable | ||||||||||||||||||||||
| Private equity | 35,824 | 18,163 | 37,666 | Non-redeemable | |||||||||||||||||||||||||
| Infrastructure | 5,046 | — | 26,132 | Non-redeemable | |||||||||||||||||||||||||
| Total | $ | 48,411 | $ | 30,546 | $ | 63,798 |
(1)Non-redeemable funds generally have an expected life of 7 to 10 years from fund closing with extension options of 2 to 4 years. Redemptions are paid out throughout the life of the funds at the General Partner's discretion.
(2)Unfunded commitments include unfunded balances during the investment period. After an investment period ends, the fund can call capital based on limited and specified reasons. As of December 31, 2025, unfunded commitments totaled $78.1 million, including funds past the investment period.
SERP: The following tables include premiums paid for COLI for the three years ended December 31, 2025 and investments of the Rabbi Trust for the two years ended December 31, 2025:
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Premiums paid for insurance coverage | $ | — | $ | 443 | $ | 443 | |||||||||||
| At December 31, | |||||||||||||||||
| 2025 | 2024 | ||||||||||||||||
| Total investments: | |||||||||||||||||
| COLI | $ | 59,008 | $ | 57,210 | |||||||||||||
| Exchange traded funds | 111,470 | 98,314 | |||||||||||||||
| $ | 170,478 | $ | 155,524 |
Pension Plans and SERP Liabilities: The following table presents the projected benefit obligation (PBO) and accumulated benefit obligation (ABO) for the Pension Plans and SERP at December 31, 2025 and 2024:
| December 31, | |||||||||||||||||||||||
| 2025 | 2024 | ||||||||||||||||||||||
| PBO | ABO | PBO | ABO | ||||||||||||||||||||
| Pension plans | $ | 597,695 | $ | 531,741 | $ | 561,615 | $ | 500,010 | |||||||||||||||
| SERP | 79,093 | 72,666 | 73,441 | 68,428 | |||||||||||||||||||
| Benefit obligation | $ | 676,788 | $ | 604,407 | $ | 635,056 | $ | 568,438 |
For the year ended December 31, 2025, the Pension Plans have plan assets with fair values in excess of projected benefit obligations. The projected benefit obligations and the fair value of plan assets were as follows:
| At December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| Funded benefit pension plans PBO | $ | 597,695 | $ | 561,615 | |||||||
| Funded benefit pension plans fair value of plan assets | 684,279 | 614,845 |
GL 2025 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
For the year ended December 31, 2025, the funded benefit pension plans have plan assets with fair value in excess of the accumulated benefit obligations. The accumulated benefit obligations and the fair value of plan assets were as follows:
| At December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| Funded benefit pension plans ABO | $ | 531,741 | $ | 500,010 | |||||||
| Funded benefit pension plans fair value of plan assets | 684,279 | 614,845 |
The following table discloses the assumptions used to determine Globe Life's pension liabilities and costs for the appropriate periods. The discount and compensation increase rates are used to determine current year projected benefit obligations and subsequent year pension expense. The long-term rate of return is used to determine current year expense. Differences between assumptions and actual experience are included in actuarial gain or loss.
Weighted Average Pension Plan Assumptions
| For Benefit Obligations at December 31: | 2025 | 2024 | |||||||||||||||
| Discount rate | 5.81 | % | 5.81 | % | |||||||||||||
| Rate of compensation increase | 4.44 | 4.46 | |||||||||||||||
| For Periodic Benefit Cost for the Year: | 2025 | 2024 | 2023 | ||||||||||||||
| Discount rate | 5.81 | % | 5.40 | % | 5.71 | % | |||||||||||
| Expected long-term returns | 7.33 | 7.18 | 6.98 | ||||||||||||||
| Rate of compensation increase | 4.46 | 4.40 | 4.40 |
The discount rate is determined based on the expected duration of plan liabilities. A yield is then derived based on the current market yield of a hypothetical portfolio of high quality corporate bonds that match the liability's average life. The rate of compensation increase is projected based on Company experience, modified as appropriate for future expectations. The expected long-term rate of return on plan assets is management’s best estimate of the average rate of earnings expected to be received on the assets invested in the plan over the benefit period. In determining this assumption, consideration is given to the historical rate of return earned on the assets, the projected returns over future periods, and the discount rate used to compute benefit obligations.
Net Periodic Benefit Cost: The following table presents the net periodic benefit cost for the defined benefit plans by expense component for the three years ended December 31, 2025 as follows:
Components of Net Periodic Benefit Cost
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Service cost—benefits earned during the period | $ | 24,969 | $ | 24,898 | $ | 21,568 | |||||||||||
| Interest cost on projected benefit obligation | 36,081 | 33,123 | 31,367 | ||||||||||||||
| Expected return on assets | (46,278) | (42,580) | (38,625) | ||||||||||||||
| Amortization of prior service cost (credit) | 1,167 | 1,071 | 1,075 | ||||||||||||||
| Recognition of actuarial gain (loss) | 45 | (54) | (160) | ||||||||||||||
| Net periodic benefit cost | $ | 15,984 | $ | 16,458 | $ | 15,225 |
GL 2025 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
An analysis of the impact on other comprehensive income (loss) concerning pensions and other postretirement benefits is as follows:
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Balance at January 1 | $ | 26,194 | $ | (2,727) | $ | 1,570 | |||||||||||
| Amortization of: | |||||||||||||||||
| Prior service cost (credit) | 1,168 | 1,071 | 1,075 | ||||||||||||||
| Net actuarial (gain) loss(1) | (915) | (597) | (1,465) | ||||||||||||||
| Total amortization | 253 | 474 | (390) | ||||||||||||||
| Plan amendments | — | (1,212) | — | ||||||||||||||
| Experience gain (loss)(2) | 10,522 | 29,659 | (3,907) | ||||||||||||||
| Balance at December 31 | $ | 36,969 | $ | 26,194 | $ | (2,727) |
(1)Includes amortization of postretirement benefits other than pensions of $(959) thousand in 2025, $(622) thousand in 2024, and $(732) thousand in 2023.
(2)The increase in the experience gain (loss) is related to an increase in discount rate.
The following table presents a reconciliation from the beginning to the end of the year of the PBO for the Pension Plans and SERP, and the plan assets for the Pension Plans. This table also presents the amounts previously recognized as a component of accumulated other comprehensive income.
