GLOBE LIFE INC. (GL)

CIK: 0000320335. SIC: 6311 Life Insurance. Latest 10-K as of: 2026-02-25.

SIC breadcrumb: Finance, Insurance, And Real Estate > Insurance Carriers > SIC 6311 Life Insurance

SEC company page: https://www.sec.gov/edgar/browse/?CIK=320335. Latest filing source: 0000320335-26-000090.

Selected Fundamentals

Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-25. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000320335.json. Derived margins are computed from the extracted annual SEC facts.

Flow metrics use full-year FY periods from 10-K/10-K/A filings; balance-sheet metrics use FY-end instants. Missing metrics are omitted rather than fabricated.

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Latest 10-K MD&A

Extracted between Item 7 and the next Item 7A/8 heading after HTML sanitization. Confidence: high. Filing date: 2026-02-25. Report date: 2025-12-31.

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations

The following discussion should be read in conjunction with Globe Life's Consolidated Financial Statements and Notes thereto appearing elsewhere in this report. The following management discussion will only include comparison to prior year. For discussion regarding activity from 2023, please refer to the prior filed Form 10-Ks at www.sec.gov.

"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

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GL 2025 FORM 10-K

Table of Contents

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 year ended December 31, 2025 was 20.9% and net operating income as an ROE, excluding accumulated other comprehensive income(1) was 16.0%.

•Total premium increased 5% over the same period in the prior year. Life premium increased 3% for the period from $3.3 billion in 2024 to $3.4 billion in 2025. Health premium increased 9% to $1.5 billion over the prior-year period of $1.4 billion.

•Total net sales increased 13% over the same period in the prior year from $840 million in 2024 to $948 million in 2025. The average producing agent count across all of the exclusive agencies increased 3% over the prior year.

•Book value per share increased 19% over the same period in the prior year from $62.50 to $74.17. Book value per share, excluding accumulated other comprehensive income(1), increased 11% over the prior year from $86.40 in 2024 to $96.16 in 2025.

•For the year ended December 31, 2025, the Company repurchased 5.4 million shares of Globe Life Inc. common stock at a total cost of $685 million for an average share price of $126.41.

The following graphs represent net income and net operating income(1) for the twelve month periods ended December 31, 2025 and 2024.

(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 accumulated other comprehensive income ("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 $(1.8) billion and $(2.0) billion for the year ended December 31, 2025 and 2024, 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 $(21.99) and $(23.90) per share for the year ended December 31, 2025 and 2024, respectively.

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

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GLOBE LIFE INC.

Management's Discussion & Analysis

Summary of Operations.

•Net income totaled $1.16 billion in 2025, compared with $1.07 billion in 2024 and $971 million in 2023.

•On a diluted per common share basis, net income per common share for 2025 increased 18% to $14.07. Net income per common share, on a diluted per common share basis was $11.94 in 2024 and $10.07 in 2023.

•Net operating income was $1.20 billion in 2025, compared with $1.11 billion in 2024 and $1.03 billion in 2023.

•On a diluted per common share basis, net operating income per common share for 2025 increased 17% to $14.52. Net operating income per common share, on a diluted per common share basis, was $12.37 in 2024 and $10.65 in 2023.

Net remeasurement gains of $134.3 million in 2025, $46.3 million in 2024, and $3.2 million in 2023 were attributable to the Company's annual third-quarter review and unlocking of life and health long-term assumptions, including lapses, mortality and morbidity. See the remeasurement gain/loss table in Note 6—Policy Liabilities for additional information.

Overall, 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.

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.

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GL 2025 FORM 10-K

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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. Management believes an analysis of net operating income is important in understanding the profitability and operating trends of the Company’s business.

Analysis of Profitability by Segment

(Dollar amounts in thousands)

2025

2024

2023

2025 Change

%

2024 Change

%

Life insurance underwriting margin

$

1,509,361 

$

1,352,597 

$

1,192,972 

$

156,764 

12 

$

159,625 

13 

Health insurance underwriting margin

390,128 

372,423 

377,937 

17,705 

5 

(5,514)

(1)

Excess investment income

138,393 

164,404 

130,382 

(26,011)

(16)

34,022 

26 

Segment profit or (loss)

2,037,882 

1,889,424 

1,701,291 

148,458 

8 

188,133 

11 

Annuity and other income

9,470 

7,636 

8,800 

1,834 

24 

(1,164)

(13)

Administrative expense

(355,595)

(342,430)

(301,161)

(13,165)

4 

(41,269)

14 

Other corporate expense

(208,758)

(179,610)

(143,918)

(29,148)

16 

(35,692)

25 

Pre-tax total

1,482,999 

1,375,020 

1,265,012 

107,979 

8 

110,008 

9 

Applicable taxes

(284,612)

(266,036)

(238,368)

(18,576)

7 

(27,668)

12 

Net operating income

1,198,387 

1,108,984 

1,026,644 

89,403 

8 

82,340 

8 

Reconciling items, net of tax:

Realized gains (losses)

(21,952)

(19,108)

(51,884)

(2,844)

32,776 

Other expenses

(1,725)

(2,070)

(3,294)

345 

1,224 

Legal proceedings

(13,472)

(17,044)

(711)

3,572 

(16,333)

Net income

$

1,161,238 

$

1,070,762 

$

970,755 

$

90,476 

8 

$

100,007 

10

The life insurance segment is our primary segment and is the largest contributor to earnings in each year presented. In 2025, the life insurance segment underwriting margin increased $157 million, compared with 2024. This was primarily a result of increased premiums and favorable policy obligations as a percent of premium due to a remeasurement gain resulting from the assumption updates in 2025. In 2024, the life insurance segment underwriting margin increased $160 million when compared with 2023. This was primarily a result of increased premiums and favorable policy obligations as a percent of premium in addition to a remeasurement gain as a result of assumption changes in 2024. Excess investment income decreased $26 million in 2025 compared with 2024, resulting from lower average invested asset growth and lower average earned yields on our short-term, direct commercial mortgage loan and limited partnership investments. In 2025, underwriting margin in the health segment increased to $390 million due to increased sales and rate increases in our Medicare supplement business, compared with $372 million in 2024 and $378 million in 2023.

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GL 2025 FORM 10-K

Table of Contents

GLOBE LIFE INC.

Management's Discussion & Analysis

In 2025, the largest contributor of total underwriting margin was the life insurance segment and the primary distribution channel was the American Income Life Division (American Income). The following charts represent the breakdown of total underwriting margin by operating segment and distribution channel for the year ended December 31, 2025.

Total premium income rose 5% for the year ended December 31, 2025 to $4.9 billion. Total net sales increased 13% to $948 million when compared with 2024. Total first-year collected premium (defined in the following section) increased 5% to $704 million for 2025, compared to $674 million in 2024.

Life insurance premium income increased 3% to $3.4 billion over the prior-year total of $3.3 billion. Life net sales increased 3% to $615 million for the year ended 2025 as compared to the year ago period. First-year collected life premium increased 2% to $463 million. Life underwriting margin, as a percent of premium, increased to 45% for 2025 from 41% in 2024. Underwriting margin increased to $1.5 billion in 2025, compared to $1.4 billion in 2024.

Health insurance premium income increased 9% to $1.5 billion over the prior-year total of $1.4 billion. Health net sales rose 36% to $333 million for the year ended 2025. First-year collected health premium rose 10% to $241 million. Health underwriting margin, as a percent of premium, was 26% for 2025 down from 27% in 2024. Health underwriting margin increased to $390 million for the year ended 2025, compared to $372 million in 2024.

Excess investment income, the measure of profitability of our investment segment, declined 16% during the year ended 2025 to $138 million from $164 million in 2024. Excess investment income per common share, reflecting the impact of our share repurchase program, declined 8% to $1.68 from $1.83 when compared with the same period in 2024.

Insurance administrative expenses increased 4% primarily due to higher employee costs, which include salaries and other costs in addition to higher information technology expenses in 2025 when compared with the prior-year period. These expenses were 7.3% as a percent of premium for 2025, unchanged from 2024.

For the year ended December 31, 2025, the Company repurchased 5.4 million shares of Globe Life Inc. common stock at a total cost of $685 million for an average share price of $126.41.

