Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

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Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

The following discussion should be read in conjunction with Globe Life's Condensed Consolidated Financial Statements and Notes thereto appearing elsewhere in this report. The following management discussion will only include comparison to prior year.

"Globe Life" and the "Company" refer to Globe Life Inc. and its subsidiaries and affiliates.

Results of Operations


			How Globe Life Views Its Operations. Globe Life Inc. is the holding company for a group of insurance companies that market through exclusive, direct-to-consumer and independent distribution channels primarily individual life and supplemental health insurance to lower middle to middle-income households throughout the United States. We view our operations by segments, which are the insurance product lines of life and supplemental health, and the investment segment that supports the product lines.

			Insurance Product Line Segments. The insurance product line segments involve the marketing, underwriting, and administration of policies. Each product line is further subdivided by the various distribution channels that market the insurance policies. Each distribution channel operates in a niche market offering insurance products designed for that particular market. Whether analyzing profitability of a segment as a whole, or the individual distribution channels within the segment, the measure of profitability used by management is the underwriting margin, as seen below:
			Premium revenue (Policy obligations) (Policy acquisition costs and commissions) Underwriting margin
			Investment Segment. The investment segment involves the management of our capital resources, including investments and the management of liquidity. Our measure of profitability for the investment segment is excess investment income, as seen below:
			Net investment income (Required interest on policy liabilities) Excess investment income

GL Q1 2026 FORM 10-Q

GLOBE LIFE INC.

Management's Discussion & Analysis

Globe Life serves the lower-middle to middle-income market. We believe this market is underserved, has significant growth potential, and provides us with a distinct competitive advantage. This advantage is protected due not only to our ability to efficiently reach this market through both exclusive and direct to consumer distribution channels, but also due to the amount of data and experience we possess, as we have been in this same market for over 60 years with essentially the same products. The basic protection life and health insurance products we offer are specifically designed to help provide financial security to consumers in this market.

Current Highlights.

Net income as a return on equity (ROE) for the three months ended March 31, 2026 was 17.9% and net operating income as an ROE, excluding accumulated other comprehensive income(1), was 14.0%.
Total premium increased 6% over the same period in the prior year. Life premium increased 3% for the period from $830 million in 2025 to $853 million in 2026. Health premium increased 13% to $417 million from $370 million over the prior-year period.
Total net sales increased 22% over the same period in the prior year from $216 million in 2025 to $264 million in 2026. The average producing agent count across all of the exclusive agencies remained flat over the prior year.
Book value per share increased 19% over the same period in the prior year from $64.50 to $77.03. Book value per share, excluding accumulated other comprehensive income**(1)**, increased 12% over the prior year from $87.92 in 2025 to $98.56 in 2026.
For the three months ended March 31, 2026, the Company repurchased 1.4 million shares of Globe Life Inc. common stock at a total cost of $203 million for an average share price of $141.24.

The following graphs represent net income and net operating income(1) for the three month periods ended March 31, 2026 and 2025.

1618 1620

(1)As shown in the charts above, net operating income is primarily comprised of insurance underwriting margin plus excess investment income and annuity and other income, offset by operating expenses after tax and, as such, is considered a non-GAAP measure. It has been used consistently by Globe Life's management for many years to evaluate the operating performance of the Company. It differs from net income primarily because it excludes certain non-operating items such as realized gains and losses and certain significant and unusual items included in net income. Net income is the most directly comparable GAAP measure.

Net operating income as an ROE, excluding AOCI, is considered a non-GAAP measure. Management utilizes this measure to view the business without the effect of changes in AOCI, which are primarily attributable to fluctuation in interest rates. The impact of the adjustment to exclude AOCI is $(1.7) billion and $(2.0) billion for the three months ended March 31, 2026 and 2025, respectively.

Book value per share, excluding AOCI, is also considered a non-GAAP measure. Management utilizes this measure to view the book value of the business without the effect of changes in AOCI, which are primarily attributable to fluctuation in interest rates. The impact of the adjustment to exclude AOCI is $(21.53) and $(23.42) per share for the three months ended March 31, 2026 and 2025, respectively.

Refer to Analysis of Profitability by Segment for non-GAAP reconciliation to GAAP.

GL Q1 2026 FORM 10-Q

GLOBE LIFE INC.

Management's Discussion & Analysis

Summary of Operations.

Net income totaled $271 million during the three months ended March 31, 2026, compared with $255 million in the same period in 2025.
On a diluted per common share basis, net income per common share for the three months ended March 31, 2026 increased 13% from $3.01 to $3.39.
Net operating income was $274 million for the three months ended March 31, 2026, compared with $259 million for the same period in 2025.
On a diluted per common share basis, net operating income per common share for the three months ended March 31, 2026 increased from $3.07 to $3.43, a 12% increase.

Net operating income is primarily comprised of insurance underwriting margin plus excess investment income and annuity and other income, offset by operating expenses, after tax and, as such, is considered a non-GAAP measure. Net income is the most directly comparable GAAP measure. We do not consider realized gains and losses to be a component of our core insurance operations or operating segments. Additionally, net income is affected by certain non-operating items. We do not view these items as components of core operating results because they are not indicative of past performance or future prospects of the insurance operations. We remove items such as these that relate to prior periods or are non-operating items when evaluating the results of current operations, and therefore exclude such items from our segment analysis for current periods.

The Company continues to see positive signs in its core operations, including sales and premium growth, and continues to achieve an operating ROE (excluding accumulated other comprehensive income) generally in the mid-teens.

GL Q1 2026 FORM 10-Q

GLOBE LIFE INC.

Management's Discussion & Analysis

Globe Life's operations on a segment-by-segment basis are discussed in depth below. Net operating income has been used consistently by management for many years to evaluate the operating performance of the Company and is a measure commonly used in the life insurance industry. It differs from GAAP net income primarily because it excludes certain non-operating items such as realized gains and losses and other significant and unusual items included in net income. Management believes an analysis of net operating income is important in understanding the profitability and operating trends of the Company’s business. Net income is the most directly comparable GAAP measure.

Analysis of Profitability by Segment

(Dollar amounts in thousands)


	Three Months Ended March 31,
	2026		2025		Change		%
Life insurance underwriting margin	$	349,058	$	337,264	$	11,794	3
Health insurance underwriting margin	94,504		84,721		9,783		12

Excess investment income	36,654		35,870		784		2
Segment profit or (loss)	480,216		457,855		22,361		5

Annuity and other income	3,129		1,879		1,250		67
Administrative expense	(94,286)		(87,549)		(6,737)		8
Other corporate expense	(51,136)		(50,061)		(1,075)		2
Pre-tax total	337,923		322,124		15,799		5
Applicable taxes	(64,403)		(62,787)		(1,616)		3
Net operating income	273,520		259,337		14,183		5
Reconciling items, net of tax:
Realized gains (losses)	(1,167)		67		(1,234)




Other expenses	(72)		—		(72)
Legal proceedings	(1,755)		(4,841)		3,086

Net income	$	270,526	$	254,563	$	15,963	6

The life insurance segment is our primary segment and is the largest contributor to earnings in each period presented. The life insurance segment underwriting margin increased $12 million compared with the prior period, driven by premium growth and lower policy obligations as a percent of premium. Excess investment income increased $1 million compared with the prior period, as net investment income increased slightly primarily due to higher yields on fixed maturities and other long-term investments. The health segment experienced favorable underwriting margin as a result of higher premiums from strong growth in Medicare Supplement sales in addition to higher rates on individual Medicare Supplement policies.

GL Q1 2026 FORM 10-Q

GLOBE LIFE INC.

Management's Discussion & Analysis

In 2026, the largest contributor of total underwriting margin was the life insurance segment and the primary distribution channel was American Income. The following charts represent the breakdown of total underwriting margin by operating segment and distribution channel for the three months ended March 31, 2026.

325 326

Total premium income rose 6% for the three months ended March 31, 2026 to $1.3 billion. Total net sales increased 22% to $264 million when compared with 2025. Total first-year collected premium (defined in the following section) increased 16% to $196 million for 2026, compared to $169 million in 2025.

Life insurance premium income increased 3% to $853 million over the prior-year total of $830 million. Life net sales increased 6% to $157 million for the first three months of 2026 as compared to the year-ago period. First-year collected life premium increased 2% to $116 million. Life underwriting margin, as a percent of premium, was flat at 41% for 2026. Underwriting margin increased to $349 million in 2026, compared to $337 million in 2025.

Health insurance premium income increased 13% to $417 million over the prior-year total of $370 million. Health net sales rose 58% to $106 million for the first three months of 2026. First-year collected health premium rose 46% to $80 million. Health underwriting margin, as a percent of premium, was 23% for 2026 unchanged from 2025. Health underwriting margin increased to $95 million for the first three months of 2026, compared to $85 million in 2025.

Excess investment income, the measure of profitability of our investment segment, increased 2% during the first three months of 2026 to $37 million from $36 million in 2025. Excess investment income per common share, reflecting the impact of our share repurchase program, increased 10% to $0.46 from $0.42 when compared with the same period in 2025.

