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)



	March 31, 2025		December 31, 2024
Assets:
Investments:
Fixed maturities—available for sale, at fair value (amortized cost: 2025—$18,974,367; 2024—$18,835,809, allowance for credit losses: 2025— $10,355; 2024— $10,395)	$	17,504,967	$	17,155,012
Mortgage loans	426,174		396,088
Policy loans	708,175		699,669
Other long-term investments (includes: 2025—$989,027; 2024—$986,766 under the fair value option)	1,236,624		1,235,759
Short-term investments	134,066		85,035
Total investments	20,010,006		19,571,563
Cash	232,270		165,325
Accrued investment income	287,562		269,791
Other receivables	691,523		691,907
Deferred acquisition costs	6,623,644		6,495,589
Goodwill	490,446		490,446
Other assets	1,369,808		1,391,560
Total assets	$	29,705,259	$	29,076,181
Liabilities:
Future policy benefits at current discount rates: (at original discount rates: 2025—$17,719,841; 2024—$17,552,564)	$	18,756,844	$	18,457,263
Unearned and advance premium	273,887		257,631
Policy claims and other benefits payable	546,670		532,832
Other policyholders' funds	463,148		468,604
Total policy liabilities	20,040,549		19,716,330
Current and deferred income taxes	807,735		731,255
Short-term debt	476,891		415,401
Long-term debt (estimated fair value: 2025—$2,150,340; 2024—$2,122,772)	2,324,945		2,324,251
Other liabilities	629,723		583,424
Total liabilities	24,279,843		23,770,661
Commitments and Contingencies (Note 5)
Shareholders' equity:
Preferred stock, par value $1 per share—5,000,000 shares authorized; outstanding: 0 in 2025 and 2024	—		—
Common stock, par value $1 per share—320,000,000 shares authorized; outstanding: (2025—97,218,183 issued; 2024—97,218,183 issued)	97,218		97,218
Additional paid-in-capital	524,041		527,795
Accumulated other comprehensive income (loss)	(1,970,873)		(2,029,720)
Retained earnings	8,224,948		8,002,521
Treasury stock, at cost: (2025—14,297,002 shares; 2024—13,240,616 shares)	(1,449,918)		(1,292,294)
Total shareholders' equity	5,425,416		5,305,520
Total liabilities and shareholders' equity	$	29,705,259	$	29,076,181

See accompanying Notes to Condensed Consolidated Financial Statements.

GL Q1 2025 FORM 10-Q

Globe Life Inc.

Condensed Consolidated Statements of Operations

(Unaudited)

(Dollar amounts in thousands, except per share data)



	Three Months Ended March 31,
		2025		2024
Revenue:
Life premium		$	829,863	$	804,265
Health premium		369,791		341,019

Total premium		1,199,654		1,145,284
Net investment income		280,614		282,578
Realized gains (losses)		85		(11,799)

Other income		69		76
Total revenue		1,480,422		1,416,139

Benefits and expenses:
Life policyholder benefits(1)		509,756		519,871
Health policyholder benefits(2)		233,929		202,327
Other policyholder benefits		7,080		9,595
Total policyholder benefits		750,765		731,793

Amortization of deferred acquisition costs		105,515		99,478
Commissions, premium taxes, and non-deferred acquisition costs		164,323		148,110
Other operating expense		108,746		93,214
Interest expense		34,992		28,621
Total benefits and expenses		1,164,341		1,101,216

Income before income taxes		316,081		314,923
Income tax benefit (expense)		(61,518)		(60,706)



Net income		$	254,563	$	254,217




Basic net income per common share		$	3.05	$	2.71




Diluted net income per common share		$	3.01	$	2.67

(1) Net of a remeasurement gain of $8.5 million for the three months ended March 31, 2025, and a remeasurement gain of $4.9 million for the same period in 2024.

(2) Net of a remeasurement gain of $444 thousand for the three months ended March 31, 2025 and a remeasurement gain of $3.2 million for the same period in 2024.

See accompanying Notes to Condensed Consolidated Financial Statements.

GL Q1 2025 FORM 10-Q

Globe Life Inc.

Condensed Consolidated Statements of Comprehensive Income (Loss)

(Unaudited)

(Dollar amounts in thousands)



	Three Months Ended March 31,
		2025		2024
Net income		$	254,563	$	254,217

Other comprehensive income (loss):

Investments:
Unrealized gains (losses) on fixed maturities:
Unrealized holding gains (losses) arising during period		215,128		(305,016)

Other reclassification adjustments included in net income		(3,341)		(2,412)
Foreign exchange adjustment on fixed maturities recorded at fair value		(430)		1,617



Total unrealized investment gains (losses)		211,357		(305,811)
Less applicable tax (expense) benefit		(44,387)		64,222
Unrealized gains (losses) on investments, net of tax		166,970		(241,589)

Future Policy Benefits:
Change in discount rate on future policy benefits		(139,352)		704,596
Less applicable tax (expense) benefit		29,263		(147,964)
Future policy benefit adjustments, net of tax		(110,089)		556,632






Foreign exchange translation:
Foreign exchange translation adjustments, other than securities		2,421		(12,597)
Less applicable tax (expense) benefit		(508)		2,646
Foreign exchange translation adjustments, other than securities, net of tax		1,913		(9,951)

Pension:



Pension adjustments		68		118
Less applicable tax (expense) benefit		(15)		(27)
Pension adjustments, net of tax		53		91

Other comprehensive income (loss)		58,847		305,183
Comprehensive income (loss)		$	313,410	$	559,400

See accompanying Notes to Condensed Consolidated Financial Statements.

GL Q1 2025 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, 2024	$	—	$	97,218	$	527,795	$	(2,029,720)	$	8,002,521	$	(1,292,294)	$	5,305,520


Comprehensive income (loss)	—		—		—		58,847		254,563		—		313,410
Common dividends declared ($0.2700 per share)	—		—		—		—		(22,383)		—		(22,383)
Acquisition of treasury stock	—		—		—		—		—		(264,544)		(264,544)
Stock-based compensation	—		—		(3,754)		—		—		15,773		12,019
Exercise of stock options	—		—		—		—		(9,753)		91,147		81,394

Balance at March 31, 2025	—		97,218		524,041		(1,970,873)		8,224,948		(1,449,918)		5,425,416


	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

See accompanying Notes to Condensed Consolidated Financial Statements.

GL Q1 2025 FORM 10-Q

Globe Life Inc.

Condensed Consolidated Statements of Cash Flows

(Unaudited)

(Dollar amounts in thousands)



	Three Months Ended March 31,
	2025		2024













Cash provided from (used for) operating activities	$	431,887	$	350,806

Cash provided from (used for) investing activities:
Investments sold or matured:
Fixed maturities available for sale—sold	53,911		27,853
Fixed maturities available for sale—matured or other redemptions	58,796		59,871
Mortgage loans	6,237		7,896
Other long-term investments	18,927		573
Total investments sold or matured	137,871		96,193
Acquisition of investments:
Fixed maturities—available for sale	(236,058)		(682,427)
Mortgage loans	(35,471)		(58,406)
Other long-term investments	(15,889)		(80,468)
Total investments acquired	(287,418)		(821,301)
Net (increase) decrease in policy loans	(8,506)		(7,621)
Net (increase) decrease in short-term investments	(49,031)		23,327


Additions to property and equipment	(11,746)		(9,106)

Investments in low-income housing interests	(21,124)		(13,428)
Cash provided from (used for) investing activities	(239,954)		(731,936)

Cash provided from (used for) financing activities:
Issuance of common stock	81,394		29,763
Cash dividends paid to shareholders	(20,146)		(21,117)



Net borrowing from Federal Home Loan Bank (FHLB)	70,000		242,000
Net borrowing (repayment) of commercial paper	(58,474)		5,304
Proceeds from commercial paper with original maturities greater than 90 days	184,470		—
Repayment of commercial paper with original maturities greater than 90 days	(134,506)		—
Acquisition of treasury stock	(264,544)		(23,469)
Net receipts (payments) from deposit-type products	17,342		124,475
Cash provided from (used for) financing activities	(124,464)		356,956

Effect of foreign exchange rate changes on cash	(524)		4,565
Net increase (decrease) in cash	66,945		(19,609)
Cash at beginning of year	165,325		103,156
Cash at end of period	$	232,270	$	83,547

See accompanying Notes to Condensed Consolidated Financial Statements.

GL Q1 2025 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 to a broad base of customers. The Company is organized into three reportable segments: life insurance, supplemental health insurance, and investments.

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

Basis of Presentation*:* The accompanying condensed consolidated financial statements of Globe Life have been prepared in accordance with the instructions to Form 10-Q. Therefore, they do not include all of the disclosures required by accounting principles generally accepted in the United States of America (GAAP) for annual financial statements. However, in the opinion of management, these statements include all adjustments, consisting of normal recurring adjustments, which are necessary for a fair presentation of the condensed consolidated financial position at March 31, 2025, and the condensed consolidated results of operations, comprehensive income, and cash flows for the periods ended March 31, 2025 and 2024. The interim period condensed consolidated financial statements should be read in conjunction with the Consolidated Financial Statements that were included in the Form 10-K filed with the Securities Exchange Commission (SEC) on February 26, 2025.

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

Reinsurance and Recapture: In the normal course of business, Globe Life insurance subsidiaries will enter into reinsurance agreements to limit their exposure to the risk of loss as well as enhance their capital position. The Company entered into a coinsurance transaction with funds withheld agreement with a third-party reinsurer on March 6, 2025, with an agreement effective date of January 1, 2025. Under the terms of the agreement Globe Life ceded 100% of the liabilities, net of existing reinsurance, associated with certain term and whole life insurance policies. The contract will be accounted for under deposit accounting as it did not pass the risk transfer requirements for reinsurance treatment on a GAAP basis. Since the agreement is subject to deposit accounting and meets the right of offset conditions outlined in the accounting policy the Company recorded the initial coinsurance, ceding commission and funds withheld balance on a net basis. At inception, no cash was exchanged between the parties and subsequently, a risk charge was recorded as a component of net investment income in the Condensed Consolidated Statement of Operations, with net cash settlements occurring quarterly between the parties.

GL Q1 2025 FORM 10-Q

Globe Life Inc.

Notes to Condensed Consolidated Financial Statements

(Dollar amounts in thousands, except per share data)

On March 31, 2025, the Company entered into a recapture and termination agreement with a third-party reinsurer to recapture certain policies that had previously been ceded under a reinsurance agreement dated November 12, 2001. The recapture was executed to accomplish common objectives between the Company and the reinsurer. As a result of the transaction, the Company received net proceeds of $39 million, which are reflected as operating cash flows in the Condensed Consolidated Statement of Cash Flows. The Company also recognized a gain of approximately $14 million in policy holder benefits in the Condensed Consolidated Statement of Operations.

Note 2—New Accounting Standards

Accounting Pronouncements Yet to be Adopted: ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, adds disclosure requirements to disaggregate information related to the effective tax rate reconciliation and information on income taxes paid. The disclosures will enhance the assessment of an entity’s operations and related tax risks.

This standard is effective for the Company for annual periods beginning on January 1, 2025, and will be implemented on a prospective basis. The Company does not expect the standard will have a material impact on the condensed consolidated financial statements. The guidance requires only additional disclosure, as a result there will be no effects on our financial position, results of operations or cash flows.