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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 15—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.

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GLOBE LIFE INC.

Management's Discussion & Analysis

LIFE INSURANCE

Life insurance is the Company's predominant segment. During 2025, life premium represented 69% 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)

2025

2024

2023

Amount

% of

Premium

Amount

% of

Premium

Amount

% of

Premium

Premium and policy charges

$

3,363,470 

100 

$

3,261,347 

100 

$

3,137,244 

100 

Policy obligations

1,924,929 

57 

2,000,977 

62 

2,050,789 

65 

Required interest on reserves

(845,875)

(25)

(811,147)

(25)

(772,701)

(24)

Net policy obligations

1,079,054 

32 

1,189,830 

37 

1,278,088 

41 

Amortization of acquisition costs

386,450 

12 

356,223 

11 

327,426 

10 

Commission expense

174,029 

5 

159,703 

5 

145,678 

5 

Premium taxes

68,132 

2 

68,360 

2 

64,571 

2 

Non-deferred acquisition costs

146,444 

4 

134,634 

4 

128,509 

4 

Total expense

1,854,109 

55 

1,908,750 

59 

1,944,272 

62 

Insurance underwriting margin

$

1,509,361 

45 

$

1,352,597 

41 

$

1,192,972 

38 

Net policy obligations amounted to 32% of premiums for the year ended December 31, 2025, compared to 37% in 2024 and 41% in 2023. This improvement was primarily due to improved mortality and the annual assumption changes which were based upon our review of lapses, mortality, and morbidity resulting in a remeasurement gain of $130.9 million in 2025 compared to a remeasurement gain of $56.8 million in 2024 and a remeasurement loss of $2.0 million in 2023. Refer to Note 6—Policy Liabilities for further discussion of the Company's annual assumptions review.

To enhance comparability of underlying operating performance across periods, the Company also evaluates life underwriting margin on a normalized basis that excludes the impacts of annual assumption updates. As discussed above, assumption unlocking results in a cumulative catch-up remeasurement gain or loss recognized in policy obligations. While required under GAAP, these remeasurement effects can introduce volatility unrelated to current-period underwriting performance.

Normalized life underwriting margin is a non-GAAP financial measure defined as insurance underwriting margin excluding the impacts of assumption unlocking recognized in the period. Management believes this measure provides investors and other users of the financial statements with additional insight into the underlying profitability and trends of the in force life business by removing the effects of assumption changes that vary by period. On a normalized basis, life underwriting margin for 2025 was $1.4 billion or 41% of premium, compared with $1.3 billion or 40% of premium in 2024. In 2023, assumption unlocking had minimal impact with underwriting margin remaining unchanged at 38% of premium. This increase in normalized life underwriting margin in the current year reflects improved underlying mortality and persistency experience and favorable expense efficiency across our Divisions.

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GLOBE LIFE INC.

Management's Discussion & Analysis

The table below summarizes life underwriting margin by distribution channel for the last three years.

Life Insurance

Underwriting Margin by Distribution Channel

(Dollar amounts in thousands)

2025

2024

2023

Amount

% of Premium

Amount

% of Premium

Amount

% of Premium

American Income

$

870,088 

49 

$

799,946 

47 

$

719,378 

45 

Direct to Consumer

320,613 

33 

281,948 

29 

234,893 

24 

Liberty National

171,343 

44 

140,136 

38 

114,646 

33 

Other(1)

147,317 

73 

130,567 

64 

124,055 

60 

Total

$

1,509,361 

45 

$

1,352,597 

41 

$

1,192,972 

38 

(1) Includes a gain of $14 million related to the recapture of reinsurance for the year ended December 31, 2025 as disclosed in Note 1—Significant Accounting Policies under the caption Reinsurance and Recapture.

The following table presents Globe Life's life premium distribution channel for the last three years.

Life Insurance

Premium by Distribution Channel

(Dollar amounts in thousands)

2025

2024

2023

Amount

% of

Total

Amount

% of

Total

Amount

% of

Total

American Income

$

1,791,356 

53 

$

1,698,209 

52 

$

1,588,702 

51 

Direct to Consumer

981,006 

29 

988,522 

30 

991,406 

31 

Liberty National

390,094 

12 

371,061 

12 

349,736 

11 

Other

201,014 

6 

203,555 

6 

207,400 

7 

Total

$

3,363,470 

100 

$

3,261,347 

100 

$

3,137,244 

100 

Annualized life premium in force was $3.4 billion at December 31, 2025, an increase of 4% over $3.3 billion a year earlier.

The following table presents life net sales, an indicator of new business production, by distribution channel for each of the last three years.

Life Insurance

Net Sales by Distribution Channel

(Dollar amounts in thousands)

2025

2024

2023

Amount

% of

Total

Amount

% of

Total

Amount

% of

Total

American Income

$

393,681 

64 

$

381,945 

64 

$

322,658 

59 

Direct to Consumer

112,027 

18 

106,310 

18 

116,454 

21 

Liberty National

99,252 

16 

98,162 

16 

95,459 

18 

Other

9,965 

2 

8,936 

2 

9,701 

2 

Total

$

614,925 

100 

$

595,353 

100 

$

544,272 

100 

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GLOBE LIFE INC.

Management's Discussion & Analysis

The table below discloses first-year collected life premium by distribution channel for the last three years.

Life Insurance

First-Year Collected Premium by Distribution Channel

(Dollar amounts in thousands)

2025

2024

2023

Amount

% of

Total

Amount

% of

Total

Amount

% of

Total

American Income

$

317,492 

69 

$

305,165 

67 

$

266,429 

63 

Direct to Consumer

61,222 

13 

67,452 

15 

77,570 

19 

Liberty National

76,481 

16 

74,553 

16 

67,618 

16 

Other

7,988 

2 

7,678 

2 

8,542 

2 

Total

$

463,183 

100 

$

454,848 

100 

$

420,159 

100 

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 53% of the Company's 2025 total life premium. In 2025, the average monthly life premium issued per policy was $60 as compared to $56 in 2024. Net sales were $394 million in 2025, up from $382 million in 2024. The underwriting margin, as a percent of premium, was 49% in 2025, up from 47% in 2024.

The average producing agent count increased 2% over the year-ago period. The increase in average producing agent count was driven by an increase in new agent recruiting. Sales growth in this Division, as well as within our other exclusive agencies, is generally dependent on growth in the size of the agency force.

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

2025

2024

2023

2025 Change

%

2024 Change

%

American Income

11,920 

11,741 

10,579 

179 

2 

1,162 

11 

American Income Life continues to focus on growing and strengthening the agency force, specifically through emphasis on agency middle-management growth. In addition to offering financial incentives and training opportunities, the Division has made considerable investments in information technology, including a customer relationship management ("CRM") tool for the agency force. This tool is designed to provide dashboards and drive productivity in lead distribution, conservation of business, and new agent recruiting. Additionally, this Division has invested in and successfully implemented technology that allows the agency force to engage in virtual recruiting, training, and sales activity. The agents have generated the vast majority of sales through virtual presentations. We find this flexibility to be attractive to 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 through a variety of channels, including direct mail, insert media, and digital marketing. The different media channels support and complement one another in the Division's efforts to provide consumer outreach. All three channels work as part of an omnichannel approach. Sales from the internet and inbound phone calls continue to outpace the activity from direct mail. DTC's long-term growth has been fueled by consistent innovation and brand awareness. Additionally, the DTC Division provides valuable support to our agency business through brand impressions and inquiries that lead to sales in our exclusive agency channels. This Division has implemented new technology to enhance the underwriting process which has improved the conversion of customer inquiries into sales. New initiatives are continuously introduced to help increase response rates, issue rates, and create a seamless customer experience. The juvenile insurance market is an important source of sales as well as a vehicle to reach the parents and grandparents of existing juvenile insureds, who are more likely to respond favorably to a direct to consumer solicitation for life insurance

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GLOBE LIFE INC.

Management's Discussion & Analysis

coverage on themselves in comparison to the general adult population. Additionally, future offerings to parents and grandparents for adult and juvenile insurance are sources of lower acquisition-cost life insurance sales in the future.