Insurance administrative expenses increased 8% primarily due to higher employee costs, which include salaries and other costs in addition to higher information technology expenses in 2026 when compared with the prior-year period. These expenses were 7.4% as a percent of premium for 2026, compared with 7.3% for 2025.

For the three months ended March 31, 2026, the Company repurchased 1.4 million shares of Globe Life Inc. common stock at a total cost of $203 million for an average share price of $141.24.

GL Q1 2026 FORM 10-Q

GLOBE LIFE INC.

Management's Discussion & Analysis

The discussions of our segments are presented in the manner we view our operations, as described in Note 12—Business Segments.

We use three measures as indicators of premium growth and sales over the near term: “annualized premium in force”, "net sales,” and “first-year collected premium.”

Annualized premium in force is defined as the premium income that would be received over the following twelve months at any given date on all active policies if those policies remain in force throughout the 12-month period.
Net sales is calculated as annualized premium issued, net of cancellations in the first 30 days after issue, except in the case of Direct to Consumer, where net sales is annualized premium issued at the time the first full premium is paid after any introductory offer period (typically one month) has expired. Management considers net sales to be a better indicator of the rate of premium growth than annualized premium issued since annualized premium issued is before cancellations, as cancellations do not contribute to premium income.
First-year collected premium is defined as the premium collected during the reporting period for all policies in their first policy year. First-year collected premium takes lapses into account in the first year when lapses are more likely to occur, and thus is a useful indicator of how much new premium is expected to be added to premium income in the future. First-year collected premiums are lower than net sales over the prior 12 months because premiums are not collected on lapsed policies after the date of lapse.

Cancellations are not included in lapses.

See further discussion of the distribution channels below for Life and Health.

GL Q1 2026 FORM 10-Q

GLOBE LIFE INC.

Management's Discussion & Analysis

LIFE INSURANCE

Life insurance is the Company's predominant segment. During 2026, life premium represented 67% of total premium and life underwriting margin represented 79% of the total underwriting margin. Additionally, investments supporting the reserves for life products produce the majority of income attributable to the investment segment.

The following table presents the summary of results of life insurance. Further discussion of the results by distribution channel is included below.

Life Insurance

Summary of Results

(Dollar amounts in thousands)


	Three Months Ended March 31,						Change
	2026			2025
	Amount		% of Premium	Amount		% of Premium	Amount		%
Premium and policy charges	$	853,205	100	$	829,863	100	$	23,342	3

Policy obligations	518,850		61	509,756		61	9,094		2
Required interest on reserves	(216,538)		(26)	(208,536)		(25)	(8,002)		4
Net policy obligations	302,312		35	301,220		36	1,092		—
Amortization of acquisition costs	102,694		12	90,633		11	12,061		13
Commission expense	43,547		5	45,567		6	(2,020)		(4)
Premium taxes	17,773		2	18,011		2	(238)		(1)
Non-deferred acquisition costs	37,821		5	37,168		4	653		2
Total expense	504,147		59	492,599		59	11,548		2
Insurance underwriting margin	$	349,058	41	$	337,264	41	$	11,794	3

The table below summarizes life underwriting margin by distribution channel.

Life Insurance

Underwriting Margin by Distribution Channel

(Dollar amounts in thousands)


	Three Months Ended March 31,
	2026			2025			Change
	Amount		% of Premium	Amount		% of Premium	Amount		%
American Income	$	209,008	46	$	196,169	45	$	12,839	7
Direct to Consumer	73,638		30	64,200		26	9,438		15
Liberty National	35,292		35	31,772		33	3,520		11
Other(1)	31,120		62	45,123		90	(14,003)		(31)
Total	$	349,058	41	$	337,264	41	$	11,794	3

(1) Includes a gain of $14 million related to the recapture of reinsurance for three months ended March 31, 2025.

GL Q1 2026 FORM 10-Q

Globe Life Inc.

Management's Discussion & Analysis

The following table presents Globe Life's life insurance premium by distribution channel.

Life Insurance

Premium by Distribution Channel

(Dollar amounts in thousands)


	Three Months Ended March 31,						Change
	2026			2025
	Amount		% of Total	Amount		% of Total	Amount		%
American Income	$	459,200	54	$	437,866	53	$	21,334	5
Direct to Consumer	244,223		28	245,600		30	(1,377)		(1)
Liberty National	99,885		12	96,182		11	3,703		4
Other	49,897		6	50,215		6	(318)		(1)
Total	$	853,205	100	$	829,863	100	$	23,342	3

Annualized life premium in force was $3.44 billion at March 31, 2026, an increase of 3% over $3.34 billion a year earlier.

An analysis of life net sales, an indicator of new business production, by distribution channel is presented below.

Life Insurance

Net Sales by Distribution Channel

(Dollar amounts in thousands)


	Three Months Ended March 31,						Change
	2026			2025
	Amount		% of Total	Amount		% of Total	Amount		%
American Income	$	101,337	65	$	98,555	66	$	2,782	3
Direct to Consumer	27,188		17	25,175		17	2,013		8
Liberty National	25,358		16	22,469		15	2,889		13
Other	3,488		2	2,152		2	1,336		62
Total	$	157,371	100	$	148,351	100	$	9,020	6

First-year collected life premium by distribution channel is presented in the table below.

Life Insurance

First-Year Collected Premium by Distribution Channel

(Dollar amounts in thousands)


	Three Months Ended March 31,						Change
	2026			2025
	Amount		% of Total	Amount		% of Total	Amount		%
American Income	$	78,376	67	$	77,637	68	$	739	1
Direct to Consumer	15,841		14	15,219		13	622		4
Liberty National	19,904		17	19,381		17	523		3
Other	2,350		2	1,868		2	482		26
Total	$	116,471	100	$	114,105	100	$	2,366	2

GL Q1 2026 FORM 10-Q

Globe Life Inc.

Management's Discussion & Analysis

A discussion of life operations by distribution channel follows.

The American Income Life Division is an exclusive agency that markets to members of labor unions and other affinity groups and continues to diversify its lead sources by utilizing internally generated leads, third-party internet vendor leads, and referrals to facilitate sustainable growth. This Division is Globe Life's largest contributor of life premium of any distribution channel at 54% of the Company's March 31, 2026 total life premium. For the three months ended March 31, 2026, life premium was $459 million an increase of 5% when compared with the year ago period. For the three months ended March 31, 2026, the average monthly life premium issued per policy was $62 as compared to $59 for the same period in the prior year. Net sales were $101 million for the three months ended March 31, 2026, up from $99 million in the year-ago period. The underwriting margin, as a percent of premium, was 46% for the three months ended March 31, 2026 and 45% for the same period in the prior year.

The average producing agent count decreased 4% over the year-ago period driven by lower retention of new agents. While long term sales growth in this Division, and our other exclusive agencies is generally tied to expansion of the agency force, short-term declines in agent count provides an opportunity for improved sales productivity among veteran agents as they focus additional time on sales activities.

Below is the average producing agent count as of the indicated periods for the American Income Life Division. The average producing agent count is based on the actual count at the beginning and end of each week during the year.


	At March 31,		Change
	2026	2025	Amount	%
American Income	11,064	11,510	(446)	(4)

American Income Life continues to focus on growing and strengthening the agency force, with particular emphasis on strengthening agency middle-management growth. The Division has made considerable investments in both financial incentives and agent training, as well as in information technology. A customer relationship management (CRM) tool equips agents with intuitive dashboards to drive productivity across lead distribution, business conservation, and new agent recruiting. The Division also continues to enhance technology enabling the agency force to recruit, sell and train virtually. This has benefited our agents as a vast majority of sales are now generated through virtual presentations. We find this flexibility to be enticing for new recruits as well as a driver of retention in our agency force.

The Direct to Consumer Division ("DTC") markets adult and juvenile life insurance across multiple channels including direct mail, insert media, and digital marketing using an integrated omnichannel approach where each channel supports and amplifies the others. Digital channels, including internet sales and inbound phone calls, continue to outpace direct mail in activity and growth.

DTC's long-term growth has been driven by consistent innovation and strong brand awareness. The Division also plays a valuable supporting role for our agency business, generating brand impressions, consumer inquiries and sales leads that convert into sales across our exclusive agency channels. Recent technology investments have meaningfully enhanced the underwriting process, improving the conversion of customer inquiries into sales, while new initiatives are continuously introduced to increase response rates, improve issue rates, and deliver a seamless customer experience.

The juvenile insurance market remains an important channel, though growth has slowed over recent quarters. It continues to serve as a valuable gateway for reaching the parents and grandparents of existing juvenile policyholders. These parents and grandparents have shown a higher likelihood of responding to direct-to-consumer life insurance offers compared to the general adult population, making future outreach to them a lower-cost opportunity to drive both adult and juvenile insurance sales.

DTC net sales increased 8% to $27 million for the three months ended March 31, 2026, compared to the year-ago period. This increase is the result of new underwriting tools and improved conversion of customer inquiries into sales, without incurring incremental underwriting risk. The Division has remained focused on improving profitability and underwriting margin improvement. DTC’s underwriting margin grew to $73.6 million or 30% of premium, for the three months ended March 31, 2026, compared to $64.2 million, or 26% of premium for the same period in 2025.