Pension Benefits
| Year Ended December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| Changes in PBO: | |||||||||||
| PBO at beginning of year | $ | 635,056 | $ | 627,560 | |||||||
| Service cost | 24,969 | 24,898 | |||||||||
| Interest cost | 36,081 | 33,123 | |||||||||
| Plan amendments | — | 1,212 | |||||||||
| Actuarial loss (gain) | 10,252 | (22,964) | |||||||||
| Benefits paid | (29,570) | (28,773) | |||||||||
| PBO at end of year | 676,788 | 635,056 | |||||||||
| Changes in plan assets: | |||||||||||
| Fair value at beginning of year | 614,845 | 570,767 | |||||||||
| Return on assets | 67,459 | 48,084 | |||||||||
| Contributions | 26,488 | 24,767 | |||||||||
| Benefits paid | (29,570) | (28,773) | |||||||||
| Fair value at end of year | 679,222 | 614,845 | |||||||||
| Funded status at year end | $ | 2,434 | $ | (20,211) |
Changes in the PBO related to actuarial losses (gains) are primarily attributed to changes in the discount rate.
| Year Ended December 31, | |||||||||||
| Amounts recognized in accumulated other comprehensive income consist of: | 2025 | 2024 | |||||||||
| Net loss (gain) | $ | (39,917) | $ | (28,720) | |||||||
| Prior service cost | 5,468 | 6,636 | |||||||||
| Net amounts recognized at year end | $ | (34,449) | $ | (22,084) |
GL 2025 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
Globe Life has estimated its expected postretirement benefits to be paid over the next ten years as of December 31, 2025. These estimates use the same assumptions that measure the benefit obligation at December 31, 2025, taking estimated future employee service into account. Those estimated benefits are as follows:
| For the year(s): | |||||
| 2026 | $ | 33,125 | |||
| 2027 | 36,024 | ||||
| 2028 | 38,950 | ||||
| 2029 | 42,143 | ||||
| 2030 | 44,682 | ||||
| 2031-2035 | 260,402 |
Note 11—Supplemental Disclosures of Cash Flow Information
The following table summarizes Globe Life's noncash transactions for the three years ended December 31, 2025, which are not reflected on the Consolidated Statements of Cash Flows:
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Stock-based compensation not involving cash | $ | 53,355 | $ | 40,118 | $ | 30,736 | |||||||||||
| Commitments for low-income housing interests | 234,753 | 35,000 | — | ||||||||||||||
| Exchanges of fixed maturity investments | 288,491 | 105,595 | 50,936 | ||||||||||||||
| Net unsettled security trades | 408 | 2,334 | 3,833 | ||||||||||||||
| Noncash tax credits | — | — | 1,083 | ||||||||||||||
The following table summarizes certain amounts paid during the period:
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Interest paid | $ | 144,680 | $ | 116,993 | $ | 99,545 | |||||||||||
| Income taxes paid(1) | 175,907 | 175,400 | 121,034 |
(1)Income taxes paid includes cash paid of $35 million, $47 million, and $0 for the purchase of transferable tax credits as of December 31, 2025, 2024, and 2023, respectively.
GL 2025 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
Note 12—Debt
The following table presents information about the terms and outstanding balances of Globe Life's debt.
Selected Information about Debt Issues
| As of December 31, | |||||||||||||||||||||||||||||||||||||||||||||||
| 2025 | 2024 | ||||||||||||||||||||||||||||||||||||||||||||||
| Instrument | Issue Date | Maturity Date | Coupon Rate | Par Value | Unamortized Discount & Issuance Costs | Book Value | Fair Value | Book Value | |||||||||||||||||||||||||||||||||||||||
| Senior notes | 09/27/2018 | 09/15/2028 | 4.550% | $ | 550,000 | $ | (2,252) | $ | 547,748 | $ | 555,115 | $ | 546,999 | ||||||||||||||||||||||||||||||||||
| Senior notes | 08/21/2020 | 08/15/2030 | 2.150% | 400,000 | (2,396) | 397,604 | 361,852 | 397,132 | |||||||||||||||||||||||||||||||||||||||
| Senior notes(1) | 05/19/2022 | 06/15/2032 | 4.800% | 250,000 | (3,308) | 246,692 | 251,923 | 246,272 | |||||||||||||||||||||||||||||||||||||||
| Senior notes | 08/23/2024 | 09/15/2034 | 5.850% | 450,000 | (4,782) | 445,218 | 472,792 | 444,814 | |||||||||||||||||||||||||||||||||||||||
| Junior subordinated debentures | 11/17/2017 | 11/17/2057 | 5.275% | 125,000 | (1,539) | 123,461 | 123,290 | 123,443 | |||||||||||||||||||||||||||||||||||||||
| Junior subordinated debentures | 06/14/2021 | 06/15/2061 | 4.250% | 325,000 | (7,528) | 317,472 | 217,750 | 317,387 | |||||||||||||||||||||||||||||||||||||||
| Term loan(2) | 05/11/2023 | 08/15/2027 | 5.353% | 250,000 | (1,110) | 248,890 | 248,890 | 248,204 | |||||||||||||||||||||||||||||||||||||||
| Subtotal | 2,350,000 | (22,915) | 2,327,085 | 2,231,612 | 2,324,251 | ||||||||||||||||||||||||||||||||||||||||||
| Unamortized issuance costs(3) | — | (6,292) | (6,292) | (6,292) | — | ||||||||||||||||||||||||||||||||||||||||||
| Total long-term debt | 2,350,000 | (29,207) | 2,320,793 | 2,225,320 | 2,324,251 | ||||||||||||||||||||||||||||||||||||||||||
| Commercial paper | 306,000 | (1,344) | 304,656 | 304,656 | 415,401 | ||||||||||||||||||||||||||||||||||||||||||
| Total short-term debt | 306,000 | (1,344) | 304,656 | 304,656 | 415,401 | ||||||||||||||||||||||||||||||||||||||||||
| Total debt | $ | 2,656,000 | $ | (30,551) | $ | 2,625,449 | $ | 2,529,976 | $ | 2,739,652 |
(1)An additional $150 million par value and book value is held by insurance subsidiaries that eliminates in consolidation.
(2)Interest calculated quarterly using Secured Overnight Financing Rate (SOFR) plus 135 basis points. The term loan was amended on August 15, 2024 extending the maturity date from November 11, 2024 to August 15, 2027 and increasing the principal amount from $170 million to $250 million.
(3)Unamortized issuance costs for P-CAPS facility agreement.
The commercial paper has the highest priority of all unsecured debt, followed by senior notes then junior subordinated debentures. The senior notes are callable under a make-whole provision, and the junior subordinated debentures are subject to an optional redemption five years from issuance. Interest on the 4.25% junior subordinated debentures and the term loan are payable quarterly while all other long-term debt is payable semi-annually.
GL 2025 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
Contractual Debt Obligations*:* The following table presents expected scheduled principal payments under our contractual debt obligations:
| Year Ended December 31, | |||||||||||||||||||||||||||||||||||
| 2026 | 2027 | 2028 | 2029 | 2030 | Thereafter | ||||||||||||||||||||||||||||||
| Debt obligations | $ | 306,000 | $ | 250,000 | $ | 550,000 | $ | — | $ | 400,000 | $ | 1,150,000 |
Credit Facility*:* Globe Life has in place a credit facility which provides for a $1 billion revolving credit facility that may be increased to $1.25 billion. The credit facility matures March 29, 2029 and may be extended up to two one-year periods upon the Company's request. Pursuant to this agreement, the participating lenders have agreed to make revolving loans to Globe Life and to issue secured or unsecured letters of credit. The Company has not drawn on any of the credit to date.
The facility is further designated as a back-up credit line for a commercial paper program under which the Company may either borrow from the credit line or issue commercial paper at any time, with total commercial paper outstanding not to exceed the facility maximum of $1 billion, less any letters of credit issued. Interest is charged at variable rates. In accordance with the agreement, Globe Life is subject to certain covenants regarding capitalization.
