Globe Life (GL) risk factors: FY2025 10-K

1. The development and maintenance of our various distribution channels are critical to growth in product sales and profits.
2. Our life insurance products are sold in niche markets. We are at risk should any of these markets diminish.
3. Actual or alleged misclassification of independent contractors at our insurance subsidiaries could result in adverse legal, tax or financial consequences.
4. The use of third-party vendors, including independent sales agents, to support the Company's operations makes the Company susceptible to the operational risk of those third parties, which could lower revenues, increase costs, reduce profits, disrupt business, or damage the Company’s reputation.

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1. Our investments are subject to market and credit risks. Significant downgrades, delinquencies and defaults in our investment portfolio could potentially result in lower net investment income and increased realized and unrealized investment losses.
2. Our investment portfolio contains certain alternative investments that may be illiquid and volatile, which could negatively affect our investment income and liquidity.new
3. Changes in interest rates could negatively affect income.Interest rates
4. Our ability to fund operations is substantially dependent on available funds from our insurance subsidiaries.
5. We are subject to liquidity risks associated with sourcing a concentration of our funding from the FHLB.reworded
6. Adverse capital and credit market conditions may significantly affect our ability to meet liquidity needs or access capital, as well as affect our cost of capital.
7. We have become subject to, and may in the future be subject to, short selling strategies driving down the market price of our common stock.

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1. Variations in actual-to-expected rates of mortality, morbidity and policyholder behavior could materially negatively affect our results of operations and financial condition.
2. A ratings downgrade or other negative action by a rating agency could materially affect our business, financial condition, and results of operations.
3. Obtaining timely and appropriate premium rate increases for certain supplemental health insurance policies is critical.
4. Our business is subject to the risk of the occurrence of catastrophic events that could adversely affect our financial condition or operations.
5. We are exposed to model risk, which is the risk of financial loss or reputational damage or adverse regulatory impacts caused by model errors or limitations, incorrect implementation of models, or misuse of or overreliance upon models.
6. Our business is subject to the risk of direct or indirect effects of climate change.

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1. Recent volatility in the trading price of our common stock has and can be expected to result in securities class action litigation.
2. Our businesses are heavily regulated and changes in regulation or regulatory scrutiny may have a material adverse impact on our business, financial condition or results of operation.
3. Changes in accounting standards issued by accounting standard-setting bodies may affect our financial statements, reduce our reported profitability and change the timing of profit recognition.
4. Non-compliance with laws or regulations related to customer and consumer privacy and information security, including a failure to ensure that third parties with access to sensitive customer and consumer information maintain its confidentiality, could materially adversely affect our reputation and business operations.

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1. The failure to maintain effective information systems or manage responsible use of emerging technologies, including artificial intelligence, could adversely affect our financial condition and results of operations at the Company.rewordedAI
2. Changes in U.S. federal income tax law could increase our tax costs or negatively impact our insurance subsidiaries' capital.
3. Damage to the brand and reputation of Globe Life or its subsidiaries could affect our ability to conduct business.

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