GL Q1 2026 FORM 10-Q

Globe Life Inc.

Management's Discussion & Analysis

For the three months ended March 31, 2026, the average monthly life premium issued for DTC adults increased to $19 as compared to $17 for the same period in the prior year.

The Liberty National Division is an exclusive agency serving middle-income households and worksite customers with individual life insurance products. Recent investments in new sales technologies, combined with growth in agency middle management, are expected to drive continued sales momentum. Underwriting margin rose 11% from the year ago period to $35 million and premium increased 4% to $100 million. The underwriting margin as a percent of premium increased for the three months ended March 31, 2026, to 35%, compared to 33% in year-ago period. For the three months ended March 31, 2026, the average monthly life premium per policy issued increased compared to the prior year to $48 from $44.

Below is the average producing agent count for the three months ended March 31, 2026 and 2025 for the Liberty National Division. The average producing agent count is based on the actual count at the beginning and end of each week during the year.


	At March 31,		Change
	2026	2025	Amount	%
Liberty National	4,031	3,688	343	9

The Liberty National Division's average producing agent count increased when compared with the prior-year comparable period. This Division continues to execute a long-term plan to grow through expansion from small-town markets in the Southeast to more densely populated areas with larger pools of potential agent recruits and customers. Expansion of this Division’s presence in larger geographic cities with less penetrated areas will help create long-term sustainable agency growth. The Division is also focused on expanding worksite business development capabilities among its agents. A CRM platform and enhanced analytical tools have strengthened worksite marketing efforts and improved productivity across the individual life market. As Liberty National continues to build momentum through technology adoption and recruiting initiatives, it anticipates sustained growth in recruiting activity, average producing agent count, and net sales.

The Other agency distribution channels primarily include non-exclusive independent agencies selling primarily life insurance. The Other distribution channels contributed $50 million of life premium income, or 6% of Globe Life's total life premium income in the three months ended March 31, 2026, and contributed 2% of net sales for the period. Life underwriting margin for Other agency distribution increased in the first quarter of 2025 due to the recapture of an unaffiliated reinsurance treaty, this non-recurring transaction led to an elevated underwriting margin as of March 31, 2025.

GL Q1 2026 FORM 10-Q

Globe Life Inc.

Management's Discussion & Analysis

HEALTH INSURANCE

Health insurance sold by the Company primarily includes Medicare Supplement insurance as well as retiree health insurance, accident coverage, and other limited-benefit supplemental health products such as cancer, critical illness, heart disease, accident, intensive care, and other health products.

Health premium accounted for 33% of our total premium in 2026, while the health underwriting margin accounted for 21% of total underwriting margin. Health underwriting margin increased to $95 million compared to $85 million in the prior year. The Company continues to value the life insurance segment due to life’s long-term profitability and its greater contribution to excess investment income, and the health segment, as it provides a significant contribution to return on equity, as it does not require a substantial amount of up-front capital.

The following table presents underwriting margin data for health insurance.

Health Insurance

Summary of Results

(Dollar amounts in thousands)


	Three Months Ended March 31,						Change
	2026			2025
	Amount		% of Premium	Amount		% of Premium	Amount		%
Premium	$	416,908	100	$	369,791	100	$	47,117	13

Policy obligations	263,734		63	233,929		63	29,805		13
Required interest on reserves	(28,882)		(7)	(28,286)		(8)	(596)		2
Net policy obligations	234,852		56	205,643		55	29,209		14
Amortization of acquisition costs	15,588		4	14,519		4	1,069		7
Commission expense	47,445		11	42,887		12	4,558		11
Premium taxes	8,223		2	7,493		2	730		10
Non-deferred acquisition costs	16,296		4	14,528		4	1,768		12
Total expense	322,404		77	285,070		77	37,334		13
Insurance underwriting margin	$	94,504	23	$	84,721	23	$	9,783	12

Net policy obligations amounted to 56% of premium for the three months ended March 31, 2026 compared to 55% in the year ago period.

GL Q1 2026 FORM 10-Q

Globe Life Inc.

Management's Discussion & Analysis

The table below summarizes health underwriting margin by distribution channel.

Health Insurance

Underwriting Margin by Distribution Channel

(Dollar amounts in thousands)


	Three Months Ended March 31,
	2026			2025			Change
	Amount		% of Premium	Amount		% of Premium	Amount		%
United American	$	5,281	3	$	1,617	1	$	3,664	227
Family Heritage	43,745		36	39,249		35	4,496		11
Liberty National	25,670		54	25,982		54	(312)		(1)
American Income	18,771		60	19,389		63	(618)		(3)
Direct to Consumer	1,037		5	(1,516)		(8)	2,553		168
Total	$	94,504	23	$	84,721	23	$	9,783	12

Globe Life markets supplemental health insurance products through a number of distribution channels. The following table is an analysis of our health premium by distribution channel.

Health Insurance

Premium by Distribution Channel

(Dollar amounts in thousands)


	Three Months Ended March 31,						Increase (Decrease)
	2026			2025
	Amount		% of Total	Amount		% of Total	Amount		%
United American	$	194,426	47	$	159,848	43	$	34,578	22
Family Heritage	123,139		30	112,354		31	10,785		10
Liberty National	47,579		11	47,922		13	(343)		(1)
American Income	31,119		7	30,691		8	428		1
Direct to Consumer	20,645		5	18,976		5	1,669		9
Total	$	416,908	100	$	369,791	100	$	47,117	13

Premiums from Medicare Supplement products totaled $191 million, or 46%, for the three months ended March 31, 2026, compared to $162 million, or 44%, in the same period in the prior year. Premiums primarily related to limited-benefit supplemental health products comprise $226 million, or 54%, of the total health premiums for the three months ended March 31, 2026, compared with $208 million, or 56%, in the same period in the prior year.

Annualized health premium in force was $1.72 billion at March 31, 2026, an increase of 14% over $1.51 billion a year earlier.

GL Q1 2026 FORM 10-Q

Globe Life Inc.

Management's Discussion & Analysis

Presented below is a table of health net sales by distribution channel.

Health Insurance

Net Sales by Distribution Channel

(Dollar amounts in thousands)


	Three Months Ended March 31,						Increase (Decrease)
	2026			2025
	Amount		% of Total	Amount		% of Total	Amount		%
United American	$	61,534	58	$	27,708	41	$	33,826	122
Family Heritage	32,713		31	26,816		40	5,897		22
Liberty National	6,968		6	7,198		11	(230)		(3)
American Income	4,317		4	4,870		7	(553)		(11)
Direct to Consumer	618		1	645		1	(27)		(4)
Total	$	106,150	100	$	67,237	100	$	38,913	58

Health net sales related to limited-benefit supplemental health products and other health products comprise $76 million, or 72%, of the total health net sales for the three months ended March 31, 2026, compared with $48 million, or 72%, in the same period in the prior year. Medicare Supplement sales make up the remaining $30 million, or 28%, for 2026, compared to $19 million, or 28%, in the same period in the prior year.

The following table presents health insurance first-year collected premium by distribution channel.

Health Insurance

First-Year Collected Premium by Distribution Channel

(Dollar amounts in thousands)


	Three Months Ended March 31,						Increase (Decrease)
	2026			2025
	Amount		% of Total	Amount		% of Total	Amount		%
United American	$	42,316	53	$	20,162	37	$	22,154	110
Family Heritage	24,279		31	21,476		39	2,803		13
Liberty National	7,031		9	7,045		13	(14)		—
American Income	4,300		5	4,767		9	(467)		(10)
Direct to Consumer	1,575		2	1,089		2	486		45
Total	$	79,501	100	$	54,539	100	$	24,962	46

First-year collected premium related to limited-benefit supplemental health products and other health products is $52 million, or 65%, of total first-year collected premium for the three months ended March 31, 2026, compared with $38 million, or 69%, in the same period in the prior year. First-year collected premium from Medicare Supplement policies make up the remaining $28 million, or 35%, for the three months ended March 31, 2026, compared to $17 million, or 31%, in the same period in the prior year.

GL Q1 2026 FORM 10-Q

Globe Life Inc.

Management's Discussion & Analysis

A discussion of health operations by distribution channel follows.

The United American Division consists of non-exclusive independent general agents and brokers who may also sell for other companies. The United American Division was Globe Life's largest health division in terms of health premium income, with net sales up 122% from the same period in the prior year.

This Division includes units that sell Medicare Supplement insurance to individuals through independent general agents and group retiree medical and other health insurance through brokers. The majority of the premium revenue comes from Medicare Supplement which has seen increased demand primarily due to the changes in the Medicare Advantage market. Underwriting margin as a percent of premium for the Division was 3% for the three months ended March 31, 2026 and 1% for the same period in 2025. The increase in underwriting margin as a percent of premium when compared to prior year is primarily attributable to premium from Medicare Supplement rate increases which were effective in 2025. We adjust premium rates periodically based upon an annual review of utilization and claim cost trends and submit proposed revisions for approval to the insurance department regulators. Approved premium rates generally become effective in the following year. For the United American Division, additional rate increases will be effective in the second quarter of 2026 from our annual rate review and approval process that are expected to improve margins over the remainder of the year.