As of December 31, 2025, the Company was in full compliance with these covenants.
Pre-capitalized Trust Securities: On July 1, 2025, the Company entered into a 30-year Facility Agreement with a Delaware trust (the "Trust") following the completion of a private placement of Trust securities for $500 million of Pre-Capitalized Trust Securities ("P-CAPS"), conducted pursuant to Rule 144A under the Securities Act. The Trust invested the proceeds from this offering in a portfolio of U.S. Treasury principal and interest strips ("Treasury securities"). P-CAPS provide the Company with a source of liquidity, the proceeds of which, if drawn, would be used for general corporate purposes.
Under the Facility Agreement, the Company has the right, on one or more occasions, to issue and sell up to $500 million of its 6.580% Senior Notes to the Trust in exchange for a corresponding amount of Treasury securities held by the Trust. In consideration for this right, the Company pays the Trust a semi-annual facility fee at a rate of 1.789% per annum on the unexercised portion of the facility. These fees are recorded in Interest Expense in the Consolidated Statements of Operations. The Company also reimburses the Trust for its administrative expenses. The Issuance Right will be exercised automatically in full upon (i) our failure to pay the facility fee or to purchase any Strips required to be purchased under the Facility, if the failure to pay is not cured within 30 days, or (ii) certain bankruptcy events involving the Company. We are also required to exercise the Issuance Right in full if our consolidated stockholders’ equity (excluding AOCI) falls below $1.85 billion, subject to certain adjustments. As of December 31, 2025, the Company had no senior note issuances under the Facility Agreement.
GL 2025 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
Commercial Paper*:* Commercial paper outstanding and any long-term debt due within one year are reported as short-term debt on the Consolidated Balance Sheets. The following tables present selected information concerning Globe Life's commercial paper borrowings.
Credit Facility—Commercial Paper
(Dollar amounts in thousands)
| At December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| Balance commercial paper at end of period (at par value) | $ | 306,000 | $ | 419,000 | |||||||
| Annualized interest rate | 4.05 | % | 5.22 | % | |||||||
| Letters of credit outstanding | $ | 115,000 | $ | 115,000 | |||||||
| Remaining amount available under credit line | 579,000 | 466,000 |
Credit Facility—Commercial Paper Activity
(Dollar amounts in thousands)
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Average balance of commercial paper outstanding during period (par value) | $ | 412,705 | $ | 405,573 | $ | 290,024 | |||||||||||
| Daily-weighted average interest rate (annualized) | 4.77 | % | 5.65 | % | 5.40 | % | |||||||||||
| Maximum daily amount outstanding during period (par value) | $ | 605,500 | $ | 633,425 | $ | 477,700 | |||||||||||
| Commercial paper issued during period (par value) | 2,369,500 | 2,052,056 | 2,029,000 | ||||||||||||||
| Commercial paper matured during period (par value) | (2,482,500) | (1,952,056) | (1,995,000) | ||||||||||||||
| Net commercial paper issued (matured) during period (par value) | (113,000) | 100,000 | 34,000 |
The Company reduced the commercial paper borrowings by $113 million from the prior year. The Company was able to issue commercial paper as needed under this facility during the year ended December 31, 2025 and 2024.
Federal Home Loan Bank*:* FHLB membership provides certain of our insurance subsidiaries with access to various low-cost collateralized borrowings and funding agreements. The membership requires ownership of FHLB common stock, as well as the purchase of activity-based common stock equal to approximately 4.1% of outstanding borrowings.
Globe Life owned $32.5 million in FHLB common stock as of December 31, 2025 and $34.5 million as of December 31, 2024. The FHLB stock is restricted from redemption or repurchases for the duration of the membership and recorded at cost (par) as required by applicable guidance. The FHLB stock is included in "Other long-term investments*"* on the Consolidated Balance Sheets. Borrowings with the FHLB are subject to the availability of pledged assets at the insurance subsidiaries of Globe Life. As of December 31, 2025, Globe Life's insurance subsidiaries' maximum borrowing capacity under the FHLB facility was approximately $730 million, net of outstanding funding agreements and short-term borrowings, on pledged assets with a fair value of $1.4 billion. As of December 31, 2025, $437 million in funding agreements were outstanding with the FHLB, compared to $372 million as of December 31, 2024. This amount is included in "Other policyholders' funds" on the Consolidated Balance Sheets. The Company had no short-term borrowings from the FHLB as of December 31, 2025 and 2024, respectively.
GL 2025 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
Note 13—Shareholders' Equity
Share Data: A summary of common share activity is presented in the following chart.
| Common Stock | |||||||||||||||||||||||
| Issued | Treasury Stock | ||||||||||||||||||||||
| 2023: | |||||||||||||||||||||||
| Balance at January 1, 2023 | 105,218,183 | (8,478,288) | |||||||||||||||||||||
| Grants of restricted stock | — | 7,110 | |||||||||||||||||||||
| Vesting of performance shares | — | 84,298 | |||||||||||||||||||||
| Issuance of common stock due to exercise of stock options | — | 1,375,313 | |||||||||||||||||||||
| Treasury stock acquired | — | (4,415,287) | |||||||||||||||||||||
| Retirement of treasury stock | (3,000,000) | 3,000,000 | |||||||||||||||||||||
| Balance at December 31, 2023 | 102,218,183 | (8,426,854) | |||||||||||||||||||||
| 2024: | |||||||||||||||||||||||
| Grants of restricted stock | — | 7,375 | |||||||||||||||||||||
| Vesting of performance shares | — | 143,211 | |||||||||||||||||||||
| Issuance of common stock due to exercise of stock options | — | 584,993 | |||||||||||||||||||||
| Treasury stock acquired | — | (10,549,341) | |||||||||||||||||||||
| Retirement of treasury stock | (5,000,000) | 5,000,000 | |||||||||||||||||||||
| Balance at December 31, 2024 | 97,218,183 | (13,240,616) | |||||||||||||||||||||
| 2025: | |||||||||||||||||||||||
| Grants of restricted stock | — | 6,530 | |||||||||||||||||||||
| Vesting of performance shares | — | 152,680 | |||||||||||||||||||||
| Issuance of common stock due to exercise of stock options | — | 1,842,860 | |||||||||||||||||||||
| Treasury stock acquired | — | (6,886,536) | |||||||||||||||||||||
| Retirement of treasury stock | (5,000,000) | 5,000,000 | |||||||||||||||||||||
| Balance at December 31, 2025 | 92,218,183 | (13,125,082) |
There was no activity related to the preferred stock in years 2023 through 2025.
