Item 1. Condensed Consolidated Financial Statements

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Item 1. Condensed Consolidated Financial Statements

Globe Life Inc.

Condensed Consolidated Balance Sheets

(Unaudited)

(Dollar amounts in thousands, except per share data)



	September 30, 2024		December 31, 2023
Assets:
Investments:
Fixed maturities—available for sale, at fair value (amortized cost: 2024—$19,084,454; 2023—$18,924,914, allowance for credit losses: 2024— $7,132; 2023— $7,115)	$	18,334,570	$	17,870,206
Mortgage loans	381,315		279,199
Policy loans	691,072		657,020
Other long-term investments (includes: 2024—$979,397; 2023—$795,583 under the fair value option)	1,221,888		835,878
Short-term investments	100,501		81,740
Total investments	20,729,346		19,724,043
Cash	134,549		103,156
Accrued investment income	284,952		270,396
Other receivables	651,871		630,223
Deferred acquisition costs	6,386,682		6,009,477
Goodwill	490,446		481,791
Other assets	878,974		832,413
Total assets	$	29,556,820	$	28,051,499
Liabilities:
Future policy benefits at current discount rates: (at original discount rates: 2024—$17,402,917; 2023—$16,984,615)	$	19,814,913	$	19,460,353
Unearned and advance premium	264,644		254,567
Policy claims and other benefits payable	530,399		514,875
Other policyholders' funds	469,288		236,958
Total policy liabilities	21,079,244		20,466,753
Current and deferred income taxes	619,970		494,639
Short-term debt	437,418		486,113
Long-term debt (estimated fair value: 2024—$2,202,644; 2023—$1,491,229)	2,323,676		1,629,559
Other liabilities	457,887		487,632
Total liabilities	24,918,195		23,564,696
Commitments and Contingencies (Note 5)
Shareholders' equity:
Preferred stock, par value $1 per share—5,000,000 shares authorized; outstanding: 0 in 2024 and 2023	—		—
Common stock, par value $1 per share—320,000,000 shares authorized; outstanding: (2024—102,218,183 issued; 2023—102,218,183 issued)	102,218		102,218
Additional paid-in-capital	543,255		532,474
Accumulated other comprehensive income (loss)	(2,484,743)		(2,772,419)
Retained earnings	8,225,030		7,478,813
Treasury stock, at cost: (2024—17,942,902 shares; 2023—8,426,854 shares)	(1,747,135)		(854,283)
Total shareholders' equity	4,638,625		4,486,803
Total liabilities and shareholders' equity	$	29,556,820	$	28,051,499

See accompanying Notes to Condensed Consolidated Financial Statements.

GL Q3 2024 FORM 10-Q

Globe Life Inc.

Condensed Consolidated Statements of Operations

(Unaudited)

(Dollar amounts in thousands, except per share data)



	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Revenue:
Life premium	$	818,638	$	788,099	$	2,438,385	$	2,342,429
Health premium	353,955		331,236		1,046,617		982,916
Other premium	—		—		—		—
Total premium	1,172,593		1,119,335		3,485,002		3,325,345
Net investment income	284,964		266,926		853,178		785,275
Realized gains (losses)	(2,192)		(2,193)		(26,580)		(78,963)

Other income	42		50		192		185
Total revenue	1,455,407		1,384,118		4,311,792		4,031,842

Benefits and expenses:
Life policyholder benefits(1)	454,502		515,676		1,493,165		1,536,317
Health policyholder benefits(2)	221,926		193,790		629,676		580,676
Other policyholder benefits	11,756		9,578		32,830		27,488
Total policyholder benefits	688,184		719,044		2,155,671		2,144,481

Amortization of deferred acquisition costs	104,310		95,757		305,703		282,159
Commissions, premium taxes, and non-deferred acquisition costs	149,693		138,677		447,605		414,933
Other operating expense	104,874		85,870		297,196		256,074
Interest expense	31,388		25,955		91,413		76,640
Total benefits and expenses	1,078,449		1,065,303		3,297,588		3,174,287

Income before income taxes	376,958		318,815		1,014,204		857,555
Income tax benefit (expense)	(73,964)		(61,732)		(198,638)		(161,602)



Net income	$	302,994	$	257,083	$	815,566	$	695,953




Basic net income per common share	$	3.45	$	2.72	$	8.96	$	7.29




Diluted net income per common share	$	3.44	$	2.68	$	8.93	$	7.20

(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 of $70.6 million for the three months ended September 30, 2024, and a total remeasurement gain of $11.3 million for the same period in 2023. Net of a total remeasurement gain of $87.8 million for the nine months ended September 30, 2024, and a total remeasurement gain of $16.5 million for the same period in 2023.

(2) Net of total remeasurement including both the impact of assumption changes and the effect of actual to expected experience adjustments, resulting in a loss of $9.6 million for the three months ended September 30, 2024 and a total remeasurement gain of $7.8 million for the same period in 2023. Net of a total remeasurement loss of $3.1 million for the nine months ended September 30, 2024, and a total remeasurement gain of $8.3 million for the same period in 2023.

See accompanying Notes to Condensed Consolidated Financial Statements.

GL Q3 2024 FORM 10-Q

Globe Life Inc.

Condensed Consolidated Statements of Comprehensive Income (Loss)

(Unaudited)

(Dollar amounts in thousands)



	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Net income	$	302,994	$	257,083	$	815,566	$	695,953

Other comprehensive income (loss):

Investments:
Unrealized gains (losses) on fixed maturities:
Unrealized holding gains (losses) arising during period	869,743		(1,068,091)		301,715		(932,301)

Other reclassification adjustments included in net income	(2,408)		851		2,580		82,866
Foreign exchange adjustment on fixed maturities recorded at fair value	(954)		1,603		546		603



Total unrealized investment gains (losses)	866,381		(1,065,637)		304,841		(848,832)
Less applicable tax (expense) benefit	(181,941)		223,782		(64,018)		178,250
Unrealized gains (losses) on investments, net of tax	684,440		(841,855)		240,823		(670,582)

Future Policy Benefits:
Change in discount rate on future policy benefits	(1,247,366)		1,687,310		63,614		1,272,631
Less applicable tax (expense) benefit	261,946		(354,334)		(13,360)		(267,252)
Future policy benefit adjustments, net of tax	(985,420)		1,332,976		50,254		1,005,379






Foreign exchange translation:
Foreign exchange translation adjustments, other than securities	7,296		(7,881)		(4,660)		(4,039)
Less applicable tax (expense) benefit	(1,532)		1,655		979		847
Foreign exchange translation adjustments, other than securities, net of tax	5,764		(6,226)		(3,681)		(3,192)

Pension:



Pension adjustments	118		35		354		(336)
Less applicable tax (expense) benefit	(25)		(7)		(74)		70
Pension adjustments, net of tax	93		28		280		(266)

Other comprehensive income (loss)	(295,123)		484,923		287,676		331,339
Comprehensive income (loss)	$	7,871	$	742,006	$	1,103,242	$	1,027,292

See accompanying Notes to Condensed Consolidated Financial Statements.

GL Q3 2024 FORM 10-Q

Globe Life Inc.

Condensed Consolidated Statements of Shareholders' Equity

(Unaudited)

(Dollar amounts in thousands, except per share data)


	Preferred Stock		Common Stock		Additional Paid-In Capital		Accumulated Other Comprehensive Income (Loss)		Retained Earnings		Treasury Stock		Total Shareholders' Equity
Balance at December 31, 2023	$	—	$	102,218	$	532,474	$	(2,772,419)	$	7,478,813	$	(854,283)	$	4,486,803


Comprehensive income (loss)	—		—		—		305,183		254,217		—		559,400
Common dividends declared ($0.2400 per share)	—		—		—		—		(22,603)		—		(22,603)
Acquisition of treasury stock	—		—		—		—		—		(23,469)		(23,469)
Stock-based compensation	—		—		(5,612)		—		(438)		15,317		9,267
Exercise of stock options	—		—		—		—		(3,334)		33,097		29,763

Balance at March 31, 2024	—		102,218		526,862		(2,467,236)		7,706,655		(829,338)		5,039,161

Comprehensive income (loss)	—		—		—		277,616		258,355		—		535,971
Common dividends declared ($0.2400 per share)	—		—		—		—		(21,595)		—		(21,595)
Acquisition of treasury stock	—		—		—		—		—		(335,873)		(335,873)
Stock-based compensation	—		—		7,166		—		—		2,924		10,090
Exercise of stock options	—		—		—		—		—		—		—

Balance at June 30, 2024	—		102,218		534,028		(2,189,620)		7,943,415		(1,162,287)		5,227,754



Comprehensive income (loss)	—		—		—		(295,123)		302,994		—		7,871
Common dividends declared ($0.2400 per share)	—		—		—		—		(20,215)		—		(20,215)
Acquisition of treasury stock	—		—		—		—		—		(591,106)		(591,106)
Stock-based compensation	—		—		9,227		—		—		6		9,233
Exercise of stock options	—		—		—		—		(1,164)		6,252		5,088

Balance at September 30, 2024	$	—	$	102,218	$	543,255	$	(2,484,743)	$	8,225,030	$	(1,747,135)	$	4,638,625

See accompanying Notes to Condensed Consolidated Financial Statements.

GL Q3 2024 FORM 10-Q

Globe Life Inc.

Condensed Consolidated Statements of Shareholders' Equity (Continued)

(Unaudited)

(Dollar amounts in thousands, except per share data)


	Preferred Stock		Common Stock		Additional Paid-In Capital		Accumulated Other Comprehensive Income (Loss)		Retained Earnings		Treasury Stock		Total Shareholders' Equity

Balance at December 31, 2022	$	—	$	105,218	$	529,661	$	(2,790,313)	$	6,894,535	$	(789,524)	$	3,949,577


Comprehensive income (loss)	—		—		—		(170,780)		223,610		—		52,830
Common dividends declared ($0.2250 per share)	—		—		—		—		(21,542)		—		(21,542)
Acquisition of treasury stock	—		—		—		—		—		(179,276)		(179,276)
Stock-based compensation	—		—		(1,022)		—		—		8,700		7,678
Exercise of stock options	—		—		—		—		(4,059)		41,083		37,024


Balance at March 31, 2023	—		105,218		528,639		(2,961,093)		7,092,544		(919,017)		3,846,291

Comprehensive income (loss)	—		—		—		17,196		215,260		—		232,456
Common dividends declared ($0.2250 per share)	—		—		—		—		(21,330)		—		(21,330)
Acquisition of treasury stock	—		—		—		—		—		(89,755)		(89,755)
Stock-based compensation	—		—		7,487		—		—		—		7,487
Exercise of stock options	—		—		—		—		(665)		5,822		5,157

Balance at June 30, 2023	—		105,218		536,126		(2,943,897)		7,285,809		(1,002,950)		3,980,306



Comprehensive income (loss)	—		—		—		484,923		257,083		—		742,006
Common dividends declared ($0.2250 per share)	—		—		—		—		(21,181)		—		(21,181)
Acquisition of treasury stock	—		—		—		—		—		(96,898)		(96,898)
Stock-based compensation	—		—		7,567		—		—		—		7,567
Exercise of stock options	—		—		—		—		(1,818)		13,149		11,331

Balance at September 30, 2023	$	—	$	105,218	$	543,693	$	(2,458,974)	$	7,519,893	$	(1,086,699)	$	4,623,131

See accompanying Notes to Condensed Consolidated Financial Statements.

GL Q3 2024 FORM 10-Q

Globe Life Inc.

Condensed Consolidated Statements of Cash Flows

(Unaudited)

(Dollar amounts in thousands)



	Nine Months Ended September 30,
	2024		2023













Cash provided from (used for) operating activities	$	1,065,513	$	1,091,028

Cash provided from (used for) investing activities:
Investments sold or matured:
Fixed maturities available for sale—sold	674,125		192,007
Fixed maturities available for sale—matured or other redemptions	161,275		212,936
Mortgage loans	29,433		32,164
Other long-term investments	29,995		100,999
Total investments sold or matured	894,828		538,106
Acquisition of investments:
Fixed maturities—available for sale	(1,000,665)		(1,076,699)
Mortgage loans	(134,667)		(95,995)
Other long-term investments	(445,776)		(103,098)
Total investments acquired	(1,581,108)		(1,275,792)
Net (increase) decrease in policy loans	(34,052)		(29,687)
Net (increase) decrease in short-term investments	(18,761)		30,187


Additions to property and equipment	(56,047)		(36,449)
Other investing activities	96		—
Investments in low-income housing interests	(27,840)		(54,337)
Cash provided from (used for) investing activities	(822,884)		(827,972)

Cash provided from (used for) financing activities:
Issuance of common stock	34,851		61,079
Cash dividends paid to shareholders	(65,292)		(62,945)
Repayment of debt	—		(165,612)
Proceeds from issuance of debt	530,000		170,000
Payment for debt issuance costs	(7,138)		(757)
Net borrowing from Federal Home Loan Bank (FHLB)	17,000		198,000
Net borrowing (repayment) of commercial paper	31,443		(34,066)
Proceeds from commercial paper with original maturities greater than 90 days	387,247		—
Repayment of commercial paper with original maturities greater than 90 days	(314,836)		—
Acquisition of treasury stock	(950,448)		(365,929)
Net receipts (payments) from deposit-type products	122,291		(69,526)
Cash provided from (used for) financing activities	(214,882)		(269,756)

Effect of foreign exchange rate changes on cash	3,646		(313)
Net increase (decrease) in cash	31,393		(7,013)
Cash at beginning of year	103,156		92,559
Cash at end of period	$	134,549	$	85,546

See accompanying Notes to Condensed Consolidated Financial Statements.

GL Q3 2024 FORM 10-Q

Globe Life Inc.

Notes to Condensed Consolidated Financial Statements

(Dollar amounts in thousands, except per share data)

Note 1—Significant Accounting Policies

Business*:* (Globe Life), (the Company), refers to Globe Life Inc., an insurance holding company incorporated in Delaware in 1979, and Globe Life Inc. subsidiaries and affiliates. Globe Life Inc.'s direct or indirect primary subsidiaries are Globe Life And Accident Insurance Company, American Income Life Insurance Company, Liberty National Life Insurance Company, Family Heritage Life Insurance Company of America, and United American Insurance Company. The underwriting companies are owned by their ultimate corporate parent, Globe Life Inc. (Parent Company).

Globe Life provides a variety of life and supplemental health insurance products and annuities to a broad base of customers. The Company is organized into four reportable segments: life insurance, supplemental health insurance, annuities, and investments.

Globe Life markets its insurance products through a number of distribution channels, each of which sells the products of one or more of Globe Life's insurance segments. Our distribution channels consist of the following exclusive agencies: American Income Life Division (American Income), Liberty National Division (Liberty National) and Family Heritage Division (Family Heritage); an independent agency, United American Division (United American); and our Direct to Consumer Division (DTC).

Basis of Presentation*:* The accompanying condensed consolidated financial statements of Globe Life have been prepared in accordance with the instructions to Form 10-Q. Therefore, they do not include all of the disclosures required by accounting principles generally accepted in the United States of America (GAAP) for annual financial statements. However, in the opinion of management, these statements include all adjustments, consisting of normal recurring adjustments, which are necessary for a fair presentation of the condensed consolidated financial position at September 30, 2024, and the condensed consolidated results of operations, comprehensive income, and cash flows for the periods ended September 30, 2024 and 2023. The interim period condensed consolidated financial statements should be read in conjunction with the Consolidated Financial Statements that are included in the Form 10-K filed with the Securities Exchange Commission (SEC) on February 28, 2024.

Use of Estimates: The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. See further documentation in the significant accounting policies or the accompanying notes.

GL Q3 2024 FORM 10-Q

Globe Life Inc.

Notes to Condensed Consolidated Financial Statements

(Dollar amounts in thousands, except per share data)

Note 2—New Accounting Standards


Accounting Pronouncements Adopted in the Current Year
Standard	Description	Effective Date	Effect on the Condensed Consolidated Financial Statements
ASU No. 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions	ASU 2022-03 adds disclosure requirements specific to equity securities subject to contractual sale restrictions. The disclosures clarify the nature of the contractual sale as well as the duration of the restriction and the circumstances that could cause a lapse in the restriction.	This standard is effective for the Company for fiscal years beginning on January 1, 2024 and interim periods within those fiscal years.	The adoption of this standard did not have a material impact on the Condensed Consolidated Financial Statements.