The Family Heritage Division is an exclusive agency that primarily markets individual limited-benefit supplemental health insurance to small to medium-sized businesses. Most of its policies include a return of premium feature, where premium paid is returned less any claims paid to the policyholder at the end of a specified period stated within the insurance policy. Underwriting margin as a percent of premium was 36% for the three months ended March 31, 2026 and 35% for the same period in the prior year.

The Division experienced a 22% increase in health net sales as compared with the same three month period a year ago, primarily due to increased agent count and increased agent productivity. The Division will continue to implement incentive and retention programs to further these increases in the number of producing agents.

Below is the average producing agent count for the three months ended March 31, 2026 and 2025 for the Family Heritage Division. The average producing agent count is based on the actual count at the beginning and end of each week during the year.


	At March 31,		Change
	2026	2025	Amount	%
Family Heritage	1,561	1,417	144	10

The average producing agent count increased 10% compared with the same period a year ago. Along with the Division's increased efforts to grow agent count, it is also focused on the further training and development of its agency middle management. While growth in net sales and earned premium is impacted by agent productivity, growth in the number of producing agents is the primary driver of future growth in sales, similar to our other exclusive agencies.

The Liberty National Division represented 11% of all Globe Life health premium income for the three months ended March 31, 2026. The Liberty National Division markets limited-benefit supplemental health products, consisting primarily of cancer, critical illness, and accident insurance. Much of Liberty National's health business is generated through worksite marketing targeting small businesses. Health premium at the Liberty National Division was $47.6 million for the three months ended March 31, 2026 down slightly from $47.9 million for the same period in 2025. Liberty National's first-year collected premium remained flat at $7.0 million in the three months ended March 31, 2026, compared with the same period in 2025. Health net sales for the three months ended March 31, 2026 fell 3% from the comparable period in 2025. For the three months ended March 31, 2026, underwriting margin as a percent of premium was 54%, unchanged from the same period in the prior year.

While both the American Income Life Division and the Direct to Consumer Division sell life insurance, they also market health products. The American Income Life Division primarily markets accident plans. The Direct to Consumer Division primarily markets Medicare Supplement insurance to employer or union-sponsored groups. On a combined basis, these other channels accounted for 12% of health premium for the three months ended March 31, 2026 and 13% for the same period in 2025.

GL Q1 2026 FORM 10-Q

Globe Life Inc.

Management's Discussion & Analysis

INVESTMENTS

We manage our capital resources, including investments and cash flow, through the investment segment. Excess investment income represents the profit margin attributable to investment operations and is the measure that we use to evaluate the performance of the investment segment as described in Note 12—Business Segments. It is defined as net investment income less the required interest attributable to policy liabilities.

Our life and health insurance companies collect premium income from policyholders for the eventual payment of policyholder benefits, sometimes paid for many years or even decades in the future. Since benefits are expected to be paid in future periods, premium receipts in excess of current expenses are invested to provide for these obligations. Our core investment strategy is to primarily invest in high-quality fixed maturities containing an adequate yield to provide for the cost of carrying these long-term insurance product obligations. As a result, fixed maturities are generally held for long periods to support these obligations. Expected yields on these investments are taken into account when setting insurance premium rates and product profitability expectations. We also invest in commercial mortgage loans and other long-term investments to diversify risks and enhance risk-adjusted, capital-adjusted returns.

Management views excess investment income per diluted common share as an important and useful measure to evaluate the performance of the investment segment. It is defined as excess investment income divided by the total diluted weighted-average shares outstanding, representing the contribution by the investment segment to the consolidated earnings per share of the Company.

Excess Investment Income**.** The following table summarizes Globe Life's net investment income, excess investment income, and excess investment income per diluted common share.

Analysis of Excess Investment Income

(Dollar amounts in thousands, except for per share data)


	Three Months Ended March 31,				Change
	2026		2025		Amount		%
Net investment income	$	289,824	$	280,614	$	9,210	3
Interest on policy liabilities(1)	(253,170)		(244,744)		(8,426)		3

Excess investment income	$	36,654	$	35,870	$	784	2

Excess investment income per diluted share	$	0.46	$	0.42	$	0.04	10

Mean invested assets (at amortized cost)	$	21,787,902	$	21,435,420	$	352,482	2
Average insurance policy liabilities	18,364,274		17,620,769		743,505		4

(1)Interest on policy liabilities, at original rates, is a component of total policyholder benefits, a GAAP measure.

Excess investment income increased $1 million, or 2%, compared with the year-ago period. Excess investment income per diluted common share was $0.46 for the three months ended March 31, 2026, an increase of 10% from the prior-year period. Excess investment income per diluted common share generally increases or decreases at a different pace than excess investment income because the number of diluted shares outstanding generally decreases from year to year as a result of our share repurchase program.

Net investment income for the three months ended March 31, 2026 was $290 million, or 3% greater than the prior year quarter period. Mean invested assets increased 2% during the first three months of 2026 over the same period last year. Net investment income increased in the current period due to higher earned yields on fixed maturities, commercial mortgage loans and other investments compared to the prior year period. The effective annual yield earned on the fixed maturity portfolio was 5.32% in the first three months of 2026, compared to 5.25% for the comparable period in 2025. The earned yield on total long-term invested assets, which includes our fixed maturity, commercial mortgage loan and other long-term non-fixed maturity investments, was 5.50% for the first three months

GL Q1 2026 FORM 10-Q

Globe Life Inc.

Management's Discussion & Analysis

of 2026 compared to 5.40% for the comparable period of 2025. While our core investments are fixed maturities, the Company also invests in commercial mortgage loans and limited partnerships with debt-like characteristics that diversify risk and enhance risk-adjusted, capital-adjusted returns on the portfolio. The earned yield on the Company's commercial mortgage loans for the three months ended March 31, 2026 was 6.96% compared with 6.53% in the prior year period. The higher earned yield on commercial mortgage loans is due to a lower number of non-accrual loans in the current quarter compared to the prior year period. The earned yield on limited partnership investments for the three months ended March 31, 2026 was 7.95%, the same as in the comparable prior-year period. See additional information in Note 4—Investments.

Globe Life's net investment income benefits from higher interest rates on new investments. While increasing interest rates have resulted in a net unrealized loss from our available-for-sale debt securities included in accumulated other comprehensive income (loss) as of March 31, 2026, we are not concerned because we do not generally intend to sell, nor is it likely that we will be required to sell, the fixed maturities prior to their anticipated recovery.

Required interest on insurance policy liabilities reduces excess investment income, as it is the amount of net investment income necessary to cover the interest-related growth on insurance policy liabilities. As such, it is reclassified from the insurance segment to the investment segment. As discussed in Note 12—Business Segments**, management regards this as a more meaningful analysis of the investment and insurance segments. Required interest is based on the original discount rate assumptions for our insurance policies in force.

The vast majority of our life and health insurance policies are fixed interest rate protection policies, not investment products, and are accounted for under current GAAP accounting guidance for long-duration insurance products which mandates that interest rate assumptions for a particular block of business be “locked in” for the life of that block of business. Each calendar year, we set the original discount rate to be used to calculate the benefit reserve liability for all insurance policies issued that year. The liability reported on the Condensed Consolidated Balance Sheets is updated in subsequent periods using current discount rates as of the end of the relevant reporting period with a corresponding adjustment to other comprehensive income.

The discount rate used for policies issued in the current year has no impact on the in force policies issued in prior years, as the rates of all prior issue years are also locked in for purposes of recognizing income. As such, the overall original discount rate for the entire in force block of 5.5% is a weighted average of the discount rates being used from all issue years. Changes in the overall weighted-average discount rate over time are caused by changes in the mix of the reserves on the entire block of in force business. Business issued in the current year has little impact on the overall weighted-average original discount rate due to the size of our in force business.

In comparison to the year-ago period, required interest on insurance policy liabilities increased $8 million, or 3%, to $253 million, consistent with the 4% growth in average interest-bearing insurance policy liabilities.

Realized Gains and Losses. Despite our intent to hold fixed maturity investments for a long period of time, investments are occasionally sold, exchanged, called, or experience a credit loss event, resulting in a realized gain or loss. Gains or losses are only secondary to our core insurance operations of providing insurance coverage to policyholders. In a bond exchange offer, bondholders may consent to exchange their existing bonds for another class of debt securities. The Company also has investments in certain limited partnerships, held under the fair value option, with fair value changes recognized in "Realized gains (losses)" on the Condensed Consolidated Statements of Operations**.

Realized gains and losses can be significant in relation to the earnings from core insurance operations, and as a result, can have a material positive or negative impact on net income. The significant fluctuations caused by gains and losses can cause period-to-period trends of net income that are not indicative of historical core operating results or predictive of the future trends of core operations. Accordingly, they have no bearing on core insurance operations or segment results as we view operations. For these reasons, and in line with industry practice, we remove the effects of realized gains and losses when evaluating overall insurance operating results.

