As used in this Form 10-Q, “Globe Life,” the “Company,” “we,” “our” and “us” refer to Globe Life Inc., a Delaware corporation incorporated in 1979, its subsidiaries and affiliates.
GL Q1 2026 FORM 10-Q
PART I—FINANCIAL INFORMATION
Item 1. Condensed Consolidated Financial Statements
Condensed Consolidated Balance Sheets
Unaudited · Dollar amounts in thousands, except share and per share data
| Line item | March 31,2026 | December 31, 2025 |
|---|---|---|
| Assets: | ||
| Investments: | ||
| Fixed maturities—available for sale, at fair value (amortized cost: 2026—; 2025—, allowance for credit losses: 2026— ; 2025— ) | ||
| Mortgage loans | ||
| Policy loans | ||
| Other long-term investments (includes: 2026—$1,070,296; 2025—$1,109,719 under the fair value option) | ||
| Short-term investments | ||
| Total investments | ||
| Cash | ||
| Accrued investment income | ||
| Other receivables | ||
| Deferred acquisition costs | ||
| Goodwill | ||
| Other assets | ||
| Total assets | ||
| Liabilities: | ||
| Future policy benefits at current discount rates: (at original discount rates: 2026—; 2025—) | ||
| Unearned and advance premium | ||
| Policy claims and other benefits payable | ||
| Other policyholders' funds | ||
| Total policy liabilities | ||
| Current and deferred income taxes | ||
| Short-term debt | ||
| Long-term debt (estimated fair value: 2026—; 2025—) | ||
| Other liabilities | ||
| Total liabilities | ||
| Commitments and Contingencies (Note 5) | ||
| Shareholders' equity: | ||
| Preferred stock, par value per share— shares authorized; outstanding: in 2026 and 2025 | ||
| Common stock, par value per share— shares authorized; outstanding: (2026— issued; 2025— issued) | ||
| Additional paid-in-capital | ||
| Accumulated other comprehensive income (loss) | () | () |
| Retained earnings | ||
| Treasury stock, at cost: (2026— shares; 2025— shares) | () | () |
| Total shareholders' equity | ||
| Total liabilities and shareholders' equity |
See accompanying Notes to Condensed Consolidated Financial Statements.
1
GL Q1 2026 FORM 10-Q
Condensed Consolidated Statements of Operations
Unaudited · Dollar amounts in thousands, except share and per share data
| Line item | Three Months Ended March 31, 2026 | 2025 |
|---|---|---|
| Revenue: | ||
| Life premium | ||
| Health premium | ||
| Total premium | ||
| Net investment income | ||
| Realized gains (losses) | () | |
| Other income | ||
| Total revenue | ||
| Benefits and expenses: | ||
| Life policyholder benefits(1) | ||
| Health policyholder benefits(2) | ||
| Other policyholder benefits | ||
| Total policyholder benefits | ||
| Amortization of deferred acquisition costs | ||
| Commissions, premium taxes, and non-deferred acquisition costs | ||
| Other operating expense | ||
| Interest expense | ||
| Total benefits and expenses | ||
| Income before income taxes | ||
| Income tax benefit (expense) | () | () |
| Net income | ||
| Basic net income per common share | ||
| Diluted net income per common share |
(1) Net of total remeasurement gain of million before tax for the three months ended March 31, 2026 and a total remeasurement gain of million before tax for the same period in 2025.
(2) Net of total remeasurement gain of million before tax for the three months ended March 31, 2026 and a total remeasurement gain of million before tax for the same period in 2025.
See accompanying Notes to Condensed Consolidated Financial Statements.
2
GL Q1 2026 FORM 10-Q
Condensed Consolidated Statements of Comprehensive Income (Loss)
Unaudited · Dollar amounts in thousands
| Line item | Three Months Ended March 31, 2026 | 2025 |
|---|---|---|
| Net income | ||
| Other comprehensive income (loss): | ||
| Investments: | ||
| Unrealized gains (losses) on fixed maturities: | ||
| Unrealized holding gains (losses) arising during period | () | |
| Other reclassification adjustments included in net income | () | () |
| Foreign exchange adjustment on fixed maturities recorded at fair value | (73) | (430) |
| Total unrealized investment gains (losses) | () | |
| Less applicable tax (expense) benefit | () | |
| Unrealized gains (losses) on investments, net of tax | () | |
| Future Policy Benefits: | ||
| Change in discount rate on future policy benefits | 410,451 | (139,352) |
| Less applicable tax (expense) benefit | (86,193) | 29,263 |
| Future policy benefit adjustments, net of tax | 324,258 | (110,089) |
| Foreign exchange translation: | ||
| Foreign exchange translation adjustments, other than securities | 290 | 2,421 |
| Less applicable tax (expense) benefit | () | () |
| Foreign exchange translation adjustments, other than securities, net of tax | ||
| Pension: | ||
| Pension adjustments | ||
| Less applicable tax (expense) benefit | (333) | (15) |
| Pension adjustments, net of tax | ||
| Other comprehensive income (loss) | ||
| Comprehensive income (loss) |
See accompanying Notes to Condensed Consolidated Financial Statements.