Accounting Pronouncements Yet to be Adopted
Standard	Description	Effective Date	Effect on the Condensed Consolidated Financial Statements
ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures	ASU 2023-07 adds disclosure requirements to segment expenses, improving the financial reporting of the entity’s overall performance and assessment of future cash flows. The disclosures will require more detailed information related to the entity’s reportable segments.	This standard is effective for the Company for annual periods beginning on January 1, 2024 and for interim periods beginning on January 1, 2025, and will be implemented on a retrospective basis.	The Company is evaluating the standard, but does not expect the standard will have a material impact on the Condensed Consolidated Financial Statements.
ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures	ASU 2023-09 adds disclosure requirements to disaggregated information related to the effective tax rate reconciliation and information on income taxes paid. The disclosures will enhance the assessment of the entity’s operations and related tax risks.	This standard is effective for the Company for annual periods beginning on January 1, 2025, and will be implemented on a prospective basis.	The Company does not expect the standard will have a material impact on the Condensed Consolidated Financial Statements.

GL Q3 2024 FORM 10-Q

Globe Life Inc.

Notes to Condensed Consolidated Financial Statements

(Dollar amounts in thousands, except per share data)

Note 3—Supplemental Information about Changes to Accumulated Other Comprehensive Income

Components of Accumulated Other Comprehensive Income: An analysis of the change in balance by component of Accumulated Other Comprehensive Income is as follows for the three and nine month periods ended September 30, 2024 and 2023:


	Three Months Ended September 30, 2024
	Available for Sale Assets		Future Policy Benefits		Foreign Exchange		Pension Adjustments		Total
Balance at July 1, 2024	$	(1,271,213)	$	(911,717)	$	(4,726)	$	(1,964)	$	(2,189,620)
Other comprehensive income (loss) before reclassifications, net of tax	686,343		(985,420)		5,764		—		(293,313)
Reclassifications, net of tax	(1,903)		—		—		93		(1,810)
Other comprehensive income (loss)	684,440		(985,420)		5,764		93		(295,123)
Balance at September 30, 2024	$	(586,773)	$	(1,897,137)	$	1,038	$	(1,871)	$	(2,484,743)


	Three Months Ended September 30, 2023
	Available for Sale Assets		Future Policy Benefits		Foreign Exchange		Pension Adjustments		Total
Balance at July 1, 2023	$	(1,249,399)	$	(1,696,801)	$	1,353	$	950	$	(2,943,897)
Other comprehensive income (loss) before reclassifications, net of tax	(842,527)		1,332,976		(6,226)		—		484,223
Reclassifications, net of tax	672		—		—		28		700
Other comprehensive income (loss)	(841,855)		1,332,976		(6,226)		28		484,923
Balance at September 30, 2023	$	(2,091,254)	$	(363,825)	$	(4,873)	$	978	$	(2,458,974)


	Nine Months Ended September 30, 2024
	Available for Sale Assets		Future Policy Benefits		Foreign Exchange		Pension Adjustments		Total
Balance at January 1, 2024	$	(827,596)	$	(1,947,391)	$	4,719	$	(2,151)	$	(2,772,419)
Other comprehensive income (loss) before reclassifications, net of tax	238,785		50,254		(3,681)		—		285,358
Reclassifications, net of tax	2,038		—		—		280		2,318
Other comprehensive income (loss)	240,823		50,254		(3,681)		280		287,676
Balance at September 30, 2024	$	(586,773)	$	(1,897,137)	$	1,038	$	(1,871)	$	(2,484,743)


	Nine Months Ended September 30, 2023
	Available for Sale Assets		Future Policy Benefits		Foreign Exchange		Pension Adjustments		Total
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	(736,046)		1,005,379		(3,192)		—		266,141
Reclassifications, net of tax	65,464		—		—		(266)		65,198
Other comprehensive income (loss)	(670,582)		1,005,379		(3,192)		(266)		331,339
Balance at September 30, 2023	$	(2,091,254)	$	(363,825)	$	(4,873)	$	978	$	(2,458,974)

GL Q3 2024 FORM 10-Q

Globe Life Inc.

Notes to Condensed Consolidated Financial Statements

(Dollar amounts in thousands, except per share data)

Reclassification Adjustments: Reclassification adjustments out of Accumulated Other Comprehensive Income are presented below for the three and nine month periods ended September 30, 2024 and 2023.


	Three Months Ended September 30,				Nine Months Ended September 30,				Affected line items in the Statements of Operations
Component Line Item	2024		2023		2024		2023
Unrealized investment (gains) losses on available for sale assets:
Realized (gains) losses	$	(257)	$	1,759	$	9,732	$	85,230	Realized (gains) losses

Amortization of (discount) premium	(2,151)		(908)		(7,152)		(2,364)		Net investment income
Total before tax	(2,408)		851		2,580		82,866
Tax	505		(179)		(542)		(17,402)		Income taxes
Total after-tax	(1,903)		672		2,038		65,464
Pension adjustments:
Amortization of prior service cost	265		269		803		807		Other operating expense
Amortization of actuarial (gain) loss	(147)		(234)		(449)		(1,143)		Other operating expense
Total before tax	118		35		354		(336)
Tax	(25)		(7)		(74)		70		Income taxes
Total after-tax	93		28		280		(266)
Total reclassification (after-tax)	$	(1,810)	$	700	$	2,318	$	65,198

GL Q3 2024 FORM 10-Q

Globe Life Inc.

Notes to Condensed Consolidated Financial Statements

(Dollar amounts in thousands, except per share data)

Note 4—Investments

Portfolio Composition*:* Summaries of fixed maturities available for sale by amortized cost, fair value, and allowance for credit losses at September 30, 2024 and December 31, 2023, and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income (loss) are as follows. Redeemable preferred stock is included within "Corporates, by sector."


	At September 30, 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	$	397,969	$	—	$	38	$	(21,026)	$	376,981	2
States, municipalities, and political subdivisions	3,253,819		—		49,409		(424,989)		2,878,239		16
Foreign governments	41,794		—		17		(9,885)		31,926		—
Corporates, by sector:
Industrials	8,115,835		(7,132)		258,165		(508,089)		7,858,779		43
Financial	5,014,169		—		171,762		(299,903)		4,886,028		26

Utilities	2,140,610		—		109,998		(72,371)		2,178,237		12
Total corporates	15,270,614		(7,132)		539,925		(880,363)		14,923,044		81
Collateralized debt obligations	36,685		—		5,798		—		42,483		—
Other asset-backed securities	83,573		—		1		(1,677)		81,897		1
Total fixed maturities	$	19,084,454	$	(7,132)	$	595,188	$	(1,337,940)	$	18,334,570	100

(1)Amount reported in the balance sheet.

(2)At fair value.


	At December 31, 2023
	Amortized Cost		Allowance for Credit Losses		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value(1)		% of Total Fixed Maturities(2)
Fixed maturities available for sale:
U.S. Government direct, guaranteed, and government-sponsored enterprises	$	398,450	$	—	$	7	$	(32,306)	$	366,151	2
States, municipalities, and political subdivisions	3,296,305		—		47,346		(403,329)		2,940,322		16
Foreign governments	44,453		—		1		(10,348)		34,106		—
Corporates, by sector:
Industrials	8,016,126		(7,115)		213,078		(566,847)		7,655,242		43
Financial	5,028,151		—		112,368		(388,340)		4,752,179		27

Utilities	2,017,967		—		73,925		(94,130)		1,997,762		11
Total corporates	15,062,244		(7,115)		399,371		(1,049,317)		14,405,183		81
Collateralized debt obligations	37,110		—		5,036		—		42,146		—
Other asset-backed securities	86,352		—		3		(4,057)		82,298		1
Total fixed maturities	$	18,924,914	$	(7,115)	$	451,764	$	(1,499,357)	$	17,870,206	100

(1)Amount reported in the balance sheet.

(2)At fair value.

GL Q3 2024 FORM 10-Q

Globe Life Inc.

Notes to Condensed Consolidated Financial Statements

(Dollar amounts in thousands, except per share data)

The Company has exposure to real estate investment trusts with an average rating of BBB+, which had a fair value of $429 million (2% of the total fixed maturity portfolio) and $425 million (2% of the total fixed maturity portfolio) at September 30, 2024 and December 31, 2023, respectively.

A schedule of fixed maturities available for sale by contractual maturity date at September 30, 2024, is shown below on an amortized cost basis, net of allowance for credit losses, and on a fair value basis. Actual disposition dates could differ from contractual maturities due to call or prepayment provisions.


	At September 30, 2024
	Amortized Cost, net		Fair Value
Fixed maturities available for sale:
Due in one year or less	$	111,956	$	111,456
Due after one year through five years	748,300		771,458
Due after five years through ten years	1,841,477		1,912,103
Due after ten years through twenty years	8,954,048		8,827,993
Due after twenty years	7,301,254		6,587,150
Mortgage-backed and asset-backed securities	120,287		124,410
	$	19,077,322	$	18,334,570

Analysis of Investment Operations: "Net investment income" for the three and nine month periods ended September 30, 2024 and 2023 is summarized as follows:


	Three Months Ended September 30,					Nine Months Ended September 30,
	2024		2023		% Change	2024		2023		% Change
Fixed maturities available for sale	$	245,313	$	237,609	3	$	738,626	$	704,095	5
Policy loans	13,296		12,446		7	39,196		36,435		8
Mortgage loans	7,668		5,363		43	21,337		13,919		53
Other long-term investments(1)	19,992		14,630		37	58,608		38,753		51
Short-term investments	3,083		1,396			8,396		4,811
	289,352		271,444		7	866,163		798,013		9
Less investment expense	(4,388)		(4,518)		(3)	(12,985)		(12,738)		2
Net investment income	$	284,964	$	266,926	7	$	853,178	$	785,275	9

(1)For the three months ended September 30, 2024 and 2023, the investment funds, accounted for under the fair value option method, recorded $19.1 million and $14.0 million, respectively, in net investment income. For the nine months ended September 30, 2024 and 2023, the investment funds, accounted for under the fair value option method, recorded $56.1 million and $37.2 million, respectively, in net investment income. Refer to Other Long-Term Investments below for further discussion on the investment funds.

Selected information about sales of fixed maturities available for sale is as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Fixed maturities available for sale:
Proceeds from sales(1)	$	163,221	$	46,210	$	674,125	$	192,034
Gross realized gains	2,042		261		6,086		308
Gross realized losses	(1,856)		(67,018)		(15,824)		(77,879)

(1)As of September 30, 2024 and 2023, the Company had $0 and $27 thousand of unsettled trades, respectively.

GL Q3 2024 FORM 10-Q

Globe Life Inc.

Notes to Condensed Consolidated Financial Statements

(Dollar amounts in thousands, except per share data)

An analysis of "Realized gains (losses)" is as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Realized investment gains (losses):
Fixed maturities available for sale:
Sales and other(1)	$	257	$	(66,767)	$	(9,716)	$	(77,730)

Provision for credit losses	—		65,008		(16)		(7,500)
Fair value option—change in fair value	(3,683)		868		(22,777)		7,954
Mortgage loans	(1,376)		(59)		(3,530)		(4,918)
Other investments	(16)		880		1,135		502
Realized gains (losses) from investments	(4,818)		(70)		(34,904)		(81,692)

Other gains (losses)	2,626		(2,123)		8,324		2,729
Total realized gains (losses)	(2,192)		(2,193)		(26,580)		(78,963)
Applicable tax	460		461		5,582		16,583
Realized gains (losses), net of tax	$	(1,732)	$	(1,732)	$	(20,998)	$	(62,380)

(1)During the three months ended September 30, 2024 and 2023, the Company recorded $3.4 million and $21.1 million of issuer-initiated exchanges of fixed maturities (noncash transactions) that resulted in no realized gains (losses) in either period. During the nine months ended September 30, 2024 and 2023, the Company recorded $82.2 million and $39.0 million of issuer-initiated exchanges of fixed maturities (noncash transactions) that resulted in no realized gains (losses) in either period.

GL Q3 2024 FORM 10-Q

Globe Life Inc.

Notes to Condensed Consolidated Financial Statements

(Dollar amounts in thousands, except per share data)

Fair Value Measurements: The following tables represent the fair value of fixed maturities measured on a recurring basis at September 30, 2024 and December 31, 2023:


	Fair Value Measurement at September 30, 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	$	—		$	376,981		$	—		$	376,981
States, municipalities, and political subdivisions	—			2,878,239			—			2,878,239
Foreign governments	—			31,926			—			31,926
Corporates, by sector:
Industrials	—			7,659,257			199,522			7,858,779
Financial	—			4,754,596			131,432			4,886,028

Utilities	—			2,063,380			114,857			2,178,237
Total corporates	—			14,477,233			445,811			14,923,044
Collateralized debt obligations	—			—			42,483			42,483
Other asset-backed securities	—			74,021			7,876			81,897
Total fixed maturities	$	—		$	17,838,400		$	496,170		$	18,334,570
Percentage of total	—		%	97		%	3		%	100		%


	Fair Value Measurement at December 31, 2023:
	Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Total Fair Value
Fixed maturities available for sale
U.S. Government direct, guaranteed, and government-sponsored enterprises	$	—		$	366,151		$	—		$	366,151
States, municipalities, and political subdivisions	—			2,940,322			—			2,940,322
Foreign governments	—			34,106			—			34,106
Corporates, by sector:
Industrials	—			7,440,493			214,749			7,655,242
Financial	—			4,621,160			131,019			4,752,179

Utilities	—			1,888,797			108,965			1,997,762
Total corporates	—			13,950,450			454,733			14,405,183
Collateralized debt obligations	—			—			42,146			42,146
Other asset-backed securities	—			82,298			—			82,298
Total fixed maturities	$	—		$	17,373,327		$	496,879		$	17,870,206
Percentage of total	—		%	97		%	3		%	100		%

GL Q3 2024 FORM 10-Q

Globe Life Inc.

Notes to Condensed Consolidated Financial Statements

(Dollar amounts in thousands, except per share data)

The following tables represent changes in fixed maturities measured at fair value on a recurring basis using significant unobservable inputs (Level 3):


	Analysis of Changes in Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Asset- backed Securities			Collateralized Debt Obligations			Corporates			Total
Balance at January 1, 2024	$	—		$	42,146		$	454,733		$	496,879

Included in realized gains / losses	—			—			—			—
Included in other comprehensive income	—			762			5,448			6,210
Acquisitions	7,876			—			14,800			22,676
Sales	—			—			—			—
Amortization	—			3,414			(38)			3,376
Other(1)	—			(3,839)			(29,132)			(32,971)
Transfers into Level 3(2)	—			—			—			—
Transfers out of Level 3(2)	—			—			—			—
Balance at September 30, 2024	$	7,876		$	42,483		$	445,811		$	496,170
Percent of total fixed maturities	—		%	—		%	3		%	3		%

(1)Includes capitalized interest, foreign exchange adjustments, and principal repayments.

(2)Considered to be transferred at the end of the period. Transfers into Level 3 occur when observable inputs are no longer available. Transfers out of Level 3 occur when observable inputs become available.


	Analysis of Changes in Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Asset- 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	—			(8,424)			(15,968)			(24,392)
Acquisitions	—			—			—			—
Sales	—			—			—			—
Amortization	—			3,429			5			3,434
Other(1)	—			(3,684)			(26,669)			(30,353)
Transfers into Level 3(2)	—			—			—			—
Transfers out of Level 3(2)	—			—			—			—
Balance at September 30, 2023	$	—		$	41,685		$	435,451		$	477,136
Percent of total fixed maturities	—		%	—		%	3		%	3		%

(1)Includes capitalized interest, foreign exchange adjustments, and principal repayments.

GL Q3 2024 FORM 10-Q

Globe Life Inc.