GL Q1 2026 FORM 10-Q

Globe Life Inc.

Management's Discussion & Analysis

The following table summarizes our tax-effected realized gains (losses) by component.

Analysis of Realized Gains (Losses), Net of Tax

(Dollar amounts in thousands, except for per share data)


	Three Months Ended March 31,
	2026				2025
	Amount		Per Share		Amount		Per Share
Fixed maturities:
Sales	$	197	$	—	$	11	$	—
Matured or other redemptions(1)	(763)		(0.01)		612		0.01
Provision for credit losses	—		—		32		—
Fair value option—change in fair value	4,401		0.05		1,873		0.02
Mortgages	(111)		—		342		—
Other investments	(1,046)		(0.01)		(852)		(0.01)
Total realized gains (losses)—investments	2,678		0.03		2,018		0.02
Other gains (losses)(2)	(3,845)		(0.04)		(1,951)		(0.02)

Total realized gains (losses)	$	(1,167)	$	(0.01)	$	67	$	—

(1)During the three months ended March 31, 2026 and 2025, the Company recorded $281 thousand and $55.7 million, respectively, of exchanges of fixed maturity securities (noncash transactions) that resulted in net realized gains (losses) of $0 and $42 thousand net of tax, respectively.

(2)Other realized gains (losses) are primarily a result of changes in the fair value for assets held in rabbi trust.

GL Q1 2026 FORM 10-Q

Globe Life Inc.

Management's Discussion & Analysis

Investment Acquisitions**.** Globe Life's investment policy calls for a core investment strategy of investing primarily in investment grade fixed maturities that meet our quality and yield objectives. We generally invest in securities with longer-term maturities because they more closely match the long-term nature of our life and health policy liabilities. We believe this strategy is appropriate since our expected future cash flows are generally stable and predictable and the likelihood that we will need to sell invested assets to raise cash is low.

The following table summarizes selected information for fixed maturity investments. The effective annual yield shown is based on the acquisition price and call features, if any, of the securities. For non-callable bonds, the yield is calculated to maturity date. For callable bonds acquired at a premium, the yield is calculated to the earliest known call date and call price after acquisition ("first call date"). For all other callable bonds, the yield is calculated to maturity date.

Fixed Maturity Acquisitions Selected Information

(Dollar amounts in thousands)


	Three Months Ended March 31,
	2026			2025
Cost of acquisitions:
Investment-grade corporate securities	$	376,015		$	236,723
Investment-grade municipal securities	24,267			1,000
Other securities	18,471			7,122
Total fixed maturity acquisitions(1)	$	418,753		$	244,845

Effective annual yield (one year compounded)(2)	6.23		%	6.41		%
Average life (in years, to next call)	41.1			40.7
Average life (in years, to maturity)	42.1			43.1
Average rating	A			A-

(1)Fixed maturity acquisitions included unsettled trades of $1 million in 2026 and $12 million in 2025.

(2)Tax-equivalent basis, where the yield on tax-exempt securities is adjusted to produce a yield equivalent to the pretax yield on taxable securities.

For investments in callable bonds, the actual life of the investment will depend on whether the issuer calls the investment prior to the maturity date. Given our investments in callable bonds, the actual average life of our investments cannot be known at the time of the investment. Absent sales and "make-whole calls," however, the average life will not be less than the average life to next call and will not exceed the average life to maturity. Data for both of these average life measures is provided in the above chart.

During the first three months of 2026 and 2025, acquisitions consisted primarily of corporate and municipal bonds with securities spanning a diversified range of issuers, industry sectors, and geographical regions. In the first three months of 2026, we invested primarily in the industrial, financial, and utility sectors. For the entire portfolio, the taxable equivalent effective yield earned was 5.32%, up approximately 7 basis point from the yield in the first three months of 2025. The increase in taxable equivalent effective yield was primarily due to new purchases at yields exceeding the yield on dispositions and the average portfolio yield. For the remainder of 2026, the Company will continue to execute on its existing strategy by seeking to invest in assets that satisfy our quality and other objectives, while striving to maximize the risk-adjusted, capital-adjusted return.

GL Q1 2026 FORM 10-Q

Globe Life Inc.

Management's Discussion & Analysis

In addition to the fixed maturity acquisitions, Globe Life invested in commercial mortgage loans and in other long-term investments. See Note—4 Investments for further discussion.

The following table summarizes Globe Life's other investment acquisitions of the following assets.

Other Investment Acquisitions

(Dollar amounts in thousands)


	Three Months Ended March 31,
	2026		2025

Commercial mortgage loans:
Directly held	$	58,519	$	35,621
Limited partnerships	—		103
Total commercial mortgage loans	58,519		35,724

Other long-term investments:
Limited partnerships	11,453		15,728
Company-owned life insurance	75,000		—

Total other long-term investments	86,453		15,728

Common stock	1,574		502

Total	$	146,546	$	51,954

Since fixed maturities represent such a significant portion of our investment portfolio, 87% of total amortized cost, net of allowance for credit losses, at March 31, 2026, the remainder of the discussion of portfolio composition will focus on fixed maturities. Selected information concerning the fixed maturity portfolio is as follows:

Fixed Maturity Portfolio Selected Information


	At
	March 31, 2026	December 31, 2025	March 31, 2025
Average annual effective yield(1)	5.30%	5.29%	5.26%
Average life, in years, to:
Next call(2)	15.8	15.2	15.3
Maturity(2)	19.8	19.4	19.4
Effective duration to:
Next call(2,3)	8.7	8.7	8.8
Maturity(2,3)	10.5	10.5	10.6

(1)Weighted average annual effective yield as of the end of the period, on a tax-equivalent basis. The yield on tax-exempt securities is adjusted to produce a yield equivalent to the pretax yield on taxable securities.

(2)Globe Life calculates the average life and duration of the fixed maturity portfolio two ways:

(a) based on the next call date which is the next call date for callable bonds and the maturity date for non-callable bonds; and

(b) based on the maturity date of all bonds, whether callable or not.

(3)Effective duration is a measure of the price sensitivity of a fixed-income security to a 1% change in interest rates.

GL Q1 2026 FORM 10-Q

Globe Life Inc.

Management's Discussion & Analysis

Credit Risk Sensitivity*.* The following tables summarize certain information about the major corporate sectors and security types held in our fixed maturity portfolio at March 31, 2026 and December 31, 2025.

Fixed Maturities by Sector

March 31, 2026

(Dollar amounts in thousands)


	Below Investment Grade								Total Fixed Maturities								% of Total Fixed Maturities
	Amortized Cost, net		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		Amortized Cost, net		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		At Amortized Cost, net	At Fair Value

Corporates:
Financial
Insurance - life, health, P&C	$	7,968	$	77	$	—	$	8,045	$	2,960,137	$	55,374	$	(208,302)	$	2,807,209	16	16
Banks	60,229		338		(2,014)		58,553		929,198		23,080		(46,604)		905,674		5	5
Other financial	74,975		—		(15,206)		59,769		1,166,746		12,947		(145,859)		1,033,834		6	6
Total financial	143,172		415		(17,220)		126,367		5,056,081		91,401		(400,765)		4,746,717		27	27
Industrial
Energy	44,480		166		(3,611)		41,035		1,320,423		38,849		(64,710)		1,294,562		7	7
Basic materials	41,631		—		(9,755)		31,876		1,102,518		22,259		(99,836)		1,024,941		6	6
Consumer, non-cyclical	—		—		—		—		2,176,915		14,466		(242,063)		1,949,318		11	11
Other industrials	25,000		—		(3,974)		21,026		1,107,248		21,248		(88,710)		1,039,786		6	6
Communications	20,229		226		(4,622)		15,833		822,469		12,421		(90,838)		744,052		4	4
Transportation	—		—		—		—		653,572		11,639		(36,443)		628,768		3	4
Consumer, cyclical	89,706		—		(24,056)		65,650		392,333		3,765		(53,834)		342,264		2	2
Technology	50,267		645		—		50,912		343,885		765		(70,942)		273,708		2	2
Total industrial	271,313		1,037		(46,018)		226,332		7,919,363		125,412		(747,376)		7,297,399		41	42
Utilities	58,201		—		(6,505)		51,696		2,170,151		50,658		(113,923)		2,106,886		11	12
Total corporates	472,686		1,452		(69,743)		404,395		15,145,595		267,471		(1,262,064)		14,151,002		79	81
States, municipalities, and political divisions:
General obligations	—		—		—		—		917,648		4,814		(187,687)		734,775		5	4
Revenues	1,960		—		(251)		1,709		2,486,009		22,760		(358,914)		2,149,855		13	12
Total states, municipalities, and political divisions	1,960		—		(251)		1,709		3,403,657		27,574		(546,601)		2,884,630		18	16
Other fixed maturities:
Government (U.S. and foreign)	—		—		—		—		465,510		89		(37,613)		427,986		2	2

Other asset-backed securities	35,945		217		(28)		36,134		115,326		699		(267)		115,758		1	1
Total fixed maturities	$	510,591	$	1,669	$	(70,022)	$	442,238	$	19,130,088	$	295,833	$	(1,846,545)	$	17,579,376	100	100

GL Q1 2026 FORM 10-Q

Globe Life Inc.