DTC net sales increased 5% to $112 million in 2025, compared with $106 million for the same period a year ago. This increase is the result of new technology and improvement in conversion of customer inquiries into sales, as noted above, with the expectation that we are not incurring incremental underwriting risk. This Division has been focused on improving profitability and improving underwriting margin. In 2025, DTC’s underwriting margin, as a percent of premium, was 33%, compared with 29% in 2024. In 2025, the average monthly life premium issued for DTC adults was $18 as compared to $15 for the same period in the prior year.

The Liberty National Division is an exclusive agency that markets individual life insurance to middle-income households and worksite customers. Recent investments in new sales technologies as well as growth in agency middle management within the Division are expected to support increased sales. Underwriting margin increased 22% from the year ago period to $171 million and premium increased 5% to $390 million. The underwriting margin as a percent of premium increased to 44% in 2025, compared to 38% in 2024. In 2025, the average monthly life premium issued per policy was $45 as compared to $43 in 2024.

Below is the average producing agent count as of the indicated periods 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.

2025

2024

2023

2025 Change

%

2024 Change

%

Liberty National

3,846 

3,664 

3,229 

182 

5 

435 

13 

The Liberty National Division's average producing agent count increased when compared with the prior-year comparable periods. 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. Additionally, the Division continues to help improve the ability of agents to develop new worksite business. A CRM platform and enhanced analytical capabilities have helped the agents develop additional worksite marketing and improve the productivity of agents selling in the individual life market. As this Division continues to gain momentum in its sales and recruiting initiatives through advances in technology and utilization of a CRM platform, it anticipates continued 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 $201 million of life premium income, or 6% of Globe Life's total life premium income in 2025, and contributed 2% of net sales for the year.

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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 31% of our total premium in 2025, while the health underwriting margin accounted for 21% of total underwriting margin. Health underwriting margin increased to $390 million compared to $372 million in the prior year. While the Company continues to emphasize life insurance sales relative to health, due to life’s long-term profitability and its greater contribution to excess investment income, the health business provides a significant contribution to return on equity as it does not require a substantial amount of up-front capital.

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

Health Insurance

Summary of Results

(Dollar amounts in thousands)

2025

2024

2023

Amount

% of

Premium

Amount

% of

Premium

Amount

% of

Premium

Premium

$

1,526,750 

100 

$

1,404,925 

100 

$

1,318,773 

100 

Policy obligations

931,141 

61 

851,577 

61 

776,362 

59 

Required interest on reserves

(113,832)

(8)

(110,342)

(8)

(106,516)

(8)

Net policy obligations

817,309 

53 

741,235 

53 

669,846 

51 

Amortization of acquisition costs

59,897 

4 

52,224 

3 

50,598 

4 

Commission expense

173,490 

11 

158,869 

11 

150,192 

11 

Premium taxes

29,825 

2 

28,421 

2 

26,440 

2 

Non-deferred acquisition costs

56,101 

4 

51,753 

4 

43,760 

3 

Total expense

1,136,622 

74 

1,032,502 

73 

940,836 

71 

Insurance underwriting margin

$

390,128 

26 

$

372,423 

27 

$

377,937 

29 

Health premium increased 9% in 2025 as compared to 2024. This increase was attributable to significant sales growth in our Medicare supplement plans as a result of what we believe is a consumer shift from Medicare Advantage plans to Medicare supplement plans during the current year. Premium growth in 2025 was also the result of Medicare supplement rate increases that went into effect in 2025 in addition to an increase in agent count and productivity on other health business. Refer to Note 6—Policy Liabilities for further discussion of the Company's annual assumptions review.

Consistent with the life segment, the Company also evaluates health underwriting margin on a normalized basis that excludes the impacts of annual assumptions unlocking recognized in policy obligations. Normalized health underwriting margin is a non-GAAP financial measure and should not be considered a substitute for GAAP underwriting margin. Management believes this measure provides useful supplemental information regarding underlying health underwriting performance by removing period specific assumption update effects.

On a normalized basis, health underwriting margin for 2025 was $387 million or 25% of premium, compared with $383 million or 27% of premium in 2024 and $373 million or 28% of premium in 2023. The percentage of premium decline primarily reflects higher claims experience and an increase in the proportion of overall health premium from United American. As with life, reported GAAP underwriting margin for all periods presented was affected by assumption unlocking as discussed above.

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GLOBE LIFE INC.

Management's Discussion & Analysis

The table below summarizes health underwriting margin by distribution channel for the last three years.

Health Insurance

Underwriting Margin by Distribution Channel

(Dollar amounts in thousands)

2025

2024

2023

Amount

% of Premium

Amount

% of Premium

Amount

% of Premium

United American

$

38,012 

6 

$

47,964 

8 

$

57,344 

11 

Family Heritage

174,942 

37 

146,478 

34 

135,691 

34 

Liberty National

102,399 

54 

106,033 

56 

105,317 

56 

American Income

72,348 

58 

67,912 

55 

74,668 

62 

Direct to Consumer

2,427 

3 

4,036 

6 

4,917 

7 

Total

$

390,128 

26 

$

372,423 

27 

$

377,937 

29 

The following table presents Globe Life's health premium by distribution channel for the last three years.

Health Insurance

Premium by Distribution Channel

(Dollar amounts in thousands)

2025

2024

2023

Amount

% of

Total

Amount

% of

Total

Amount

% of

Total

United American

$

666,758 

44 

$

591,774 

42 

$

545,723 

42 

Family Heritage

468,063 

31 

427,654 

30 

396,209 

30 

Liberty National

190,468 

12 

190,381 

14 

187,934 

14 

American Income

124,947 

8 

123,123 

9 

120,332 

9 

Direct to Consumer

76,514 

5 

71,993 

5 

68,575 

5 

Total

$

1,526,750 

100 

$

1,404,925 

100 

$

1,318,773 

100 

Premium related to limited-benefit supplemental health products comprises $851 million, or 56%, of the total health premiums for 2025, compared with $786 million, or 56%, in 2024. Premium from Medicare Supplement products comprises the remaining $676 million, or 44%, for 2025, compared with $619 million, or 44%, in 2024.

Annualized health premium in force was $1.65 billion at December 31, 2025, an increase of 12% from $1.48 billion a year earlier.

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GLOBE LIFE INC.

Management's Discussion & Analysis

Presented below is a table of health net sales, an indicator of new business production, by distribution channel for each of the last three years.

Health Insurance

Net Sales by Distribution Channel

(Dollar amounts in thousands)

2025

2024

2023

Amount

% of

Total

Amount

% of

Total

Amount

% of

Total

United American

$

154,476 

46 

$

80,296 

33 

$

72,208 

32 

Family Heritage

120,311 

36 

105,623 

43 

96,093 

43 

Liberty National

32,741 

10 

33,001 

13 

33,155 

15 

American Income

18,937 

6 

21,103 

9 

18,124 

8 

Direct to Consumer

6,706 

2 

5,004 

2 

3,993 

2 

Total

$

333,171 

100 

$

245,027 

100 

$

223,573 

100 

Health net sales related to limited-benefit supplemental health products comprise $207 million, or 62%, of the total health net sales for 2025, compared with $175 million, or 71%, in 2024. Medicare Supplement sales make up the remaining $126 million, or 38%, for 2025, compared with $70 million, or 29%, in 2024.

The following table discloses first-year collected health premium by distribution channel for the last three years.

 Health Insurance

First-Year Collected Premium by Distribution Channel

(Dollar amounts in thousands)

2025

2024

2023

Amount

% of

Total

Amount

% of

Total

Amount

% of

Total

United American

$

98,635 

41 

$

87,190 

40 

$

66,002 

36 

Family Heritage

90,828 

38 

79,934 

36 

72,362 

39 

Liberty National

27,536 

11 

28,114 

13 

25,608 

14 

American Income

18,939 

8 

19,740 

9 

17,633 

9 

Direct to Consumer

5,222 

2 

4,064 

2 

3,683 

2 

Total

$

241,160 

100 

$

219,042 

100 

$

185,288 

100 

First-year collected premium related to limited-benefit supplemental health plans comprise $160 million, or 66% of total first-year collected premium for 2025, compared with $155 million, or 71%, in 2024. First-year collected premium from Medicare Supplement policies make up the remaining $81 million, or 34%, for 2025, compared with $64 million, or 29%, in 2024.