ASU No. 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses, adds disclosure requirements to disaggregate information related to an entity's income statement. The disclosures will allow for enhanced transparency of an entity's expenses.

This standard is effective for the Company for annual periods beginning on January 1, 2027. The Company is evaluating the standard.

GL Q1 2025 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


	Three Months Ended March 31, 2025
	Available for Sale Assets		Future Policy Benefits		Foreign Exchange		Pension Adjustments		Total
Balance at January 1, 2025	$	(1,319,618)	$	(709,042)	$	(21,757)	$	20,697	$	(2,029,720)
Other comprehensive income (loss) before reclassifications, net of tax	169,609		(110,089)		1,913		—		61,433
Reclassifications, net of tax	(2,639)		—		—		53		(2,586)
Other comprehensive income (loss)	166,970		(110,089)		1,913		53		58,847
Balance at March 31, 2025	$	(1,152,648)	$	(819,131)	$	(19,844)	$	20,750	$	(1,970,873)


	Three Months Ended March 31, 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	(239,684)		556,632		(9,951)		—		306,997
Reclassifications, net of tax	(1,905)		—		—		91		(1,814)
Other comprehensive income (loss)	(241,589)		556,632		(9,951)		91		305,183
Balance at March 31, 2024	$	(1,069,185)	$	(1,390,759)	$	(5,232)	$	(2,060)	$	(2,467,236)

Reclassification Adjustments: Reclassification adjustments out of accumulated other comprehensive income are presented below for the three month periods ended March 31, 2025 and 2024.


	Three Months Ended March 31,			Affected line items in the Statements of Operations
Component Line Item		2025		2024
Unrealized investment (gains) losses on available for sale assets:
Realized (gains) losses		$	(828)	$	(228)	Realized (gains) losses

Amortization of (discount) premium		(2,513)		(2,184)		Net investment income
Total before tax		(3,341)		(2,412)
Tax		702		507		Income taxes
Total after-tax		(2,639)		(1,905)
Pension adjustments:
Amortization of prior service cost		292		269		Other operating expense
Amortization of actuarial (gain) loss		(224)		(151)		Other operating expense
Total before tax		68		118
Tax		(15)		(27)		Income taxes
Total after-tax		53		91
Total reclassification (after-tax)		$	(2,586)	$	(1,814)

GL Q1 2025 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 March 31, 2025 and December 31, 2024, and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income (loss) are as follows. Redeemable preferred stock is included within "Corporates, by sector."


	At March 31, 2025
	Amortized Cost		Allowance for Credit Losses		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value(1)		% of Total Fixed Maturities(2)
Fixed maturities available for sale:
U.S. Government direct, guaranteed, and government-sponsored enterprises	$	407,846	$	—	$	61	$	(31,928)	$	375,979	2
States, municipalities, and political subdivisions	3,295,133		—		27,554		(561,706)		2,760,981		16
Foreign governments	37,681		—		20		(9,320)		28,381		—
Corporates, by sector:
Industrials	7,971,906		(7,058)		138,014		(717,612)		7,385,250		42
Financial	5,026,161		—		107,057		(371,016)		4,762,202		27

Utilities	2,104,309		—		57,954		(101,935)		2,060,328		12
Total corporates	15,102,376		(7,058)		303,025		(1,190,563)		14,207,780		81
Collateralized debt obligations	36,609		—		5,046		—		41,655		—
Other asset-backed securities	94,722		(3,297)		69		(1,303)		90,191		1
Total fixed maturities	$	18,974,367	$	(10,355)	$	335,775	$	(1,794,820)	$	17,504,967	100

(1)Amount reported in the balance sheet.

(2)At fair value.


	At December 31, 2024
	Amortized Cost		Allowance for Credit Losses		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value(1)		% of Total Fixed Maturities(2)
Fixed maturities available for sale:
U.S. Government direct, guaranteed, and government-sponsored enterprises	$	401,753	$	—	$	1	$	(42,794)	$	358,960	2
States, municipalities, and political subdivisions	3,300,901		—		20,662		(534,759)		2,786,804		16
Foreign governments	36,883		—		18		(8,870)		28,031		—
Corporates, by sector:
Industrials	7,889,074		(7,098)		105,610		(805,330)		7,182,256		42
Financial	5,006,375		—		82,598		(413,043)		4,675,930		27

Utilities	2,081,366		—		39,716		(118,007)		2,003,075		12
Total corporates	14,976,815		(7,098)		227,924		(1,336,380)		13,861,261		81
Collateralized debt obligations	36,923		—		5,943		—		42,866		—
Other asset-backed securities	82,534		(3,297)		39		(2,186)		77,090		1
Total fixed maturities	$	18,835,809	$	(10,395)	$	254,587	$	(1,924,989)	$	17,155,012	100

(1)Amount reported in the balance sheet.

(2)At fair value.

The Company had unfunded commitments of $155 million and $167 million in fixed maturities at March 31, 2025 and December 31, 2024, respectively.

GL Q1 2025 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 $397 million (2% of the total fixed maturity portfolio) and $405 million (2% of the total fixed maturity portfolio) at March 31, 2025 and December 31, 2024, respectively.

A schedule of fixed maturities available for sale by contractual maturity date at March 31, 2025, is shown below on an amortized cost basis, net of allowance for credit losses, and on a fair value basis. Actual disposition dates could differ from contractual maturities due to call or prepayment provisions.


	At March 31, 2025
	Amortized Cost, net		Fair Value
Fixed maturities available for sale:
Due in one year or less	$	117,643	$	117,820
Due after one year through five years	767,696		787,970
Due after five years through ten years	1,925,094		1,963,237
Due after ten years through twenty years	8,804,536		8,303,529
Due after twenty years	7,221,009		6,200,565
Mortgage-backed and asset-backed securities	128,034		131,846
	$	18,964,012	$	17,504,967

Analysis of Investment Operations: "Net investment income" for the three month periods ended March 31, 2025 and 2024 is summarized as follows:


	Three Months Ended March 31,
		2025		2024		% Change
Fixed maturities available for sale		$	242,210	$	246,098	(2)
Policy loans		13,658		12,816		7
Mortgage loans		6,668		6,760		(1)
Other long-term investments(1)		23,079		19,663		17
Short-term investments		1,476		1,688
		287,091		287,025		—
Less investment expense		(6,477)		(4,447)		46
Net investment income		$	280,614	$	282,578	(1)

(1)For the three months ended March 31, 2025 and 2024, the investment funds, accounted for under the fair value option method, recorded $19.2 million and $18.9 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 March 31,
		2025		2024
Fixed maturities available for sale:
Proceeds from sales(1)		$	53,911	$	27,853
Gross realized gains		1,478		175
Gross realized losses		(1,464)		(35)

(1)As of March 31, 2025 and 2024, the Company had $0 million and $0 of unsettled trades, respectively.

GL Q1 2025 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 March 31,
		2025		2024
Realized investment gains (losses):
Fixed maturities available for sale:
Sales and other(1)		$	788	$	140

Provision for credit losses		40		88
Fair value option—change in fair value		2,371		(15,403)
Mortgage loans		433		(874)
Other investments		(1,078)		314
Realized gains (losses) from investments		2,554		(15,735)

Other gains (losses)		(2,469)		3,936
Total realized gains (losses)		85		(11,799)
Applicable tax		(18)		2,478
Realized gains (losses), net of tax		$	67	$	(9,321)

(1)During the three months ended March 31, 2025 and 2024, the Company recorded $55.7 million and $66.9 million of issuer-initiated exchanges of fixed maturities (noncash transactions) that resulted in no realized gains (losses) in either period.

GL Q1 2025 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 March 31, 2025 and December 31, 2024:


	Fair Value Measurement at March 31, 2025:
	Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Total Fair Value
Fixed maturities available for sale
U.S. Government direct, guaranteed, and government-sponsored enterprises	$	—		$	375,979		$	—		$	375,979
States, municipalities, and political subdivisions	—			2,760,981			—			2,760,981
Foreign governments	—			28,381			—			28,381
Corporates, by sector:
Industrials	—			7,204,316			180,934			7,385,250
Financial	—			4,632,305			129,897			4,762,202

Utilities	—			1,944,973			115,355			2,060,328
Total corporates	—			13,781,594			426,186			14,207,780
Collateralized debt obligations	—			—			41,655			41,655
Other asset-backed securities	—			66,598			23,593			90,191
Total fixed maturities	$	—		$	17,013,533		$	491,434		$	17,504,967
Percentage of total	—		%	97		%	3		%	100		%


	Fair Value Measurement at December 31, 2024:
	Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Total Fair Value
Fixed maturities available for sale
U.S. Government direct, guaranteed, and government-sponsored enterprises	$	—		$	358,960		$	—		$	358,960
States, municipalities, and political subdivisions	—			2,786,804			—			2,786,804
Foreign governments	—			28,031			—			28,031
Corporates, by sector:
Industrials	—			6,998,900			183,356			7,182,256
Financial	—			4,551,737			124,193			4,675,930

Utilities	—			1,890,559			112,516			2,003,075
Total corporates	—			13,441,196			420,065			13,861,261
Collateralized debt obligations	—			—			42,866			42,866
Other asset-backed securities	—			65,907			11,183			77,090
Total fixed maturities	$	—		$	16,680,898		$	474,114		$	17,155,012
Percentage of total	—		%	97		%	3		%	100		%

GL Q1 2025 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, 2025	$	11,183		$	42,866		$	420,065		$	474,114

Included in realized gains / losses	—			—			(1)			(1)
Included in other comprehensive income	30			5,046			(7,000)			(1,924)
Acquisitions	12,380			—			9,200			21,580
Sales	—			—			—			—
Amortization	—			1,136			(3)			1,133
Other(1)	—			(7,393)			3,925			(3,468)
Transfers into Level 3(2)	—			—			—			—
Transfers out of Level 3(2)	—			—			—			—
Balance at March 31, 2025	$	23,593		$	41,655		$	426,186		$	491,434
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, 2024	$	—		$	42,146		$	454,733		$	496,879

Included in realized gains / losses	—			—			—			—
Included in other comprehensive income	—			(2,035)			(5,996)			(8,031)
Acquisitions	—			—			7,800			7,800
Sales	—			—			—			—
Amortization	—			1,141			(4)			1,137
Other(1)	—			(1,521)			(18,969)			(20,490)
Transfers into Level 3(2)	—			—			—			—
Transfers out of Level 3(2)	—			—			—			—
Balance at March 31, 2024	$	—		$	39,731		$	437,564		$	477,295
Percent of total fixed maturities	—		%	—		%	3		%	3		%

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

GL Q1 2025 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 March 31, 2025	$	30	$	5,046	$	(7,000)	$	(1,924)
At March 31, 2024	—		(2,035)		(5,996)		(8,031)

Transfers between levels within the hierarchy occur when there are changes in the observability of the inputs and market data. Transfers into Level 3 occur when there is little unobservable market activity for the asset/liability as of the measurement date and the Company is required to rely upon internally-developed assumptions or third parties. Transfers out of Level 3 occur when quoted prices in active markets becomes available for identical assets/ liabilities or the ability to corroborate by observable market data.