Notes to Condensed Consolidated Financial Statements

(Dollar amounts in thousands, except per share data)

The following table presents changes in unrealized gains and losses for the period included in accumulated other comprehensive income for assets held at the end of the reporting period for Level 3 classification:


	Changes in Unrealized Gains (Losses) included in Accumulated Other Comprehensive Income for Assets Held at the End of the Period
	Asset- backed Securities		Collateralized Debt Obligations		Corporates		Total
At September 30, 2024	$	—	$	762	$	5,448	$	6,210
At September 30, 2023	—		(8,424)		(15,968)		(24,392)

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 September 30, 2024	87	1,553	1,640
As of December 31, 2023	151	1,614	1,765

Globe Life's entire fixed maturity portfolio consisted of 2,532 issues by 975 different issuers at September 30, 2024 and 2,473 issues by 980 different issuers at December 31, 2023. The weighted-average quality rating of all unrealized loss positions at amortized cost was A- as of September 30, 2024 and December 31, 2023.

GL Q3 2024 FORM 10-Q

Globe Life Inc.

Notes to Condensed Consolidated Financial Statements

(Dollar amounts in thousands, except per share data)

The following tables disclose unrealized investment losses by class and major sector of fixed maturities available for sale at September 30, 2024 and December 31, 2023.

Analysis of Gross Unrealized Investment Losses


	At September 30, 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	$	—	$	—	$	374,361	$	(21,026)	$	374,361	$	(21,026)
States, municipalities, and political subdivisions	201,640		(4,821)		1,636,467		(420,168)		1,838,107		(424,989)
Foreign governments	—		—		28,493		(9,885)		28,493		(9,885)
Corporates, by sector:
Industrials	124,717		(11,134)		4,071,839		(464,628)		4,196,556		(475,762)
Financial	19,176		(303)		2,005,383		(261,465)		2,024,559		(261,768)

Utilities	7,012		(92)		667,192		(71,489)		674,204		(71,581)
Total corporates	150,905		(11,529)		6,744,414		(797,582)		6,895,319		(809,111)
Collateralized debt obligations	—		—		—		—		—		—
Other asset-backed securities	—		—		68,549		(1,607)		68,549		(1,607)
Total investment grade securities	352,545		(16,350)		8,852,284		(1,250,268)		9,204,829		(1,266,618)

Below investment grade securities:


Corporates, by sector:
Industrials	2,670		(169)		143,088		(32,158)		145,758		(32,327)
Financial	4,199		(13)		178,887		(38,122)		183,086		(38,135)

Utilities	—		—		11,945		(790)		11,945		(790)
Total corporates	6,869		(182)		333,920		(71,070)		340,789		(71,252)
Collateralized debt obligations	—		—		—		—		—		—
Other asset-backed securities	—		—		5,432		(70)		5,432		(70)
Total below investment grade securities	6,869		(182)		339,352		(71,140)		346,221		(71,322)
Total fixed maturities	$	359,414	$	(16,532)	$	9,191,636	$	(1,321,408)	$	9,551,050	$	(1,337,940)

Gross unrealized losses may fluctuate quarter over quarter due to factors in the market that affect our holdings, such as changes in interest rates or credit spreads. The Company considers many factors when determining whether an allowance for a credit loss should be recorded. While the Company holds securities that may be in an unrealized loss position from time to time, Globe Life does not generally intend to sell and it is unlikely that the Company will be required to sell the fixed maturities prior to their anticipated recovery or maturity due to the strong cash flows generated by its insurance operations.

GL Q3 2024 FORM 10-Q

Globe Life Inc.

Notes to Condensed Consolidated Financial Statements

(Dollar amounts in thousands, except per share data)

Analysis of Gross Unrealized Investment Losses


	At December 31, 2023
	Less than Twelve Months				Twelve Months or Longer				Total
	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
Fixed maturities available for sale:
Investment grade securities:
U.S. Government direct, guaranteed, and government-sponsored enterprises	$	—	$	—	$	364,006	$	(32,306)	$	364,006	$	(32,306)
States, municipalities, and political subdivisions	252,800		(3,520)		1,610,163		(399,809)		1,862,963		(403,329)
Foreign governments	—		—		32,591		(10,348)		32,591		(10,348)
Corporates, by sector:
Industrials	191,573		(3,881)		4,317,827		(530,011)		4,509,400		(533,892)
Financial	242,099		(6,584)		2,341,424		(339,628)		2,583,523		(346,212)

Utilities	81,194		(648)		686,043		(91,959)		767,237		(92,607)
Total corporates	514,866		(11,113)		7,345,294		(961,598)		7,860,160		(972,711)
Collateralized debt obligations	—		—		—		—		—		—
Other asset-backed securities	—		—		70,956		(3,648)		70,956		(3,648)
Total investment grade securities	767,666		(14,633)		9,423,010		(1,407,709)		10,190,676		(1,422,342)

Below investment grade securities:


Corporates, by sector:
Industrials	10,745		(199)		145,697		(32,756)		156,442		(32,955)
Financial	25,563		(2,602)		151,190		(39,526)		176,753		(42,128)

Utilities	—		—		19,654		(1,523)		19,654		(1,523)
Total corporates	36,308		(2,801)		316,541		(73,805)		352,849		(76,606)
Collateralized debt obligations	—		—		—		—		—		—
Other asset-backed securities	—		—		11,288		(409)		11,288		(409)
Total below investment grade securities	36,308		(2,801)		327,829		(74,214)		364,137		(77,015)
Total fixed maturities	$	803,974	$	(17,434)	$	9,750,839	$	(1,481,923)	$	10,554,813	$	(1,499,357)

GL Q3 2024 FORM 10-Q

Globe Life Inc.

Notes to Condensed Consolidated Financial Statements

(Dollar amounts in thousands, except per share data)

Fixed Maturities, Allowance for Credit Losses*:* A summary of the activity in the allowance for credit losses is as follows.


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Allowance for credit losses beginning balance	$	7,132	$	72,508	$	7,115	$	—
Additions to allowance for which credit losses were not previously recorded	—		—		—		72,508
Additions (reductions) to allowance for fixed maturities that previously had an allowance	—		(65,008)		17		(65,008)
Reduction of allowance for which the Company intends to sell or more likely than not will be required to sell or sold during the period	—		—		—		—
Allowance for credit losses ending balance	$	7,132	$	7,500	$	7,132	$	7,500

As of September 30, 2024 and December 31, 2023, the Company did not have any fixed maturities in non-accrual status.

Mortgage Loans (commercial mortgage loans)**: Summaries of commercial mortgage loans by property type and geographical location at September 30, 2024 and December 31, 2023 are as follows:


	September 30, 2024			December 31, 2023
	Carrying Value		% of Total	Carrying Value		% of Total
Property type:
Multi-family	$	127,155	33	$	116,299	42
Industrial	102,402		27	57,267		20
Retail	73,252		19	23,925		9
Hospitality	43,435		11	43,897		16
Mixed use	35,886		10	34,749		12
Office	6,387		2	6,734		2

Total recorded investment	388,517		102	282,871		101
Less allowance for credit losses	(7,202)		(2)	(3,672)		(1)
Carrying value, net of allowance for credit losses	$	381,315	100	$	279,199	100


	September 30, 2024			December 31, 2023
	Carrying Value		% of Total	Carrying Value		% of Total
Geographic location:
Texas	$	75,002	20	$	45,111	16
New Jersey	51,454		14	44,574		16
Florida	46,506		12	48,233		17
California	40,715		11	54,721		20
New York	35,865		9	20,284		7
Alabama	35,838		9	11,003		4
Other	103,137		27	58,945		21
Total recorded investment	388,517		102	282,871		101
Less allowance for credit losses	(7,202)		(2)	(3,672)		(1)
Carrying value, net of allowance for credit losses	$	381,315	100	$	279,199	100

GL Q3 2024 FORM 10-Q

Globe Life Inc.

Notes to Condensed Consolidated Financial Statements

(Dollar amounts in thousands, except per share data)

The following tables are reflective of the key factors, debt service coverage ratios, and loan-to-value (LTV) ratios that are utilized by management to monitor the performance of the portfolios. The Company only makes new investments in commercial mortgage loans that have a LTV ratio less than 80%. LTV's 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 equates to higher risk of loss.


	September 30, 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%	$	22,841	$	138,034	$	203,226	$	364,101	94
70% to 80%	1,058		—		—		1,058		—
81% to 90%	8,569		—		—		8,569		2
Greater than 90%	14,789		—		—		14,789		4
Total	$	47,257	$	138,034	$	203,226	388,517		100
Less allowance for credit losses							(7,202)
Total, net of allowance for credit losses							$	381,315

(1)Annual net operating income divided by annual mortgage debt service (principal and interest).

(2)Loan balance divided by stabilized appraised value at origination, including planned renovations and stabilized occupancy. Updated internal valuations are used when a loan is materially underperforming.


	December 31, 2023
	Recorded Investment
	Debt Service Coverage Ratios(1)
	<1.00x		1.00x—1.20x		>1.20x		Total		% of Gross Total
Loan-to-value ratio(2):
Less than 70%	$	27,091	$	180,761	$	58,364	$	266,216	94
70% to 80%	—		—		—		—		—
81% to 90%	8,468		—		1,153		9,621		3
Greater than 90%	7,034		—		—		7,034		3
Total	$	42,593	$	180,761	$	59,517	282,871		100
Less allowance for credit losses							(3,672)
Total, net of allowance for credit losses							$	279,199

(1)Annual net operating income divided by annual mortgage debt service (principal and interest).

As of September 30, 2024, the Company evaluated the commercial mortgage loan portfolio on a pool basis to determine the allowance for credit losses. At the end of the period, the Company had 36 loans in the portfolio. For the nine months ended September 30, 2024, the allowance for credit losses increased by $3.5 million to $7.2 million. The provision for credit losses is included in "Realized gains (losses)" in the Condensed Consolidated Statements of Operations.


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Allowance for credit losses beginning balance	$	5,826	$	2,928	$	3,672	$	1,789

Provision (reversal) for credit losses	1,376		60		3,530		1,199

Allowance for credit losses ending balance	$	7,202	$	2,988	$	7,202	$	2,988

GL Q3 2024 FORM 10-Q

Globe Life Inc.

Notes to Condensed Consolidated Financial Statements

(Dollar amounts in thousands, except per share data)

There was one delinquent commercial mortgage loan, with an outstanding par value of $36.0 million and outstanding interest due of $1.9 million, as of September 30, 2024. The underlying collateral for this loan is in the process of being sold and the Company expects to recover all interest and principal due as of September 30, 2024. There were no delinquent commercial mortgage loans as of December 31, 2023. As of September 30, 2024, the Company had three commercial mortgage loans in non-accrual status with a principal balance of $8.8 million. As of December 31, 2023, the Company had no commercial mortgage loans in non-accrual status. The Company's unfunded commitment balance to commercial loan borrowers was $31 million as of September 30, 2024.

Other Long-Term Investments*:* Other long-term investments consist of the following assets:


	September 30, 2024		December 31, 2023
Investment funds	$	979,397	$	795,583
Company-owned life insurance	200,114		—
Other	42,377		40,295
Total	$	1,221,888	$	835,878

During the current quarter ended September 30, 2024, the Company acquired other investments in company-owned life insurance (COLI) in the amount of $200 million. COLI is reported at cash surrender value.

The following table presents additional information about the Company's investment funds as of September 30, 2024 and December 31, 2023 at fair value:


	Fair Value				Unfunded Commitments
Investment Category	September 30, 2024		December 31, 2023		September 30, 2024		Redemption Term/Notice(1)




Commercial mortgage loans	$	567,425	$	411,315	$	378,892	Fully redeemable and non-redeemable with varying terms.
Opportunistic and private credit	195,957		181,410		166,514		Fully redeemable and non-redeemable with varying terms.


Infrastructure	174,971		165,887		16,318		Fully redeemable and non-redeemable with varying terms.


Other	41,044		36,971		50,757		Non-redeemable with varying terms
Total investment funds	$	979,397	$	795,583	$	612,481

(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.

The Company had $226 million of capital called during the period from existing investment funds. The Company's unfunded commitments were $612 million as of September 30, 2024.

Note 5—Commitments and Contingencies

Guarantees: The Parent Company has guaranteed letters of credit in connection with its credit facility with a group of banks. The letters of credit were issued by TMK Re, Ltd., a wholly-owned subsidiary, to secure TMK Re, Ltd.’s obligation for claims on certain policies reinsured by TMK Re, Ltd. that were sold by other Globe Life insurance subsidiaries. These letters of credit facilitate TMK Re, Ltd.’s ability to reinsure the business of Globe Life's insurance carriers. The credit facility was amended on March 29, 2024 and now expires in 2029. The maximum amount of letters of credit available is $250 million. The Parent Company would be liable to the extent that TMK Re, Ltd. does not pay the reinsured party. The amount of letters of credit outstanding at September 30, 2024 was $115 million.

GL Q3 2024 FORM 10-Q

Globe Life Inc.

Notes to Condensed Consolidated Financial Statements

(Dollar amounts in thousands, except per share data)

Litigation: Globe Life Inc. and its subsidiaries, in common with the insurance industry in general, are subject to litigation, including: putative class action litigation; alleged breaches of contract; torts, including bad faith and fraud claims based on alleged wrongful or fraudulent acts of agents of the Parent Company's insurance subsidiaries; alleged employment discrimination; alleged worker misclassification; and miscellaneous other causes of action. Based upon information presently available, and in light of legal and other factual defenses available to the Parent Company and its subsidiaries, management does not believe that it is reasonably possible that such litigation will have a material adverse effect on Globe Life'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 July 22, 2022, putative class and collective action litigation was filed against Arias Agencies and American Income Life Insurance Company (“American Income”) (collectively, “Defendants”) in United States District Court for the Western District of Pennsylvania (David Burkes v. Arias Agencies and American Income Life Insurance Company, Case No. 2:22-cv-1054). The complaint alleges that insurance agent trainees should have been classified as employees, and after contracting should have been classified as employees instead of independent contractors. Plaintiff David Burkes is a former Pennsylvania independent sales agent and asserts claims under Pennsylvania law on behalf of a putative class of all individuals who trained to become and/or worked as sales agents for American Income in the three years prior to July 22, 2022 through case conclusion. Burkes makes claims (a) under the Pennsylvania Minimum Wage Act and the Pennsylvania Wage Payment and Collection Law for the alleged failure to pay minimum wage, alleged failure to pay for time spent in training, alleged failure to pay for missed meals and rest breaks, allegedly requiring putative class members to pay for work-related expenses, and allegedly subjecting putative class members to “chargebacks”; (b) for unjust enrichment for allegedly benefiting from the uncompensated labor of putative class members; and (c) for the rescission of putative class members’ agent contracts. Burkes also asserts a collective action on behalf of the same group of individuals for minimum wage, overtime, liquidated damages, and attorney’s fees and costs under the Fair Labor Standards Act for the three years prior to July 22, 2022 through case conclusion, as well as a claim that American Income allegedly did not keep accurate records of hours worked by sales agents. On January 26, 2023, the court entered an order compelling Burkes to arbitrate his claims on an individual basis and staying the case pending completion of arbitration. Burkes’ individual claims, as well as the individual claims of other current and former agents who are members of the putative class, are currently pending in arbitration.

On April 4, 2023, putative class action litigation was filed against National Income Life Insurance Company (“National Income”) in New York Supreme Court by plaintiffs Melissa K. Goppert, Sarah Valente, James O’Neill, Jennifer Abe, and Emily Herendeen (“Plaintiffs”) (Goppert, et al. v. National Income Life Insurance Company, Index No. 153096/2023). Plaintiffs are former National Income independent sales agents who allege they should have been classified as employees and assert claims under New York state law on behalf of a putative class of former independent sales agents and individuals who trained to become independent sale agents since March 2017. Plaintiffs make claims under New York’s Minimum Wage Law (NYLL § 633 and 12 NYCRR § 142-2.1); Overtime Compensation Law (NYLL § 633 and 12 NYCRR § 142-2.2); and “Spread of Hours” Law (12 NYCRR § 142-2.4) for the alleged failure to pay minimum wages and overtime pay, including for time spent in training, and attorney’s fees and costs. National Income filed a motion to compel arbitration of each Plaintiff’s claims on an individual basis, which the Court granted in full on January 11, 2024, and on February 7, 2024, Plaintiffs filed a notice of appeal of the Court’s order.