A discussion of health operations by distribution channel follows.

The United American Division consists of non-exclusive independent 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 revenue, with net sales up 92% from the prior year.

This Division includes different units:

•UA General Agency, which primarily sells individual Medicare Supplement insurance through independent agents;

•Special Markets, which markets retiree health insurance to employer and union groups through brokers; and

•Globe Life Group Benefits, which offers group worksite supplemental limited benefit health insurance through brokers.

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GLOBE LIFE INC.

Management's Discussion & Analysis

The majority of the premium revenue comes from Medicare Supplement which has seen increased demand primarily due to changes in the Medicare Advantage market. Underwriting margin as a percent of premium for the Division was 6% in 2025 and 8% in 2024. The decline in underwriting margin as a percent of premium when compared to prior years is primarily attributable to increased claims utilization during the current year from Medicare Supplement. We adjust premium rates based upon an annual review of utilization and claim cost trends and submit rates for approval to the insurance department regulators and the new premium rates generally become effective in the following year on new business issued.

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 37% in 2025 and 34% in 2024.

The Division experienced a 14% rise in health net sales in 2025 as compared with 2024, 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 as of the indicated periods 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. The average producing agent count increased 9% 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 average producing agents is the primary driver of future growth in sales, similar to other exclusive agencies.

2025

2024

2023

2025 Change

%

2024 Change

%

Family Heritage

1,527 

1,399 

1,334 

128 

9 

65 

5 

The Liberty National Division represented 12% of all Globe Life health premium income in 2025. 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 $190 million in 2025, flat when compared with 2024. Liberty National's first-year collected premium was unchanged at $28 million when compared with the prior year. Health net sales fell 1% from 2024. Underwriting margin as a percent of premium was 54% in 2025, compared with 56% in 2024, primarily due to an increase in policy obligations in the current year.

While both the American Income Life Division and the Direct to Consumer Division primarily 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 Supplements to employer or union-sponsored groups. On a combined basis, these other channels accounted for 13% of health premium in 2025 and 14% in 2024.

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 15—Business Segments. It is defined as net investment income less the required interest attributable to policy liabilities.

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.

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GLOBE LIFE INC.

Management's Discussion & Analysis

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 per share data)

2025

2024

2023

Net investment income

$

1,130,198 

$

1,135,631 

$

1,056,884 

Interest on policy liabilities(1)

(991,805)

(971,227)

(926,502)

Excess investment income

$

138,393 

$

164,404 

$

130,382 

Excess investment income per diluted common share

$

1.68 

$

1.83 

$

1.35 

Mean invested assets (at amortized cost)

$

21,534,153 

$

21,337,531 

$

20,411,093 

Average insurance policy liabilities

17,920,587 

17,527,857 

16,772,861 

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

Excess investment income declined $26 million, or 16%, in 2025 when compared with 2024. In 2024, excess investment income increased $34 million, or 26%, when compared with 2023. Excess investment income per diluted common share was $1.68 during 2025, a decrease of 8% over the prior-year period ended 2024. Excess investment income per diluted common share was $1.83 during 2024, an increase of 36% over the period ended 2023. 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 increased at a compound annual growth rate of 4% over the three years ending 2025. Mean invested assets increased at a compound annual growth rate of 3% during the same period. The effective annual yield rate earned on the fixed maturity portfolio was 5.27% in 2025, compared to 5.26% in 2024. Generally, investment income grows at a slower rate than the assets when the yield on new investments is lower than the yield on dispositions or the average portfolio yield. It also increases at a faster rate than the assets when new investment yields exceed the yield on dispositions or the average portfolio yield. Net investment income declined in the current period due to lower growth in invested assets and lower earned yields on short-term investments, commercial mortgage loans, and limited partnerships compared to the prior year. Invested asset growth was constrained by the impact of reinsurance transactions and higher dividend distributions from the insurance subsidiaries to the Parent, which reduced cash retained at the insurance companies and, accordingly, funds available for new investment acquisitions. In addition to fixed maturities, the Company has also invested 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 year ended December 31, 2025 was 6.41%. The earned yield on limited partnership investments for the year ended December 31, 2025 was 7.56%. See additional information in Note 4—Investments. The following chart presents the growth in net investment income and the growth in mean invested assets.

2025

2024

2023

Growth in net investment income

(0.5)

%

7.5 

%

6.6 

%

Growth in mean invested assets (at amortized cost)

0.9 

%

4.5 

%

3.5 

%

Globe Life's net investment income benefits from higher interest rates on new investments. While increasing interest rates has resulted in a net unrealized loss from our available-for-sale debt securities included in accumulated other comprehensive income (loss) as of December 31, 2025, 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.

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GLOBE LIFE INC.

Management's Discussion & Analysis

As discussed in Note 15—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 on the 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.

Information about interest on policy liabilities is shown in the following table.

Required Interest on Insurance Policy Liabilities

(Dollar amounts in thousands)

Required

Interest

Average Net

Insurance

Policy 

Liabilities(2)

Average

Discount

Rate(1)

2025:

Life and Health

$

959,707 

$

17,243,734 

5.6 

%

Annuity

9,683 

191,270 

5.1 

FHLB Funding Agreement

18,367 

397,731 

4.6 

Deposit Funds

4,048 

87,852 

4.6 

Total

$

991,805 

$

17,920,587 

5.5 

Increase in 2025

2.1 

%

2.2 

%

2024:

Life and Health

$

921,489 

$

16,502,133 

5.6 

%

Annuity

28,769 

640,506 

4.5 

FHLB Funding Agreement

16,525 

295,089 

5.6 

Deposit Funds

4,444 

90,129 

4.9 

Total

$

971,227 

$

17,527,857 

5.5 

Increase in 2024

4.8 

%

4.5 

%

2023:

Life and Health

$

879,217 

$

15,739,423 

5.6 

%

Annuity

38,224 

861,676 

4.4 

FHLB Funding Agreement

4,536 

79,036 

5.7 

Deposit Funds

4,525 

92,726 

4.9 

Total

$

926,502 

$

16,772,861 

5.5 

(1)Reflects the average discount rate applicable to the current period, which is used to accrue interest on the insurance policy liabilities for each of the years presented.

(2)Average net insurance policy liabilities are net of accumulated other comprehensive income ("AOCI").

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GLOBE LIFE INC.

Management's Discussion & Analysis

Realized Gains and Losses. Our life and health insurance companies collect premium income from policyholders for the eventual payment of policyholder benefits, sometimes paid 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. For this reason, we hold a significant investment portfolio as a part of our core insurance operations. This portfolio consists primarily of 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.

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 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.

The following table summarizes our tax-effected realized gains (losses) by component for each of the three years ended December 31, 2025.

Analysis of Realized Gains (Losses), Net of Tax

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

Year Ended December 31,

2025

2024

2023

Amount

Per

Share

Amount

Per

Share

Amount

Per

Share

Fixed maturities:

Sales(3)

$

(9,617)

$

(0.12)

$

(9,290)

$

(0.10)

$

(59,463)

$

(0.62)

Matured or other redemptions(1)

(8,726)

(0.10)

155 

— 

(1,604)

(0.02)

Provision for credit losses

(103)

— 

(2,590)

(0.03)

(5,621)

(0.06)

Fair value option—change in fair value

(7,958)

(0.10)

(13,206)

(0.15)

11,931 

0.12 

Mortgages

(2,225)

(0.03)

(3,138)

(0.04)

(4,427)

(0.04)

Other investments

(1,297)

(0.01)

2,319 

0.03 

1,415 

0.02 

Total realized gains (losses)—investments

(29,926)

(0.36)

(25,750)

(0.29)

(57,769)

(0.60)

Other gains (losses)(2)

7,974 

0.09 

6,642 

0.08 

5,885 

0.06 

Total realized gains (losses)

$

(21,952)

$

(0.27)

$

(19,108)

$

(0.21)

$

(51,884)

$

(0.54)

(1)During the three years ended December 31, 2025, 2024, and 2023, the Company recorded $288.5 million, $105.6 million, and $50.9 million, respectively, of exchanges of fixed maturity securities (noncash transactions) that resulted in $(2.3) million, $0, and $(1.5) million, respectively, in realized gains (losses), net of tax.