The following table represents quantitative information about Level 3 fair value measurements:


	Quantitative Information about Level 3 Fair Value Measurements
	March 31, 2025
	Fair Value		Valuation Techniques	Significant Unobservable Input	Range	Weighted- Average(1)
Private placement fixed maturities	$	426,186	Determination of credit spread	Credit rating	B to AA	BBB+


Collateralized debt obligations	41,655		Discounted cash flows	Discount rate	12.00%	12.00%
Asset-backed securities	23,593		Determination of credit spread	Credit rating	CC - BBB	BB+

	$	491,434

(1)Unobservable inputs were weighted by the relative fair value of the instruments.

Private placement fixed maturities and asset-backed securities are valued based on the contractual cash flows discounted by a yield determined as a treasury benchmark rate adjusted for a credit spread. The credit spread is developed from observable indices for similar securities and unobservable indices for private securities or private comparable securities for corresponding credit ratings. The credit ratings for the securities may be considered unobservable inputs, as they are private letter ratings issued by a nationally recognized statistical rating organization or are assigned by the third-party investment manager based on a quantitative and qualitative assessment of the credit underwritten. A higher (lower) credit rating would result in a higher (lower) valuation.

The collateral underlying the collateralized debt obligations consists primarily of trust preferred securities issued by banks and insurance companies. Collateralized debt obligations are valued at the present value of expected future cash flows using an unobservable discount rate. Expected cash flows are determined by scheduling the projected repayment of the collateral assuming no future defaults, deferrals, or recoveries. The discount rate is risk-adjusted to take these items into account. A significant increase (decrease) in the discount rate will produce a significant decrease (increase) in fair value. Additionally, a significant increase (decrease) in the cash flow expectations would result in a significant increase (decrease) in fair value. For more information regarding valuation procedures, please refer to Note 1—Significant Accounting Policies under the caption Fair Value Measurements, Investments in Securities disclosed in the Form 10-K*.*

GL Q1 2025 FORM 10-Q

Globe Life Inc.

Notes to Condensed Consolidated Financial Statements

(Dollar amounts in thousands, except per share data)

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 March 31, 2025	584	1,499	2,083
As of December 31, 2024	705	1,498	2,203

Globe Life's entire fixed maturity portfolio consisted of 2,571 issues by 1,018 different issuers at March 31, 2025 and 2,552 issues by 1,014 different issuers at December 31, 2024. The weighted-average quality rating of all unrealized loss positions at amortized cost was A- as of March 31, 2025 and December 31, 2024.

The following tables disclose unrealized investment losses by class and major sector of fixed maturities available for sale at March 31, 2025 and December 31, 2024.

Analysis of Gross Unrealized Investment Losses


	At March 31, 2025
	Less than Twelve Months				Twelve Months or Longer				Total
	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
Fixed maturities available for sale:
Investment grade securities:
U.S. Government direct, guaranteed, and government-sponsored enterprises	$	4,901	$	(218)	$	361,306	$	(31,710)	$	366,207	$	(31,928)
States, municipalities, and political subdivisions	591,622		(25,816)		1,533,423		(535,890)		2,125,045		(561,706)
Foreign governments	—		—		25,227		(9,320)		25,227		(9,320)
Corporates, by sector:
Industrials	1,292,072		(58,960)		3,486,110		(630,367)		4,778,182		(689,327)
Financial	748,292		(42,463)		1,809,982		(312,039)		2,558,274		(354,502)

Utilities	359,881		(15,222)		546,222		(80,061)		906,103		(95,283)
Total corporates	2,400,245		(116,645)		5,842,314		(1,022,467)		8,242,559		(1,139,112)

Other asset-backed securities	41,588		(162)		24,974		(1,141)		66,562		(1,303)
Total investment grade securities	3,038,356		(142,841)		7,787,244		(1,600,528)		10,825,600		(1,743,369)

Below investment grade securities:


Corporates, by sector:
Industrials	60,152		(873)		153,494		(27,412)		213,646		(28,285)
Financial	7,133		(113)		101,771		(16,401)		108,904		(16,514)

Utilities	27,442		(1,867)		24,905		(4,785)		52,347		(6,652)
Total corporates	94,727		(2,853)		280,170		(48,598)		374,897		(51,451)

Other asset-backed securities	—		—		—		—		—		—
Total below investment grade securities	94,727		(2,853)		280,170		(48,598)		374,897		(51,451)
Total fixed maturities	$	3,133,083	$	(145,694)	$	8,067,414	$	(1,649,126)	$	11,200,497	$	(1,794,820)

GL Q1 2025 FORM 10-Q

Globe Life Inc.

Notes to Condensed Consolidated Financial Statements

(Dollar amounts in thousands, except per share data)

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.

Analysis of Gross Unrealized Investment Losses


	At December 31, 2024
	Less than Twelve Months				Twelve Months or Longer				Total
	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
Fixed maturities available for sale:
Investment grade securities:
U.S. Government direct, guaranteed, and government-sponsored enterprises	$	11,268	$	(290)	$	347,527	$	(42,504)	$	358,795	$	(42,794)
States, municipalities, and political subdivisions	778,244		(32,894)		1,532,264		(501,865)		2,310,508		(534,759)
Foreign governments	—		—		24,925		(8,870)		24,925		(8,870)
Corporates, by sector:
Industrials	1,487,940		(73,404)		3,433,034		(690,920)		4,920,974		(764,324)
Financial	961,932		(52,946)		1,785,130		(333,873)		2,747,062		(386,819)

Utilities	546,965		(20,214)		540,077		(90,996)		1,087,042		(111,210)
Total corporates	2,996,837		(146,564)		5,758,241		(1,115,789)		8,755,078		(1,262,353)

Other asset-backed securities	23,231		(95)		42,639		(2,091)		65,870		(2,186)
Total investment grade securities	3,809,580		(179,843)		7,705,596		(1,671,119)		11,515,176		(1,850,962)

Below investment grade securities:


Corporates, by sector:
Industrials	54,199		(2,656)		142,638		(38,350)		196,837		(41,006)
Financial	2,990		(53)		126,811		(26,171)		129,801		(26,224)

Utilities	19,263		(1,113)		24,003		(5,684)		43,266		(6,797)
Total corporates	76,452		(3,822)		293,452		(70,205)		369,904		(74,027)

Other asset-backed securities	—		—		2,198		—		2,198		—
Total below investment grade securities	76,452		(3,822)		295,650		(70,205)		372,102		(74,027)
Total fixed maturities	$	3,886,032	$	(183,665)	$	8,001,246	$	(1,741,324)	$	11,887,278	$	(1,924,989)

GL Q1 2025 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 March 31,
		2025		2024
Allowance for credit losses beginning balance		$	10,395	$	7,115
Additions to allowance for which credit losses were not previously recorded		—		—
Additions (reductions) to allowance for fixed maturities that previously had an allowance		(40)		(88)
Reduction of allowance for which the Company intends to sell or more likely than not will be required to sell or sold during the period		—		—
Allowance for credit losses ending balance		$	10,355	$	7,027

As of March 31, 2025 and December 31, 2024, the Company had one fixed maturity security in non-accrual status with an amortized cost of $5.5 million and an allowance of $3.3 million.

Mortgage Loans (commercial mortgage loans)**: Summaries of commercial mortgage loans by property type and geographical location at March 31, 2025 and December 31, 2024 are as follows:


	March 31, 2025			December 31, 2024
	Carrying Value		% of Total	Carrying Value		% of Total
Property type:
Industrial	$	128,598	30	$	110,456	28
Multi-family	111,566		26	111,234		28
Hospitality	87,700		21	73,931		19
Retail	66,021		16	65,612		16
Mixed use	35,959		8	35,960		9
Office	3,061		1	6,539		2

Total recorded investment	432,905		102	403,732		102
Less allowance for credit losses	(6,731)		(2)	(7,644)		(2)
Carrying value, net of allowance for credit losses	$	426,174	100	$	396,088	100


	March 31, 2025			December 31, 2024
	Carrying Value		% of Total	Carrying Value		% of Total
Geographic location:
Florida	$	80,308	19	$	63,308	16
Texas	72,214		17	75,131		19
New Jersey	55,912		13	51,744		13
California	48,380		11	48,371		12
Alabama	35,884		9	35,850		9
New York	31,883		8	34,975		9
Other	108,324		25	94,353		24
Total recorded investment	432,905		102	403,732		102
Less allowance for credit losses	(6,731)		(2)	(7,644)		(2)
Carrying value, net of allowance for credit losses	$	426,174	100	$	396,088	100

GL Q1 2025 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 ratios that exceed 80% are generally a result of decreases in the valuation of the underlying property. Generally, a higher LTV ratio and a lower debt service coverage ratio equates to higher risk of loss.


	March 31, 2025
	Recorded Investment
	Debt Service Coverage Ratios(1)
	<1.00x		1.00x—1.20x		>1.20x		Total		% of Gross Total
Loan-to-value ratio(2):
Less than 70%	$	66,631	$	46,976	$	268,913	$	382,520	88
70% to 80%	—		—		—		—		—
81% to 90%	—		—		—		—		—
Greater than 90%	12,657		37,728		—		50,385		12
Total	$	79,288	$	84,704	$	268,913	432,905		100
Less allowance for credit losses							(6,731)
Total, net of allowance for credit losses							$	426,174

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

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


	December 31, 2024
	Recorded Investment
	Debt Service Coverage Ratios(1)
	<1.00x		1.00x—1.20x		>1.20x		Total		% of Gross Total
Loan-to-value ratio(2):
Less than 70%	$	88,507	$	64,494	$	196,867	$	349,868	87
70% to 80%	—		—		—		—		—
81% to 90%	—		—		—		—		—
Greater than 90%	16,136		37,728		—		53,864		13
Total	$	104,643	$	102,222	$	196,867	403,732		100
Less allowance for credit losses							(7,644)
Total, net of allowance for credit losses							$	396,088

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

As of March 31, 2025, the Company had 36 loans in the portfolio. During the quarter, the Company evaluated the commercial mortgage loan portfolio on both an individual and pooling basis to determine the allowance for credit losses and determined five loans were collateral dependent or likely to foreclose. The allowance for credit losses on the five loans was determined using the practical expedient which was based on an estimate of fair value of the underlying collateral plus costs to sell the asset. The total principal balance of the five loans was $50.4 million and the allowance for these loans using the practical expedient was $3.2 million as of March 31, 2025. During the quarter, one loan with an outstanding principal value of $3.5 million was removed from the evaluation as a result of foreclosure. Additionally, there were three commercial mortgage loans in the process of foreclosure, with an outstanding par value of $42.2 million and outstanding interest due of $1.9 million as of March 31, 2025. For the three months ended March 31, 2025, the allowance for credit losses decreased by $913 thousand to $6.7 million. The provision for credit losses is included in "Realized gains (losses)" in the Condensed Consolidated Statements of Operations.

GL Q1 2025 FORM 10-Q

Globe Life Inc.

Notes to Condensed Consolidated Financial Statements

(Dollar amounts in thousands, except per share data)


	Three Months Ended March 31,
		2025		2024
Allowance for credit losses beginning balance		$	7,644	$	3,672

Provision (reversal) for credit losses		(248)		874
Reduction in allowance due to dispositions		(665)		—
Allowance for credit losses ending balance		$	6,731	$	4,546

As of March 31, 2025, the Company had four commercial mortgage loans in non-accrual status with a principal balance of $49 million. As of December 31, 2024, the Company had five commercial mortgage loans in non-accrual status with a principal balance of $53 million. The Company's unfunded commitment balance to commercial loan borrowers was $21 million as of March 31, 2025.