Management's Discussion & Analysis

Fixed Maturities by Sector

December 31, 2025

(Dollar amounts in thousands)


	Below Investment Grade								Total Fixed Maturities								% of Total Fixed Maturities
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		At Amortized Cost, net	At Fair Value

Corporates:
Financial
Insurance - life, health, P&C	$	7,978	$	119	$	—	$	8,097	$	2,898,137	$	80,468	$	(175,533)	$	2,803,072	16	16
Banks	60,268		278		(2,738)		57,808		916,529		31,873		(37,643)		910,759		5	5
Other financial	74,975		—		(7,670)		67,305		1,167,521		21,764		(120,790)		1,068,495		6	6
Total financial	143,221		397		(10,408)		133,210		4,982,187		134,105		(333,966)		4,782,326		27	27
Industrial
Energy	44,500		55		(3,120)		41,435		1,313,734		50,113		(56,624)		1,307,223		7	7
Basic materials	41,620		—		(9,835)		31,785		1,116,746		29,964		(91,011)		1,055,699		6	6
Consumer, non-cyclical	—		—		—		—		2,092,995		23,547		(198,498)		1,918,044		11	11
Other industrials	25,000		—		(4,187)		20,813		1,096,807		27,723		(78,215)		1,046,315		6	6
Communications	20,258		263		(3,709)		16,812		800,452		16,981		(80,227)		737,206		4	4
Transportation	—		—		—		—		618,817		15,863		(30,939)		603,741		3	4
Consumer, cyclical	104,813		133		(19,375)		85,571		407,404		6,353		(44,746)		369,011		2	2
Technology	50,270		3,545		—		53,815		340,930		4,620		(65,103)		280,447		2	2
Total industrial	286,461		3,996		(40,226)		250,231		7,787,885		175,164		(645,363)		7,317,686		41	42
Utilities	58,199		110		(6,118)		52,191		2,093,010		71,582		(93,086)		2,071,506		11	12
Total corporates	487,881		4,503		(56,752)		435,632		14,863,082		380,851		(1,072,415)		14,171,518		79	81
States, municipalities, and political divisions:
General obligations	—		—		—		—		917,006		5,961		(179,707)		743,260		5	4
Revenues	1,961		—		(210)		1,751		2,468,427		20,994		(352,055)		2,137,366		13	12
Total states, municipalities, and political divisions	1,961		—		(210)		1,751		3,385,433		26,955		(531,762)		2,880,626		18	16
Other fixed maturities:
Government (U.S., municipal, and foreign)	—		—		—		—		456,618		299		(33,518)		423,399		2	2

Other asset-backed securities	31,490		136		—		31,626		112,034		1,877		(112)		113,799		1	1
Total fixed maturities	$	521,332	$	4,639	$	(56,962)	$	469,009	$	18,817,167	$	409,982	$	(1,637,807)	$	17,589,342	100	100

GL Q1 2026 FORM 10-Q

Globe Life Inc.

Management's Discussion & Analysis

Corporate securities, which consist of bonds and redeemable preferred stocks, were the largest component of the fixed-maturity portfolio as of March 31, 2026, representing 79% of amortized cost, net, and 81% of fair value. The remainder of the portfolio is invested primarily in securities issued by the U.S. government and U.S. municipalities. The Company holds insignificant amounts in foreign government bonds, asset-backed securities, and mortgage-backed securities. Corporate securities are diversified over a variety of industry sectors and issuers. At March 31, 2026, the total fixed maturity portfolio consisted of 1,015 issuers.

Fixed maturities had a fair value of $17.6 billion at March 31, 2026, compared to $17.6 billion at December 31, 2025. The net unrealized loss position in the fixed-maturity portfolio increased from $1.2 billion at December 31, 2025 to $1.6 billion at March 31, 2026 due to a change in market rates during the period.

For more information about our fixed-maturity portfolio by component at March 31, 2026 and December 31, 2025, including a discussion of allowance for credit losses, an analysis of unrealized investment losses, and a schedule of maturities, see Note 4—Investments.

An analysis of the fixed-maturity portfolio by composite quality rating at March 31, 2026 and December 31, 2025, is shown in the following tables. The company uses the NAIC designation for credit quality ratings. The NAIC designation is generally determined using the second lowest rating available from nationally recognized statistical rating organizations (“NRSRO”) when three or more ratings are available and the lowest rating when two or fewer rating are available. When NRSRO ratings are unavailable the rating may be assigned by the Securities Valuation Office (“SVO”) of the NAIC.

Fixed Maturities by Rating

At March 31, 2026

(Dollar amounts in thousands)


	Amortized Cost, net		% of Total	Fair Value		% of Total	Average Composite Quality Rating on Amortized Cost, net
Investment grade:
AAA	$	965,197	5	$	875,560	5
AA	3,493,145		18	2,952,055		17
A	6,304,310		33	5,928,237		33
BBB+	3,244,712		17	3,064,642		17
BBB	3,514,131		18	3,310,161		19
BBB-	1,098,002		6	1,006,483		6
Total investment grade	18,619,497		97	17,137,138		97	A

Below investment grade:
BB	450,819		3	392,365		2
B	55,614		—	45,966		1
Below B	4,158		—	3,907		—
Total below investment grade	510,591		3	442,238		3	BB
	$	19,130,088	100	$	17,579,376	100

Weighted average composite quality rating							A-

GL Q1 2026 FORM 10-Q

Globe Life Inc.

Management's Discussion & Analysis

Fixed Maturities by Rating

At December 31, 2025

(Dollar amounts in thousands)


	Amortized Cost, net		% of Total	Fair Value		% of Total	Average Composite Quality Rating on Amortized Cost
Investment grade:
AAA	$	955,561	5	$	872,139	5
AA	3,455,082		18	2,941,349		16
A	6,016,228		32	5,778,006		33
BBB+	3,133,353		17	3,007,623		17
BBB	3,717,938		20	3,554,535		20
BBB-	1,017,673		5	966,681		6
Total investment grade	18,295,835		97	17,120,333		97	A

Below investment grade:
BB	452,809		3	410,286		3
B	64,364		—	54,774		—
Below B	4,159		—	3,949		—
Total below investment grade	521,332		3	469,009		3	BB
	$	18,817,167	100	$	17,589,342	100

Weighted average composite quality rating							A-

The overall quality rating of the portfolio is A-, the same as of year-end 2025. Fixed maturities rated BBB are 41% of the total portfolio at March 31, 2026, down from 42% at December 31, 2025. While this ratio may be high relative to our peers, it is at its lowest level since 2003 and we have limited exposure to higher-risk assets such as derivatives, equities, and asset-backed securities. Additionally, the Company does not participate in securities lending and has no off-balance sheet investments as of March 31, 2026. Of our fixed maturity purchases, BBB securities generally provide the Company with the best risk-adjusted, capital-adjusted returns largely due to our ability to hold securities to maturity regardless of fluctuations in interest rates or equity markets. Our allocation to BBB rated bonds has decreased over the past few years as we have found better risk-adjusted, capital-adjusted value in higher-rated bonds.

An analysis of changes in our portfolio of below-investment grade fixed maturities at amortized cost, net of allowance for credit losses, is as follows:

Below-Investment Grade Fixed Maturities

(Dollar amounts in thousands)


	Three Months Ended March 31,
	2026		2025
Balance at beginning of period	$	521,332	$	529,120
Downgrades by rating agencies	—		5,074
Upgrades by rating agencies	—		(30,555)
Dispositions	(16,026)		(916)
Acquisitions	4,455		4,024
Provision for credit losses	—		36
Amortization and other	830		(424)
Balance at end of period	$	510,591	$	506,359

GL Q1 2026 FORM 10-Q

Globe Life Inc.

Management's Discussion & Analysis

Our investment policy calls for investing primarily in fixed maturities that are investment grade and meet our quality and yield objectives. Thus, the balance of below-investment grade issues is primarily the result of ratings downgrades of existing holdings. Below-investment grade bonds at amortized cost, net of allowance for credit losses, were 3% of total fixed maturities at amortized cost as of March 31, 2026.

OPERATING EXPENSES

Operating expenses are classified into two categories: insurance administrative expenses and expenses of the Parent Company. Insurance administrative expenses generally include expenses incurred after a policy has been issued. As these expenses relate to premium for a given period, management measures the expenses as a percentage of premium income. The Company also views stock-based compensation expense as a Parent Company expense. Expenses associated with the issuance of our insurance policies are reflected as acquisition expenses and included in the determination of underwriting margin.

An analysis of operating expenses is shown below.