(2)Other realized gains (losses) are primarily a result of changes in the fair value for assets held in connection with non-qualified deferred compensation plans.

(3)During the year ended December 31, 2023, the Company incurred a $52 million after-tax realized loss due to the disposal of holdings in Signature Bank New York and First Republic Bank as a result of the banks entering receivership.

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GLOBE LIFE INC.

Management's Discussion & Analysis

Investment Acquisitions. Globe Life's investment policy calls for 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)

Year Ended December 31,

2025

2024

2023

Cost of acquisitions:

Investment-grade corporate securities

$

727,259 

$

1,258,203 

$

967,588 

Investment-grade municipal securities

114,621 

94,658 

572,654 

Other securities

76,259 

29,577 

— 

Total fixed maturity acquisitions(1)

$

918,139 

$

1,382,438 

$

1,540,242 

Effective annual yield (one year compounded)(2)

6.37

%

5.93

%

6.13

%

Average life (in years, to next call)

29.7 

29.4 

18.0 

Average life (in years, to maturity)

33.9 

33.3 

24.8 

Average rating

A

A-

A

(1)Fixed maturity acquisitions included unsettled trades of $0 in 2025, $3.2 million in 2024, and $3.8 million in 2023.

(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 2025 and 2024, acquisitions consisted primarily of corporate and municipal bonds with securities spanning a diversified range of issuers, industry sectors, and geographical regions. For the year ended December 31, 2025, we invested primarily in the industrial, financial, and utility sectors. For the entire portfolio, the taxable equivalent effective yield earned was 5.27%, up approximately 1 basis points from the yield in 2024. 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.

New cash flow available for investment has been primarily provided through our insurance operations, cash received on existing investments, and proceeds from dispositions. Dispositions of fixed maturities were $937 million in 2025 and $1.42 billion in 2024. Dispositions in 2024 included $462 million related to a coinsurance agreement to cede a majority of annuity business to a third-party insurer that was entered into during 2024.

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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)

Year Ended

December 31,

2025

2024

Limited partnerships

$

210,532 

$

238,812 

Commercial mortgage loans

139,967 

174,517 

Common stock

3,197 

19,869 

Convertible notes

— 

2,850 

Company-owned life insurance

35,000 

200,000 

Total

$

388,696 

$

636,048 

Since fixed maturities represent such a significant portion of our investment portfolio, 87% of total amortized cost, net of allowance for credit losses, at December 31, 2025, 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 December 31,

2025

2024

Average annual effective yield(1)

5.29%

5.25%

Average life, in years, to:

Next call(2)

15.2

15.1

Maturity(2)

19.4

19.3

Effective duration to:

Next call(2,3)

8.7

8.8

Maturity(2,3)

10.5

10.6

(1)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 noncallable 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.

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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 December 31, 2025 and 2024.

Fixed Maturities by Sector

December 31, 2025

(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

$

7,978 

$

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. and foreign)

— 

— 

— 

— 

456,618 

299 

(33,518)

423,399 

2 

2 

Collateralized debt obligations

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

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

40

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GLOBE LIFE INC.

Management's Discussion & Analysis

Fixed Maturities by Sector

December 31, 2024

(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

$

38,584 

$

32 

$

(7,801)

$

30,815 

$

2,817,161 

$

49,928 

$

(206,943)

$

2,660,146 

15 

15 

Banks

65,718 

254 

(3,506)

62,466 

1,026,367 

17,023 

(59,795)

983,595 

6 

6 

Other financial

74,973 

— 

(14,917)

60,056 

1,162,847 

15,647 

(146,305)

1,032,189 

6 

6 

Total financial

179,275 

286 

(26,224)

153,337 

5,006,375 

82,598 

(413,043)

4,675,930 

27 

27 

Industrial

Energy

44,580 

— 

(5,410)

39,170 

1,318,501 

33,825 

(77,700)

1,274,626 

7 

7 

Basic materials

— 

— 

— 

— 

1,147,932 

20,121 

(91,699)

1,076,354 

6 

6 

Consumer, non-cyclical

640 

— 

(3)

637 

2,087,181 

11,222 

(255,241)

1,843,162 

11 

11 

Other industrials

25,000 

— 

(4,796)

20,204 

1,089,118 

14,847 

(108,283)

995,682 

6 

6 

Communications

— 

— 

— 

— 

832,355 

12,085 

(90,817)

753,623 

4 

4 

Transportation

— 

— 

— 

— 

572,829 

9,800 

(38,953)

543,676 

3 

3 

Consumer, cyclical

128,674 

331 

(28,378)

100,627 

492,653 

3,113 

(75,592)

420,174 

3 

3 

Technology

50,278 

— 

(2,419)

47,859 

341,407 

597 

(67,045)

274,959 

2 

2 

Total industrial

249,172 

331 

(41,006)

208,497 

7,881,976 

105,610 

(805,330)

7,182,256 

42 

42 

Utilities

58,996 

22 

(6,797)

52,221 

2,081,366 

39,716 

(118,007)

2,003,075 

11 

12 

Total corporates

487,443 

639 

(74,027)

414,055 

14,969,717 

227,924 

(1,336,380)

13,861,261 

80 

81 

States, municipalities, and political divisions:

General obligations

— 

— 

— 

— 

909,765 

3,695 

(177,021)

736,439 

5 

4 

Revenues

— 

— 

— 

— 

2,391,136 

16,967 

(357,738)

2,050,365 

13 

12 

Total states, municipalities, and political divisions

— 

— 

— 

— 

3,300,901 

20,662 

(534,759)

2,786,804 

18 

16 

Other fixed maturities:

Government (U.S., municipal, and foreign)

— 

— 

— 

— 

438,636 

19 

(51,664)

386,991 

2 

2 

Collateralized debt obligations

36,923 

5,943 

— 

42,866 

36,923 

5,943 

— 

42,866 

— 

— 

Other asset-backed securities

4,754 

10 

— 

4,764 

79,237 

39 

(2,186)

77,090 

— 

1 

Total fixed maturities

$

529,120 

$

6,592 

$

(74,027)

$

461,685 

$

18,825,414 

$

254,587 

$

(1,924,989)

$

17,155,012 

100

100

41

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Table of Contents

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 December 31, 2025, 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 December 31, 2025, the total fixed maturity portfolio consisted of 1,010 issuers.

Fixed maturities had a fair value of $17.6 billion at December 31, 2025, compared to $17.2 billion at December 31, 2024. The net unrealized loss position in the fixed-maturity portfolio decreased from $1.7 billion at December 31, 2024 to $1.2 billion at December 31, 2025 due to a change in market rates during the period.

For more information about our fixed-maturity portfolio by component at December 31, 2025 and December 31, 2024, 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 December 31, 2025 and December 31, 2024, 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 December 31, 2025

(Dollar amounts in thousands)

Amortized Cost, net

% of Total

Fair

Value

% of Total

Average Composite Quality Rating on Amortized Cost, net

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-

42

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GLOBE LIFE INC.

Management's Discussion & Analysis

Fixed Maturities by Rating

At December 31, 2024

(Dollar amounts in thousands)

Amortized

Cost, net

% of Total

Fair

Value

% of Total

Average Composite Quality Rating on Amortized Cost

Investment grade:

AAA

$

968,220 

5 

$

855,165 

5 

AA

3,225,044 

17 

2,691,908 

15 

A

5,508,446 

29 

5,147,203 

30 

BBB+

3,267,101 

17 

3,040,313 

18 

BBB

4,087,323 

22 

3,799,696 

22 

BBB-

1,240,160 

7 

1,159,042 

7 

Total investment grade

18,296,294 

97 

16,693,327 

97 

A-

Below investment grade:

BB

397,823 

2 

349,028 

2 

B

92,176 

1 

67,593 

1 

Below B

39,121 

— 

45,064 

— 

Total below investment grade

529,120 

3 

461,685 

3 

BB-

$

18,825,414 

100 

$

17,155,012 

100 

Weighted average composite quality rating

A-

The overall quality rating of the portfolio is A-, the same as of year-end 2024. Fixed maturities rated BBB are 42% of the total portfolio at December 31, 2025, down from 46% at December 31, 2024. 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 December 31, 2025. 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)

Year Ended

December 31,

2025

2024

Balance at beginning of period

$

529,120 

$

529,511 

Downgrades by rating agencies

130,225 

101,018 

Upgrades by rating agencies

(30,565)

(76,754)

Dispositions

(126,293)

(40,907)

Acquisitions

26,735 

20,292 

Provision for credit losses

(130)

(3,280)

Amortization and other

(7,760)

(760)

Balance at end of period

$

521,332 

$

529,120 

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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 December 31, 2025.