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


	March 31,
	March 31, 2025		December 31, 2024
Investment funds	$	989,027	$	986,766
Company-owned life insurance(1)	205,331		202,734
Other	42,266		46,259
Total	$	1,236,624	$	1,235,759

(1) Company-owned life insurance (COLI) is reported at cash surrender value.

The following table presents additional information about the Company's investment funds as of March 31, 2025 and December 31, 2024 at fair value:


	Fair Value				Unfunded Commitments(2)
Investment Category	March 31, 2025		December 31, 2024		March 31, 2025		Redemption Term/Notice(1)





Commercial mortgage loans	$	560,271	$	566,142	$	192,336	Fully redeemable and non-redeemable with varying terms.
Opportunistic and private credit	212,692		202,008		179,305		Fully redeemable and non-redeemable with varying terms.


Infrastructure	179,980		179,627		25,000		Fully redeemable and non-redeemable with varying terms.


Other	36,084		38,989		59,098		Non-redeemable with varying terms
Total investment funds	$	989,027	$	986,766	$	455,739

(1) Non-redeemable funds generally have an expected life of 7 to 12 years from fund closing with extension options of 1 to 4 years. Redemptions are paid out throughout the life of the funds at the General Partner's discretion. Redeemable funds can generally be redeemed over 6 to 36 months upon request from limited partners.

(2) Unfunded commitments include unfunded balances during the investment period. After an investment period ends, the fund can call capital based on limited and specified reasons. As of March 31, 2025, unfunded commitments totaled $595 million, including funds past the investment period.

The Company had $19 million of capital called during the period from existing investment funds. The Company's unfunded commitments were $456 million as of March 31, 2025.

Note 5—Commitments and Contingencies

GL Q1 2025 FORM 10-Q

Globe Life Inc.

Notes to Condensed Consolidated Financial Statements

(Dollar amounts in thousands, except per share data)

Guarantees: At March 31, 2025, Globe Life had no guarantee agreements which were either Parent Company guarantees of subsidiary obligations to a third party or Parent Company guarantees of obligations between wholly-owned subsidiaries. As of March 31, 2025, Globe Life had no liability with respect to these guarantees.

Letters of credit — The Parent Company has guaranteed letters of credit with a group of banks in connection with its credit facility. The letters of credit were issued by TMK Re, Ltd., a wholly-owned subsidiary, to secure TMK Re, Ltd.’s obligation for claims on certain policies reinsured by TMK Re, Ltd. that were sold by other Globe Life insurance subsidiaries. These letters of credit facilitate TMK Re, Ltd.’s ability to reinsure the business of Globe Life's insurance carriers. The credit facility was amended on March 29, 2024 and now expires in 2029. The maximum amount of letters of credit available is $250 million. The Parent Company would be liable to the extent that TMK Re, Ltd. does not pay the reinsured party. The amount of letters of credit outstanding at March 31, 2025 was $115 million.

Litigation: Globe Life Inc. and its subsidiaries, in common with the insurance industry in general, are subject to litigation, including: putative class action litigation; alleged breaches of contract; torts, including bad faith and fraud claims based on alleged wrongful or fraudulent acts of agents of the Parent Company's insurance subsidiaries; alleged employment discrimination; alleged worker misclassification; and miscellaneous other causes of action. Based upon information presently available, and in light of legal and other factual defenses available to the Parent Company and its subsidiaries, management does not believe that it is reasonably possible that such litigation will have a material adverse effect on Globe Life Inc.'s financial condition, future operating results or liquidity; however, assessing the eventual outcome of litigation necessarily involves forward-looking speculation as to judgments to be made by judges, juries and appellate courts in the future. This bespeaks caution, particularly in states with reputations for high punitive damage verdicts.

On 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 November 21, 2024, the Court’s order compelling arbitration was affirmed.

On September 1, 2023, plaintiff Miné Caglar Cost (“Plaintiff”) filed a complaint against American Income Life Insurance Company 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 Life Insurance Company's alleged misclassification of Plaintiff and other California-based sales agents as independent contractors. American Income Life Insurance Company filed a motion to compel arbitration on an individual basis and stay the representative component of Plaintiff’s 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, to commence on October 27, 2025.

On November 30, 2023, Globe Life Inc. and its subsidiary, American Income Life Insurance Company, received subpoenas from the U.S. Attorney’s Office for the Western District of Pennsylvania, seeking documents relating to sales practices by certain independent sales agents contracted to sell American Income Life Insurance Company policies. Globe Life Inc. and American Income Life Insurance Company 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

GL Q1 2025 FORM 10-Q

Globe Life Inc.

Notes to Condensed Consolidated Financial Statements

(Dollar amounts in thousands, except per share data)

against Globe Life Inc. and American Income Life Insurance Company, 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 filed a motion to dismiss the litigation on December 3, 2024. Globe Life Inc. plans to vigorously defend against the lawsuit. Pursuant to Globe Life Inc.'s Restated Certificate of Incorporation and indemnification agreements with the named defendants, Globe Life Inc. has agreed to indemnify those defendants for all expenses and losses related to the litigation, subject to the terms of those indemnification agreements. The outcome of litigation of this type is inherently uncertain, and there is always the possibility that a Court rules in a manner that is adverse to the interests of Globe Life Inc. and the individual defendants. However, the amount of any such loss in that outcome cannot be reasonably estimated at this time. Further, management cannot reasonably estimate whether an outcome on the putative class action will be resolved in the near term.

Also pending in the Eastern District of Texas is a consolidated shareholder derivative suit that is closely related to the putative securities class action disclosed above (the “City of Miami Matter”). On November 7, 2024, Globe Life Inc. shareholder Jui Cheng Hsiao filed a shareholder derivative complaint against Globe Life Inc. as a nominal defendant, as well as certain current and former Globe Life Inc. executives and members of its Board of Directors. On November 14, 2024, Globe Life Inc. shareholder Gautam Jadhav filed a shareholder derivative complaint against the same set of defendants. Each shareholder derivative complaint asserts one claim for breach of fiduciary duty against the individual defendants and alleges that the individual defendants breached their fiduciary duties to Globe Life Inc. by causing or permitting Globe Life Inc. to make misleading statements about its performance and financial results. The allegations are substantially similar to the allegations made in the City of Miami Matter and derive from the Fuzzy Panda short seller report. On November 25, 2024, the two shareholder plaintiffs moved to consolidate the two actions into one action and the Court granted the motion on January 3, 2025 (In re Globe Life Inc. Stockholder Derivative Litigation, Lead Case No. 4:24-cv-00993-ALM (E.D. Tex.)). The case is before the same Court as the City of Miami Matter. On January 16, 2025, the parties filed a joint motion to stay such proceedings pending the Court’s resolution of the motion to dismiss filed by Globe Life Inc. in the City of Miami Matter. The Court granted such joint motion to stay the proceedings on January 25, 2025.

On September 26, 2024, Globe Life Inc. and its subsidiary, American Income Life Insurance Company, were notified by the Equal Employment Opportunity Commission (EEOC) that the EEOC conducted an investigation of charges filed against Globe Life Inc. and/or American Income Life Insurance Company by five former sales agents and one then-current sales agent. The EEOC asserts that there is reasonable cause to believe the six complainants were employees, not independent contractors, of Globe Life Inc. and/or American Income Life Insurance Company and were discriminated against on the basis of sex, and that one complainant was also discriminated against on the basis of race. In addition, the EEOC asserts that there is reasonable cause to believe that a class of female workers were employees, not independent contractors, and were subject to unlawful conduct which also constitutes a

GL Q1 2025 FORM 10-Q

Globe Life Inc.

Notes to Condensed Consolidated Financial Statements

(Dollar amounts in thousands, except per share data)

pattern-or-practice of discrimination. The EEOC’s investigative findings are not binding on Globe Life Inc. The EEOC’s procedures provide for a conciliation process that has concluded without achieving a resolution. The EEOC may elect to file a lawsuit in federal court on behalf of the workers based on the alleged statutory violations. The EEOC has not filed any legal proceedings at this time. In the event the EEOC elects to pursue any claims in court, Globe Life Inc. intends to defend against any such lawsuit vigorously. The outcome of litigation of this type would be inherently uncertain and cannot be reasonably estimated or determined at this time. There is always the possibility that a Court rules in a manner that is adverse to the interests of Globe Life Inc.

GL Q1 2025 FORM 10-Q

Globe Life Inc.

Notes to Condensed Consolidated Financial Statements

(Dollar amounts in thousands, except per share data)

Note 6—Policy Liabilities

The liability for future policy benefits is determined based on the net level premium method, which requires the liability be calculated as the present value of estimated future policyholder benefits and the related termination expenses, less the present value of estimated future net premiums to be collected from policyholders.

The following tables summarize balances and changes in the net liability for future policy benefits, before reinsurance, for traditional life long-duration contracts for the three month periods ended March 31, 2025 and 2024:


	Life
	Present value of expected future net premiums
	American Income		DTC		Liberty National		Other		Total
Balance at January 1, 2024	$	4,681,888	$	6,052,651	$	1,129,716	$	478,052	$	12,342,307
Beginning balance at original discount rates	4,523,329		5,664,259		1,077,831		443,949		11,709,368
Effect of changes in assumptions on future cash flows	—		—		—		—		—
Effect of actual variances from expected experience	(48,248)		(36,229)		(10,448)		(1,851)		(96,776)
Adjusted balance at January 1, 2024	4,475,081		5,628,030		1,067,383		442,098		11,612,592
Issuances(1)	211,847		149,231		26,164		5,931		393,173
Interest accrual(2)	53,823		73,420		13,839		5,764		146,846
Net premiums collected(3)	(135,686)		(152,631)		(33,901)		(11,401)		(333,619)

Effect of changes in the foreign exchange rate	(8,927)		—		—		—		(8,927)
Ending balance at original discount rates	4,596,138		5,698,050		1,073,485		442,392		11,810,065

Effect of change from original to current discount rates	56,533		247,209		28,724		21,777		354,243
Balance at March 31, 2024	$	4,652,671	$	5,945,259	$	1,102,209	$	464,169	$	12,164,308

Balance at January 1, 2025	$	4,645,917	$	5,622,906	$	1,048,447	$	440,047	$	11,757,317
Beginning balance at original discount rates	4,656,710		5,504,912		1,047,020		430,276		11,638,918
Effect of changes in assumptions on future cash flows	—		—		—		—		—
Effect of actual variances from expected experience	(51,617)		(38,917)		(7,916)		(3,689)		(102,139)
Adjusted balance at January 1, 2025	4,605,093		5,465,995		1,039,104		426,587		11,536,779
Issuances(1)	195,634		121,780		25,780		5,210		348,404
Interest accrual(2)	56,466		72,207		13,521		5,625		147,819
Net premiums collected(3)	(139,565)		(147,711)		(33,262)		(10,986)		(331,524)

Effect of changes in the foreign exchange rate	2,105		—		—		—		2,105
Ending balance at original discount rates	4,719,733		5,512,271		1,045,143		426,436		11,703,583