On September 1, 2023, plaintiff Miné Caglar Cost (“Plaintiff”) filed a complaint against American Income Life Insurance Company (“American Income”) in the Superior Court of the State of California for the County of Los Angeles, asserting a single claim for violation of the Private Attorneys General Act (“PAGA”) (Cost v. American Income Life Insurance Company, et al., Case No. 23SMCV04113). Plaintiff is a former California independent insurance sales agent who alleges one cause of action for civil penalties under PAGA arising out of alleged violations of the wage-and-hour provisions of the California Labor Code stemming from American Income’s alleged misclassification of Plaintiff and other California-based sales agents as independent contractors. American Income filed a motion to compel arbitration on an individual basis and stay the representative component of Plaintiff’s

GL Q3 2024 FORM 10-Q

Globe Life Inc.

Notes to Condensed Consolidated Financial Statements

(Dollar amounts in thousands, except per share data)

claims, to which Plaintiff stipulated. On December 12, 2023, the Court approved the parties’ stipulation to compel the matter to individual arbitration and stayed the case pending the completion of the individual arbitration.

On November 30, 2023, Globe Life Inc. and its subsidiary, American Income Life Insurance Company (“American Income”), received subpoenas from the U.S. Attorney’s Office for the Western District of Pennsylvania, seeking documents relating to sales practices by certain of our independent sales agents contracted to sell American Income policies. Globe Life Inc. and American Income continue to fully cooperate in responding to the Department of Justice’s requests. The Department of Justice has not asserted any claims or made allegations against Globe Life Inc. and American Income, and Globe Life Inc. currently is not aware that any legal proceedings are contemplated by governmental authorities. While no assurances can be made, at present management does not believe that it is reasonably possible or probable that this matter will result in a material loss.

In April 2024, Globe Life Inc. received an inquiry from the SEC's Fort Worth Regional Office requesting information related to recent short seller reports making allegations about Globe Life Inc. Globe Life Inc. has provided information in response to the SEC’s requests and continues to cooperate fully with the SEC. At this time, the SEC has not asserted any claims against Globe Life Inc. or indicated that it intends to do so. While no assurances can be made, at present management does not believe that it is reasonably possible or probable that this matter will result in a material loss.

On April 30, 2024, a putative securities class action was filed against Globe Life Inc. and six of its current/former executives and directors in the United States District Court for the Eastern District of Texas (City of Miami Gen. Emp. & Sanitation Emp. Ret. Trust, et al. v. Globe Life Inc., et al., Case No. 4:24-cv-00376). On July 24, 2024, the Court appointed Lead Plaintiffs and Lead Counsel for the putative class of shareholders. The Lead Plaintiffs filed a Consolidated Complaint on October 4, 2024 that asserts claims under §§ 10(b), 20(a), and 20(A) of the Securities Exchange Act of 1934 and SEC Rules 10b-5(a), 10b-5(b), and 10b-5(c) promulgated thereunder, on behalf of a putative class of purchasers of Globe Life Inc.'s securities from May 8, 2019 through April 10, 2024. The Consolidated Complaint adds four additional executives as defendants and alleges that certain of Globe Life Inc.'s disclosures about financial performance and certain other public statements during the putative class period were materially false or misleading. Defendants’ response to the Consolidated Complaint is due December 3, 2024. Globe Life Inc. plans to vigorously defend against the lawsuit. Pursuant to Globe Life Inc.'s Restated Certificate of Incorporation and indemnification agreements with the named defendants, Globe Life Inc. has agreed to indemnify those defendants for all expenses and losses related to the litigation, subject to the terms of those indemnification agreements. The outcome of litigation of this type is inherently uncertain, and there is always the possibility that a Court rules in a manner that is adverse to the interests of Globe Life Inc. and the individual defendants. However, the amount of any such loss in that outcome cannot be reasonably estimated at this time. Further, management cannot reasonably estimate whether an outcome on the putative class action will be resolved in the near term.

On September 26, 2024, Globe Life Inc. and its subsidiary, American Income Life Insurance Company (“American Income”), 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 by five former sales agents and one current sales agent. The EEOC asserts that there is reasonable cause to believe the six complainants were employees, not independent contractors, of Globe Life Inc. and/or American Income and were discriminated against on the basis of sex, and that one complainant was also discriminated against on the basis of race. In addition, the EEOC asserts that there is reasonable cause to believe that a class of female workers were employees, not independent contractors, and were subject to unlawful conduct which also constitutes a pattern-or-practice of discrimination. The EEOC’s investigative findings are not binding on Globe Life Inc. The EEOC’s procedures provide for a conciliation process that has recently concluded without achieving a resolution. The EEOC may elect to file a lawsuit in federal court on behalf of the workers based on the alleged statutory violations. The EEOC has not filed any legal proceedings at this time. In the event the EEOC elects to pursue any claims in court, Globe Life Inc. intends to defend against any such lawsuit vigorously. The outcome of litigation of this type would be inherently uncertain and cannot be reasonably estimated or determined at this time. There is always the possibility that a Court rules in a manner that is adverse to the interests of Globe Life Inc.

Note 6—Policy Liabilities

GL Q3 2024 FORM 10-Q

Globe Life Inc.

Notes to Condensed Consolidated Financial Statements

(Dollar amounts in thousands, except per share data)

The liability for future policy benefits is determined based on the net level premium method, which requires the liability be calculated as the present value of estimated future policyholder benefits and the related termination expenses, less the present value of estimated future net premiums to be collected from policyholders. The following tables summarize balances and changes in the net liability for future policy benefits, before reinsurance, for traditional life long-duration contracts for the three and nine month periods ended September 30, 2024 and 2023:


	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	(103,922)		(219,723)		(26,533)		(13,882)		(364,060)
Adjusted balance at January 1, 2023	4,157,066		5,497,311		1,044,768		443,746		11,142,891
Issuances(1)	557,844		450,361		92,894		21,756		1,122,855
Interest accrual(2)	147,968		214,988		40,362		17,071		420,389
Net premiums collected(3)	(388,288)		(461,367)		(100,093)		(34,542)		(984,290)

Effect of changes in the foreign exchange rate	(631)		—		—		—		(631)
Ending balance at original discount rates	4,473,959		5,701,293		1,077,931		448,031		11,701,214

Effect of change from original to current discount rates	(155,254)		(31,118)		(18,702)		(1,499)		(206,573)
Balance at September 30, 2023	$	4,318,705	$	5,670,175	$	1,059,229	$	446,532	$	11,494,641




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	(173,180)		(226,062)		(29,381)		(9,292)		(437,915)
Adjusted balance at January 1, 2024	4,267,801		5,409,831		1,019,158		433,675		11,130,465
Issuances(1)	616,527		398,034		90,517		18,126		1,123,204
Interest accrual(2)	164,917		220,485		41,610		17,213		444,225
Net premiums collected(3)	(412,717)		(455,625)		(101,687)		(33,960)		(1,003,989)

Effect of changes in the foreign exchange rate	(4,101)		—		—		—		(4,101)
Ending balance at original discount rates	4,632,427		5,572,725		1,049,598		435,054		11,689,804

Effect of change from original to current discount rates	204,567		421,888		54,498		35,513		716,466
Balance at September 30, 2024	$	4,836,994	$	5,994,613	$	1,104,096	$	470,567	$	12,406,270

(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 Q3 2024 FORM 10-Q

Globe Life Inc.

Notes to Condensed Consolidated Financial Statements

(Dollar amounts in thousands, except per share data)


	Life
	Present value of expected future net premiums
	American Income		DTC		Liberty National		Other		Total
Balance at July 1, 2023	$	4,472,847	$	5,988,577	$	1,110,017	$	471,279	$	12,042,720
Beginning balance at original discount rates	4,399,053		5,700,354		1,071,561		445,475		11,616,443
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	(34,571)		(91,120)		(10,938)		(7,232)		(143,861)
Adjusted balance at July 1, 2023	4,378,747		5,645,404		1,065,801		446,662		11,536,614
Issuances(1)	181,823		136,611		32,045		7,143		357,622
Interest accrual(2)	51,119		72,515		13,707		5,741		143,082
Net premiums collected(3)	(131,329)		(153,237)		(33,622)		(11,515)		(329,703)

Effect of changes in the foreign exchange rate	(6,401)		—		—		—		(6,401)
Ending balance at original discount rates	4,473,959		5,701,293		1,077,931		448,031		11,701,214

Effect of change from original to current discount rates	(155,254)		(31,118)		(18,702)		(1,499)		(206,573)
Balance at September 30, 2023	$	4,318,705	$	5,670,175	$	1,059,229	$	446,532	$	11,494,641

Balance at July 1, 2024	$	4,635,903	$	5,810,518	$	1,085,233	$	449,883	$	11,981,537
Beginning balance at original discount rates	4,648,111		5,670,288		1,080,642		437,551		11,836,592
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	(59,483)		(103,089)		(12,113)		(1,970)		(176,655)
Adjusted balance at July 1, 2024	4,506,280		5,538,833		1,039,237		434,599		11,518,949
Issuances(1)	203,828		110,993		30,298		5,969		351,088
Interest accrual(2)	55,750		73,134		13,836		5,709		148,429
Net premiums collected(3)	(138,552)		(150,235)		(33,773)		(11,223)		(333,783)

Effect of changes in the foreign exchange rate	5,121		—		—		—		5,121
Ending balance at original discount rates	4,632,427		5,572,725		1,049,598		435,054		11,689,804

Effect of change from original to current discount rates	204,567		421,888		54,498		35,513		716,466
Balance at September 30, 2024	$	4,836,994	$	5,994,613	$	1,104,096	$	470,567	$	12,406,270

(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.

(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 Q3 2024 FORM 10-Q

Globe Life Inc.

Notes to Condensed Consolidated Financial Statements

(Dollar amounts in thousands, except per share data)


		Life
	Present value of expected future policy benefits
	American Income			DTC			Liberty National			Other			Total

















Balance at January 1, 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		(109,386)			(227,639)			(27,482)			(17,962)			(382,469)
Adjusted balance at January 1, 2023		8,313,719			8,284,660			3,251,654			3,397,403			23,247,436
Issuances(1)		557,844			450,362			92,894			21,756			1,122,856
Interest accrual(2)		335,349			342,208			130,712			152,378			960,647
Benefit payments(3)		(296,133)			(432,393)			(153,294)			(86,008)			(967,828)

Effect of changes in the foreign exchange rate		(819)			—			—			—			(819)
Ending balance at original discount rates		8,909,960			8,644,837			3,321,966			3,485,529			24,362,292
Effect of change from original to current discount rates		80,477			228,607			(46,234)			282,118			544,968
Balance at September 30, 2023		$	8,990,437		$	8,873,444		$	3,275,732		$	3,767,647		$	24,907,260

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		(187,711)			(241,231)			(34,722)			(12,841)			(476,505)
Adjusted balance at January 1, 2024		8,769,624			8,365,415			3,261,694			3,491,991			23,888,724
Issuances(1)		611,802			398,032			90,518			18,127			1,118,479
Interest accrual(2)		367,403			355,850			134,020			157,318			1,014,591
Benefit payments(3)		(326,318)			(439,992)			(159,219)			(103,998)			(1,029,527)

Effect of changes in the foreign exchange rate		(8,768)			—			—			—			(8,768)
Ending balance at original discount rates		9,413,743			8,679,305			3,327,013			3,563,438			24,983,499
Effect of change from original to current discount rates		1,091,042			1,082,717			275,358			717,751			3,166,868
Balance at September 30, 2024		$	10,504,785		$	9,762,022		$	3,602,371		$	4,281,189		$	28,150,367

(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 Q3 2024 FORM 10-Q

Globe Life Inc.

Notes to Condensed Consolidated Financial Statements

(Dollar amounts in thousands, except per share data)


		Life
	Present value of expected future policy benefits
	American Income			DTC			Liberty National			Other			Total
Balance at July 1, 2023		$	9,668,207		$	9,487,233		$	3,507,845		$	4,109,706		$	26,772,991
Beginning balance at original discount rates		8,753,526			8,592,897			3,297,781			3,448,491			24,092,695
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		(36,998)			(97,632)			(14,364)			(9,595)			(158,589)
Adjusted balance at July 1, 2023		8,729,872			8,529,672			3,289,573			3,450,557			23,999,674
Issuances(1)		181,822			136,612			32,046			7,145			357,625
Interest accrual(2)		114,683			115,547			43,991			51,249			325,470
Benefit payments(3)		(101,161)			(136,994)			(43,644)			(23,422)			(305,221)

Effect of changes in the foreign exchange rate		(15,256)			—			—			—			(15,256)
Ending balance at original discount rates		8,909,960			8,644,837			3,321,966			3,485,529			24,362,292
Effect of change from original to current discount rates		80,477			228,607			(46,234)			282,118			544,968
Balance at September 30, 2023		$	8,990,437		$	8,873,444		$	3,275,732		$	3,767,647		$	24,907,260





Balance at July 1, 2024	$	9,811,407	$	9,289,834	$	3,424,768	$	3,981,898	$	26,507,907
Beginning balance at original discount rates	9,353,526		8,748,900		3,356,531		3,545,323		25,004,280
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	(65,766)		(111,255)		(15,385)		(2,629)		(195,035)
Adjusted balance at July 1, 2024	9,183,262		8,587,539		3,299,310		3,540,667		24,610,778
Issuances(1)	199,097		110,991		30,298		5,970		346,356
Interest accrual(2)	124,308		118,873		44,743		52,747		340,671
Benefit payments(3)	(105,757)		(138,098)		(47,338)		(35,946)		(327,139)

Effect of changes in the foreign exchange rate	12,833		—		—		—		12,833
Ending balance at original discount rates	9,413,743		8,679,305		3,327,013		3,563,438		24,983,499
Effect of change from original to current discount rates	1,091,042		1,082,717		275,358		717,751		3,166,868
Balance at September 30, 2024	$	10,504,785	$	9,762,022	$	3,602,371	$	4,281,189	$	28,150,367

(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.

GL Q3 2024 FORM 10-Q

Globe Life Inc.

Notes to Condensed Consolidated Financial Statements

(Dollar amounts in thousands, except per share data)


	Life(2)
	Net liability for future policy benefits as of September 30, 2023
	American Income		DTC		Liberty National		Other		Total
Net liability for future policy benefits at original discount rates	$	4,436,001	$	2,943,544	$	2,244,035	$	3,037,498	$	12,661,078
Effect of changes in discount rate assumptions	235,731		259,725		(27,532)		283,617		751,541
Other adjustments(1)	508		3,982		6,272		466		11,228
Net liability for future policy benefits, after other adjustments, at current discount rates	4,672,240		3,207,251		2,222,775		3,321,581		13,423,847
Reinsurance recoverable	(141)		—		(7,661)		(32,947)		(40,749)
Net liability for future policy benefits, after reinsurance recoverable, at current discount rates	$	4,672,099	$	3,207,251	$	2,215,114	$	3,288,634	$	13,383,098

(1)Other adjustments include the Company's effects of capping and flooring the liability (guidance requires an amount not less than zero at the calculation level of the liability for future policy benefits).

(2)Includes the immaterial error correction noted below.


	Life
	Net liability for future policy benefits as of September 30, 2024
	American Income		DTC		Liberty National		Other		Total
Net liability for future policy benefits at original discount rates	$	4,781,316	$	3,106,580	$	2,277,415	$	3,128,384	$	13,293,695
Effect of changes in discount rate assumptions	886,475		660,829		220,860		682,238		2,450,402
Other adjustments(1)	150		—		—		37		187
Net liability for future policy benefits, after other adjustments, at current discount rates	5,667,941		3,767,409		2,498,275		3,810,659		15,744,284
Reinsurance recoverable	(170)		—		(7,885)		(38,506)		(46,561)
Net liability for future policy benefits, after reinsurance recoverable, at current discount rates	$	5,667,771	$	3,767,409	$	2,490,390	$	3,772,153	$	15,697,723

(1)Other adjustments include the Company's effects of flooring the liability (guidance requires an amount not less than zero at the calculation level of the liability for future policy benefits).

GL Q3 2024 FORM 10-Q

Globe Life Inc.