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.

The following table is an analysis of operating expenses for the three years ended December 31, 2025.

Operating Expenses Selected Information

(Dollar amounts in thousands)

2025

2024

2023

Amount

% of

Premium

Amount

% of

Premium

Amount

% of

Premium

Insurance administrative expenses:

Salaries

$

137,015 

2.8 

$

129,369 

2.8 

$

119,699 

2.7 

Other employee costs

41,609 

0.8 

36,176 

0.8 

35,905 

0.8 

Information technology costs

82,573 

1.7 

80,555 

1.7 

64,998 

1.5 

Legal costs

22,510 

0.5 

30,478 

0.6 

15,335 

0.3 

Other administrative costs

71,888 

1.5 

65,852 

1.4 

65,224 

1.5 

Total insurance administrative expenses

355,595 

7.3 

342,430 

7.3 

301,161 

6.8 

Parent company expense

14,182 

12,400 

10,866 

Stock compensation expense

53,355 

40,118 

30,736 

Legal proceedings

17,053 

21,575 

900 

Other expenses

2,183 

2,620 

4,170 

Total operating expenses, per Consolidated Statements of Operations

$

442,368 

$

419,143 

$

347,833 

2025

2024

2023

Amount

%

Amount

%

Amount

%

Total insurance administrative expenses increase (decrease) over prior year

$

13,165 

3.8 

$

41,269 

13.7 

$

1,820 

0.6 

Total operating expenses increase (decrease) over prior year

23,225 

5.5 

71,310 

20.5 

(6,121)

(1.7)

Total operating expenses for December 31, 2025 increased in comparison with the prior year primarily due to increases in insurance administrative expenses as well as stock compensation. Insurance administrative expenses increased $13 million primarily due to higher employee costs, which include salaries and other costs. Insurance administrative expenses as a percent of premium were 7.3% for the year ended December 31, 2025 and 2024. Total operating expense for December 31, 2025, increased in comparison with the prior year primarily due to increases in insurance administrative expenses and costs associated with existing stock compensation plans.

44

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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 December 31, 2025, we had slightly more than $1.1 billion remaining under the authorization to repurchase. Since implementing our share repurchase program in 1986, we have used $11.0 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.

The following table summarizes share repurchases for each of the last three years.

Analysis of Share Purchases

(Amounts in thousands)

2025

2024

2023

Purchases with:

Shares

Amount

Shares

Amount

Shares

Amount

Excess cash flow at the Parent Company(1)

5,420 

$

685,151 

10,086 

$

945,637 

3,369 

$

380,103 

Option exercise proceeds

1,469 

189,669 

501 

48,026 

1,080 

127,155 

Total

6,889 

$

874,820 

10,587 

$

993,663 

4,449 

$

507,258 

(1)Excludes excise tax on the repurchase of treasury stock of $6 million in 2025, $8 million in 2024, and $4 million in 2023.

During 2024, the amount of share repurchases was higher as we accelerated repurchases given favorable market conditions and the use of additional capital raised during the year. Refer to Note 12—Debt for further details. Throughout the remainder of this discussion, share repurchases will only refer to those made from excess cash flow at the Parent Company and exclude anti-dilutive share repurchases related to stock options exercised.

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. The subsidiary dividends are generally paid in amounts equal to the subsidiaries’ prior year statutory net income excluding net realized capital gains. 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. GL Re will pay dividends to the parent subject to limitations stipulated by the BMA.

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.

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GLOBE LIFE INC.

Management's Discussion & Analysis

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 12—Debt for further details.

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.

Year Ended December 31,

(Amounts in Thousands)

Projected 2026

2025

2024

2023

Liquidity Sources:

Dividends from Subsidiaries

$

719,000 

$

815,741 

$

692,690 

$

459,535 

Excess Cash Flows(1)

650,000 

890,311 

455,013 

416,081 

(1)Excess cash flows are reported gross of shareholder dividends. For the year ended December 31, 2025, 2024, and 2023, shareholder dividends were $86 million, $85 million, and $84 million, respectively.

For more information on the restrictions on the payment of dividends by subsidiaries, see the Restrictions section of Note 13—Shareholders' Equity. Although these restrictions exist, dividend availability from subsidiaries historically has been more than sufficient for the cash flow needs of the Parent Company.

Dividends from subsidiaries and excess cash flows are projected to be lower in 2026 than in 2025 primarily due to nonrecurring extraordinary dividends received of $192 million in late 2024 and $80 million in 2025 which increased excess cash flows in 2025. Additional sources of liquidity for the Parent Company are cash, intercompany receivables, intercompany borrowings, debt markets, term loans, pre-capitalized trust securities facility discussed below and a revolving credit facility. See Schedule II for more information. The credit facility is discussed below under the caption Short-Term Borrowings.

In 2025, we entered into a 30-year facility agreement (“Facility Agreement”) with a Delaware Trust (the “Trust”) formed by us in connection with the sale by the trust of $500 million pre-capitalized trust securities redeemable May 15, 2055 in a Rule 144A private placement. The Trust invested the proceeds from the sale of its securities in a portfolio of principal and interest strips of U.S. Treasury securities (the “Strips”).

The Facility Agreement 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 million as of December 31, 2025. 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 December 31, 2025, 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 December 31, 2025, we had available $579 million of additional borrowing capacity under this facility, compared with $466 million a year earlier. Globe Life has consistently been able to issue commercial paper as needed during the three years ended December 31, 2025. As of December 31, 2025, the Parent Company was in full compliance with all covenants related to the aforementioned debt.

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As a part of the credit facility, Globe Life has stand-by letters of credit. These letters are issued among our insurance subsidiaries, one of which is an offshore captive reinsurer, and have no impact on company obligations as a whole. Any future regulatory changes that restrict the use of off-shore captive reinsurers might require Globe Life to obtain third-party financing, which could cause an increase in financing costs. On March 29, 2023, the letters of credit were amended to reduce the amount outstanding from $125 million to $115 million. The outstanding letters of credit remained at $115 million at December 31, 2025.

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, an additional short-term credit facility, and intercompany borrowings. Refer to Note 5—Commitments and Contingencies and the discussion surrounding the Company's obligations over the next five years. As noted above, the Parent Company had access to $76 million of liquid assets available as of December 31, 2025. 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 provided from operations were $1.40 billion in 2025 and 2024. The Company sold shorter term securities and reinvested in longer term investments, extending duration and taking advantage of higher current interest rates during the year ended December 31, 2025. As noted under the caption Credit Facility in Note 12—Debt, the Parent Company has in place a revolving credit facility and a P-CAPS facility. The insurance companies have no additional outstanding credit facilities.

Cash and short-term investments were $459 million at the end of 2025, compared with $250 million at the end of 2024. In addition to these liquid assets, $17.6 billion (fair value at December 31, 2025) of fixed income securities are available for sale in the event of an unexpected need. Approximately $1.4 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.

Debt: The carrying value of the long-term debt was $2.3 billion at December 31, 2025 and 2024. A complete analysis and description of long-term debt issues outstanding is presented in Note 12—Debt.

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 Consolidated Statements of Operations.