Effect of change from original to current discount rates	37,311		173,844		13,553		13,834		238,542
Balance at March 31, 2025	$	4,757,044	$	5,686,115	$	1,058,696	$	440,270	$	11,942,125

(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 Q1 2025 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, 2024		$	10,163,627		$	9,714,516		$	3,605,392		$	4,239,623		$	27,723,158
Beginning balance at original discount rates		9,061,833			8,656,752			3,338,252			3,506,859			24,563,696
Effect of changes in assumptions on future cash flows		—			—			—			—			—
Effect of actual variances from expected experience		(52,221)			(36,444)			(10,449)			(2,867)			(101,981)
Adjusted balance at January 1, 2024		9,009,612			8,620,308			3,327,803			3,503,992			24,461,715
Issuances(1)		211,847			149,231			26,164			5,931			393,173
Interest accrual(2)		120,201			117,925			44,554			52,136			334,816
Benefit payments(3)		(104,758)			(159,061)			(58,109)			(34,177)			(356,105)

Effect of changes in the foreign exchange rate		(20,637)			—			—			—			(20,637)
Ending balance at original discount rates		9,216,265			8,728,403			3,340,412			3,527,882			24,812,962
Effect of change from original to current discount rates		741,828			771,812			159,330			576,010			2,248,980
Balance at March 31, 2024		$	9,958,093		$	9,500,215		$	3,499,742		$	4,103,892		$	27,061,942





Balance at January 1, 2025	$	9,870,692	$	9,125,112	$	3,377,517	$	3,960,963	$	26,334,284
Beginning balance at original discount rates	9,508,588		8,660,948		3,340,219		3,582,068		25,091,823
Effect of changes in assumptions on future cash flows	—		—		—		—		—
Effect of actual variances from expected experience	(55,814)		(41,948)		(8,711)		(5,447)		(111,920)
Adjusted balance at January 1, 2025	9,452,774		8,619,000		3,331,508		3,576,621		24,979,903
Issuances(1)	195,633		121,779		25,780		5,211		348,403
Interest accrual(2)	127,459		119,194		44,736		53,386		344,775
Benefit payments(3)	(109,126)		(150,039)		(54,594)		(34,896)		(348,655)

Effect of changes in the foreign exchange rate	4,347		—		—		—		4,347
Ending balance at original discount rates	9,671,087		8,709,934		3,347,430		3,600,322		25,328,773
Effect of change from original to current discount rates	441,809		543,806		68,427		409,657		1,463,699
Balance at March 31, 2025	$	10,112,896	$	9,253,740	$	3,415,857	$	4,009,979	$	26,792,472

(1)Issuances represent the present value, using the original discount rate, of the expected future policy benefits related to new policies issued during each respective period.

(2)The interest accrual is the interest earned on the beginning present value of the expected future policy benefits, as well as the interest on actual benefits and expenses paid during the period, using the original interest rate.

(3)Benefit payments represent the release of the present value, using the original discount rate, of the actual future policy benefits incurred during the period due to death, surrender, and maturity benefit payments based on the expected assumptions.

GL Q1 2025 FORM 10-Q

Globe Life Inc.

Notes to Condensed Consolidated Financial Statements

(Dollar amounts in thousands, except per share data)


	Life
	Net liability for future policy benefits as of March 31, 2024
	American Income		DTC		Liberty National		Other		Total
Net liability for future policy benefits at original discount rates	$	4,620,127	$	3,030,353	$	2,266,927	$	3,085,490	$	13,002,897
Effect of changes in discount rate assumptions	685,295		524,603		130,606		554,233		1,894,737
Other adjustments(1)	287		3,549		5,418		85		9,339
Net liability for future policy benefits, after other adjustments, at current discount rates	5,305,709		3,558,505		2,402,951		3,639,808		14,906,973
Reinsurance recoverable	(170)		—		(7,787)		(36,564)		(44,521)
Net liability for future policy benefits, after reinsurance recoverable, at current discount rates	$	5,305,539	$	3,558,505	$	2,395,164	$	3,603,244	$	14,862,452

(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).


	Life
	Net liability for future policy benefits as of March 31, 2025
	American Income		DTC		Liberty National		Other		Total
Net liability for future policy benefits at original discount rates	$	4,951,354	$	3,197,663	$	2,302,287	$	3,173,886	$	13,625,190
Effect of changes in discount rate assumptions	404,498		369,962		54,874		395,823		1,225,157
Other adjustments(1)	224		208		—		75		507
Net liability for future policy benefits, after other adjustments, at current discount rates	5,356,076		3,567,833		2,357,161		3,569,784		14,850,854
Reinsurance recoverable	(186)		—		(7,922)		(14)		(8,122)
Net liability for future policy benefits, after reinsurance recoverable, at current discount rates	$	5,355,890	$	3,567,833	$	2,349,239	$	3,569,770	$	14,842,732

(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 Q1 2025 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 month periods ended March 31, 2025 and 2024:


	Health
	Present value of expected future net premiums
	United American		Family Heritage		Liberty National		American Income		DTC		Total
Balance at January 1, 2024	$	3,697,771	$	1,711,741	$	358,472	$	206,381	$	115,363	$	6,089,728
Beginning balance at original discount rates	3,625,803		1,783,173		348,570		201,869		109,880		6,069,295
Effect of changes in assumptions on future cash flows	—		—		—		—		—		—
Effect of actual variances from expected experience	(40,531)		(17,092)		(11,410)		(3,550)		(2,316)		(74,899)
Adjusted balance at January 1, 2024	3,585,272		1,766,081		337,160		198,319		107,564		5,994,396
Issuances(1)	104,603		64,008		13,558		9,949		4,609		196,727
Interest accrual(2)	41,822		18,103		4,227		2,283		1,368		67,803
Net premiums collected(3)	(70,249)		(46,400)		(12,780)		(5,839)		(2,678)		(137,946)

Effect of changes in the foreign exchange rate	—		—		—		(862)		—		(862)
Ending balance at original discount rates	3,661,448		1,801,792		342,165		203,850		110,863		6,120,118

Effect of change from original to current discount rates	(8,053)		(107,766)		3,276		(55)		3,016		(109,582)
Balance at March 31, 2024	$	3,653,395	$	1,694,026	$	345,441	$	203,795	$	113,879	$	6,010,536

Balance at January 1, 2025	$	3,885,530	$	1,734,875	$	337,119	$	223,247	$	133,377	$	6,314,148
Beginning balance at original discount rates	3,948,856		1,867,873		338,275		225,141		131,919		6,512,064
Effect of changes in assumptions on future cash flows	—		—		—		—		—		—
Effect of actual variances from expected experience	(28,215)		(13,901)		(10,720)		(4,881)		(1,415)		(59,132)
Adjusted balance at January 1, 2025	3,920,641		1,853,972		327,555		220,260		130,504		6,452,932
Issuances(1)	117,625		64,760		12,657		10,441		6,662		212,145
Interest accrual(2)	46,870		19,640		4,090		2,643		1,681		74,924
Net premiums collected(3)	(79,516)		(49,418)		(13,120)		(6,714)		(3,435)		(152,203)

Effect of changes in the foreign exchange rate	—		—		—		222		—		222
Ending balance at original discount rates	4,005,620		1,888,954		331,182		226,852		135,412		6,588,020

Effect of change from original to current discount rates	(11,927)		(111,603)		1,749		421		2,971		(118,389)
Balance at March 31, 2025	$	3,993,693	$	1,777,351	$	332,931	$	227,273	$	138,383	$	6,469,631

(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 Q1 2025 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, 2024		$	3,814,328		$	3,315,880		$	865,808		$	335,504		$	109,482		$	8,441,002
Beginning balance at original discount rates		3,741,530			3,506,689			816,819			315,431			104,501			8,484,970
Effect of changes in assumptions on future cash flows		—			—			—			—			—			—
Effect of actual variances from expected experience		(40,325)			(19,049)			(12,821)			(4,002)			(2,321)			(78,518)
Adjusted balance at January 1, 2024		3,701,205			3,487,640			803,998			311,429			102,180			8,406,452
Issuances(1)		104,431			64,008			13,349			9,949			4,598			196,335
Interest accrual(2)		43,444			35,663			10,833			3,937			1,368			95,245
Benefit payments(3)		(82,085)			(33,037)			(23,864)			(6,402)			(3,096)			(148,484)

Effect of changes in the foreign exchange rate		—			—			—			(1,548)			—			(1,548)
Ending balance at original discount rates		3,766,995			3,554,274			804,316			317,365			105,050			8,548,000
Effect of change from original to current discount rates		(10,461)			(282,670)			29,690			11,418			2,725			(249,298)
Balance at March 31, 2024		$	3,756,534		$	3,271,604		$	834,006		$	328,783		$	107,775		$	8,298,702





Balance at January 1, 2025	$	3,960,432	$	3,336,546	$	804,695	$	355,303	$	129,277	$	8,586,253
Beginning balance at original discount rates	4,026,860		3,712,044		791,141		348,711		127,975		9,006,731
Effect of changes in assumptions on future cash flows	—		—		—		—		—		—
Effect of actual variances from expected experience	(25,054)		(15,756)		(11,005)		(6,195)		(1,191)		(59,201)
Adjusted balance at January 1, 2025	4,001,806		3,696,288		780,136		342,516		126,784		8,947,530
Issuances(1)	117,400		64,760		12,478		10,441		6,630		211,709
Interest accrual(2)	47,983		38,756		10,470		4,456		1,681		103,346
Benefit payments(3)	(100,534)		(38,334)		(24,422)		(5,320)		(4,273)		(172,883)

Effect of changes in the foreign exchange rate	—		—		—		352		—		352
Ending balance at original discount rates	4,066,655		3,761,470		778,662		352,445		130,822		9,090,054
Effect of change from original to current discount rates	(15,333)		(330,868)		20,778		10,095		2,741		(312,587)
Balance at March 31, 2025	$	4,051,322	$	3,430,602	$	799,440	$	362,540	$	133,563	$	8,777,467

(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 expected assumptions.

GL Q1 2025 FORM 10-Q

Globe Life Inc.

Notes to Condensed Consolidated Financial Statements

(Dollar amounts in thousands, except per share data)


	Health
	Net liability for future policy benefits as of March 31, 2024
	United American		Family Heritage		Liberty National		American Income		Direct to Consumer		Total
Net liability for future policy benefits at original discount rates	$	105,547	$	1,752,482	$	462,151	$	113,515	$	(5,813)	$	2,427,882
Effect of changes in discount rate assumptions	(2,408)		(174,904)		26,414		11,473		(291)		(139,716)
Other adjustments(1)	14,449		444		11,254		749		6,838		33,734
Net liability for future policy benefits, after other adjustments, at current discount rates	117,588		1,578,022		499,819		125,737		734		2,321,900
Reinsurance recoverable	(3,096)		(10,577)		(1,224)		—		—		(14,897)
Net liability for future policy benefits, after reinsurance recoverable, at current discount rates	$	114,492	$	1,567,445	$	498,595	$	125,737	$	734	$	2,307,003

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


	Health
	Net liability for future policy benefits as of March 31, 2025
	United American		Family Heritage		Liberty National		American Income		Direct to Consumer		Total
Net liability for future policy benefits at original discount rates	61,035		1,872,516		447,480		125,593		(4,590)		2,502,034
Effect of changes in discount rate assumptions	(3,406)		(219,265)		19,029		9,674		(230)		(194,198)
Other adjustments(1)	34,570		1,315		11,363		699		5,575		53,522
Net liability for future policy benefits, after other adjustments, at current discount rates	92,199		1,654,566		477,872		135,966		755		2,361,358
Reinsurance recoverable	(2,511)		—		(988)		—		—		(3,499)
Net liability for future policy benefits, after reinsurance recoverable, at current discount rates	$	89,688	$	1,654,566	$	476,884	$	135,966	$	755	$	2,357,859

(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).