GL 2025 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
Acquisition of Common Shares*:* Globe Life shares are acquired through open market purchases under the Globe Life stock repurchase program when it is determined to be the best use of Globe Life's excess cash flows. This yields a return that is better than available alternatives and exceeds our cost of equity. When stock options are exercised, proceeds from the exercises are generally used to repurchase approximately the number of shares available with those funds in order to reduce dilution. See the following summary below:
| Globe Life Share Repurchase Program | Share Repurchase for Dilution Purposes | ||||||||||||||||||||||||||||||||||
| Shares Acquired (in thousands) | Total Cost | Average Price | Shares Acquired (in thousands) | Total Cost | Average Price | ||||||||||||||||||||||||||||||
| 2025 | 5,420 | $ | 685,151 | $ | 126.41 | 1,469 | $ | 189,669 | $ | 129.14 | |||||||||||||||||||||||||
| 2024 | 10,086 | 945,637 | 93.76 | 501 | 48,026 | 95.75 | |||||||||||||||||||||||||||||
| 2023 | 3,369 | 380,103 | 112.84 | 1,080 | 127,155 | 117.72 |
Restrictions*:* Restrictions exist on the flow of funds to Globe Life Inc. from its insurance subsidiaries. Statutory regulations require life insurance subsidiaries to maintain certain minimum amounts of capital and surplus. Dividends from insurance subsidiaries of Globe Life Inc. are restricted based on regulations by their states of domicile. Additionally, insurance company distributions are generally not permitted in excess of statutory surplus. Subsidiaries are also subject to certain minimum capital requirements. Subsidiaries of Globe Life paid cash dividends to the Parent Company in the amount of $816 million in 2025, $693 million in 2024, and $460 million in 2023. As of December 31, 2025, dividends from our U.S. insurance subsidiaries to the Parent Company available to be paid in 2026 are limited to the amount of $211 million without regulatory approval, such that $1.4 billion was considered restricted net assets of the subsidiaries. Dividends exceeding these limitations may be available during the year pending regulatory approval. While there are no legal restrictions on the payment of dividends to shareholders from Globe Life's retained earnings, retained earnings as of December 31, 2025 were restricted by lenders’ covenants which require the Company to maintain and not distribute $5.6 billion from its total consolidated retained earnings of $8.5 billion.
Earnings per Share*:* A reconciliation of basic and diluted weighted-average shares outstanding used in the computation of basic and diluted earnings per share is as follows:
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Basic weighted average shares outstanding | 81,376,845 | 89,278,574 | 95,098,474 | ||||||||||||||
| Weighted average dilutive options outstanding | 1,148,147 | 382,848 | 1,265,367 | ||||||||||||||
| Diluted weighted average shares outstanding | 82,524,992 | 89,661,422 | 96,363,841 | ||||||||||||||
| Antidilutive shares | — | 2,140,787 | 422,739 |
Antidilutive shares are excluded from the calculation of diluted earnings per share. All antidilutive shares noted above result from outstanding out of the money employee and Director stock options.
GL 2025 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
Note 14—Stock-Based Compensation
Globe Life's stock-based compensation consists of stock options, restricted stock, restricted stock units, and performance shares. Certain employees and members of the board of directors (directors) have been granted fixed equity options to buy shares of Globe Life Inc. stock at the market value of the stock on the date of grant, under the provisions of the Globe Life stock option plans. The options are exercisable during the period commencing from the date they vest until expiring according to the terms of the grant. Options generally expire the earlier of employee termination or option contract term, which are either seven-year or ten-year terms. However, depending on the circumstances of termination, options may be exercised for a period of time following termination of employment or upon death or disability. Options generally vest in accordance with the following schedule:
| Shares vested by period | |||||||||||||||||||||||||||||||||||||||||
| Contract Period | 6 Months | Year 1 | Year 2 | Year 3 | |||||||||||||||||||||||||||||||||||||
| Directors | 7 years | 100% | —% | —% | —% | ||||||||||||||||||||||||||||||||||||
| Employees | 7 years | —% | —% | 50% | 50% | ||||||||||||||||||||||||||||||||||||
All employee options vest immediately upon retirement on or after the attainment of age 65, upon death, or disability. Globe Life generally issues shares for the exercise of stock options from treasury stock. The Company generally uses the proceeds from option exercises to buy shares of Globe Life common stock in the open market to reduce the dilution from option exercises.
A summary of stock compensation activity for each of the three years ended December 31, 2025 is presented below:
| 2025 | 2024 | 2023 | |||||||||||||||
| Stock-based compensation expense recognized(1) | $ | 53,355 | $ | 40,118 | $ | 30,736 | |||||||||||
| Tax benefit recognized | 10,829 | 7,085 | 11,178 |
(1)No stock-based compensation expense was capitalized in any period in accordance with applicable GAAP.
Additional stock compensation information is as follows at December 31:
| 2025 | 2024 | ||||||||||
| Unrecognized compensation(1) | $ | 49,461 | $ | 46,956 | |||||||
| Weighted average period of expected recognition (in years)(1) | 0.64 | 0.53 |
(1)Includes stock options, restricted stock units and performance shares.
No equity awards were cash settled during the three years ended December 31, 2025.
Options: The following table summarizes information about stock options outstanding at December 31, 2025.
| Options Outstanding | Options Exercisable | |||||||||||||||||||||||||||||||
| Range of Exercise Prices | Number Outstanding | Weighted- Average Remaining Contractual Life (Years) | Weighted- Average Exercise Price | Number Exercisable | Weighted- Average Exercise Price | |||||||||||||||||||||||||||
| $50.64 - $98.32 | 1,283,918 | 1.89 | $ | 92.51 | 1,283,918 | $ | 92.51 | |||||||||||||||||||||||||
| 100.74 | 745,000 | 1.15 | 100.74 | 745,000 | 100.74 | |||||||||||||||||||||||||||
| 103.23 | 935,490 | 3.14 | 103.23 | 935,490 | 103.23 | |||||||||||||||||||||||||||
| 105.56 - 128.40 | 1,339,536 | 4.97 | 124.90 | 266,584 | 118.92 | |||||||||||||||||||||||||||
| $50.64 - $128.40 | 4,303,944 | 2.99 | $ | 106.34 | 3,230,992 | $ | 99.69 |
GL 2025 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
An analysis of option activity for each of the three years ended December 31, 2025, is as follows:
| 2025 | 2024 | 2023 | |||||||||||||||||||||||||||||||||
| Options | Weighted-Average Exercise Price | Options | Weighted-Average Exercise Price | Options | Weighted-Average Exercise Price | ||||||||||||||||||||||||||||||
| Outstanding—beginning of year | 5,825,957 | $ | 99.74 | 5,940,320 | $ | 96.19 | 6,962,374 | $ | 91.73 | ||||||||||||||||||||||||||
| Granted: | |||||||||||||||||||||||||||||||||||
| 7-year term | 349,342 | 127.43 | 520,810 | 128.32 | 497,060 | 120.49 | |||||||||||||||||||||||||||||
| Exercised | (1,842,860) | 89.23 | (584,993) | 88.52 | (1,375,313) | 82.95 | |||||||||||||||||||||||||||||
| Expired and forfeited | (28,495) | 120.48 | (50,180) | 106.62 | (143,801) | 90.92 | |||||||||||||||||||||||||||||
| Outstanding—end of year | 4,303,944 | $ | 106.34 | 5,825,957 | $ | 99.74 | 5,940,320 | $ | 96.19 | ||||||||||||||||||||||||||
| Exercisable at end of year | 3,230,992 | $ | 99.69 | 4,376,436 | $ | 93.73 | 4,003,028 | $ | 91.23 |
Additional information about Globe Life's stock option activity as of December 31, 2025 and 2024 is as follows:
| 2025 | 2024 | ||||||||||
| Outstanding options: | |||||||||||
| Weighted-average remaining contractual term (in years) | 2.99 | 3.15 | |||||||||
| Aggregate intrinsic value | $ | 144,251 | $ | 81,703 | |||||||
| Exercisable options: | |||||||||||
| Weighted-average remaining contractual term (in years) | 2.24 | 2.48 | |||||||||
| Aggregate intrinsic value | $ | 129,787 | $ | 77,946 |
Selected stock option activity for the three years ended December 31, 2025, is presented below:
| 2025 | 2024 | 2023 | |||||||||||||||
| Weighted-average grant-date fair value of options granted (per share) | $ | 39.92 | $ | 33.80 | $ | 32.25 | |||||||||||
| Intrinsic value of options exercised | 73,970 | 17,127 | 49,163 | ||||||||||||||
| Cash received from options exercised | 164,448 | 51,786 | 114,080 | ||||||||||||||
| Actual tax benefit received | 8,101 | 2,489 | 9,379 |
Additional information concerning Globe Life's unvested options is as follows at December 31:
| 2025 | 2024 | ||||||||||
| Number of shares outstanding | 1,072,952 | 1,449,521 | |||||||||
| Weighted-average exercise price (per share) | $ | 126.38 | $ | 117.88 | |||||||
| Weighted-average remaining contractual term (in years) | 5.25 | 5.19 | |||||||||
| Aggregate intrinsic value | $ | 14,464 | $ | 3,757 |
Globe Life expects that substantially all unvested options will vest.