Analysis of Financing Costs

(Dollar amounts in thousands)

2025

2024

2023

Interest on funded debt

$

94,431 

$

77,258 

$

72,641 

Interest on term loan

15,240 

13,823 

7,684 

Interest on short-term debt

26,900 

35,979 

21,958 

Other

4,650 

32 

33 

Financing costs

$

141,221 

$

127,092 

$

102,316 

In 2025, financing costs increased 11% compared with the prior year. The increase in financing costs is primarily due to higher average balances in the current year compared to the prior year due to the issuance of debt in the third quarter of 2024. More information on our debt transactions is disclosed in the Financial Condition section of this report and in Note 12—Debt.

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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 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%. 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.

Our Bermuda-based insurance subsidiaries are subject to regulation in Bermuda and the BMA has capital requirements and solvency standards including limitations on dividends or distributions to shareholders, The minimum solvency margin that must be maintained by a Class C insurer is the greater of : (i) $0.5 million; or (ii) 1.5 percent of assets; or (iii) 25 percent of its enhanced capital requirement ("ECR") as reported at the end of the relevant year.

A Class C insurer is also required to maintain available statutory economic capital and surplus at a level equal to or in excess of its ECR, which is established by reference to either the Bermuda Solvency Capital Requirement ("BSCR") model or a Bermuda-approved internal capital model. While not specifically referred to in the Insurance Act, the BMA has also established a target capital level ("TCL") equal to 120 percent of an insurer's ECR. The TCL serves as an early warning tool for the BMA and failure to maintain statutory capital at least equal to the TCL will likely result in increased regulatory oversight.

We are in the process of completing Globe Life Re's capital and solvency return in respect of the year ended December 31, 2025, which includes the BSCR. We expect that Globe Life Re’s level of capitalization will exceed the minimum solvency margin and result in its statutory economic capital and surplus being in excess of the TCL.

Shareholder's Equity: As noted under the caption Analysis of Share Purchases within this report, we have an ongoing share repurchase program.

Globe Life has continually increased the quarterly dividend on its common shares over the past three years.

Year Ended December 31,

Projected 2026

2025

2024

2023

Quarterly dividend by annual year

$

0.3300 

$

0.2700 

$

0.2400 

$

0.2250 

Shareholders’ equity was $6.0 billion at December 31, 2025. This compares with $5.3 billion at December 31, 2024, an increase of $669 million or 13%. Shareholders' equity increased $819 million, or 18%, during 2024 from $4.5 billion in 2023.

During 2025, shareholders’ equity increased as a result of net income of $1.2 billion, but was offset by share repurchases of $685 million and an additional $190 million in share repurchases to offset the dilution from stock option exercises. Additionally, the balance of AOCI increased $258 million primarily due to increased interest rates and discount rates over the period. During 2024, shareholders' equity increased as a result of net income of $1.1 billion, offset by share repurchases of $946 million and an additional $48 million in share repurchases to offset the dilution from stock option exercises. In addition, the balance of AOCI increased $743 million due to changes in interest rates and discount rates over the 2024 period.

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GLOBE LIFE INC.

Management's Discussion & Analysis

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. 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. 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 effect of this accounting rule when analyzing our balance sheet, capital structure, and financial ratios.

Financial Strength Ratings. The financial strength of our major insurance subsidiaries is rated by Standard & Poor’s and A. M. Best. The following table presents these ratings for our five largest insurance subsidiaries at December 31, 2025.

Standard

& Poor’s

A.M.

Best

Liberty National Life Insurance Company

AA-

A

Globe Life And Accident Insurance Company

AA-

A

United American Insurance Company

AA-

A

American Income Life Insurance Company

AA-

A

Family Heritage Life Insurance Company of America

NR

A

A.M. Best states that it assigns an A (Excellent) rating to insurance companies that have, in its opinion, an excellent ability to meet their ongoing insurance obligations.

The AA financial strength rating category is assigned by Standard & Poor’s Corporation (S&P) to those insurers which have very strong capacity to meet its financial commitments. The plus sign (+) or minus sign (-) shows the relative standing within the major rating category.

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Management's Discussion & Analysis

OTHER ITEMS

Litigation. For more information concerning litigation, please refer to Note 5—Commitments and Contingencies.

CRITICAL ACCOUNTING ESTIMATES

Application of Critical Accounting Estimates. Critical accounting estimates are those estimates made in accordance with GAAP that involve a significant level of estimation uncertainty and have had or are reasonably likely to have a material impact on the financial condition or results of operations. The preparation of financial statements in conformity with GAAP requires the application of accounting estimates that often involve a significant degree of judgment. Management reviews these key estimates and assumptions used in the preparation of financial statements on a timely basis. If management determines that modifications are necessary due to current facts and circumstances, the Company’s results of operations and financial position as reported in the consolidated financial statements could possibly change significantly. Information on our accounting policies is disclosed in Note 1—Significant Accounting Policies.

Future Policy Benefits. Considerable information concerning the policies, procedures, and other relevant data related to the valuation of our liability for future policy benefits is presented in Note 1—Significant Accounting Policies and Note 6—Policy Liabilities.

The liability for future policy benefits for traditional and limited-payment long duration life and health products comprises the vast majority of the total liability for future policy benefits for the Company. The liability is determined each reporting period based on the net level premium method. This method requires the liability for future policy benefits to 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 Company reviews, and updates as necessary, its cash flow assumptions (mortality, morbidity, and lapses) used to calculate the change in the liability for future policy benefits at least annually. These cash flow assumptions are reviewed at the same time every year, or more frequently, if suggested by experience. If cash flow assumptions are changed, the net premium ratio is recalculated from the original issue date, or the Transition Date, using actual experience and projected future cash flows. As cash flow assumptions are changed, the liability for future policy benefits is adjusted with changes recognized in policyholder benefits on the Consolidated Statements of Operations.

The following table illustrates the sensitivity of our liability for future policy benefits, including the corresponding pre-tax impact on OCI, and net income, as of December 31, 2025, to changes in cash flow assumptions. This information is useful in understanding the potential financial impact on our financial statements from changes in these items and the expected impact to our liability for future policy benefits. We could experience impacts that are more or less significant than noted in the following analysis; however the sensitivities provide insight regarding the direction and magnitude of those potential impacts.

At December 31, 2025

(Dollar amounts in thousands)

Assumptions

Sensitivity

Future policy benefits

OCI(1)

Net Income

Mortality

1% increase

$

48,504 

$

(1,337)

$

(47,167)

1% decrease

(48,640)

(328)

48,967 

Morbidity

5% increase

65,040 

3,611 

(68,651)

5% decrease

(51,319)

(4,846)

56,165 

Lapses

10% increase

(111,575)

15,880 

95,695 

10% decrease

118,804 

(17,724)

(101,080)

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Management's Discussion & Analysis

(1)Represents the associated impact to OCI from updating the net premium ratio based upon the cash flow assumptions and the remeasurement of the liability for future policy benefits using the current discount rate.

The liability for future policy benefits is discounted using a current upper-medium grade fixed-income instrument yield that reflects the duration characteristics of the liability for future policy benefits. Accordingly, the discount rate assumption is key in determining the change in the value of the liability for future benefits for long duration life and health contracts. Since the liability for future policy benefits for traditional and limited-payment long duration life and health products comprises approximately 93% of the total liability for future policy benefits, it is subject to interest rate risk. A decrease in discount rates will cause an increase in the obligation with a corresponding change in AOCI.

The following table illustrates the interest rate sensitivity of our liability for future policy benefits as of December 31, 2025. This table measures the effect of a parallel shift in discount rates on the liability. The data measures the change in reported value arising from an immediate change in rates in increments of 50 and 100 basis points, which would be recorded as a component of OCI.

Value of Liability for Future Policy Benefits

(Dollar amounts in thousands)

At December 31,

Change in Discount Rates(1)

2025

(200)

$

27,523,393 

(100)

22,707,449 

(50)

20,809,077 

0

19,169,687 

50

17,744,418 

100

16,497,497 

200

14,429,228 

        (1) In basis points.

Deferred Acquisition Costs. Certain costs of acquiring new insurance business are deferred and recorded as an asset. These costs are capitalized on a grouped contract basis and amortized over the expected term of the related contracts, and are essential for the acquisition of new insurance business.