GL Q1 2025 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 three months ended March 31, 2025 and 2024:


	Three Months Ended March 31,
		2025		2024
Life Remeasurement Gain (Loss)—Experience:
American Income		$	4,179	$	3,972
Direct to Consumer		2,980		166
Liberty National		182		112
Other		1,184		606
Total Life Remeasurement Gain (Loss)—Experience		8,525		4,856

Life Remeasurement Gain (Loss)—Assumption Updates(1):
American Income		—		—
Direct to Consumer		—		—
Liberty National		—		—
Other		—		—
Total Life Remeasurement Gain (Loss)—Assumption Updates		—		—

Total Life Remeasurement Gain (Loss)		8,525		4,856

Health Remeasurement Gain (Loss)—Experience:
United American		(3,820)		(336)
Family Heritage		1,836		1,883
Liberty National		1,183		1,211
American Income		1,249		430
Direct to Consumer		(4)		20
Total Health Remeasurement Gain (Loss)—Experience		444		3,208

Health Remeasurement Gain (Loss)—Assumption Updates(1):
United American		—		—
Family Heritage		—		—
Liberty National		—		—
American Income		—		—
Direct to Consumer		—		—
Health Remeasurement Gain (Loss)—Assumption Updates		—		—

Total Health Remeasurement Gain (Loss)		$	444	$	3,208

(1)Changes to the judgments, assumptions, and methods used in measuring the liability for future policy benefits occur annually. There were no changes to the judgments, assumptions, and methods used in measuring the liability for future policy benefits during the three months ended March 31, 2025 and 2024.

GL Q1 2025 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 March 31, 2025 and 2024:



	At Original Discount Rates				At Current Discount Rates
	As of March 31,				As of March 31,
	2025		2024		2025		2024
Life(1):
American Income	$	4,951,442	$	4,620,358	$	5,356,076	$	5,305,709
Direct to Consumer	3,197,663		3,030,353		3,567,833		3,558,505
Liberty National	2,302,287		2,265,329		2,357,161		2,402,951
Other	3,173,917		3,085,512		3,569,784		3,639,808
Net liability for future policy benefits—long duration life	13,625,309		13,001,552		14,850,854		14,906,973

Health(1):
United American	92,197		117,042		92,199		117,588
Family Heritage	1,872,606		1,752,138		1,654,566		1,578,022
Liberty National	458,182		472,140		477,872		499,819
American Income	126,186		114,146		135,966		125,737
Direct to Consumer	722		707		755		734
Net liability for future policy benefits—long duration health	2,549,893		2,456,173		2,361,358		2,321,900

Deferred profit liability	179,229		174,605		179,229		174,605
Deferred annuity	636,219		739,019		636,219		739,019
Interest sensitive life	720,269		729,721		720,269		729,721
Other	8,922		9,810		8,915		9,805
Total future policy benefits	$	17,719,841	$	17,110,880	$	18,756,844	$	18,882,023

(1)Balances are presented net of the effects of capping and flooring the liability (guidance requires an amount not less than zero at the calculation level of the liability for future policy benefits).

GL Q1 2025 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 March 31, 2025 and 2024:


	As of March 31,
	2025				2024
	Original discount rate		Current discount rate		Original discount rate		Current discount rate
Life
American Income	5.7	%	5.4	%	5.7	%	5.2	%
Direct to Consumer	5.9	%	5.4	%	6.0	%	5.2	%
Liberty National	5.6	%	5.4	%	5.6	%	5.2	%
Other	6.2	%	5.5	%	6.2	%	5.2	%

Health
United American	5.1	%	5.1	%	5.1	%	5.0	%
Family Heritage	4.2	%	5.2	%	4.2	%	5.1	%
Liberty National	5.8	%	5.3	%	5.8	%	5.2	%
American Income	5.8	%	5.1	%	5.8	%	5.0	%
Direct to Consumer	5.1	%	5.1	%	5.1	%	5.0	%

The following table provides the weighted-average durations of the liability for future policy benefits and the additional insurance liabilities as of March 31, 2025 and 2024:


		As of March 31,
	2025			2024
		At original discount rates	At current discount rates		At original discount rates	At current discount rates
Life
American Income		22.67	22.59		23.05	23.33
Direct to Consumer		19.17	20.11		19.57	21.01
Liberty National		15.32	15.27		15.16	15.60
Other		15.90	16.74		16.18	17.59

Health
United American		11.70	10.60		11.53	10.74
Family Heritage		15.31	14.16		15.07	14.34
Liberty National		9.37	9.24		9.23	9.39
American Income		12.47	12.50		12.28	12.67
Direct to Consumer		11.70	10.60		11.53	10.74

GL Q1 2025 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 months ended March 31, 2025 and 2024:


	Life
	Three Months Ended March 31, 2025				Three Months Ended March 31, 2024
	Gross Premiums		Interest Expense		Gross Premiums		Interest Expense
American Income	$	437,449	$	70,993	$	413,759	$	66,379
Direct to Consumer	242,870		46,967		245,194		44,460
Liberty National	95,300		31,049		89,871		30,542
Other	49,914		47,285		51,069		45,917
Total	$	825,533	$	196,294	$	799,893	$	187,298


	Health
	Three Months Ended March 31, 2025				Three Months Ended March 31, 2024
	Gross Premiums		Interest Expense		Gross Premiums		Interest Expense
United American	$	116,396	$	1,049	$	104,097	$	1,567
Family Heritage	112,354		19,116		103,391		17,431
Liberty National	47,753		6,355		47,434		6,583
American Income	29,754		1,812		28,919		1,655
Direct to Consumer	4,136		—		3,657		—
Total	$	310,393	$	28,332	$	287,498	$	27,236

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 Q1 2025 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 for the three months ended March 31, 2025 and 2024:


	Life
	As of March 31, 2025						As of March 31, 2024
	Not discounted		At original discount rates		At current discount rates		Not discounted		At original discount rates		At current discount rates
American Income
PV of expected future gross premiums	$	25,905,546	$	14,643,965	$	14,852,317	$	24,668,992	$	13,924,819	$	14,181,177
PV of expected future net premiums	8,346,487		4,719,733		4,757,044		8,131,005		4,596,138		4,652,671
PV of expected future policy benefits	32,329,867		9,671,087		10,112,896		31,114,756		9,216,265		9,958,093

DTC
PV of expected future gross premiums	$	17,440,657	$	9,119,222	$	9,393,586	$	17,617,001	$	9,214,360	$	9,597,417
PV of expected future net premiums	10,487,810		5,512,271		5,686,115		10,831,408		5,698,050		5,945,259
PV of expected future policy benefits	25,953,052		8,709,934		9,253,740		25,909,464		8,728,403		9,500,215

Liberty National
PV of expected future gross premiums	$	4,865,443	$	2,833,738	$	2,827,949	$	4,667,397	$	2,725,502	$	2,739,275
PV of expected future net premiums	1,844,879		1,045,143		1,058,696		1,888,084		1,073,485		1,102,209
PV of expected future policy benefits	9,102,330		3,347,430		3,415,857		8,916,134		3,340,412		3,499,742

Other
PV of expected future gross premiums	$	3,595,733	$	1,830,596	$	1,946,761	$	3,701,248	$	1,879,815	$	2,027,187
PV of expected future net premiums	877,282		426,436		440,270		906,921		442,392		464,169
PV of expected future policy benefits	12,457,676		3,600,322		4,009,979		12,437,133		3,527,882		4,103,892

Total
PV of expected future gross premiums	$	51,807,379	$	28,427,521	$	29,020,613	$	50,654,638	$	27,744,496	$	28,545,056
PV of expected future net premiums	21,556,458		11,703,583		11,942,125		21,757,418		11,810,065		12,164,308
PV of expected future policy benefits	79,842,925		25,328,773		26,792,472		78,377,487		24,812,962		27,061,942

As of March 31, 2025, for the life segment using current discount rates, the Company anticipates $29.0 billion of expected future gross premiums and $11.9 billion of expected future net premiums. As of March 31, 2024, using current discount rates, the Company anticipated $28.5 billion of expected future gross premiums and $12.2 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 $17.1 billion and $16.3 billion for March 31, 2025 and 2024, respectively, is not.

GL Q1 2025 FORM 10-Q

Globe Life Inc.

Notes to Condensed Consolidated Financial Statements

(Dollar amounts in thousands, except per share data)


	Health
	As of March 31, 2025						As of March 31, 2024
	Not discounted		At original discount rates		At current discount rates		Not discounted		At original discount rates		At current discount rates
United American
PV of expected future gross premiums	$	9,431,321	$	5,798,787	$	5,779,686	$	8,757,778	$	5,349,917	$	5,334,881
PV of expected future net premiums	6,522,325		4,005,620		3,993,693		6,002,434		3,661,448		3,653,395
PV of expected future policy benefits	6,644,012		4,066,655		4,051,322		6,186,167		3,766,995		3,756,534

Family Heritage
PV of expected future gross premiums	$	7,377,322	$	4,282,970	$	4,048,299	$	6,854,106	$	4,037,762	$	3,816,256
PV of expected future net premiums	3,236,121		1,888,954		1,777,351		3,039,406		1,801,792		1,694,026
PV of expected future policy benefits	7,307,684		3,761,470		3,430,602		6,769,500		3,554,274		3,271,604

Liberty National
PV of expected future gross premiums	$	2,018,796	$	1,285,073	$	1,314,976	$	2,073,015	$	1,315,879	$	1,353,262
PV of expected future net premiums	491,199		331,182		332,931		509,069		342,165		345,441
PV of expected future policy benefits	1,358,567		778,662		799,440		1,395,561		804,316		834,006

American Income
PV of expected future gross premiums	$	1,782,370	$	998,794	$	1,029,082	$	1,768,477	$	991,946	$	1,024,262
PV of expected future net premiums	404,090		226,852		227,273		362,982		203,850		203,795
PV of expected future policy benefits	717,506		352,445		362,540		644,293		317,365		328,783

Direct to Consumer
PV of expected future gross premiums	$	251,621	$	159,881	$	163,737	$	238,499	$	150,065	$	154,223
PV of expected future net premiums	213,954		135,412		138,383		176,500		110,863		113,879
PV of expected future policy benefits	209,022		130,822		133,563		164,347		105,050		107,775

Total
PV of expected future gross premiums	$	20,861,430	$	12,525,505	$	12,335,780	$	19,691,875	$	11,845,569	$	11,682,884
PV of expected future net premiums	10,867,689		6,588,020		6,469,631		10,090,391		6,120,118		6,010,536
PV of expected future policy benefits	16,236,791		9,090,054		8,777,467		15,159,868		8,548,000		8,298,702

As of March 31, 2025, for the health segment using current discount rates, the Company anticipates $12.3 billion of expected future gross premiums and $6.5 billion of expected future net premiums. As of March 31, 2024, using current discount rates, the Company anticipated $11.7 billion of expected future gross premiums and $6.0 billion in expected future net premiums. 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 $5.8 billion and $5.7 billion for March 31, 2025 and 2024, respectively, is not.