Restricted Stock: Restricted stock grants consist of time-vested grants, restricted stock units, and performance shares. Time-vested restricted stock is available to directors and vests over six months. The directors' restricted stock units vest over six months and are converted to shares upon their retirement from the Board. Employees' restricted stock units vest and become non-forfeitable on the vesting date (generally three years from the grant date) or upon meeting certain retirement criteria, or in the event of death or disability. Director restricted stock and restricted stock units are generally granted on the first business day of the calendar year. Performance shares are
GL 2025 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
granted to a limited number of senior executives. Performance shares have a three-year performance period and are not settled in shares until the certification of the achievement of the performance objectives for three-year performance period. While the grant specifies a stated target number of shares, the determination of the actual settlement in shares will be based on the achievement of certain performance objectives of Globe Life over the three-year performance period. Certain executive restricted stock and performance share grants contain terms related to age that could accelerate vesting.
Following are the restricted stock units outstanding for each of the three years ended December 31, 2025:
| Year of grants | Outstanding as of year end | |||||||
| 2023 | 163,108 | |||||||
| 2024 | 219,864 | |||||||
| 2025(1) | 312,663 |
(1)Includes dividend equivalent units.
Below is the final determination of the performance share grants in 2021 to 2023:
| Year of grants | Final settlement of shares | Final settlement date | ||||||||||||
| 2021 | 143,211 | February 28, 2024 | ||||||||||||
| 2022 | 152,680 | February 26, 2025 | ||||||||||||
| 2023 | 149,755 | February 25, 2026 |
For the 2024 and 2025 performance share grants, actual shares that could be distributed range from 0 to 145 thousand for the 2024 grants and 0 to 297 thousand shares for the 2025 grants.
GL 2025 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
A summary of restricted stock grants for each of the years in the three-year period ended December 31, 2025, is presented in the table below:
| 2025**(1)** | 2024 | 2023 | |||||||||||||||
| Directors restricted stock: | |||||||||||||||||
| Shares | 6,530 | 7,375 | 7,110 | ||||||||||||||
| Price per share | $ | 115.20 | $ | 122.06 | $ | 119.59 | |||||||||||
| Aggregate value | $ | 752 | $ | 900 | $ | 850 | |||||||||||
| Percent vested | 100 | % | 100 | % | 100 | % | |||||||||||
| Directors restricted stock units (including dividend equivalents): | |||||||||||||||||
| Shares | 9,582 | 4,854 | 9,479 | ||||||||||||||
| Price per share | $ | 114.84 | $ | 120.16 | $ | 117.73 | |||||||||||
| Aggregate value | $ | 1,100 | $ | 583 | $ | 1,116 | |||||||||||
| Percent vested | 100 | % | 100 | % | 100 | % | |||||||||||
| Employees restricted stock units: | |||||||||||||||||
| Shares | 106,089 | 101,011 | 96,975 | ||||||||||||||
| Price per share | $ | 127.43 | $ | 127.29 | $ | 120.18 | |||||||||||
| Aggregate value | $ | 13,519 | $ | 12,858 | $ | 11,654 | |||||||||||
| Percent vested | — | % | — | % | — | % | |||||||||||
| Performance shares: | |||||||||||||||||
| Target shares | 148,688 | 96,800 | 81,300 | ||||||||||||||
| Target price per share | $ | 127.44 | $ | 128.40 | $ | 120.49 | |||||||||||
| Aggregate value | $ | 18,948 | $ | 12,429 | $ | 9,796 | |||||||||||
| Percent vested | — | % | — | % | — | % |
(1)Includes dividend equivalent units.
Time-vested restricted stockholders are entitled to dividend payments on the unvested stock. Director restricted stock unit holders are entitled to dividend equivalents. These equivalents are granted in the form of additional restricted stock units and vest immediately upon grant. Dividend equivalents are applicable only to directors' restricted stock units and beginning in 2025 employee performance shares and restricted stock unit awards. Prior to 2025, the performance awards and restricted stock units held by employees were not entitled to dividend equivalents and not entitled to dividend payments until the shares vest and are settled.
GL 2025 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
An analysis of nonvested restricted stock is as follows:
| Executive Performance Shares | Directors Restricted Stock | Directors Restricted Stock Units | Employees Restricted Stock Units | Total | |||||||||||||||||||||||||||||||
| 2023: | |||||||||||||||||||||||||||||||||||
| Balance at December 31, 2022 | 398,535 | — | — | — | 398,535 | ||||||||||||||||||||||||||||||
| Grants | 81,300 | 7,110 | 9,479 | 96,975 | 194,864 | ||||||||||||||||||||||||||||||
| Additional performance shares(1) | (28,857) | — | — | — | (28,857) | ||||||||||||||||||||||||||||||
| Restriction lapses | (84,298) | (7,110) | (9,479) | — | (100,887) | ||||||||||||||||||||||||||||||
| Forfeitures | (12,600) | — | — | (4,410) | (17,010) | ||||||||||||||||||||||||||||||
| Balance at December 31, 2023 | 354,080 | — | — | 92,565 | 446,645 | ||||||||||||||||||||||||||||||
| 2024: | |||||||||||||||||||||||||||||||||||
| Grants | 96,800 | 7,375 | 4,854 | 101,011 | 210,040 | ||||||||||||||||||||||||||||||
| Additional performance shares(1) | 84,712 | — | — | — | 84,712 | ||||||||||||||||||||||||||||||
| Restriction lapses | (143,211) | (7,375) | (4,854) | (437) | (155,877) | ||||||||||||||||||||||||||||||
| Forfeitures | (6,000) | — | — | (10,008) | (16,008) | ||||||||||||||||||||||||||||||
| Balance at December 31, 2024 | 386,381 | — | — | 183,131 | 569,512 | ||||||||||||||||||||||||||||||
| 2025: | |||||||||||||||||||||||||||||||||||
| Grants | 148,688 | 6,530 | 9,582 | 106,089 | 270,889 | ||||||||||||||||||||||||||||||
| Additional performance shares(1) | 83,626 | — | — | — | 83,626 | ||||||||||||||||||||||||||||||
| Restriction lapses | (152,680) | (6,530) | (9,582) | (2,473) | (171,265) | ||||||||||||||||||||||||||||||
| Forfeitures | — | — | — | (20,399) | (20,399) | ||||||||||||||||||||||||||||||
| Balance at December 31, 2025 | 466,015 | — | — | 266,348 | 732,363 |
(1)Estimated additional (reduced) share grants expected due to achievement of performance criteria.