Notes to Condensed Consolidated Financial Statements

(Dollar amounts in thousands, except per share data)

The following tables summarize balances and changes in the net liability for future policy benefits for long-duration health contracts for the three and nine month periods ended September 30, 2024 and 2023:


	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	2,941,261		1,729,219		415,442		192,631		87,751		5,366,304
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	(6,240)		(50,052)		(30,526)		(7,643)		(1,666)		(96,127)
Adjusted balance at January 1, 2023	3,401,904		1,648,912		327,952		178,927		102,638		5,660,333
Issuances(1)	226,363		202,561		43,373		30,667		6,532		509,496
Interest accrual(2)	99,390		50,091		14,047		6,304		3,278		173,110
Net premiums collected(3)	(202,669)		(134,009)		(38,322)		(16,611)		(8,028)		(399,639)

Effect of changes in the foreign exchange rate	—		—		—		(165)		—		(165)
Ending balance at original discount rates	3,524,988		1,767,555		347,050		199,122		104,420		5,943,135

Effect of change from original to current discount rates	(183,608)		(192,981)		(8,372)		(9,976)		(1,254)		(396,191)
Balance at September 30, 2023	$	3,341,380	$	1,574,574	$	338,678	$	189,146	$	103,166	$	5,546,944

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	(18,894)		(43,359)		(26,123)		(11,168)		(1,818)		(101,362)
Adjusted balance at January 1, 2024	3,616,801		1,731,697		318,984		202,908		112,511		5,982,901
Issuances(1)	287,072		200,220		43,367		34,121		12,325		577,105
Interest accrual(2)	128,533		55,733		12,450		7,135		4,221		208,072
Net premiums collected(3)	(220,380)		(141,735)		(39,223)		(18,171)		(8,338)		(427,847)

Effect of changes in the foreign exchange rate	—		—		—		(377)		—		(377)
Ending balance at original discount rates	3,812,026		1,845,915		335,578		225,616		120,719		6,339,854

Effect of change from original to current discount rates	130,218		(44,372)		11,529		8,173		7,153		112,701
Balance at September 30, 2024	$	3,942,244	$	1,801,543	$	347,107	$	233,789	$	127,872	$	6,452,555

(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.

(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 Q3 2024 FORM 10-Q

Globe Life Inc.

Notes to Condensed Consolidated Financial Statements

(Dollar amounts in thousands, except per share data)


	Health
	Present value of expected future net premiums
	United American		Family Heritage		Liberty National		American Income		DTC		Total
Balance at July 1, 2023	$	2,984,554	$	1,661,020	$	409,551	$	201,844	$	89,674	$	5,346,643
Beginning balance at original discount rates	2,985,660		1,771,206		400,180		201,709		86,840		5,445,595
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	22,683		(15,658)		(2,692)		(2,394)		229		2,168
Adjusted balance at July 1, 2023	3,475,226		1,725,293		340,524		193,254		103,622		5,837,919
Issuances(1)	82,647		70,216		15,183		9,880		2,317		180,243
Interest accrual(2)	35,536		17,272		4,380		2,170		1,160		60,518
Net premiums collected(3)	(68,421)		(45,226)		(13,037)		(5,630)		(2,679)		(134,993)

Effect of changes in the foreign exchange rate	—		—		—		(552)		—		(552)
Ending balance at original discount rates	3,524,988		1,767,555		347,050		199,122		104,420		5,943,135

Effect of change from original to current discount rates	(183,608)		(192,981)		(8,372)		(9,976)		(1,254)		(396,191)
Balance at September 30, 2023	$	3,341,380	$	1,574,574	$	338,678	$	189,146	$	103,166	$	5,546,944

Balance at July 1, 2024	$	3,658,491	$	1,690,797	$	337,741	$	205,889	$	114,876	$	6,007,794
Beginning balance at original discount rates	3,720,108		1,823,728		338,934		208,867		113,247		6,204,884
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	18,179		(12,068)		(4,959)		(4,110)		644		(2,314)
Adjusted balance at July 1, 2024	3,748,179		1,803,543		330,512		216,964		118,340		6,217,538
Issuances(1)	95,279		71,345		14,352		11,997		3,823		196,796
Interest accrual(2)	43,903		19,016		4,104		2,493		1,460		70,976
Net premiums collected(3)	(75,335)		(47,989)		(13,390)		(6,300)		(2,904)		(145,918)

Effect of changes in the foreign exchange rate	—		—		—		462		—		462
Ending balance at original discount rates	3,812,026		1,845,915		335,578		225,616		120,719		6,339,854

Effect of change from original to current discount rates	130,218		(44,372)		11,529		8,173		7,153		112,701
Balance at September 30, 2024	$	3,942,244	$	1,801,543	$	347,107	$	233,789	$	127,872	$	6,452,555

(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.

(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 Q3 2024 FORM 10-Q

Globe Life Inc.

Notes to Condensed Consolidated Financial Statements

(Dollar amounts in thousands, except per share data)


		Health
	Present value of expected future policy benefits
	United American			Family Heritage			Liberty National			American Income			DTC			Total














Balance at January 1, 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		(5,530)			(53,292)			(29,581)			(8,680)			(1,925)			(99,008)
Adjusted balance at January 1, 2023		3,539,755			3,250,624			814,847			288,626			99,217			7,993,069
Issuances(1)		225,915			202,561			42,863			30,667			6,518			508,524
Interest accrual(2)		104,932			99,344			34,699			11,199			3,278			253,452
Benefit payments(3)		(221,753)			(92,973)			(73,614)			(18,633)			(9,502)			(416,475)

Effect of changes in the foreign exchange rate		—			—			—			(217)			—			(217)
Ending balance at original discount rates		3,648,849			3,459,556			818,795			311,642			99,511			8,338,353
Effect of change from original to current discount rates		(191,041)			(498,312)			(4,792)			(5,601)			(1,111)			(700,857)
Balance at September 30, 2023		$	3,457,808		$	2,961,244		$	814,003		$	306,041		$	98,400		$	7,637,496

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		(15,162)			(48,407)			(26,421)			(12,611)			(1,509)			(104,110)
Adjusted balance at January 1, 2024		3,737,048			3,453,228			787,623			323,113			110,725			8,411,737
Issuances(1)		286,358			200,219			42,780			34,123			12,296			575,776
Interest accrual(2)		133,143			109,479			32,202			12,145			4,220			291,189
Benefit payments(3)		(248,769)			(103,070)			(69,649)			(19,574)			(9,655)			(450,717)

Effect of changes in the foreign exchange rate		—			—			—			(646)			—			(646)
Ending balance at original discount rates		3,907,780			3,659,856			792,956			349,161			117,586			8,827,339
Effect of change from original to current discount rates		131,531			(144,821)			52,819			24,383			6,871			70,783
Balance at September 30, 2024		$	4,039,311		$	3,515,035		$	845,775		$	373,544		$	124,457		$	8,898,122

(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.

(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 Q3 2024 FORM 10-Q

Globe Life Inc.

Notes to Condensed Consolidated Financial Statements

(Dollar amounts in thousands, except per share data)


		Health
	Present value of expected future policy benefits
	United American			Family Heritage			Liberty National			American Income			DTC			Total
Balance at July 1, 2023		$	3,116,389		$	3,167,461		$	923,148		$	328,579		$	85,856		$	7,621,433
Beginning balance at original discount rates		3,116,768			3,436,167			880,879			315,087			83,188			7,832,089
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		22,410			(17,000)			(2,563)			(2,662)			(95)			90
Adjusted balance at July 1, 2023		3,603,830			3,386,739			817,879			306,018			99,023			8,213,489
Issuances(1)		82,511			70,215			14,963			9,880			2,310			179,879
Interest accrual(2)		37,340			34,024			11,173			3,810			1,160			87,507
Benefit payments(3)		(74,832)			(31,422)			(25,220)			(6,973)			(2,982)			(141,429)

Effect of changes in the foreign exchange rate		—			—			—			(1,093)			—			(1,093)
Ending balance at original discount rates		3,648,849			3,459,556			818,795			311,642			99,511			8,338,353
Effect of change from original to current discount rates		(191,041)			(498,312)			(4,792)			(5,601)			(1,111)			(700,857)
Balance at September 30, 2023		$	3,457,808		$	2,961,244		$	814,003		$	306,041		$	98,400		$	7,637,496





Balance at July 1, 2024	$	3,758,487	$	3,249,466	$	815,778	$	328,436	$	108,617	$	8,260,784
Beginning balance at original discount rates	3,823,510		3,605,315		799,316		322,706		107,143		8,657,990
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	21,522		(13,407)		(4,998)		(4,432)		817		(498)
Adjusted balance at July 1, 2024	3,855,712		3,586,854		791,543		338,567		115,693		8,688,369
Issuances(1)	95,126		71,345		14,177		11,997		3,811		196,456
Interest accrual(2)	45,365		37,299		10,653		4,189		1,460		98,966
Benefit payments(3)	(88,423)		(35,642)		(23,417)		(6,502)		(3,378)		(157,362)

Effect of changes in the foreign exchange rate	—		—		—		910		—		910
Ending balance at original discount rates	3,907,780		3,659,856		792,956		349,161		117,586		8,827,339
Effect of change from original to current discount rates	131,531		(144,821)		52,819		24,383		6,871		70,783
Balance at September 30, 2024	$	4,039,311	$	3,515,035	$	845,775	$	373,544	$	124,457	$	8,898,122

(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.

(3)Benefit payments represent the release of the present value, using the original discount rate, of the actual future policy benefits incurred during the based on the revised expected assumptions.

GL Q3 2024 FORM 10-Q

Globe Life Inc.

Notes to Condensed Consolidated Financial Statements

(Dollar amounts in thousands, except per share data)


	Health(2)
	Net liability for future policy benefits as of September 30, 2023
	United American		Family Heritage		Liberty National		American Income		Direct to Consumer		Total
Net liability for future policy benefits at original discount rates	$	123,861	$	1,692,001	$	471,745	$	112,520	$	(4,909)	$	2,395,218
Effect of changes in discount rate assumptions	(7,433)		(305,331)		3,580		4,375		143		(304,666)
Other adjustments(1)	7,729		4,347		8,379		993		5,530		26,978
Net liability for future policy benefits, after other adjustments, at current discount rates	124,157		1,391,017		483,704		117,888		764		2,117,530
Reinsurance recoverable	(3,355)		(9,064)		(1,336)		—		—		(13,755)
Net liability for future policy benefits, after reinsurance recoverable, at current discount rates	$	120,802	$	1,381,953	$	482,368	$	117,888	$	764	$	2,103,775

(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).

(2)Includes the immaterial error correction noted below.


	Health
	Net liability for future policy benefits as of September 30, 2024
	United American		Family Heritage		Liberty National		American Income		Direct to Consumer		Total
Net liability for future policy benefits at original discount rates	95,754		1,813,941		457,378		123,545		(3,133)		2,487,485
Effect of changes in discount rate assumptions	1,313		(100,449)		41,290		16,210		(282)		(41,918)
Other adjustments(1)	17,014		38		9,964		926		4,326		32,268
Net liability for future policy benefits, after other adjustments, at current discount rates	114,081		1,713,530		508,632		140,681		911		2,477,835
Reinsurance recoverable	(2,868)		(11,613)		(1,096)		—		—		(15,577)
Net liability for future policy benefits, after reinsurance recoverable, at current discount rates	$	111,213	$	1,701,917	$	507,536	$	140,681	$	911	$	2,462,258

(1)Other adjustments include the effects of flooring the liability (guidance requires an amount not less than zero at the calculation level of the liability for future policy benefits).

Immaterial Correction of Previously Issued Financial Statements—The Company previously presented reinsurance recoverable on a net basis as a component of future policy benefits. In the fourth quarter of 2023, the Company corrected its presentation of reinsurance recoverable to a gross basis as a component of other assets, which resulted in the reclassification of $55 million of reinsurance recoverable at current discount rates from liabilities to assets ($50 million at original discount rates) as of September 30, 2023, with no change to equity, and the related tables in the footnote have been adjusted to reflect such changes.

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 the prior cash flow assumptions. The difference is recorded as a component of the remeasurement gain or loss for the current period, along with the effect of the difference between actual and expected experience for the period. The total remeasurement gain or loss is included in the Condensed Consolidated Statements of Operations**.

GL Q3 2024 FORM 10-Q

Globe Life Inc.

Notes to Condensed Consolidated Financial Statements

(Dollar amounts in thousands, except per share data)

The following tables include the total remeasurement gain or loss, bifurcated between the gain or loss due to differences between actual and expected experience and the amount due to assumption updates, for the three and nine month periods ended September 30, 2024 and 2023:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Life Remeasurement Gain (Loss)—Experience:
American Income	$	4,771	$	2,388	$	12,619	$	5,276
Direct to Consumer	6,913		6,293		13,640		7,594
Liberty National	1,537		2,578		2,187		2,115
Other	508		2,082		2,533		3,487
Total Life Remeasurement Gain (Loss)—Experience	13,729		13,341		30,979		18,472

Life Remeasurement Gain (Loss)—Assumption Updates:
American Income	21,974		308		21,974		308
Direct to Consumer	21,744		1,763		21,744		1,763
Liberty National	12,224		(1,248)		12,224		(1,248)
Other	904		(2,836)		904		(2,836)
Total Life Remeasurement Gain (Loss)—Assumption Updates	56,846		(2,013)		56,846		(2,013)

Total Life Remeasurement Gain (Loss)	70,575		11,328		87,825		16,459

Health Remeasurement Gain (Loss)—Experience:
United American	(2,100)		239		(1,423)		(651)
Family Heritage	1,420		1,212		4,972		3,009
Liberty National	874		634		2,015		(284)
American Income	729		457		1,769		1,025
Direct to Consumer	28		35		74		10
Total Health Remeasurement Gain (Loss)—Experience	951		2,577		7,407		3,109

Health Remeasurement Gain (Loss)—Assumption Updates:
United American	1,205		762		1,205		762
Family Heritage	(3,063)		2,173		(3,063)		2,173
Liberty National	(234)		2,171		(234)		2,171
American Income	(8,036)		119		(8,036)		119
Direct to Consumer	(373)		8		(373)		8
Health Remeasurement Gain (Loss)—Assumption Updates	(10,501)		5,233		(10,501)		5,233

Total Health Remeasurement Gain (Loss)	$	(9,550)	$	7,810	$	(3,094)	$	8,342

The Company performs an annual review of its assumptions during the third quarter. This review process resulted in favorable changes to its mortality and lapse assumptions on life and unfavorable changes to morbidity assumptions on health. Generally, in our life segment mortality assumptions were decreased across most channels in line with recent experience consistent with decreasing levels of excess deaths. Also, for the life segment lapse rate assumptions were slightly increased across all channels. For the health segment, morbidity assumptions were increased, causing higher future policy benefit reserves. The assumption review process of the life and health segments resulted in a $46.3 million net remeasurement gain as compared to a $3.2 million net remeasurement gain in the year-ago quarter.

Excluding the impact of assumption changes, the Company's results for actual variances from expected experience for both life and health produced a $14.7 million net remeasurement gain and a $15.9 million net remeasurement gain for the three months ended September 30, 2024 and 2023, respectively. During the nine months ended September 30, 2024 and 2023, the Company's results for actual variances from expected experience for both life and health produced a $38.4 million net remeasurement gain and a $21.6 million net remeasurement gain, respectively.

GL Q3 2024 FORM 10-Q

Globe Life Inc.

Notes to Condensed Consolidated Financial Statements

(Dollar amounts in thousands, except per share data)

The following table reconciles the liability for future policy benefits to the Condensed Consolidated Balance Sheets as of September 30, 2024 and 2023:



	At Original Discount Rates				At Current Discount Rates
	As of September 30,				As of September 30,
	2024		2023(2)		2024		2023(2)
Life(1):
American Income	$	4,781,464	$	4,436,042	$	5,667,941	$	4,672,240
Direct to Consumer	3,106,582		2,943,544		3,767,409		3,207,251
Liberty National	2,277,415		2,244,035		2,498,275		2,222,775
Other	3,128,419		3,037,595		3,810,659		3,321,581
Net liability for future policy benefits—long duration life	13,293,880		12,661,216		15,744,284		13,423,847

Health(1):
United American	110,384		129,410		114,081		124,157
Family Heritage	1,813,971		1,692,080		1,713,530		1,391,017
Liberty National	466,474		479,394		508,632		483,704
American Income	124,534		113,340		140,681		117,888
Direct to Consumer	877		752		911		764
Net liability for future policy benefits—long duration health	2,516,240		2,414,976		2,477,835		2,117,530

Deferred profit liability	177,108		173,520		177,108		173,520
Deferred annuity	680,849		813,276		680,849		813,276
Interest sensitive life	725,857		735,025		725,857		735,025
Other	8,983		9,901		8,980		9,904
Total future policy benefits	$	17,402,917	$	16,807,914	$	19,814,913	$	17,273,102

(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).