GL Q1 2025 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 March 31, 2025 and 2024:


	Policyholders' Account Balances
	2025						2024
	Interest Sensitive Life		Deferred Annuity(1)		Other Policy-holders' Funds		Interest Sensitive Life		Deferred Annuity		Other Policy-holders' Funds
Balance at January 1,	$	723,389	$	656,573	$	468,604	$	732,948	$	773,039	$	236,958
Issuances	—		171		—		—		198		—
Premiums and deposits received	5,250		3,766		86,885		5,624		3,573		166,700
Policy charges	(2,986)		—		—		(3,111)		—		—
Surrenders and withdrawals	(5,966)		(16,531)		(93,128)		(6,309)		(31,563)		(3,517)
Benefit payments	(8,329)		(12,831)		—		(9,140)		(12,771)		—

Interest credited	6,875		5,373		5,443		7,016		6,243		3,521
Other	2,036		(302)		(4,656)		2,693		300		(2,393)
Balance at March 31,	$	720,269	$	636,219	$	463,148	$	729,721	$	739,019	$	401,269


Weighted-average credit rate	3.86		%	3.37		%	4.76		%	3.89		%	3.34		%	4.49		%
Net amount at risk	$	1,636,687		N/A			N/A			$	1,740,325		N/A			N/A
Cash surrender value	$	674,838		$	636,138		$	463,148		$	669,721		$	739,019		$	401,269

(1) At March 31, 2025, $439 million has been reinsured with third-party reinsurers under existing reinsurance agreements.

The following tables present the policyholders' account balances by range of guaranteed minimum crediting rates and the related range of difference, if any, in basis points between rates being credited to policyholders and the respective guaranteed minimums as of March 31, 2025 and 2024:


	At March 31, 2025
Range of guaranteed minimum crediting rates	Interest Sensitive Life		Deferred Annuity		Other Policyholders' Funds
At guaranteed minimum:
Less than 3.00%	$	—	$	1,866	$	368,459
3.00%-3.99%	29,408		455,618		3,145
4.00%-4.99%	601,367		178,735		55,767
Greater than 5.00%	89,494		—		35,777
Total	720,269		636,219		463,148






51-150 basis points above:
Less than 3.00%	—		—		—
3.00%-3.99%	—		—		—
4.00%-4.99%	—		—		—
Greater than 5.00%	—		—		—
Total	—		—		—






Grand Total	$	720,269	$	636,219	$	463,148

GL Q1 2025 FORM 10-Q

Globe Life Inc.

Notes to Condensed Consolidated Financial Statements

(Dollar amounts in thousands, except per share data)


	At March 31, 2024
Range of guaranteed minimum crediting rates	Interest Sensitive Life		Deferred Annuity		Other Policyholders' Funds
At guaranteed minimum:
Less than 3.00%	$	—	$	1,796	$	303,935
3.00%-3.99%	29,176		545,598		3,521
4.00%-4.99%	610,643		191,625		6,745
Greater than 5.00%	89,902		—		37,384
Total	729,721		739,019		351,585






51-150 basis points above:
Less than 3.00%	—		—		—
3.00%-3.99%	—		—		—
4.00%-4.99%	—		—		49,684
Greater than 5.00%	—		—		—
Total	—		—		49,684






Grand Total	$	729,721	$	739,019	$	401,269

GL Q1 2025 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 month periods ended March 31, 2025 and 2024:


	Life
	American Income		DTC		Liberty National		Other		Total





Balance at January 1, 2024	$	2,573,370	$	1,737,117	$	666,419	$	294,869	$	5,271,775
Capitalizations	127,443		42,125		26,065		3,013		198,646
Amortization expense	(42,976)		(25,058)		(13,599)		(4,135)		(85,768)
Foreign exchange adjustment	(5,828)		—		—		—		(5,828)

Balance at March 31, 2024	$	2,652,009	$	1,754,184	$	678,885	$	293,747	$	5,378,825






Balance at January 1, 2025	$	2,900,229	$	1,781,230	$	728,790	$	290,506	$	5,700,755
Capitalizations	133,870		37,148		29,591		2,807		203,416
Amortization expense	(49,374)		(25,588)		(14,993)		(678)		(90,633)
Foreign exchange adjustment	1,282		—		—		—		1,282

Balance at March 31, 2025	$	2,986,007	$	1,792,790	$	743,388	$	292,635	$	5,814,820


	Health
	United American		Family Heritage		Liberty National		American Income		DTC		Total





Balance at January 1, 2024	$	73,489	$	452,843	$	139,941	$	66,783	$	1,679	$	734,735
Capitalizations	496		16,690		7,979		3,530		1		28,696
Amortization expense	(1,381)		(7,187)		(3,607)		(1,099)		(37)		(13,311)
Foreign exchange adjustment	—		—		—		(276)		—		(276)

Balance at March 31, 2024	$	72,604	$	462,346	$	144,313	$	68,938	$	1,643	$	749,844
















Balance at January 1, 2025	$	70,530	$	496,119	$	148,920	$	76,319	$	1,533	$	793,421
Capitalizations	616		18,531		5,919		3,732		—		28,798
Amortization expense	(1,391)		(7,938)		(3,862)		(1,291)		(37)		(14,519)
Foreign exchange adjustment	—		—		—		73		—		73

Balance at March 31, 2025	$	69,755	$	506,712	$	150,977	$	78,833	$	1,496	$	807,773

GL Q1 2025 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 for the three months ended March 31, 2025 and 2024:


		March 31,
	2025			2024
Life
American Income		$	2,986,007		$	2,652,009
Direct to Consumer		1,792,790			1,754,184
Liberty National		743,388			678,885
Other		292,635			293,747
Total DAC—Life		5,814,820			5,378,825

Health
United American		69,755			72,604
Family Heritage		506,712			462,346
Liberty National		150,977			144,313
American Income		78,833			68,938
Direct to Consumer		1,496			1,643
Total DAC—Health		807,773			749,844

Annuity		1,051			2,568
Total		$	6,623,644		$	6,131,237

GL Q1 2025 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:


	March 31, 2025		December 31, 2024
Balance at beginning of period	$	210,994	$	194,809
Less reinsurance recoverables	(1,521)		(2,157)
Net balance at beginning of period	209,473		192,652
Incurred related to:
Current year	210,420		767,076
Prior years	5,943		(10,460)
Total incurred	216,363		756,616
Paid related to:
Current year	87,639		587,473
Prior years	117,573		152,322
Total paid	205,212		739,795
Net balance at end of period	220,624		209,473
Plus reinsurance recoverables	1,548		1,521
Balance at end of period	$	222,172	$	210,994

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


	March 31, 2025		December 31, 2024
Policy claims and other benefits payable:
Life insurance	$	324,498	$	321,838
Health insurance	222,172		210,994
Total	$	546,670	$	532,832

GL Q1 2025 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 March 31, 2025 and December 31, 2024.

Pension Assets by Component at March 31, 2025


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

Exchange traded fund(4)	$	36,019	$	—	$	—	$	36,019	6





Equity exchange traded fund(1)	304,226		—		—		304,226		50
U.S. Government and Agency	—		189,445		—		189,445		31
Other bonds	—		4		—		4		—
Guaranteed annuity contract(2)	—		44,029		—		44,029		7
Short-term investments	2,658		—		—		2,658		1
Other	2,317		—		—		2,317		—
	$	345,220	$	233,478	$	—	578,698		95
Other long-term investments(3)							28,746		5
Total pension assets							$	607,444	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 March 31, 2025, the Globe Life Inc. Pension Plan owned less than 1% of two long-term investment funds.

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

GL Q1 2025 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, 2024


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

Exchange traded fund(4)	$	35,483	$	—	$	—	$	35,483	6





Equity exchange traded fund(1)	322,846		—		—		322,846		53
U.S. Government and Agency	—		179,418		—		179,418		29
Other bonds	—		4		—		4		—
Guaranteed annuity contract(2)	—		43,893		—		43,893		7
Short-term investments	1,235		—		—		1,235		—
Other	1,420		—		—		1,420		—
	$	360,984	$	223,315	$	—	584,299		95
Other long-term investments(3)							30,546		5
Total pension assets							$	614,845	100

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

(3)Includes non-redeemable investment funds that report the Globe Life Inc. Pension Plan's pro-rata share of the limited partnership's net asset value (NAV) per share, or its equivalent, as a practical expedient for fair value. As of December 31, 2024, the Globe Life Inc. Pension Plan owned less than 1% of two long-term investment funds.

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

SERP: The following tables include premiums paid for COLI at March 31, 2025 and 2024 and investments of the Rabbi Trust at March 31, 2025 and December 31, 2024.


	Three Months Ended March 31,
	2025		2024
Premiums paid for insurance coverage	$	—	$	443

	March 31, 2025		December 31, 2024
Total investments:
COLI	$	57,632	$	57,210
Exchange traded funds	96,573		98,314
	$	154,205	$	155,524

Pension Plans and SERP Liabilities: The following table presents liabilities for the defined benefit pension plans and SERP at March 31, 2025 and December 31, 2024.


	March 31, 2025		December 31, 2024
Pension Plans	$	556,548	$	561,615
SERP	73,682		73,441
Benefit obligation	$	630,230	$	635,056

GL Q1 2025 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 month periods ended March 31, 2025 and 2024.

Components of Net Periodic Benefit Cost


	Three Months Ended March 31,
		2025		2024
Service cost—benefits earned during the period		$	6,242	$	6,221
Interest cost on projected benefit obligation		9,025		8,267
Expected return on assets		(11,563)		(10,646)
Amortization:
Prior service cost		292		269
Actuarial (gain) loss		—		6


Net periodic benefit cost		$	3,996	$	4,117

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 March 31,
		2025	2024
Basic weighted average shares outstanding		83,479,997	93,865,606
Weighted average dilutive options outstanding		1,000,116	1,248,909
Diluted weighted average shares outstanding		84,480,113	95,114,515

Antidilutive shares		635,610	186,359

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 Q1 2025 FORM 10-Q

Globe Life Inc.