Operating Expenses Selected Information

(Dollar amounts in thousands)


	Three Months Ended March 31,						Increase
	2026			2025			(Decrease)
	Amount		% of Premium	Amount		% of Premium	Amount		%
Insurance administrative expenses:
Salaries	$	35,379	2.8	$	33,688	2.8	$	1,691	5
Other employee costs	13,771		1.1	10,301		0.9	3,470		34
Information technology costs	21,872		1.7	20,936		1.7	936		4
Legal costs	3,192		0.2	6,249		0.5	(3,057)		(49)
Other administrative costs	20,072		1.6	16,375		1.4	3,697		23
Total insurance administrative expenses	94,286		7.4	87,549		7.3	6,737		8

Parent company expense	3,533			3,050			483
Stock compensation expense	13,603			12,019			1,584

Legal proceedings	2,222			6,128			(3,906)
Other expenses	91			—			91

Total operating expenses, per Condensed Consolidated Statements of Operations	$	113,735		$	108,746		$	4,989	5

Total operating expenses for March 31, 2026 increased in comparison with the prior year primarily due to increases in insurance administrative expenses. Insurance administrative expenses increased $7 million primarily due to higher employee costs, which include salaries and other costs. Insurance administrative expenses as a percent of premium were 7.4% for the three months ended March 31, 2026 and 7.3% for the comparable period in 2025.

GL Q1 2026 FORM 10-Q

Globe Life Inc.

Management's Discussion & Analysis

SHARE REPURCHASES

Globe Life has an ongoing share repurchase program that began in 1986. The share repurchase program is reviewed with the Board of Directors quarterly, and continues indefinitely unless and until the Board of Directors decides to suspend, terminate or modify the program. On November 18, 2024, the Board of Directors authorized the repurchase of up to $1.8 billion under the Company's existing share repurchase program. Management generally determines the amount of repurchases based on the amount of excess cash flows and other available sources after the payment of dividends to the Parent Company shareholders, general market conditions, and other alternative uses. At March 31, 2026, we had $911 million remaining under the authorization to repurchase. Since implementing our share repurchase program in 1986, we have used $11.2 billion to repurchase Globe Life Inc. common shares, after determining that the repurchases provide a greater risk-adjusted after-tax return than other alternatives and we expect to continue this program into the future.

Excess cash flow at the Parent Company is primarily comprised of dividends received from the insurance subsidiaries less interest expense paid on its debt and other limited operating activities. Additionally, when stock options are exercised, proceeds from these exercises and the resulting tax benefit are used to repurchase additional shares on the open market to minimize dilution as a result of the option exercises. Share repurchases were made in the first quarter of 2026 with anticipation of the expected cashflows for the year.

The following table summarizes share repurchases for the three month periods ended March 31, 2026 and 2025.

Analysis of Share Repurchases

(Amounts in thousands, except per share data)


	Three Months Ended March 31,
	2026					2025
Purchases with:	Shares	Amount		Average Price		Shares	Amount		Average Price
Excess cash flow at the Parent Company(1)	1,440	$	203,403	$	141.24	1,451	$	176,546	$	121.70
Option exercise proceeds	245	35,203		143.50		700	86,624		123.76
Total	1,685	$	238,606	$	141.57	2,151	$	263,170	$	122.37

(1)Excludes excise tax on the repurchase of treasury stock of $1.9 million and $1.4 million for the three months ended March 31, 2026 and 2025, respectively.

FINANCIAL CONDITION

Liquidity. Liquidity provides Globe Life with the ability to meet on demand the cash commitments required to support our business operations and meet our financial obligations. Our liquidity is primarily derived from multiple sources: positive cash flow from operations, a portfolio of marketable securities, pre-capitalized trust securities facility, a revolving credit facility, commercial paper, and advances from the Federal Home Loan Bank.

Insurance Subsidiary Liquidity**.** The operations of our insurance subsidiaries have historically generated substantial cash inflows in excess of immediate cash needs. Cash inflows for the insurance subsidiaries primarily include premium and investment income. In addition to investment income, maturities and scheduled repayments in the investment portfolio are cash inflows. Cash outflows from operations include policy benefit payments, commissions, administrative expenses, and taxes. A portion of cash inflows in the current year will provide for the payment of future policy benefits and are invested primarily in long-term fixed maturities as they better match the long-term nature of these obligations. While the insurance subsidiaries annually generate more operating cash inflows than cash outflows, the companies also have the entire available-for-sale fixed-maturity portfolio available to create additional cash flows if required.

Four of our insurance subsidiaries are members of the FHLB of Dallas. FHLB membership provides the insurance subsidiaries with access to various low-cost collateralized borrowings and funding agreements. While not the only source of liquidity, the FHLB could provide the insurance subsidiaries with an additional source of liquidity, if needed. Refer to Note 11—Debt for further details.

GL Q1 2026 FORM 10-Q

Globe Life Inc.

Management's Discussion & Analysis

Parent Company Liquidity. An important source of Parent Company liquidity is the dividends from its insurance subsidiaries. These dividends are received throughout the year and are used by the Parent Company to pay dividends on common and preferred stock, interest and principal repayment requirements on Parent Company debt, and operating expenses of the Parent Company.


	Three Months Ended March 31,				Twelve Months Ended December 31,
	2026		2025		Projected 2026	2025
Liquidity Sources:
Dividends from Subsidiaries	$	115,390	$	23,260	$700,000—$740,000	$	815,741
Excess Cash Flows(1)	97,019		196,678		650,000—700,000	890,311

(1)Excess cash flows are reported gross of shareholder dividends. For the three months ended March 31, 2026 and 2025, shareholder dividends were $21 million and $20 million, respectively. For the twelve months ended December 31, 2026, we project approximately $88 million in shareholder dividends, compared to the $86 million paid in 2025.

Subsidiary dividends are generally paid in amounts equal to the subsidiaries’ prior year statutory net income excluding net realized capital gains. Dividends from subsidiaries and excess cash flows are projected to be lower for the full-year of 2026 than received in 2025 due to increased excess cash flows in 2025 from extraordinary dividends totaling $272 million. Additional sources of liquidity for the Parent Company are cash, intercompany receivables, intercompany borrowings, debt markets, term loans, and a revolving credit facility.

The Company has access to a P-CAP Facility Agreement that provides us with the right to sell at any time to the Trust up to $500 million of our 6.580% Senior Notes due 2055 (the “6.580% Senior Notes”) in exchange for a corresponding amount of the Strips held by the Trust (the “Issuance Right”). Our capacity under the agreement is based on the value of the Strips which was $499.8 million as of March 31, 2026. We agreed to pay a semi-annual facility fee of 1.789% per annum on the unexercised portion of the Issuance Right.

The Company can redeem the 6.580% Senior Notes at any time, in whole or in part, at a price equal to the greater of par or a make-whole redemption price. At March 31, 2026, the Company had no senior note issuances under the Facility Agreement.

Short-Term Borrowings. An additional source of Parent Company liquidity is a credit facility with a group of lenders. The facility was amended on March 29, 2024, resulting in an increased capacity of $250 million. The facility allows for unsecured borrowings and stand-by letters of credit up to $1 billion, which could be increased up to $1.25 billion. While the Parent Company may request the increase, it is not guaranteed. The updated five-year credit agreement will mature on March 29, 2029. Up to $250 million in letters of credit can be issued against the facility. The facility serves as a backup line of credit for a commercial paper program under which commercial paper may be issued at any time, with total commercial paper outstanding not to exceed the facility maximum less any letters of credit issued. Interest charged on the commercial paper program resembles variable rate debt due to its short term nature. As of March 31, 2026, we had available $426 million of additional borrowing capacity under this facility, compared to $476 million a year earlier. As of March 31, 2026, the Parent Company was in full compliance with all covenants related to the aforementioned debt.

As a part of the credit facility, Globe Life has stand-by letters of credits. These letters of credit are issued on behalf of our insurance subsidiaries.

GL Q1 2026 FORM 10-Q

Globe Life Inc.

Management's Discussion & Analysis

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

Credit Facility—Commercial Paper

(Dollar amounts in thousands)


	At
	March 31, 2026			December 31, 2025			March 31, 2025
Balance of commercial paper at end of period (par value)	$	459,250		$	306,000		$	409,500
Annualized interest rate	4.02		%	4.05		%	5.13		%
Letters of credit outstanding	$	115,000		$	115,000		$	115,000
Remaining amount available under credit line	425,750			579,000			475,500

Credit Facility—Commercial Paper Activity

(Dollar amounts in thousands)


	Three Months Ended March 31,
	2026			2025
Average balance of commercial paper outstanding during period (par value)	$	373,981		$	478,950
Daily-weighted average interest rate (annualized)	3.98		%	5.08		%
Maximum daily amount outstanding during period (par value)	$	559,250		$	605,500

The Company increased commercial paper borrowings by $153 million since year end. The increase is related to the timing of dividends from subsidiaries to the Parent Company relative to cash needs.

The Parent Company expects to have readily available funds for 2026 and the foreseeable future to conduct its operations and to maintain target capital ratios in the insurance subsidiaries. In the unlikely event that more liquidity is needed, the Company could generate additional funds through multiple sources including, but not limited to the issuance of debt and intercompany borrowings. The Parent Company had access to $85 million of liquid assets available as of March 31, 2026. This liquidity is available to the Company in the event additional funds are needed to support the targeted capital levels within our insurance subsidiaries.