An analysis of the weighted-average grant-date fair values per share of non-vested restricted stock is as follows for the year 2025:
| Executive Performance Shares | Directors Restricted Stock | Directors Restricted Stock Units | Employees Restricted Stock Units | ||||||||||||||||||||||||||
| Grant-date fair value per share at January 1, 2025 | $ | 115.78 | $ | — | $ | — | $ | 124.02 | |||||||||||||||||||||
| Grants | 127.44 | 115.20 | 114.34 | 127.18 | |||||||||||||||||||||||||
| Estimated additional performance shares | 126.75 | — | — | — | |||||||||||||||||||||||||
| Restriction lapses | (103.23) | (115.20) | (114.34) | (119.99) | |||||||||||||||||||||||||
| Forfeitures | — | — | — | (125.89) | |||||||||||||||||||||||||
| Grant-date fair value per share at December 31, 2025 | 125.58 | — | — | 125.17 |
GL 2025 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
Note 15—Business Segments
Globe Life is organized into three operating segments: life, health, and investments.
Globe Life's reportable insurance segments are based on the insurance product lines it markets and administers: life insurance and supplemental health insurance. There is also an investment segment that manages the investment portfolio and cash flow for the insurance segments. The Company's chief operating decision makers (the "CODM"), our Co-CEOs, evaluate the overall performance of the operations of the Company in accordance with these segments.
Life insurance products marketed by Globe Life include traditional whole life and term life insurance. Health insurance products are generally guaranteed renewable and include Medicare Supplement, cancer, critical illness, accident, and other limited-benefit supplemental hospital and surgical products.
The following tables present segment premium revenue by each of Globe Life's distribution channels.
Premium Income by Distribution Channel
| For the Year 2025 | ||||||||||||||||||||||||||||||||||||||
| Life | Health | Total | ||||||||||||||||||||||||||||||||||||
| Distribution Channel | Amount | % of Total | Amount | % of Total | Amount | % of Total | ||||||||||||||||||||||||||||||||
| American Income | $ | 1,791,356 | 53 | $ | 124,947 | 8 | $ | 1,916,303 | 39 | |||||||||||||||||||||||||||||
| Direct to Consumer | 981,006 | 29 | 76,514 | 5 | 1,057,520 | 21 | ||||||||||||||||||||||||||||||||
| Liberty National | 390,094 | 12 | 190,468 | 12 | 580,562 | 12 | ||||||||||||||||||||||||||||||||
| United American | 6,188 | — | 666,758 | 44 | 672,946 | 14 | ||||||||||||||||||||||||||||||||
| Family Heritage | 7,404 | — | 468,063 | 31 | 475,467 | 10 | ||||||||||||||||||||||||||||||||
| Other | 187,422 | 6 | — | — | 187,422 | 4 | ||||||||||||||||||||||||||||||||
| Total premium | $ | 3,363,470 | 100 | $ | 1,526,750 | 100 | $ | 4,890,220 | 100 |
| For the Year 2024 | ||||||||||||||||||||||||||||||||||||||
| Life | Health | Total | ||||||||||||||||||||||||||||||||||||
| Distribution Channel | Amount | % of Total | Amount | % of Total | Amount | % of Total | ||||||||||||||||||||||||||||||||
| American Income | $ | 1,698,209 | 52 | $ | 123,123 | 9 | $ | 1,821,332 | 39 | |||||||||||||||||||||||||||||
| Direct to Consumer | 988,522 | 30 | 71,993 | 5 | 1,060,515 | 23 | ||||||||||||||||||||||||||||||||
| Liberty National | 371,061 | 12 | 190,381 | 14 | 561,442 | 12 | ||||||||||||||||||||||||||||||||
| United American | 6,600 | — | 591,774 | 42 | 598,374 | 13 | ||||||||||||||||||||||||||||||||
| Family Heritage | 6,661 | — | 427,654 | 30 | 434,315 | 9 | ||||||||||||||||||||||||||||||||
| Other | 190,294 | 6 | — | — | 190,294 | 4 | ||||||||||||||||||||||||||||||||
| Total premium | $ | 3,261,347 | 100 | $ | 1,404,925 | 100 | $ | 4,666,272 | 100 |
GL 2025 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
| For the Year 2023 | ||||||||||||||||||||||||||||||||||||||
| Life | Health | Total | ||||||||||||||||||||||||||||||||||||
| Distribution Channel | Amount | % of Total | Amount | % of Total | Amount | % of Total | ||||||||||||||||||||||||||||||||
| American Income | $ | 1,588,702 | 51 | $ | 120,332 | 9 | $ | 1,709,034 | 38 | |||||||||||||||||||||||||||||
| Direct to Consumer | 991,406 | 32 | 68,575 | 5 | 1,059,981 | 24 | ||||||||||||||||||||||||||||||||
| Liberty National | 349,736 | 11 | 187,934 | 14 | 537,670 | 12 | ||||||||||||||||||||||||||||||||
| United American | 7,311 | — | 545,723 | 42 | 553,034 | 13 | ||||||||||||||||||||||||||||||||
| Family Heritage | 6,134 | — | 396,209 | 30 | 402,343 | 9 | ||||||||||||||||||||||||||||||||
| Other | 193,955 | 6 | — | — | 193,955 | 4 | ||||||||||||||||||||||||||||||||
| Total premium | $ | 3,137,244 | 100 | $ | 1,318,773 | 100 | $ | 4,456,017 | 100 | |||||||||||||||||||||||||||||
Due to the nature of the life and health insurance industry, Globe Life has no individual or group which would be considered a major customer. Substantially all of Globe Life's business is conducted in the United States.
The measure of profitability established by the CODMs for the insurance segments is underwriting margin before other income and administrative expenses, in accordance with the manner in which the segments are managed. It essentially represents gross profit margin on insurance products before insurance administrative expenses and consists primarily of premium less net policy benefits, acquisition expenses, and commissions. Required interest on policy liabilities is reflected as a component of the Investment segment (rather than as a component of underwriting margin in the insurance segment) in order to match this cost with the investment income earned on the assets supporting the policy liabilities.
The measure of profitability for the Investment segment is excess investment income, representing the net income earned on the investment portfolio in excess of policy requirements. Other than the required interest on the insurance segments, no other intersegment revenues or expenses are recognized. Expenses directly attributable to corporate operations are included in the “Corporate & Other” category. Stock-based compensation expense is considered a corporate expense by Globe Life management and is included in this category. All other unallocated revenues and expenses on a pretax basis, including insurance administrative expense and interest on debt, are also included in the “Corporate & Other” segment category.