(2)Includes the immaterial error correction for reinsurance as noted above.

GL Q3 2024 FORM 10-Q

Globe Life Inc.

Notes to Condensed Consolidated Financial Statements

(Dollar amounts in thousands, except per share data)

The following tables provide the weighted-average original and current discount rates for the liability for future policy benefits and the additional insurance liabilities as of September 30, 2024 and 2023:


	As of September 30,
	2024				2023
	Original discount rate		Current discount rate		Original discount rate		Current discount rate
Life
American Income	5.7	%	5.0	%	5.7	%	5.6	%
Direct to Consumer	6.0	%	5.0	%	6.0	%	5.6	%
Liberty National	5.6	%	5.0	%	5.6	%	5.7	%
Other	6.2	%	5.0	%	6.2	%	5.7	%

Health
United American	5.1	%	4.8	%	5.2	%	5.5	%
Family Heritage	4.2	%	4.9	%	4.3	%	5.7	%
Liberty National	5.8	%	4.8	%	5.8	%	5.7	%
American Income	5.8	%	4.8	%	5.9	%	5.6	%
Direct to Consumer	5.1	%	4.8	%	5.2	%	5.5	%

The following table provides the weighted-average durations of the liability for future policy benefits and the additional insurance liabilities as of September 30, 2024 and 2023:


		As of September 30,
	2024			2023
		At original discount rates	At current discount rates		At original discount rates	At current discount rates
Life
American Income		22.81	23.03		23.08	23.29
Direct to Consumer		19.42	20.81		19.73	21.00
Liberty National		15.31	15.80		15.12	15.20
Other		16.07	17.48		16.34	17.42

Health
United American		11.73	10.93		11.40	10.34
Family Heritage		15.34	14.60		14.90	13.81
Liberty National		9.26	9.48		9.11	8.97
American Income		12.50	12.89		12.14	12.20
Direct to Consumer		11.73	10.93		11.40	10.34

GL Q3 2024 FORM 10-Q

Globe Life Inc.

Notes to Condensed Consolidated Financial Statements

(Dollar amounts in thousands, except per share data)

The following tables summarize the amount of gross premiums and interest related to long duration life and health contracts that are recognized in the Condensed Consolidated Statements of Operations for the three and nine month periods ended September 30, 2024 and 2023:


	Life
	Nine Months Ended September 30, 2024				Nine Months Ended September 30, 2023
	Gross Premiums		Interest expense		Gross Premiums		Interest expense
American Income	$	1,264,474	$	202,486	$	1,181,247	$	187,381
Direct to Consumer	734,860		135,249		735,374		127,040
Liberty National	273,746		91,890		256,641		89,765
Other	152,065		138,724		154,836		133,991
Total	$	2,425,145	$	568,349	$	2,328,098	$	538,177


	Life
	Three Months Ended September 30, 2024				Three Months Ended September 30, 2023
	Gross Premiums		Interest expense		Gross Premiums		Interest expense
American Income	$	427,543	$	68,558	$	399,794	$	63,565
Direct to Consumer	243,625		45,708		244,931		42,978
Liberty National	92,636		30,737		87,071		30,095
Other	50,413		46,573		51,493		45,065
Total	$	814,217	$	191,576	$	783,289	$	181,703


	Health
	Nine Months Ended September 30, 2024				Nine Months Ended September 30, 2023
	Gross Premiums		Interest expense		Gross Premiums		Interest expense
United American	$	325,415	$	4,449	$	298,964	$	5,345
Family Heritage	317,065		53,357		294,047		48,904
Liberty National	142,051		19,679		139,875		20,567
American Income	88,017		5,010		84,863		4,896
Direct to Consumer	11,196		—		10,680		—
Total	$	883,744	$	82,495	$	828,429	$	79,712


	Health
	Three Months Ended September 30, 2024				Three Months Ended September 30, 2023
	Gross Premiums		Interest expense		Gross Premiums		Interest expense
United American	$	110,565	$	1,408	$	100,285	$	1,741
Family Heritage	107,819		18,150		99,828		16,632
Liberty National	47,099		6,524		46,441		6,766
American Income	29,628		1,696		28,528		1,640
Direct to Consumer	3,806		—		3,583		—
Total	$	298,917	$	27,778	$	278,665	$	26,779

Gross premiums are included within life and health premium on the Condensed Consolidated Statements of Operations, while the related interest expense is included in life and health policyholder benefits.

GL Q3 2024 FORM 10-Q

Globe Life Inc.

Notes to Condensed Consolidated Financial Statements

(Dollar amounts in thousands, except per share data)

The following tables provide the undiscounted and discounted expected future net premiums, expected future gross premiums, and expected future policy benefits, at both original and current discount rates, for life and health contracts as of September 30, 2024 and 2023:


	Life
	As of September 30, 2024						As of September 30, 2023
	Not discounted		At original discount rates		At current discount rates		Not discounted		At original discount rates		At current discount rates
American Income
PV of expected future gross premiums	$	25,300,910	$	14,305,914	$	15,028,140	$	23,974,963	$	13,530,015	$	13,147,003
PV of expected future net premiums	8,185,825		4,632,427		4,836,994		7,912,903		4,473,959		4,318,705
PV of expected future policy benefits	31,554,905		9,413,743		10,504,785		30,182,319		8,909,960		8,990,437

DTC
PV of expected future gross premiums	$	17,506,090	$	9,144,676	$	9,825,694	$	17,575,618	$	9,182,146	$	9,112,202
PV of expected future net premiums	10,614,237		5,572,725		5,994,613		10,850,664		5,701,293		5,670,175
PV of expected future policy benefits	25,907,169		8,679,305		9,762,022		25,711,499		8,644,837		8,873,444

Liberty National
PV of expected future gross premiums	$	4,797,146	$	2,792,129	$	2,886,943	$	4,601,176	$	2,681,034	$	2,577,877
PV of expected future net premiums	1,855,536		1,049,598		1,104,096		1,901,039		1,077,931		1,059,229
PV of expected future policy benefits	9,028,196		3,327,013		3,602,371		8,852,345		3,321,966		3,275,732

Other
PV of expected future gross premiums	$	3,657,885	$	1,857,769	$	2,063,274	$	3,753,093	$	1,901,531	$	1,953,533
PV of expected future net premiums	894,843		435,054		470,567		919,200		448,031		446,532
PV of expected future policy benefits	12,471,336		3,563,438		4,281,189		12,427,646		3,485,529		3,767,647

Total
PV of expected future gross premiums	$	51,262,031	$	28,100,488	$	29,804,051	$	49,904,850	$	27,294,726	$	26,790,615
PV of expected future net premiums	21,550,441		11,689,804		12,406,270		21,583,806		11,701,214		11,494,641
PV of expected future policy benefits	78,961,606		24,983,499		28,150,367		77,173,809		24,362,292		24,907,260

As of September 30, 2024, for the life segment using current discount rates, the Company anticipates $29.8 billion of expected future gross premiums and $12.4 billion of expected future net premiums. As of September 30, 2023, using current discount rates, the Company anticipated $26.8 billion of expected future gross premiums and $11.5 billion in expected future net premiums. 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 of $17.4 billion and $15.3 billion for September 30, 2024 and 2023, respectively, is not.

GL Q3 2024 FORM 10-Q

Globe Life Inc.

Notes to Condensed Consolidated Financial Statements

(Dollar amounts in thousands, except per share data)


	Health
	As of September 30, 2024						As of September 30, 2023
	Not discounted		At original discount rates		At current discount rates		Not discounted		At original discount rates		At current discount rates
United American
PV of expected future gross premiums	$	9,068,701	$	5,556,347	$	5,742,668	$	8,442,713	$	5,141,771	$	4,871,878
PV of expected future net premiums	6,229,763		3,812,026		3,942,244		5,799,017		3,524,988		3,341,380
PV of expected future policy benefits	6,390,307		3,907,780		4,039,311		5,998,770		3,648,849		3,457,808

Family Heritage
PV of expected future gross premiums	$	7,107,124	$	4,155,037	$	4,074,915	$	6,637,472	$	3,932,327	$	3,523,258
PV of expected future net premiums	3,139,624		1,845,915		1,801,543		2,962,973		1,767,555		1,574,574
PV of expected future policy benefits	7,043,880		3,659,856		3,515,035		6,549,339		3,459,556		2,961,244

Liberty National
PV of expected future gross premiums	$	2,037,319	$	1,297,318	$	1,370,521	$	2,084,428	$	1,321,438	$	1,308,898
PV of expected future net premiums	495,616		335,578		347,107		515,612		347,050		338,678
PV of expected future policy benefits	1,375,759		792,956		845,775		1,414,512		818,795		814,003

American Income
PV of expected future gross premiums	$	1,781,677	$	999,161	$	1,063,740	$	1,755,682	$	984,122	$	969,090
PV of expected future net premiums	400,683		225,616		233,789		354,120		199,122		189,146
PV of expected future policy benefits	710,352		349,161		373,544		632,349		311,642		306,041

Direct to Consumer
PV of expected future gross premiums	$	232,805	$	147,193	$	156,142	$	224,522	$	141,374	$	139,748
PV of expected future net premiums	191,566		120,719		127,872		166,099		104,420		103,166
PV of expected future policy benefits	187,260		117,586		124,457		154,931		99,511		98,400

Total
PV of expected future gross premiums	$	20,227,626	$	12,155,056	$	12,407,986	$	19,144,817	$	11,521,032	$	10,812,872
PV of expected future net premiums	10,457,252		6,339,854		6,452,555		9,797,821		5,943,135		5,546,944
PV of expected future policy benefits	15,707,558		8,827,339		8,898,122		14,749,901		8,338,353		7,637,496

As of September 30, 2024, for the health segment using current discount rates, the Company anticipates $12.4 billion of expected future gross premiums and $6.5 billion of expected future net premiums. As of September 30, 2023, using current discount rates, the Company anticipated $10.8 billion of expected future gross premiums and $5.5 billion in expected future net premiums. 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 of $5.9 billion and $5.3 billion for September 30, 2024 and 2023, respectively, is not.

GL Q3 2024 FORM 10-Q

Globe Life Inc.

Notes to Condensed Consolidated Financial Statements

(Dollar amounts in thousands, except per share data)

The following table summarizes the balances of, and changes in, policyholders’ account balances as of September 30, 2024 and 2023:


	Policyholders' Account Balances
	2024						2023
	Interest Sensitive Life		Deferred Annuity		Other Policy-holders' Funds		Interest Sensitive Life		Deferred Annuity		Other Policy-holders' Funds
Balance at January 1,	$	732,948	$	773,039	$	236,958	$	739,105	$	954,318	$	123,234
Issuances	—		495		—		—		602		—
Premiums received	16,187		8,857		239,114		17,062		10,543		100,113
Policy charges	(9,253)		—		—		(9,729)		—		—
Surrenders and withdrawals	(17,326)		(84,893)		(10,615)		(16,204)		(125,176)		(9,106)
Benefit payments	(23,357)		(34,159)		—		(22,753)		(48,459)		—

Interest credited	20,890		17,990		15,210		21,274		21,608		6,164
Other	5,768		(480)		(11,379)		6,270		(161)		(2,195)
Balance at September 30,	$	725,857	$	680,849	$	469,288	$	735,025	$	813,275	$	218,210


	Policyholders' Account Balances
	2024						2023
	Interest Sensitive Life		Deferred Annuity		Other Policy-holders' Funds		Interest Sensitive Life		Deferred Annuity		Other Policy-holders' Funds
Balance at July 1,	$	728,097	$	706,022	$	400,625	$	736,920	$	853,064	$	187,873
Issuances	—		137		—		—		231		—
Premiums received	5,077		2,448		70,644		5,398		2,439		31,704
Policy charges	(3,081)		—		—		(3,213)		—		—
Surrenders and withdrawals	(5,850)		(22,331)		(3,264)		(5,582)		(37,905)		(2,782)
Benefit payments	(6,617)		(10,022)		—		(7,258)		(11,047)		—

Interest credited	6,922		5,777		6,106		7,083		6,863		2,825
Other	1,309		(1,182)		(4,823)		1,677		(370)		(1,410)
Balance at September 30,	$	725,857	$	680,849	$	469,288	$	735,025	$	813,275	$	218,210


Weighted-average credit rate	3.86		%	3.37		%	5.73		%	3.91		%	3.34		%	5.68		%
Net amount at risk	$	1,687,182		N/A			N/A			$	1,793,787		N/A			N/A
Cash surrender value	$	678,556		$	680,849		$	469,288		$	673,814		$	813,276		$	218,210

The following tables present the policyholders' account balances by range of guaranteed minimum crediting rates and the related range of difference, if any, in basis points between rates being credited to policy holders and the respective guaranteed minimums as of September 30, 2024 and 2023:

GL Q3 2024 FORM 10-Q

Globe Life Inc.

Notes to Condensed Consolidated Financial Statements

(Dollar amounts in thousands, except per share data)


	At September 30, 2024
Range of guaranteed minimum crediting rates	Interest Sensitive Life		Deferred Annuity		Other Policyholders' Funds
At guaranteed minimum
Less than 3.00%	$	—	$	1,866	$	373,729
3.00%-3.99%	29,170		494,585		3,046
4.00%-4.99%	606,425		184,398		6,548
Greater than 5.00%	90,262		—		36,541
Total	725,857		680,849		419,864
1-50 basis points above
Less than 3.00%	—		—		—
3.00%-3.99%	—		—		—
4.00%-4.99%	—		—		1,678
Greater than 5.00%	—		—		—
Total	—		—		1,678
51-150 basis points above
Less than 3.00%	—		—		—
3.00%-3.99%	—		—		—
4.00%-4.99%	—		—		47,746
Greater than 5.00%	—		—		—
Total	—		—		47,746






Grand Total	$	725,857	$	680,849	$	469,288

GL Q3 2024 FORM 10-Q

Globe Life Inc.

Notes to Condensed Consolidated Financial Statements

(Dollar amounts in thousands, except per share data)


	At September 30, 2023
Range of guaranteed minimum crediting rates	Interest Sensitive Life		Deferred Annuity		Other Policyholders' Funds
At guaranteed minimum
Less than 3.00%	$	—	$	2,011	$	118,565
3.00%-3.99%	29,018		610,785		4,002
4.00%-4.99%	615,835		199,724		6,851
Greater than 5.00%	90,172		755		38,788
Total	735,025		813,275		168,206
1-50 basis points above
Less than 3.00%	—		—		—
3.00%-3.99%	—		—		—
4.00%-4.99%	—		—		—
Greater than 5.00%	—		—		—
Total	—		—		—
51-150 basis points above
Less than 3.00%	—		—		—
3.00%-3.99%	—		—		—
4.00%-4.99%	—		—		50,004
Greater than 5.00%	—		—		—
Total	—		—		50,004






Grand Total	$	735,025	$	813,275	$	218,210

GL Q3 2024 FORM 10-Q

Globe Life Inc.