Consolidated Liquidity. Consolidated net cash inflows from operations were $421 million in the first three months of 2026, compared with $432 million in the same period of 2025. The decrease is attributable to routine fluctuations in the settlement of operating activities. In addition to cash inflows from operations, our insurance companies received proceeds from dispositions of fixed maturities available for sale, mortgage loans, and other long-term investments in the amount of $191 million during the first three months of 2026. The Parent Company has in place a revolving credit facility and a P-CAPS facility. See Note 11—Debt for further details. The insurance companies have no additional outstanding credit facilities.

Cash and short-term investments were $439 million at March 31, 2026, compared with $459 million at December 31, 2025. In addition to these liquid assets, $18 billion (fair value at March 31, 2026) of fixed income securities are available for sale in the event of an unexpected need. Approximately $1.8 billion, at fair value, are pledged for outstanding FHLB advances and reinsurance. Further, approximately 98% of our fixed income securities are publicly traded, freely tradable under SEC Rule 144, or qualified for resale under SEC Rule 144A. While our fixed income securities are classified as available for sale, we have the ability and general intent to hold any securities to recovery or maturity. Our strong cash flows from operations, on-going investment maturities, and available liquidity under our credit facility, FHLB and P-CAPS facility make any need to sell securities for liquidity highly unlikely.

Capital Resources. The Parent Company's capital structure consists of short-term debt (the commercial paper facility and current maturities of long-term debt), long-term debt, and shareholders’ equity. It does not include short-term FHLB borrowings, which are obligations of the insurance subsidiaries and typically repaid over the course of the year.

GL Q1 2026 FORM 10-Q

GLOBE LIFE INC.

Management's Discussion & Analysis

Long-Term Borrowings**.** At March 31, 2026, the outstanding long-term debt at book value was $2.3 billion unchanged from December 31, 2025.

Selected Information about Debt Issues

As of March 31, 2026

(Dollar amounts in thousands)


Instrument	Issue Date	Maturity Date	Coupon Rate	Interest Payment Dates	Par Value		Book Value		Fair Value
Senior notes	09/27/2018	09/15/2028	4.550%	semiannual	$	550,000	$	547,945	$	549,104
Senior notes	08/21/2020	08/15/2030	2.150%	semiannual	400,000		397,725		359,252
Senior notes(1)	05/19/2022	06/15/2032	4.800%	semiannual	250,000		246,802		247,225
Senior notes	08/23/2024	09/15/2034	5.850%	semiannual	450,000		445,325		463,991
Junior subordinated debentures	11/17/2017	11/17/2057	5.275%	semiannual	125,000		123,466		108,704
Junior subordinated debentures	06/14/2021	06/15/2061	4.250%	quarterly	325,000		317,494		200,200
Term loan(2)	05/11/2023	08/15/2027	5.127%	quarterly	250,000		249,018		249,018
Subtotal					2,350,000		2,327,775		2,177,494
Unamortized issuance costs(3)					—		(6,238)		—


Total long-term debt					2,350,000		2,321,537		2,177,494



FHLB borrowings					—		—		—
Commercial paper					459,250		457,047		457,047
Total short-term debt					459,250		457,047		457,047

Total debt					$	2,809,250	$	2,778,584	$	2,634,541

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

(2)Interest calculated quarterly using Secured Overnight Financing Rate (SOFR) plus 135 basis points. The term loan was amended on August 15, 2024 extending the maturity date from November 11, 2024 to August 15, 2027 and increasing the principal amount from $170 million to $250 million.

(3)Unamortized issuance costs for P-CAPS facility agreement.

Financing costs consist primarily of interest on our various debt instruments. The table below presents the components of financing costs and reconciles interest expense per the Condensed Consolidated Statements of Operations**.

Analysis of Financing Costs

(Dollar amounts in thousands)


	Three Months Ended March 31,				Increase (Decrease)
	2026		2025		Amount		%
Interest on funded debt	$	23,650	$	23,553	$	97	—
Interest on term loans	3,411		3,889		(478)		(12)
Interest on short-term debt	4,649		7,550		(2,901)		(38)
Other	2,290		—		2,290
Financing costs	$	34,000	$	34,992	$	(992)	(3)

During the first three months of 2026, financing costs decreased 3% compared to the prior year. The decrease in financing costs is primarily due to lower average balances in short-term debt in the current year. Other financing costs increased due to the P-CAPS facility fee. More information on our debt transactions is disclosed in the Financial Condition section of this report.

GL Q1 2026 FORM 10-Q

GLOBE LIFE INC.

Management's Discussion & Analysis

Subsidiary Capital*:* The National Association of Insurance Commissioners has established a risk-based factor approach for determining threshold risk-based capital levels for all U.S. insurance companies. This approach was designed to assist the regulatory bodies in identifying companies that may require regulatory attention. A Risk-Based Capital ratio is typically determined by dividing adjusted total statutory capital by the amount of RBC determined using the NAIC’s factors. If a company’s RBC ratio approaches two times the RBC amount, the company must file a plan with the NAIC for improving its capital levels (this level is commonly referred to as “Company Action Level” RBC). Companies typically hold a multiple of the Company Action Level RBC depending on their particular business needs and risk profile.

Our goal is to maintain statutory capital within our insurance subsidiaries at levels necessary to support our current ratings. Globe Life targets a consolidated Company Action Level RBC ratio of 300% to 320% for our U.S. insurance subsidiaries. The Company has concluded that this capital level is more than adequate and sufficient to support its current ratings, given the nature of its business and its risk profile. For 2025, our consolidated Company Action Level RBC ratio was 316%. The Parent Company is committed to maintaining the targeted consolidated RBC ratio at its insurance subsidiaries and has sufficient liquidity available to provide additional capital if necessary.

In addition, our Bermuda-based insurance subsidiaries are subject to regulation in Bermuda and the BMA has capital requirements and solvency standards including limitations on dividends or distributions to shareholders. Our Bermuda subsidiaries' level of capitalization exceeded the required minimum solvency margins for the year ended 2025.

Shareholders' Equity*:* Shareholders’ equity was $6.1 billion at March 31, 2026. This compares with $6.0 billion at December 31, 2025 and $5.4 billion at March 31, 2025. During the three months since December 31, 2025, shareholders’ equity increased as a result of net income of $271 million during the first three months of 2026, but was offset by share repurchases of $203 million and an additional $35 million in share repurchases to offset the dilution from stock option exercises. Additionally, the change in the balance of AOCI increased shareholders' equity $71 million primarily due to changes in interest rates and discount rates over the period.

On February 26, 2026, the Parent Company announced that it had declared a quarterly dividend of $0.33 per share, an increase of 22% from the previous amount of $0.27 per share. This dividend was paid on May 1, 2026.

We plan to use excess cash available at the Parent Company as efficiently as possible in the future. Excess cash flow, as we define it, results primarily from the dividends received by the Parent Company from its insurance subsidiaries less the interest paid on debt. The cash received by the Parent Company from our insurance subsidiaries is after they have made substantial investments during the year to grow the business. Possible uses of excess cash flow include, but are not limited to, share repurchases, acquisitions, shareholder dividend payments, subsidiary capital contributions, investments in securities, or repayment of short-term debt. We will determine the best use of excess cash after ensuring that targeted capital levels are maintained in our insurance subsidiaries. If market conditions are favorable, we currently expect that share repurchases will continue to be a primary use of those funds.

Future policy benefits are computed using current discount rates with the impact of changes in discount rates included in accumulated other comprehensive income. Additionally, the liability for future policy benefits is calculated using net premiums rather than gross premiums. Given that gross premiums are considerably higher than net premiums for our business, as seen in Note 6—Policy Liabilities, the measurement of the liability is higher than what it would be had it been computed using gross premiums. This is an important consideration when analyzing shareholders' equity.

We maintain a significant available-for-sale fixed maturity portfolio to support our insurance policy liabilities. Current accounting guidance requires that we revalue our portfolio to fair market value at the end of each accounting period. The period-to-period changes in fair value, net of their associated impact on income tax, are reflected directly in shareholders’ equity in AOCI. Changes in the fair value of the portfolio can result from changes in market rates.

While a majority of invested assets are revalued, accounting rules do not permit interest-bearing insurance policy liabilities to be valued at fair value in a consistent manner as that of assets, with changes in value applied directly to shareholders’ equity. Due to the size of our policy liabilities in relation to our shareholders’ equity, an inconsistency exists in measurement, which may have a material impact on the reported value of shareholders’ equity.

GL Q1 2026 FORM 10-Q

GLOBE LIFE INC.

Management's Discussion & Analysis

Fluctuations in interest rates cause undue volatility in the period-to-period presentation of our shareholders’ equity, capital structure, and financial ratios. Due to the long-term nature of our fixed maturity investments and liabilities and the strong cash flows consistently generated by our insurance subsidiaries, we have the ability to hold our securities to maturity. As such, we do not expect to incur losses due to fluctuations in market value of fixed maturities caused by market rate changes and temporarily illiquid markets. Accordingly, our management, credit rating agencies, lenders, many industry analysts, and certain other financial statement users prefer to remove the effects of AOCI when analyzing our balance sheet, capital structure, and financial ratios.

GL Q1 2026 FORM 10-Q

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