Globe Life holds a sizable investment portfolio to support its insurance liabilities, the yield from which is used to offset policy benefit, acquisition, administrative, and tax expenses. This yield or investment income is taken into account when establishing premium rates and profitability expectations for its insurance products. From time to time, investments are sold or called, or experience a credit loss event, each of which are reflected by the Company as realized gain (loss)—investments. These gains or losses generally occur as a result of disposition due to issuer calls, compliance with Company investment policies, or other reasons often beyond management’s control. Unlike investment income, realized gains and losses are incidental to insurance operations, and only overall yields are considered when setting premium rates or insurance product profitability expectations. While these gains and losses are not relevant to segment profitability or core operating results, they can have a material positive or negative result on net income. For these reasons, management removes realized investment gains and losses when it views its segment operations.
Management also removes non-operating items unrelated to the Company's core insurance activities when evaluating those results. Therefore, these items are excluded in its presentation of segment results because accounting guidance requires that operating segment results be presented as management views its business. All of these items are included in “Other operating expense” on the Consolidated Statements of Operations for the appropriate year. See additional detail below in the tables.
GL 2025 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
| Year Ended December 31, 2025 | |||||||||||||||||||||||
| Life | Health | Investment | Consolidated | ||||||||||||||||||||
| Revenue: | |||||||||||||||||||||||
| Premium | $ | 3,363,470 | $ | 1,526,750 | $ | — | $ | 4,890,220 | |||||||||||||||
| Net investment income | — | — | 1,130,198 | 1,130,198 | |||||||||||||||||||
| Segment revenue | 3,363,470 | 1,526,750 | 1,130,198 | 6,020,418 | |||||||||||||||||||
| Realized gains (losses) | (27,788) | ||||||||||||||||||||||
| Other income | 1,688 | ||||||||||||||||||||||
| Total consolidated revenue | $ | 5,994,318 | |||||||||||||||||||||
| Expenses: | |||||||||||||||||||||||
| Policy obligations(1) | 1,924,929 | 931,141 | 22,415 | 2,878,485 | |||||||||||||||||||
| Required interest on reserves | (845,875) | (113,832) | 969,390 | 9,683 | |||||||||||||||||||
| Amortization of acquisition costs | 386,450 | 59,897 | — | 446,347 | |||||||||||||||||||
| Commissions | 174,029 | 173,490 | — | 347,519 | |||||||||||||||||||
| Premium taxes | 68,132 | 29,825 | — | 97,957 | |||||||||||||||||||
| Non-deferred acquisition costs | 146,444 | 56,101 | — | 202,545 | |||||||||||||||||||
| Segment profit or (loss) | $ | 1,509,361 | $ | 390,128 | $ | 138,393 | 2,037,882 | ||||||||||||||||
| Insurance administrative expenses: | |||||||||||||||||||||||
| Salaries | 137,015 | ||||||||||||||||||||||
| Other employee costs | 41,609 | ||||||||||||||||||||||
| Information technology costs | 82,573 | ||||||||||||||||||||||
| Legal costs | 22,510 | ||||||||||||||||||||||
| Other administrative costs | 71,888 | ||||||||||||||||||||||
| Parent expense | 14,182 | ||||||||||||||||||||||
| Stock-based compensation expense | 53,355 | ||||||||||||||||||||||
| Interest expense | 141,221 | ||||||||||||||||||||||
| Legal proceedings | 17,053 | ||||||||||||||||||||||
| Other expenses | 2,183 | ||||||||||||||||||||||
| Annuity | (7,782) | ||||||||||||||||||||||
| Total expenses | 4,558,343 | ||||||||||||||||||||||
| Income before income taxes per Consolidated Statement of Operations | $ | 1,435,975 |
(1)Policy obligations are based upon policyholder behavior and impacts related to lapses, mortality, and morbidity. For detailed information, including remeasurement gains and losses, see Note 6—Policy Liabilities**.
GL 2025 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
| Year Ended December 31, 2024 | |||||||||||||||||||||||
| Life | Health | Investment | Consolidated | ||||||||||||||||||||
| Revenue: | |||||||||||||||||||||||
| Premium | $ | 3,261,347 | $ | 1,404,925 | $ | — | $ | 4,666,272 | |||||||||||||||
| Net investment income | — | — | 1,135,631 | 1,135,631 | |||||||||||||||||||
| Segment revenue | 3,261,347 | 1,404,925 | 1,135,631 | 5,801,903 | |||||||||||||||||||
| Realized gains (losses) | (24,188) | ||||||||||||||||||||||
| Other income | 354 | ||||||||||||||||||||||
| Total consolidated revenue | $ | 5,778,069 | |||||||||||||||||||||
| Expenses: | |||||||||||||||||||||||
| Policy obligations(1) | 2,000,977 | 851,577 | 20,969 | $ | 2,873,523 | ||||||||||||||||||
| Required interest on reserves | (811,147) | (110,342) | 950,258 | 28,769 | |||||||||||||||||||
| Amortization of acquisition costs | 356,223 | 52,224 | — | 408,447 | |||||||||||||||||||
| Commissions | 159,703 | 158,869 | — | 318,572 | |||||||||||||||||||
| Premium taxes | 68,360 | 28,421 | — | 96,781 | |||||||||||||||||||
| Non-deferred acquisition costs | 134,634 | 51,753 | — | 186,387 | |||||||||||||||||||
| Segment profit or (loss) | $ | 1,352,597 | $ | 372,423 | $ | 164,404 | 1,889,424 | ||||||||||||||||
| Insurance administrative expenses: | |||||||||||||||||||||||
| Salaries | 129,369 | ||||||||||||||||||||||
| Other employee costs | 36,176 | ||||||||||||||||||||||
| Information technology costs | 80,555 | ||||||||||||||||||||||
| Legal costs | 30,478 | ||||||||||||||||||||||
| Other administrative costs | 65,852 | ||||||||||||||||||||||
| Parent expense | 12,400 | ||||||||||||||||||||||
| Stock-based compensation expense | 40,118 | ||||||||||||||||||||||
| Interest expense | 127,092 | ||||||||||||||||||||||
| Legal proceedings | 21,575 | ||||||||||||||||||||||
| Other expenses | 2,620 | ||||||||||||||||||||||
| Annuity | (7,282) | ||||||||||||||||||||||
| Total expenses | 4,451,432 | ||||||||||||||||||||||
| Income before income taxes per Consolidated Statement of Operations | $ | 1,326,637 |
(1)Policy obligations are based upon policyholder behavior and impacts related to lapses, mortality, and morbidity. For detailed information, including remeasurement gains and losses, see Note 6—Policy Liabilities**.