Notes to Condensed Consolidated Financial Statements

(Dollar amounts in thousands, except per share data)

Note 7—Deferred Acquisition Costs

The following tables roll forward the deferred policy acquisition costs for the three and nine month periods ended September 30, 2024 and 2023:


	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	351,933		123,774		78,599		9,970		564,276
Amortization expense	(118,207)		(74,496)		(38,192)		(12,390)		(243,285)
Foreign exchange adjustment	(1,297)		—		—		—		(1,297)

Balance at September 30, 2023	$	2,490,720	$	1,726,209	$	651,130	$	295,926	$	5,163,985






Balance at January 1, 2024	$	2,573,370	$	1,737,117	$	666,419	$	294,869	$	5,271,775
Capitalizations	391,707		112,198		88,355		9,304		601,564
Amortization expense	(133,410)		(75,898)		(42,041)		(12,404)		(263,753)
Foreign exchange adjustment	(1,857)		—		—		—		(1,857)

Balance at September 30, 2024	$	2,829,810	$	1,773,417	$	712,733	$	291,769	$	5,607,729


	Life
	American Income		DTC		Liberty National		Other		Total





Balance at July 1, 2023	$	2,417,480	$	1,714,715	$	636,209	$	296,861	$	5,065,265
Capitalizations	117,761		36,385		27,950		3,203		185,299
Amortization expense	(40,465)		(24,891)		(13,029)		(4,138)		(82,523)
Foreign exchange adjustment	(4,056)		—		—		—		(4,056)

Balance at September 30, 2023	$	2,490,720	$	1,726,209	$	651,130	$	295,926	$	5,163,985






Balance at July 1, 2024	$	2,740,138	$	1,765,673	$	696,905	$	292,877	$	5,495,593
Capitalizations	131,851		33,222		30,255		3,024		198,352
Amortization expense	(46,033)		(25,478)		(14,427)		(4,132)		(90,070)
Foreign exchange adjustment	3,854		—		—		—		3,854

Balance at September 30, 2024	$	2,829,810	$	1,773,417	$	712,733	$	291,769	$	5,607,729

GL Q3 2024 FORM 10-Q

Globe Life Inc.

Notes to Condensed Consolidated Financial Statements

(Dollar amounts in thousands, except per share data)


	Health
	United American		Family Heritage		Liberty National		American Income		DTC		Total












Balance at January 1, 2023	$	77,394	$	416,608	$	133,096	$	57,811	$	1,854	$	686,763
Capitalizations	1,491		46,977		14,854		9,579		—		72,901
Amortization expense	(4,504)		(20,071)		(9,977)		(2,919)		(137)		(37,608)
Foreign exchange adjustment	—		—		—		(125)		—		(125)

Balance at September 30, 2023	$	74,381	$	443,514	$	137,973	$	64,346	$	1,717	$	721,931
















Balance at January 1, 2024	$	73,489	$	452,843	$	139,941	$	66,783	$	1,679	$	734,735
Capitalizations	2,069		52,055		18,033		11,097		2		83,256
Amortization expense	(4,197)		(22,038)		(11,003)		(3,426)		(110)		(40,774)
Foreign exchange adjustment	—		—		—		(55)		—		(55)

Balance at September 30, 2024	$	71,361	$	482,860	$	146,971	$	74,399	$	1,571	$	777,162


	Health
	United American		Family Heritage		Liberty National		American Income		DTC		Total





Balance at July 1, 2023	$	75,349	$	433,999	$	136,276	$	62,285	$	1,760	$	709,669
Capitalizations	495		16,386		5,120		3,259		—		25,260
Amortization expense	(1,463)		(6,871)		(3,423)		(1,016)		(43)		(12,816)
Foreign exchange adjustment	—		—		—		(182)		—		(182)

Balance at September 30, 2023	$	74,381	$	443,514	$	137,973	$	64,346	$	1,717	$	721,931
















Balance at July 1, 2024	$	71,975	$	472,254	$	145,097	$	71,589	$	1,608	$	762,523
Capitalizations	780		18,123		5,589		3,817		—		28,309
Amortization expense	(1,394)		(7,517)		(3,715)		(1,189)		(37)		(13,852)
Foreign exchange adjustment	—		—		—		182		—		182

Balance at September 30, 2024	$	71,361	$	482,860	$	146,971	$	74,399	$	1,571	$	777,162

GL Q3 2024 FORM 10-Q

Globe Life Inc.

Notes to Condensed Consolidated Financial Statements

(Dollar amounts in thousands, except per share data)

The following table presents a reconciliation of deferred policy acquisition costs to the Condensed Consolidated Balance Sheets as of September 30, 2024:


		September 30,
	2024			2023
Life
American Income		$	2,829,810		$	2,490,720
Direct to Consumer		1,773,417			1,726,209
Liberty National		712,733			651,130
Other		291,769			295,926
Total DAC—Life		5,607,729			5,163,985

Health
United American		71,361			74,381
Family Heritage		482,860			443,514
Liberty National		146,971			137,973
American Income		74,399			64,346
Direct to Consumer		1,571			1,717
Total DAC—Health		777,162			721,931

Annuity		1,791			3,377
Total		$	6,386,682		$	5,889,293

GL Q3 2024 FORM 10-Q

Globe Life Inc.

Notes to Condensed Consolidated Financial Statements

(Dollar amounts in thousands, except per share data)

Note 8—Liability for Unpaid Claims

Activity in the liability for unpaid health claims is summarized as follows:


	September 30, 2024		December 31, 2023
Balance at beginning of period	$	194,809	$	184,286
Less reinsurance recoverables	(2,157)		(2,084)
Net balance at beginning of period	192,652		182,202
Incurred related to:
Current year	560,548		697,521
Prior years	(7,914)		(4,853)
Total incurred	552,634		692,668
Paid related to:
Current year	399,412		535,971
Prior years	142,020		146,247
Total paid	541,432		682,218
Net balance at end of period	203,854		192,652
Plus reinsurance recoverables	1,623		2,157
Balance at end of period	$	205,477	$	194,809

Below is the reconciliation of the liability of "Policy claims and other benefits payable" in the Condensed Consolidated Balance Sheets.


	September 30, 2024		December 31, 2023
Policy claims and other benefits payable:
Life insurance	$	324,922	$	320,066
Health insurance	205,477		194,809
Total	$	530,399	$	514,875

GL Q3 2024 FORM 10-Q

Globe Life Inc.

Notes to Condensed Consolidated Financial Statements

(Dollar amounts in thousands, except per share data)

Note 9—Postretirement Benefits

Globe Life has qualified noncontributory defined benefit pension plans (Pension Plans) and contributory savings plans that cover substantially all employees. There is also a nonqualified noncontributory supplemental executive retirement plan (SERP) that covers a limited number of officers. The tables included herein will focus on the Pension Plans and SERP.

Pension Assets: The following table presents the assets of the Company's Pension Plans at September 30, 2024 and December 31, 2023.

Pension Assets by Component at September 30, 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)	$	38,544	$	—	$	—	$	38,544	6





Equity exchange traded fund(1)	318,809		—		—		318,809		49
U.S. Government and Agency	—		204,990		—		204,990		32
Other bonds	—		4		—		4		—
Guaranteed annuity contract(2)	—		43,881		—		43,881		7
Short-term investments	5,122		—		—		5,122		1
Other	1,858		—		—		1,858		—
	$	364,333	$	248,875	$	—	613,208		95
Other long-term investments(3)							30,356		5
Total pension assets							$	643,564	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 September 30, 2024, the Globe Life Inc. Pension Plan owned less than 1% of two long-term investment funds.

(4)A fund including U.S. dollar-denominated investment-grade securities issued by industrial, utility, and financial companies with maturities greater than 10 years.

GL Q3 2024 FORM 10-Q

Globe Life Inc.

Notes to Condensed Consolidated Financial Statements

(Dollar amounts in thousands, except per share data)

Pension Assets by Component at December 31, 2023


	Fair Value Determined by:
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Amount		% of Total

Exchange traded fund(4)	$	18,715	$	—	$	—	$	18,715	3





Equity exchange traded fund(1)	315,886		—		—		315,886		55
U.S. Government and Agency	—		167,450		—		167,450		30
Other bonds	—		5		—		5		—
Guaranteed annuity contract(2)	—		43,428		—		43,428		8
Short-term investments	6,506		—		—		6,506		1
Other	463		—		—		463		—
	$	341,570	$	210,883	$	—	552,453		97
Other long-term investments(3)							18,314		3
Total pension assets							$	570,767	100

(1)A fund including marketable securities that mirror the S&P 500 index.

(3)Includes non-redeemable investment funds that report the Globe Life Inc. Pension Plan's pro-rata share of the limited partnership's net asset value (NAV) per share, or its equivalent, as a practical expedient for fair value. As of December 31, 2023, the Globe Life Inc. Pension Plan owned less than 1% of two long-term investment funds.

(4)A fund including U.S. dollar-denominated investment-grade securities issued by industrial, utility, and financial companies with maturities greater than 10 years.

SERP: The following tables include premiums paid for COLI at September 30, 2024 and 2023 and investments of the Rabbi Trust at September 30, 2024 and December 31, 2023.


	Nine Months Ended September 30,
	2024		2023
Premiums paid for insurance coverage	$	443	$	443

	September 30, 2024		December 31, 2023
Total investments:
COLI	$	56,757	$	55,185
Exchange traded funds	97,132		86,156
	$	153,889	$	141,341

Pension Plans and SERP Liabilities: The following table presents liabilities for the defined benefit pension plans and SERP at September 30, 2024 and December 31, 2023.


	September 30, 2024		December 31, 2023
Pension Plans	$	615,595	$	554,957
SERP	72,654		72,603
Benefit obligation	$	688,249	$	627,560

GL Q3 2024 FORM 10-Q

Globe Life Inc.

Notes to Condensed Consolidated Financial Statements

(Dollar amounts in thousands, except per share data)

Net Periodic Benefit Cost: The following table presents the net periodic benefit costs for the defined benefit pension plans and SERP by expense components for the three and nine month periods ended September 30, 2024 and 2023.

Components of Net Periodic Benefit Cost


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Service cost—benefits earned during the period	$	6,224	$	5,392	$	18,673	$	16,174
Interest cost on projected benefit obligation	8,287		7,834		24,862		23,502
Expected return on assets	(10,645)		(9,656)		(31,938)		(28,968)
Amortization:
Prior service cost	265		269		803		807
Actuarial (gain) loss	6		(48)		18		(152)


Net periodic benefit cost	$	4,137	$	3,791	$	12,418	$	11,363

Note 10—Earnings Per Share

Earnings per Share*:* A reconciliation of basic and diluted weighted-average shares outstanding used in the computation of basic and diluted earnings per share is as follows:


	Three Months Ended September 30,		Nine Months Ended September 30,
	2024	2023	2024	2023
Basic weighted average shares outstanding	87,874,488	94,636,867	91,048,853	95,445,416
Weighted average dilutive options outstanding	212,553	1,180,770	273,666	1,211,974
Diluted weighted average shares outstanding	88,087,041	95,817,637	91,322,519	96,657,390

Antidilutive shares	4,234,326	492,970	3,090,848	399,071

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 Q3 2024 FORM 10-Q

Globe Life Inc.

Notes to Condensed Consolidated Financial Statements

(Dollar amounts in thousands, except per share data)

Note 11—Debt

On August 23, 2024, Globe Life completed the issuance of $450 million principal amount of 5.85% Senior notes due September 15, 2034. Total proceeds received by the Parent from the issuance, net of the underwriters’ discount, were $445 million. The proceeds were used for general corporate purposes, which included open market purchases of shares of its common stock under its share repurchase program. On August 15, 2024, Globe Life amended its term loan agreement increasing the principal amount from $170 million to $250 million, an increase of $80 million. The amendment extends the maturity date from November 11, 2024 to August 15, 2027.

The following table presents information about the terms and outstanding balances of Globe Life's debt.

Selected Information about Debt Issues


				As of
				September 30, 2024								December 31, 2023
Instrument	Issue Date	Maturity Date	Coupon Rate	Par Value		Unamortized Discount & Issuance Costs		Book Value		Fair Value		Book Value

Senior notes	09/27/2018	09/15/2028	4.550%	$	550,000	$	(3,180)	$	546,820	$	550,088	$	546,283
Senior notes	08/21/2020	08/15/2030	2.150%	400,000		(2,983)		397,017		344,796		396,670
Senior notes(1)	05/19/2022	06/15/2032	4.800%	250,000		(3,828)		246,172		248,443		245,873
Senior notes	08/23/2024	09/15/2034	5.850%	450,000		(5,188)		444,812		464,881		—

Junior subordinated debentures	11/17/2017	11/17/2057	5.275%	125,000		(1,561)		123,439		109,657		123,427
Junior subordinated debentures	06/14/2021	06/15/2061	4.250%	325,000		(7,633)		317,367		236,730		317,306
Term loan(2)	05/11/2023	08/15/2027	6.593%	250,000		(1,951)		248,049		248,049		—


Total long-term debt				2,350,000		(26,324)		2,323,676		2,202,644		1,629,559


Term loan(2)				—		—		—		—		169,549
FHLB borrowings				17,000		—		17,000		17,000		—
Commercial paper				426,908		(6,490)		420,418		420,418		316,564
Total short-term debt				443,908		(6,490)		437,418		437,418		486,113

Total debt				$	2,793,908	$	(32,814)	$	2,761,094	$	2,640,062	$	2,115,672

(1)An additional $150 million par value and book value is held by insurance subsidiaries that eliminates in consolidation.

(2)Interest calculated quarterly using Secured Overnight Financing Rate (SOFR) plus 135 basis points.

The commercial paper has the highest priority of all unsecured debt, followed by senior notes then junior subordinated debentures. The senior notes are callable under a make-whole provision, and the junior subordinated debentures are subject to an optional redemption five years from issuance. Interest on the 4.25% junior subordinated debentures and the term loan are payable quarterly while all other long-term debt is payable semi-annually.

Credit facility*:* On March 29, 2024, Globe Life amended the credit agreement dated September 30, 2021, which provides for a $1 billion revolving credit facility that may be increased to $1.25 billion. The amended credit facility matures March 29, 2029 and may be extended up to two one-year periods upon the Company's request. Pursuant to this agreement, the participating lenders have agreed to make revolving loans to Globe Life and to issue secured or unsecured letters of credit. The Company has not drawn on any of the credit to date.

GL Q3 2024 FORM 10-Q

Globe Life Inc.

Notes to Condensed Consolidated Financial Statements

(Dollar amounts in thousands, except per share data)

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 September 30, 2024, the Company was in full compliance with these covenants.

The following tables present certain information about our commercial paper borrowings.

Credit Facility—Commercial Paper


	As of
	September 30, 2024			December 31, 2023			September 30, 2023
Balance of commercial paper at end of period (par value)	$	426,908		$	319,000		$	251,000
Annualized interest rate	5.56		%	5.71		%	5.65		%
Letters of credit outstanding	$	115,000		$	115,000		$	115,000
Remaining amount available under credit line	458,092			316,000			384,000

Credit Facility—Commercial Paper Activity


	Nine Months Ended September 30,
	2024			2023
Average balance of commercial paper outstanding during period (par value)	$	375,851		$	296,816
Daily-weighted average interest rate (annualized)	5.80		%	5.33		%
Maximum daily amount outstanding during period (par value)	$	633,425		$	477,700
Commercial paper issued during period (par value)	1,482,556			1,480,000
Commercial paper matured during period (par value)	(1,374,648)			(1,514,000)
Net commercial paper issued (matured) during period (par value)	107,908			(34,000)

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 $32.4 million in FHLB common stock as of September 30, 2024 and $22.3 million as of December 31, 2023. The FHLB stock is restricted for the duration of the membership and recorded at cost (par) as required by applicable guidance. The FHLB stock is included in "Other long-term investments*"* in the Condensed Consolidated Balance Sheets. Borrowings with the FHLB are subject to the availability of pledged assets at the insurance subsidiaries of Globe Life. As of September 30, 2024, Globe Life's insurance subsidiaries maximum borrowing capacity under the FHLB facility was approximately $781 million, net of outstanding funding agreements and short-term borrowings, on pledged assets with a fair value of $1.4 billion. As of September 30, 2024, $372 million in funding agreements were outstanding with the FHLB, compared to $138 million as of December 31, 2023. This amount is included in "Other policyholders' funds" in the Condensed Consolidated Balance Sheets. In addition, the Company had $17 million in short-term borrowings from the FHLB as of September 30, 2024, compared to $0 as of December 31, 2023, this amount is recorded in "Short-term debt".

GL Q3 2024 FORM 10-Q

Globe Life Inc.

Notes to Condensed Consolidated Financial Statements

(Dollar amounts in thousands, except per share data)

Note 12—Business Segments

Globe Life is organized into four segments: life insurance, supplemental health insurance, annuities, and investments. In addition, other expenses not included in these segments are reported in "Corporate & Other."