Notes to Condensed Consolidated Financial Statements

(Dollar amounts in thousands, except per share data)

Note 11—Debt

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

Selected Information about Debt Issues


				As of
				March 31, 2025								December 31, 2024
Instrument	Issue Date	Maturity Date	Coupon Rate	Par Value		Unamortized Discount & Issuance Costs		Book Value		Fair Value		Book Value

Senior notes	09/27/2018	09/15/2028	4.550%	$	550,000	$	(2,814)	$	547,186	$	548,751	$	546,999
Senior notes	08/21/2020	08/15/2030	2.150%	400,000		(2,750)		397,250		346,216		397,132
Senior notes	05/19/2022	06/15/2032	4.800%	250,000		(3,623)		246,377		242,348		246,272
Senior notes	08/23/2024	09/15/2034	5.850%	450,000		(5,085)		444,915		459,194		444,814

Junior subordinated debentures	11/17/2017	11/17/2057	5.275%	125,000		(1,552)		123,448		97,340		123,443
Junior subordinated debentures	06/14/2021	06/15/2061	4.250%	325,000		(7,592)		317,408		208,130		317,387
Term loan(2)	05/11/2023	08/15/2027	5.798%	250,000		(1,639)		248,361		248,361		248,204


Total long-term debt				2,350,000		(25,055)		2,324,945		2,150,340		2,324,251



FHLB borrowings				70,000		—		70,000		70,000		—
Commercial paper				409,500		(2,609)		406,891		406,891		415,401
Total short-term debt				479,500		(2,609)		476,891		476,891		415,401

Total debt				$	2,829,500	$	(27,664)	$	2,801,836	$	2,627,231	$	2,739,652

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

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

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

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

The facility is further designated as a back-up credit line for a commercial paper program under which the Company may either borrow from the credit line or issue commercial paper at any time, with total commercial paper outstanding not to exceed the facility maximum of $1 billion, less any letters of credit issued. Interest is charged at variable rates. In accordance with the agreement, Globe Life is subject to certain covenants regarding capitalization.

As of March 31, 2025, the Company was in full compliance with these covenants.

GL Q1 2025 FORM 10-Q

Globe Life Inc.

Notes to Condensed Consolidated Financial Statements

(Dollar amounts in thousands, except per share data)

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

Credit Facility—Commercial Paper


	As of
	March 31, 2025			December 31, 2024			March 31, 2024
Balance of commercial paper at end of period (par value)	$	409,500		$	419,000		$	324,000
Annualized interest rate	5.13		%	5.22		%	5.63		%
Letters of credit outstanding	$	115,000		$	115,000		$	115,000
Remaining amount available under credit line	475,500			466,000			561,000

Credit Facility—Commercial Paper Activity


	Three Months Ended March 31,
	2025			2024
Average balance of commercial paper outstanding during period (par value)	$	478,950		$	346,088
Daily-weighted average interest rate (annualized)	5.08		%	5.68		%
Maximum daily amount outstanding during period (par value)	$	605,500		$	384,000
Commercial paper issued during period (par value)	586,000			404,000
Commercial paper matured during period (par value)	(595,500)			(399,000)
Net commercial paper issued (matured) during period (par value)	(9,500)			5,000

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 $31.6 million in FHLB common stock as of March 31, 2025 and $34.5 million as of December 31, 2024. 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 March 31, 2025, Globe Life's insurance subsidiaries' maximum borrowing capacity under the FHLB facility was approximately $684 million, net of outstanding funding agreements and short-term borrowings, on pledged assets with a fair value of $1.4 billion. As of March 31, 2025, $367 million in funding agreements were outstanding with the FHLB, compared to $372 million as of December 31, 2024. This amount is included in "Other policyholders' funds" in the Condensed Consolidated Balance Sheets. The Company had $70 million and $242 million in short-term borrowings from the FHLB as of March 31, 2025 and 2024, respectively.

GL Q1 2025 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 three operating segments: life, health, and investments.

Globe Life's reportable insurance segments are based on the insurance product lines it markets and administers: life insurance and supplemental health insurance. There is also an investment segment that manages the investment portfolio and cash flow for the insurance segments. The Company's chief operating decision makers ("CODM"), our Co-CEOs, evaluate the overall performance of the operations of the Company in accordance with these segments.

During the fourth quarter of 2024 we entered into a coinsurance agreement to cede a majority of the annuity business to a third-party insurer. This impacted a significant portion of our annuities which had previously been classified as one of our reportable segments. The annuity segment has historically represented less than 1% of revenue and has not been core to the Company's business. We adjusted our segments from four down to three at December 31, 2024. All quarterly presentations of segment information related to prior year have been recast for the periods presented to reflect this change in segments.

Life insurance products marketed by Globe Life include traditional whole life and term life insurance. Health insurance products are generally guaranteed renewable and include Medicare Supplement, cancer, critical illness, accident, and other limited-benefit supplemental hospital and surgical products.

The Company adopted ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, in 2024 which added disclosure requirements to segment expenses, improving the financial reporting of the entity’s overall performance and assessment of future cash flows. The disclosures required more detailed information related to the entity’s reportable segments and the new disclosures are also required prospectively on a quarterly basis. The prior year presentation has been recast to reflect the new disclosures in accordance with this adopted accounting standard.

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


	Premium Income by Distribution Channel

	Three Months Ended March 31, 2025
	Life			Health			Total
Distribution Channel	Amount		% of Total	Amount		% of Total		Amount		% of Total
American Income	$	437,866	53	$	30,691	8		$	468,557	39
Direct to Consumer	245,600		30	18,976		5		264,576		22
Liberty National	96,182		11	47,922		13		144,104		12
United American	1,592		—	159,848		43		161,440		13
Family Heritage	1,726		—	112,354		31		114,080		10
Other	46,897		6	—		—		46,897		4
	$	829,863	100	$	369,791	100		$	1,199,654	100

GL Q1 2025 FORM 10-Q

Globe Life Inc.

Notes to Condensed Consolidated Financial Statements

(Dollar amounts in thousands, except per share data)


	Three Months Ended March 31, 2024
	Life			Health			Total
Distribution Channel	Amount		% of Total	Amount		% of Total		Amount		% of Total
American Income	$	414,044	52	$	30,497	9		$	444,541	39
Direct to Consumer	248,040		31	17,866		5		265,906		23
Liberty National	90,777		11	47,630		14		138,407		12
United American	1,843		—	141,635		42		143,478		13
Family Heritage	1,616		—	103,391		30		105,007		9
Other	47,945		6	—		—		47,945		4
	$	804,265	100	$	341,019	100		$	1,145,284	100

GL Q1 2025 FORM 10-Q

Globe Life Inc.

Notes to Condensed Consolidated Financial Statements

(Dollar amounts in thousands, except per share data)

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


	Three Months Ended March 31, 2025
	Life		Health		Investment		Consolidated
Revenue:
Premium	$	829,863	$	369,791	$	—	$	1,199,654
Net investment income	—		—		280,614		280,614
Segment revenue	829,863		369,791		280,614		1,480,268
Realized gains (losses)							85
Other income							69
Total consolidated revenue							$	1,480,422

Expenses:
Policy obligations(1)	509,756		233,929		5,394		$	749,079
Required interest on reserves	(208,536)		(28,286)		239,350		2,528
Amortization of acquisition costs	90,633		14,519		—		105,152
Commissions	45,567		42,887		—		88,454
Premium taxes	18,011		7,493		—		25,504
Non-deferred acquisition costs	37,168		14,528		—		51,696

Segment profit or (loss)	$	337,264	$	84,721	$	35,870	457,855

Insurance administrative expenses:
Salaries							33,688
Other employee costs							10,301
Information technology costs							20,936
Legal costs							6,249
Other administrative costs							16,375
Parent expense							3,050
Stock-based compensation expense							12,019
Interest expense							34,992
Legal proceedings							6,128
Non-operating expenses							—
Annuity							(1,810)
Total expenses							1,164,341

Income before income taxes per Condensed Consolidated Statement of Operations							$	316,081

(1)Policy obligations are based upon policyholder behavior and impacts related to lapses, mortality, and morbidity. For detailed information, including remeasurement gains and losses, see Note 6—Policy Liabilities**.

GL Q1 2025 FORM 10-Q

Globe Life Inc.

Notes to Condensed Consolidated Financial Statements

(Dollar amounts in thousands, except per share data)


	Three Months Ended March 31, 2024
	Life		Health		Investment		Consolidated
Revenue:
Premium	$	804,265	$	341,019	$	—	$	1,145,284
Net investment income	—		—		282,578		282,578
Segment revenue	804,265		341,019		282,578		1,427,862
Realized gains (losses)							(11,799)
Other income							76
Total consolidated revenue							$	1,416,139

Expenses:
Policy obligations(1)	519,871		202,327		3,468		$	725,666
Required interest on reserves	(199,707)		(27,173)		235,325		8,445
Amortization of acquisition costs	85,768		13,311		—		99,079
Commissions	38,690		39,149		—		77,839
Premium taxes	17,086		6,816		—		23,902
Non-deferred acquisition costs	33,546		12,819		—		46,365

Segment profit or (loss)	$	309,011	$	93,770	$	43,785	446,566

Insurance administrative expenses:
Salaries							31,174
Other employee costs							10,013
Information technology costs							18,307
Legal costs							5,273
Other administrative costs							15,644
Parent expense							2,826
Stock-based compensation expense							9,267
Interest expense							28,621
Legal proceedings							—
Non-operating expenses							710
Annuity							(1,915)
Total expenses							1,101,216

Income before income taxes per Condensed Consolidated Statement of Operations							$	314,923

GL Q1 2025 FORM 10-Q

Globe Life Inc.

Notes to Condensed Consolidated Financial Statements

(Dollar amounts in thousands, except per share data)

Assets for each segment are reported based on a specific identification basis. The insurance segments’ assets contain DAC. The investment segment includes the investment portfolio, cash, and accrued investment income. Goodwill is assigned to the insurance segments at the time of purchase. All other assets are included in the annuity and other corporate category. The tables below reconcile segment assets to total assets as reported on the Condensed Consolidated Balance Sheets.

Assets by Segment


	March 31, 2025
	Life		Health		Investment		Consolidated
Cash and invested assets	$	—	$	—	$	20,242,276	$	20,242,276
Accrued investment income	—		—		287,562		287,562
Deferred acquisition costs	5,814,820		807,773		—		6,622,593
Goodwill	309,609		180,837		—		490,446

Total segment assets	$	6,124,429	$	988,610	$	20,529,838	27,642,877

Annuity and other corporate							2,062,382
Total assets							$	29,705,259


	December 31, 2024
	Life		Health		Investment		Consolidated
Cash and invested assets	$	—	$	—	$	19,736,888	$	19,736,888
Accrued investment income	—		—		269,791		269,791
Deferred acquisition costs	5,700,755		793,421		—		6,494,176
Goodwill	309,609		180,837		—		490,446

Total segment assets	$	6,010,364	$	974,258	$	20,006,679	26,991,301

Annuity and other corporate							2,084,880
Total assets							$	29,076,181

GL Q1 2025 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. If these estimates or assumptions prove to be incorrect, the actual results of Globe Life may differ materially from the forward-looking statements made on the basis of such estimates or assumptions. Whether or not actual results differ materially from forward-looking statements may depend on numerous foreseeable and unforeseeable events or developments, which may be national in scope, related to the insurance industry generally, or applicable to the Company specifically. Such events or developments could include, but are not necessarily limited to:

1.Economic and other conditions, including the impact of inflation, immigration, geopolitical events, escalating tariff and non-tariff trade measures imposed by the U.S. and other countries, and other governmental actions which affect the U.S. economy and/or U.S. consumer confidence, leading to unexpected changes in lapse rates and/or sales of our policies, as well as levels of mortality, morbidity, and/or utilization of health care services that differ from Globe Life's assumptions;

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

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

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

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

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

7.Litigation or regulatory actions against the Company;

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

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

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

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

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

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

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

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

Readers are also directed to consider other risks and uncertainties described in other documents on file with the Securities and Exchange Commission, including those described in the "Risk Factors" section of our most recent Annual Report on Form 10-K.

GL Q1 2025 FORM 10-Q

GLOBE LIFE INC.

Management's Discussion & Analysis

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