GL 2025 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
| Year Ended December 31, 2023 | |||||||||||||||||||||||
| Life | Health | Investment | Consolidated | ||||||||||||||||||||
| Revenue: | |||||||||||||||||||||||
| Premium | $ | 3,137,244 | $ | 1,318,773 | $ | — | $ | 4,456,017 | |||||||||||||||
| Net investment income | — | — | 1,056,884 | 1,056,884 | |||||||||||||||||||
| Segment revenue | 3,137,244 | 1,318,773 | 1,056,884 | 5,512,901 | |||||||||||||||||||
| Realized gains (losses) | (65,676) | ||||||||||||||||||||||
| Other income | 308 | ||||||||||||||||||||||
| Total consolidated revenue | $ | 5,447,533 | |||||||||||||||||||||
| Expenses: | |||||||||||||||||||||||
| Policy obligations(1) | 2,050,789 | 776,362 | 9,061 | $ | 2,836,212 | ||||||||||||||||||
| Required interest on reserves | (772,701) | (106,516) | 917,441 | 38,224 | |||||||||||||||||||
| Amortization of acquisition costs | 327,426 | 50,598 | — | 378,024 | |||||||||||||||||||
| Commissions | 145,678 | 150,192 | — | 295,870 | |||||||||||||||||||
| Premium taxes | 64,571 | 26,440 | — | 91,011 | |||||||||||||||||||
| Non-deferred acquisition costs | 128,509 | 43,760 | — | 172,269 | |||||||||||||||||||
| Segment profit or (loss) | $ | 1,192,972 | $ | 377,937 | $ | 130,382 | 1,701,291 | ||||||||||||||||
| Insurance administrative expenses: | |||||||||||||||||||||||
| Salaries | 119,699 | ||||||||||||||||||||||
| Other employee costs | 35,905 | ||||||||||||||||||||||
| Information technology costs | 64,998 | ||||||||||||||||||||||
| Legal costs | 15,335 | ||||||||||||||||||||||
| Other administrative costs | 65,224 | ||||||||||||||||||||||
| Parent expense | 10,866 | ||||||||||||||||||||||
| Stock-based compensation expense | 30,736 | ||||||||||||||||||||||
| Interest expense | 102,316 | ||||||||||||||||||||||
| Legal proceedings | 900 | ||||||||||||||||||||||
| Other expenses | 4,170 | ||||||||||||||||||||||
| Annuity | (8,492) | ||||||||||||||||||||||
| Total expenses | 4,253,267 | ||||||||||||||||||||||
| Income before income taxes per Consolidated Statement of Operations | $ | 1,194,266 |
(1)Policy obligations are based upon policyholder behavior and impacts related to lapses, mortality, and morbidity. For detailed information, including remeasurement gains and losses, see Note 6—Policy Liabilities**.
GL 2025 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
Assets for each segment are reported based on a specific identification basis. The insurance segments’ assets contain DAC. The investment segment includes the investment portfolio, cash, and accrued investment income. Goodwill is assigned to the insurance segments at the time of purchase. All other assets are included in the annuity and other corporate category. The tables below reconcile segment assets to total assets as reported on the Consolidated Balance Sheets.
Assets by Segment
| At December 31, 2025 | |||||||||||||||||||||||||||||||||||
| Life | Health | Investment | Consolidated | ||||||||||||||||||||||||||||||||
| Cash and invested assets | $ | — | $ | — | $ | 20,614,713 | $ | 20,614,713 | |||||||||||||||||||||||||||
| Accrued investment income | — | — | 272,818 | 272,818 | |||||||||||||||||||||||||||||||
| Deferred acquisition costs | 6,147,750 | 851,386 | — | 6,999,136 | |||||||||||||||||||||||||||||||
| Goodwill | 309,609 | 180,837 | — | 490,446 | |||||||||||||||||||||||||||||||
| Total segment assets | $ | 6,457,359 | $ | 1,032,223 | $ | 20,887,531 | 28,377,113 | ||||||||||||||||||||||||||||
| Annuity and other corporate | 2,436,579 | ||||||||||||||||||||||||||||||||||
| Total assets | $ | 30,813,692 |
| At December 31, 2024 | |||||||||||||||||||||||||||||||||||
| Life | Health | Investment | Consolidated | ||||||||||||||||||||||||||||||||
| Cash and invested assets | $ | — | $ | — | $ | 19,736,888 | $ | 19,736,888 | |||||||||||||||||||||||||||
| Accrued investment income | — | — | 269,791 | 269,791 | |||||||||||||||||||||||||||||||
| Deferred acquisition costs | 5,700,755 | 793,421 | — | 6,494,176 | |||||||||||||||||||||||||||||||
| Goodwill | 309,609 | 180,837 | — | 490,446 | |||||||||||||||||||||||||||||||
| Total segment assets | $ | 6,010,364 | $ | 974,258 | $ | 20,006,679 | 26,991,301 | ||||||||||||||||||||||||||||
| Annuity and other corporate | 2,084,880 | ||||||||||||||||||||||||||||||||||
| Total assets | $ | 29,076,181 |
GL 2025 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
Liabilities for each segment are reported also on a specific identification basis similar to the assets. The insurance segments' liabilities contain future policy benefits, unearned and advance premiums, and policy claims and other benefits payable. Other policyholders' funds and annuities are included in annuity and other corporate as well as current and deferred income taxes payable. Debt represents both short and long-term. The tables below reconcile segment liabilities to total liabilities as reported on the Consolidated Balance Sheets.
Liabilities by Segment
| At December 31, 2025 | |||||||||||||||||||||||||||||
| Life | Health | Investment | Consolidated | ||||||||||||||||||||||||||
| Future policy benefits | $ | 16,123,927 | $ | 2,465,091 | $ | — | $ | 18,589,018 | |||||||||||||||||||||
| Unearned and advance premiums | 199,011 | 71,652 | — | 270,663 | |||||||||||||||||||||||||
| Policy claims and other benefits payable | 315,595 | 225,237 | — | 540,832 | |||||||||||||||||||||||||
| Debt | — | — | 2,625,449 | 2,625,449 | |||||||||||||||||||||||||
| Other | 95,047 | — | 437,000 | 532,047 | |||||||||||||||||||||||||
| Total segment liabilities | $ | 16,733,580 | $ | 2,761,980 | $ | 3,062,449 | 22,558,009 | ||||||||||||||||||||||
| Annuity and other corporate | 2,281,104 | ||||||||||||||||||||||||||||
| Total liabilities | $ | 24,839,113 |
| At December 31, 2024 | |||||||||||||||||||||||||||||||||||
| Life | Health | Investment | Consolidated | ||||||||||||||||||||||||||||||||
| Future policy benefits | $ | 15,484,596 | $ | 2,316,094 | $ | — | $ | 17,800,690 | |||||||||||||||||||||||||||
| Unearned and advance premiums | 198,127 | 59,504 | — | 257,631 | |||||||||||||||||||||||||||||||
| Policy claims and other benefits payable | 321,838 | 210,994 | — | 532,832 | |||||||||||||||||||||||||||||||
| Debt | — | — | 2,739,652 | 2,739,652 | |||||||||||||||||||||||||||||||
| Other | 96,604 | — | 372,000 | 468,604 | |||||||||||||||||||||||||||||||
| Total segment liabilities | $ | 16,101,165 | $ | 2,586,592 | $ | 3,111,652 | 21,799,409 | ||||||||||||||||||||||||||||
| Annuity and other corporate | 1,971,252 | ||||||||||||||||||||||||||||||||||
| Total liabilities | $ | 23,770,661 |
GL 2025 FORM 10-K
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