Deferred Acquisition Costs ("DAC") are amortized on a constant-level basis over the expected term of the grouped contracts, with the related expense included in amortization of deferred acquisition costs on the Consolidated Statements of Operations. The in force metric used to compute the DAC amortization rate is annualized premium in force. The assumptions used to amortize acquisition costs include mortality, morbidity, and lapses, and are consistent with those used in calculating the liability for future policy benefits.

Value of business acquired ("VOBA") is amortized on a basis that is consistent with DAC, as described above, and is subject to periodic recoverability and loss recognition testing to determine if there is a premium deficiency. These tests evaluate whether the present value of future contract-related cash flows will support the capitalized VOBA asset. These cash flows consist primarily of premium income, less benefits and expenses. The present value of these cash flows, less the reserve liability, is then compared with the unamortized balance. In the event the estimated present value of net cash flows is less, the deficiency would be recognized by a charge to earnings and either a reduction of unamortized acquisition costs or an increase in the liability for future benefits.

Policy Claims and Other Benefits Payable. This liability consists of known benefits currently payable and an estimate of claims that have been incurred but not yet reported to us. The estimate of unreported claims is based on prior experience and is made after careful evaluation of all information available to us. However, the factors upon which these estimates are based can be subject to change from historical patterns. Factors involved include the litigation environment, regulatory mandates, and the introduction of policy types for which claim patterns are not well established, and medical trend rates and medical cost inflation as they affect our health claims. Changes in these estimates, if any, are reflected in the earnings of the period in which the adjustment is made. The Company concludes that the estimates used to produce the liability for claims and other benefits, including the estimate of

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Management's Discussion & Analysis

unsubmitted claims, are the most appropriate under the circumstances. However, there is no certainty that the resulting stated liability will be our ultimate obligation. At this time, we do not expect any change in this estimate to have a material impact on earnings or financial position consistent with our historical experience. There were no significant changes in the claims process in the current year.

Valuation of Fixed Maturities. We hold a substantial investment in high-quality fixed maturities to provide for the funding of our future policy contractual obligations over long periods of time. While these securities are generally expected to be held to maturity, they are classified as available for sale and are sold from time to time to maximize risk-adjusted, capital-adjusted returns or for other general purposes. We report this portfolio at fair value. Fair value is the price that we would expect to receive upon sale of the asset in an orderly transaction. The fair value of the fixed maturity portfolio is primarily affected by changes in interest rates in financial markets. Because of the size of our fixed maturity portfolio and the long average life, small changes in rates can have a significant effect on the portfolio and the reported financial position of the Company. This impact is disclosed in 100 basis point increments under the caption Market Risk Sensitivity in this report. However, as discussed under the caption Financial Condition in this report, the Company regards these unrealized fluctuations in value as having no meaningful impact on our actual financial condition and, as such, we remove them from consideration when viewing our financial position and financial ratios.

At times, the values of our fixed maturities can also be affected by illiquidity in the financial markets. Illiquidity may contribute to a spread widening, and accordingly to unrealized losses, on many securities that we would expect to be fully recoverable. Even though our fixed maturity portfolio is available for sale, we have the ability and general intent to hold the securities until maturity as a result of our strong and stable cash flows generated from our insurance products. Considerable information concerning the policies, procedures, classification levels, and other relevant data concerning the valuation of our fixed maturity investments is presented in Note 1—Significant Accounting Policies and in Note 4—Investments under the captions Fair Value Measurements in both notes. There were no significant changes in the valuation process in the current year.

Market Risk Sensitivity. Globe Life's investment securities are exposed to interest rate risk, meaning the effect of changes in financial market interest rates on the current fair value of the Company’s investment portfolio. Since 86% of the carrying value of our investments is attributable to fixed maturity investments and these investments are predominately fixed-rate investments, the portfolio is highly subject to market risk. Declines in market interest rates generally result in the fair value of the investment portfolio rising, and increases in interest rates cause the fair value to decline. Under normal market conditions, we are not concerned about unrealized losses that are interest rate driven since we would not expect to realize them. Globe Life does not generally intend to sell the securities prior to maturity and, likely, will not be required to sell the securities prior to recovery of amortized cost. The long-term nature of our insurance policy liabilities and strong operating cash-flow substantially mitigate any future need to liquidate portions of the portfolio.

The following table illustrates the interest rate sensitivity of our fixed maturity portfolio at December 31, 2025. This table measures the effect of a parallel shift in interest rates (as represented by the U.S. Treasury curve) on the fair value of the fixed maturity portfolio. The data measures the change in fair value arising from an immediate and sustained change in interest rates in increments of 100 basis points.

Market Value of Fixed Maturity Portfolio

(Dollar amounts in thousands)

At December 31,

Change in Interest Rates(1)

2025

(200)

$

21,383,000 

(100)

19,376,000 

0

17,589,000 

100

15,992,000 

200

14,561,000 

        (1) In basis points.

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GLOBE LIFE INC.

Management's Discussion & Analysis

Investments: Allowance for Credit Losses. We continually monitor our investment portfolio for investments where fair value has declined below carrying value to determine if a credit loss event has occurred. When a credit event does occur, an allowance for credit loss is recorded and the corresponding provision is recognized on the Consolidated Statements of Operations in Realized Gains or Losses. Non-credit related fluctuations in the fair value are recorded in Other Comprehensive Income. The policies and procedures that we use to evaluate and account for allowance for credit losses are disclosed in Note 1—Significant Accounting Policies and the discussions under the captions Investments and Realized Gains and Losses in this report. While every effort is made to make the best estimate of status and value with the information available regarding an allowance for credit loss, it is difficult to predict the future prospects of a distressed or impaired security.

Defined Benefit Pension Plans. We maintain funded defined benefit plans covering most full-time employees. We also have an unfunded nonqualified defined benefit plan covering a limited number of officers. Our obligations under these plans are determined actuarially based on specified actuarial assumptions. In accordance with GAAP, an expense is recorded each year as these pension obligations grow due to the increase in the service period of employees and the interest cost associated with the passage of time. These obligations are offset, at least in part, by the growth in value of the assets in the funded plans. At December 31, 2025, our gross liability under these plans was $677 million, but was offset by assets of $684 million.

The actuarial assumptions used in determining our obligations/expenses for pensions include: employee mortality and turnover, retirement age, the expected return on plan assets, projected salary increases, and the discount rate at which future obligations could be settled. Additionally, a corridor approach is used to amortize any unrecognized gains or losses outside the corridor (the standard 10% of the greater of plan PBO and fair value assets) and have an amortization service period of approximately nine years. These assumptions have an important effect on the pension obligation. A decrease in the discount rate will cause an increase in the pension obligation. A decrease in projected salary increases will cause a decrease in this obligation. Small changes in assumptions may cause significant differences in reported results for these plans. For example, a sensitivity analysis is presented below for the impact of change in the discount rate and the long-term rate of return on assets assumed on our defined benefit pension plans expense for the year 2025 and projected benefit obligation as of December 31, 2025.

Pension Assumptions

(Dollar amounts in thousands)

Assumption

Change(1)

Impact on Expense

Impact on Projected Benefit Obligation

Discount Rate(2):

Increase

25 

$

(962)

$

(20,826)

Decrease

(25)

858 

21,944 

Expected Return(3):

Increase

25 

(1,673)

— 

Decrease

(25)

1,673 

— 

(1)In basis points.

(2)The discount rate for determining the net periodic benefit cost was 5.81% for 2025. The discount rate used for determining the projected benefit obligation as of December 31, 2025 was 5.81%.

(3)The expected long-term return rate assumed was 7.33% at December 31, 2025, and 7.18% in the prior year. Management considers both historical and future yields to determine the expected return.

The Company determines mortality assumptions through the use of published mortality tables that reflect broad-based studies of mortality and published longevity improvement scales.

The criteria used to determine the primary assumptions are discussed in Note 10—Postretirement Benefits. While we have used our best efforts to determine the most reliable assumptions, given the information available from Company experience, economic data, independent consultants, and other sources, we cannot be certain that actual results will be the same as expected. The assumptions are reviewed annually and revised, if necessary, based on more current information available to us. Note 10—Postretirement Benefits also contains information about pension plan assets, investment policies, and other related data. There were no significant changes in the assumptions in the current year.

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