Globe Life's reportable insurance segments are based on the insurance product lines it markets and administers: life insurance, supplemental health insurance, and annuities. These major product lines are set out as reportable segments because of the common characteristics of products within these categories, comparability of margins, and the similarity in regulatory environment and management techniques. There is also an investment segment that manages the investment portfolio and cash flow for the insurance segments and the corporate function. The Company's chief operating decision makers 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. Annuities include fixed-benefit contracts.

The following tables present segment premium revenue by each of Globe Life's distribution channels.


	Premium Income by Distribution Channel

	Three Months Ended September 30, 2024
	Life			Health			Annuity			Total
Distribution Channel	Amount		% of Total	Amount		% of Total	Amount		% of Total	Amount		% of Total
American Income	$	427,839	52	$	31,277	9	$	—	—	$	459,116	39
Direct to Consumer	246,425		30	18,072		5	—		—	264,497		23
Liberty National	93,625		12	47,277		13	—		—	140,902		12
United American	1,608		—	149,510		42	—		—	151,118		13
Family Heritage	1,684		—	107,819		31	—		—	109,503		9
Other	47,457		6	—		—	—		—	47,457		4
	$	818,638	100	$	353,955	100	$	—	—	$	1,172,593	100


	Three Months Ended September 30, 2023
	Life			Health			Annuity			Total
Distribution Channel	Amount		% of Total	Amount		% of Total	Amount		% of Total	Amount		% of Total
American Income	$	400,214	51	$	30,535	9	$	—	—	$	430,749	39
Direct to Consumer	247,858		32	17,153		5	—		—	265,011		24
Liberty National	88,199		11	46,643		14	—		—	134,842		12
United American	1,802		—	137,077		42	—		—	138,879		12
Family Heritage	1,561		—	99,828		30	—		—	101,389		9
Other	48,465		6	—		—	—		—	48,465		4
	$	788,099	100	$	331,236	100	$	—	—	$	1,119,335	100

GL Q3 2024 FORM 10-Q

Globe Life Inc.

Notes to Condensed Consolidated Financial Statements

(Dollar amounts in thousands, except per share data)






	Nine Months Ended September 30, 2024
	Life			Health			Annuity			Total
Distribution Channel	Amount		% of Total	Amount		% of Total	Amount		% of Total	Amount		% of Total
American Income	$	1,265,417	52	$	92,495	9	$	—	—	$	1,357,912	39
Direct to Consumer	743,304		31	54,070		5	—		—	797,374		23
Liberty National	276,599		11	142,612		14	—		—	419,211		12
United American	5,009		—	440,375		42	—		—	445,384		13
Family Heritage	4,945		—	317,065		30	—		—	322,010		9
Other	143,111		6	—		—	—		—	143,111		4
	$	2,438,385	100	$	1,046,617	100	$	—	—	$	3,485,002	100


	Nine Months Ended September 30, 2023
	Life			Health			Annuity			Total
Distribution Channel	Amount		% of Total	Amount		% of Total	Amount		% of Total	Amount		% of Total
American Income	$	1,182,346	50	$	89,656	9	$	—	—	$	1,272,002	38
Direct to Consumer	744,132		32	51,576		5	—		—	795,708		24
Liberty National	260,036		11	140,518		14	—		—	400,554		12
United American	5,533		—	407,137		42	—		—	412,670		13
Family Heritage	4,554		—	294,029		30	—		—	298,583		9
Other	145,828		7	—		—	—		—	145,828		4
	$	2,342,429	100	$	982,916	100	$	—	—	$	3,325,345	100

Due to the nature of the life insurance industry, Globe Life has no individual or group that would be considered a major customer. Substantially all of Globe Life's business is conducted in the United States.

The measure of profitability established by the chief operating decision makers 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 and annuity segments) in order to match this cost with the investment income earned on the assets supporting the policy liabilities.

The measure of profitability for the Investment segment is excess investment income, representing the income earned on the investment portfolio in excess of policy requirements. 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

GL Q3 2024 FORM 10-Q

Globe Life Inc.

Notes to Condensed Consolidated Financial Statements

(Dollar amounts in thousands, except per share data)

are not relevant to segment profitability or core operating results, they can have a material positive or negative result on net income. For these reasons, management removes realized investment gains and losses when it views its segment operations.

Management also removes non-operating items unrelated to the Company's core insurance activities when evaluating those results. Therefore, these items are excluded in its presentation of segment results because accounting guidance requires that operating segment results be presented as management views its business. All of these items are included in “Other operating expense” in the Condensed Consolidated Statements of Operations for the appropriate year. See additional detail below in the tables.

The following tables set forth a reconciliation of Globe Life's revenues and operations by segment to its major income statement line items. See Note 1—Significant Accounting Policies for additional information concerning reconciling items of segment profits to pretax income.


	Three Months Ended September 30, 2024
	Life		Health		Annuity		Investment		Corporate & Other		Adjustments			Consolidated
Revenue:
Premium	$	818,638	$	353,955	$	—	$	—	$	—	$	—		$	1,172,593
Net investment income	—		—		—		284,964		—		—			284,964
Other income	—		—		—		—		42		—			42
Total revenue	818,638		353,955		—		284,964		42		—			1,457,599
Expenses:
Policy benefits	454,502		221,926		5,716		6,040		—		—			688,184
Required interest on reserves	(203,875)		(27,717)		(7,829)		239,421		—		—			—

Amortization of acquisition costs	90,070		13,852		388		—		—		—			104,310
Commissions, premium taxes, and non-deferred acquisition costs	90,758		58,931		4		—		—		—			149,693
Insurance administrative expense(1)	—		—		—		—		88,465		730		(3)	89,195
Parent expense	—		—		—		—		3,210		3,236		(2,3)	6,446
Stock-based compensation expense	—		—		—		—		9,233		—			9,233
Interest expense	—		—		—		—		31,388		—			31,388
Total expenses	431,455		266,992		(1,721)		245,461		132,296		3,966			1,078,449
Subtotal	387,183		86,963		1,721		39,503		(132,254)		(3,966)			379,150
Non-operating items	—		—		—		—		—		3,966		(2,3)	3,966
Measure of segment profitability (pretax)	$	387,183	$	86,963	$	1,721	$	39,503	$	(132,254)	$	—		383,116

Realized gains (losses)														(2,192)

Legal costs and proceedings														(3,329)
Non-operating expenses														(637)
Income before income taxes per Condensed Consolidated Statements of Operations														$	376,958

(1)Administrative expense is not allocated to insurance segments.

(2)Non-operating expenses.

(3)Legal costs and proceedings.

GL Q3 2024 FORM 10-Q

Globe Life Inc.

Notes to Condensed Consolidated Financial Statements

(Dollar amounts in thousands, except per share data)


	Three Months Ended September 30, 2023
	Life		Health		Annuity		Investment		Corporate & Other		Adjustments			Consolidated
Revenue:
Premium	$	788,099	$	331,236	$	—	$	—	$	—	$	—		$	1,119,335
Net investment income	—		—		—		266,926		—		—			266,926
Other income	—		—		—		—		50		—			50
Total revenue	788,099		331,236		—		266,926		50		—			1,386,311
Expenses:
Policy obligations	515,676		193,790		6,854		2,724		—		—			719,044
Required interest on reserves	(194,199)		(26,732)		(9,353)		230,284		—		—			—

Amortization of acquisition costs	82,523		12,816		418		—		—		—			95,757
Commissions, premium taxes, and non-deferred acquisition costs	84,011		54,662		4		—		—		—			138,677
Insurance administrative expense(1)	—		—		—		—		74,585		—			74,585
Parent expense	—		—		—		—		2,581		1,137		(2)	3,718
Stock-based compensation expense	—		—		—		—		7,567		—			7,567
Interest expense	—		—		—		—		25,955		—			25,955
Total expenses	488,011		234,536		(2,077)		233,008		110,688		1,137			1,065,303
Subtotal	300,088		96,700		2,077		33,918		(110,638)		(1,137)			321,008
Non-operating items	—		—		—		—		—		1,137		(2)	1,137
Measure of segment profitability (pretax)	$	300,088	$	96,700	$	2,077	$	33,918	$	(110,638)	$	—		322,145

Realized gains (losses)														(2,193)


Non-operating expenses														(1,137)
Income before income taxes per Condensed Consolidated Statements of Operations														$	318,815

(1)Administrative expense is not allocated to insurance segments.

(2)Non-operating expenses.

GL Q3 2024 FORM 10-Q

Globe Life Inc.

Notes to Condensed Consolidated Financial Statements

(Dollar amounts in thousands, except per share data)


	Nine Months Ended September 30, 2024
	Life		Health		Annuity		Investment		Corporate & Other		Adjustments			Consolidated
Revenue:
Premium	$	2,438,385	$	1,046,617	$	—	$	—	$	—	$	—		$	3,485,002
Net investment income	—		—		—		853,178		—		—			853,178
Other income	—		—		—		—		192		—			192
Total revenue	2,438,385		1,046,617		—		853,178		192		—			4,338,372
Expenses:
Policy obligations	1,493,165		629,676		17,786		15,044		—		—			2,155,671
Required interest on reserves	(605,397)		(82,300)		(24,358)		712,055		—		—			—

Amortization of acquisition costs	263,753		40,774		1,176		—		—		—			305,703
Commissions, premium taxes, and non-deferred acquisition costs	270,347		177,246		12		—		—		—			447,605
Insurance administrative expense(1)	—		—		—		—		251,072		1,646		(3)	252,718
Parent expense	—		—		—		—		9,166		6,722		(2,3)	15,888
Stock-based compensation expense	—		—		—		—		28,590		—			28,590
Interest expense	—		—		—		—		91,413		—			91,413
Total expenses	1,421,868		765,396		(5,384)		727,099		380,241		8,368			3,297,588
Subtotal	1,016,517		281,221		5,384		126,079		(380,049)		(8,368)			1,040,784
Non-operating items	—		—		—		—		—		8,368		(2,3)	8,368
Measure of segment profitability (pretax)	$	1,016,517	$	281,221	$	5,384	$	126,079	$	(380,049)	$	—		1,049,152

Realized gains (losses)														(26,580)


Legal costs and proceedings														(5,764)
Non-operating expenses														(2,604)
Income before income taxes per Condensed Consolidated Statements of Operations														$	1,014,204

(1)Administrative expense is not allocated to insurance segments.

(2)Non-operating expenses.

(3)Legal costs and proceedings.

GL Q3 2024 FORM 10-Q

Globe Life Inc.

Notes to Condensed Consolidated Financial Statements

(Dollar amounts in thousands, except per share data)


	Nine Months Ended September 30, 2023
	Life		Health		Annuity		Investment		Corporate & Other		Adjustments			Consolidated
Revenue:
Premium	$	2,342,429	$	982,916	$	—	$	—	$	—	$	—		$	3,325,345
Net investment income	—		—		—		785,275		—		—			785,275
Other income	—		—		—		—		185		—			185
Total revenue	2,342,429		982,916		—		785,275		185		—			4,110,805
Expenses:
Policy obligations	1,536,317		580,676		21,502		5,986		—		—			2,144,481
Required interest on reserves	(575,801)		(79,603)		(29,327)		684,731		—		—			—

Amortization of acquisition costs	243,285		37,608		1,266		—		—		—			282,159
Commissions, premium taxes, and non-deferred acquisition costs	251,136		163,784		13		—		—		—			414,933
Insurance administrative expense(1)	—		—		—		—		223,951		—			223,951
Parent expense	—		—		—		—		8,254		1,137		(2)	9,391
Stock-based compensation expense	—		—		—		—		22,732		—			22,732
Interest expense	—		—		—		—		76,640		—			76,640
Total expenses	1,454,937		702,465		(6,546)		690,717		331,577		1,137			3,174,287
Subtotal	887,492		280,451		6,546		94,558		(331,392)		(1,137)			936,518
Non-operating items	—		—		—		—		—		1,137		(2)	1,137
Measure of segment profitability (pretax)	$	887,492	$	280,451	$	6,546	$	94,558	$	(331,392)	$	—		937,655

Realized gains (losses)														(78,963)


Non-operating expenses														(1,137)

Income before income taxes per Condensed Consolidated Statements of Operations														$	857,555

(1)Administrative expense is not allocated to insurance segments.

(2)Non-operating expenses.

Note 13—Subsequent Events

In the fourth quarter of 2024, the Company entered into a coinsurance agreement to cede a majority of its annuity business to a third-party insurer. The annuity reserves ceded totaled approximately $460 million subject to final settlement. The pre-tax ceding commission under the agreement was approximately $50 million and will be recognized into income over the remaining life of the ceded contracts. Under the terms of the agreement, the reinsurer will be required to maintain assets in trust at 105% of reserves. The Company's annuity business comprises less than 1% of revenue and is not core to the Company's business. We anticipate that we will adjust our segment reporting to reflect the remaining annuity business within the Corporate and Other category of our segment reporting.

GL Q3 2024 FORM 10-Q

CAUTIONARY STATEMENTS

We caution readers regarding certain forward-looking statements contained in the foregoing discussion and elsewhere in this document, and in any other statements made by, or on behalf of Globe Life whether or not in future filings with the Securities and Exchange Commission. Any statement that is not a historical fact, or that might otherwise be considered an opinion or projection concerning the Company or its business, whether express or implied, is meant as and should be considered a forward-looking statement. Such statements represent management's opinions concerning future operations, strategies, financial results or other developments. We specifically disclaim any obligation to update or revise any forward-looking statement because of new information, future developments, or otherwise.

Forward-looking statements are based upon estimates and assumptions that are subject to significant business, economic and competitive uncertainties, many of which are beyond our control, including uncertainties related to the impact of the recent pandemic and associated direct and indirect effects on our business operations, financial results, and financial condition. If these estimates or assumptions prove to be incorrect, the actual results of Globe Life may differ materially from the forward-looking statements made on the basis of such estimates or assumptions. Whether or not actual results differ materially from forward-looking statements may depend on numerous foreseeable and unforeseeable events or developments, which may be national in scope, related to the insurance industry generally, or applicable to the Company specifically. Such events or developments could include, but are not necessarily limited to:

1.Economic and other conditions, including the continued impact of inflation, geopolitical events, and the recent pandemic on the U.S. economy, leading to unexpected changes in lapse rates and/or sales of our policies, as well as levels of mortality, morbidity, and utilization of health care services that differ from Globe Life's assumptions;

2.Regulatory developments, including changes in accounting standards or governmental regulations (particularly those impacting taxes and changes to the Federal Medicare program that would affect Medicare Supplement);

3.Market trends in the senior-aged health care industry that provide alternatives to traditional Medicare (such as Health Maintenance Organizations and other managed care or private plans) and that could affect the sales of traditional Medicare Supplement insurance;

4.Interest rate changes that affect product sales, financing costs, and/or investment yields;

5.General economic, industry sector or individual debt issuers’ financial conditions (including developments and volatility arising from geopolitical events, particularly in certain industries that may comprise part of our investment portfolio) that may affect the current market value of securities we own, or that may impair an issuer’s ability to make principal and/or interest payments due on those securities;

6.Changes in the competitiveness of the Company's products and pricing;

7.Litigation results or regulatory actions against the Company;

8.Levels of administrative and operational efficiencies that differ from our assumptions (including any reduction in efficiencies resulting from increased costs arising from the impact of higher than anticipated inflation);

9.The ability to obtain timely and appropriate premium rate increases for health insurance policies from our regulators;

10.The customer response to new products and marketing initiatives;

11.Reported amounts in the consolidated financial statements which are based on management estimates and judgments which may differ from the actual amounts ultimately realized;

12.Compromise by a malicious actor or other event that causes a loss of secure data from, or inaccessibility to, our computer and other information technology systems;

13.The impact of reputational damage on the Company including the impact on the Company's ability to attract and retain agents;

14.The severity, magnitude, and impact of natural or man-made catastrophic events, including but not limited to pandemics, tornadoes, hurricanes, earthquakes, war and terrorism, on our operations and personnel, commercial activity, level of claims, and demand for our products; and

15.Globe Life's ability to access the commercial paper and debt markets, particularly if such markets become unpredictable or unstable for a certain period.

Readers are also directed to consider other risks and uncertainties described in other documents on file with the Securities and Exchange Commission.

GL Q3 2024 FORM 10-Q

GLOBE LIFE INC.

Management's Discussion & Analysis

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