3
GL Q1 2026 FORM 10-Q
Condensed Consolidated Statements of Shareholders' Equity
Unaudited · Dollar amounts in thousands, except share and per share data
| Line item | Preferred Stock | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Treasury Stock | Total Shareholders' Equity |
|---|---|---|---|---|---|---|---|
| Balance at December 31, 2025 | — | $92,218 | $536,363 | $(1,771,444) | $8,546,807 | $(1,429,365) | |
| Comprehensive income (loss) | — | — | — | 70,653 | 270,526 | — | |
| Common dividends declared ( per share) | — | — | — | — | (25,697) | — | () |
| Acquisition of treasury stock | — | — | — | — | — | (240,465) | () |
| Stock-based compensation | — | — | (12,134) | — | — | 25,737 | |
| Exercise of stock options | — | — | — | — | (5,244) | 26,641 | 21,397 |
| Balance at March 31, 2026 | — | $92,218 | $524,229 | $(1,700,791) | $8,786,392 | $(1,617,452) |
| Line item | Preferred Stock | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Treasury Stock | Total Shareholders' Equity |
|---|---|---|---|---|---|---|---|
| Balance at December 31, 2024 | — | $97,218 | $527,795 | $(2,029,720) | $8,002,521 | $(1,292,294) | |
| Comprehensive income (loss) | — | — | — | 58,847 | 254,563 | — | |
| Common dividends declared ( per share) | — | — | — | — | (22,383) | — | () |
| Acquisition of treasury stock | — | — | — | — | — | (264,544) | () |
| Stock-based compensation | — | — | (3,754) | — | — | 15,773 | |
| Exercise of stock options | — | — | — | — | (9,753) | 91,147 | 81,394 |
| Balance at March 31, 2025 | — | $97,218 | $524,041 | $(1,970,873) | $8,224,948 | $(1,449,918) |
See accompanying Notes to Condensed Consolidated Financial Statements.
4
GL Q1 2026 FORM 10-Q
Condensed Consolidated Statements of Cash Flows
Unaudited · Dollar amounts in thousands
| Line item | Three Months Ended March 31, 2026 | Three Months Ended March 31, 2025 |
|---|---|---|
| Cash provided from (used for) operating activities | ||
| Cash provided from (used for) investing activities: | ||
| Investments sold or matured: | ||
| Fixed maturities available for sale—sold | ||
| Fixed maturities available for sale—matured or other redemptions | ||
| Mortgage loans | 26,315 | 6,237 |
| Other long-term investments | ||
| Total investments sold or matured | ||
| Acquisition of investments: | ||
| Fixed maturities—available for sale | () | () |
| Mortgage loans | (58,519) | (35,471) |
| Other long-term investments | () | () |
| Total investments acquired | () | () |
| Net (increase) decrease in policy loans | (7,733) | (8,506) |
| Net (increase) decrease in short-term investments | 130,921 | (49,031) |
| Additions to property and equipment | () | () |
| Investments in low-income housing interests | (7,244) | (21,124) |
| Cash provided from (used for) investing activities | () | () |
| Cash provided from (used for) financing activities: | ||
| Issuance of common stock | ||
| Cash dividends paid to shareholders | () | () |
| Net borrowing from Federal Home Loan Bank (FHLB) | ||
| Net borrowing (repayment) of commercial paper | () | |
| Proceeds from commercial paper with original maturities greater than 90 days | ||
| Repayment of commercial paper with original maturities greater than 90 days | () | () |
| Acquisition of treasury stock | () | () |
| Net receipts (payments) from deposit-type products | 58,406 | 17,342 |
| Cash provided from (used for) financing activities | () | () |
| Effect of foreign exchange rate changes on cash | 463 | (524) |
| Net increase (decrease) in cash | ||
| Cash at beginning of year | ||
| Cash at end of period |
See accompanying Notes to Condensed Consolidated Financial Statements.
5
GL Q1 2026 FORM 10-Q
Globe Life Inc.
Notes to Condensed Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
Note 1—Significant Accounting Policies
Business: (Globe Life), (the Company), refers to Globe Life Inc., an insurance holding company incorporated in Delaware in 1979, and Globe Life Inc. subsidiaries and affiliates. Globe Life Inc.'s direct or indirect primary subsidiaries are Globe Life And Accident Insurance Company, American Income Life Insurance Company, Liberty National Life Insurance Company, Family Heritage Life Insurance Company of America, and United American Insurance Company. The underwriting companies are owned by their ultimate corporate parent, Globe Life Inc. (Parent Company).
Globe Life provides a variety of life and supplemental health insurance products to a broad base of customers. The Company is organized into reportable segments: life insurance, supplemental health insurance, and investments.
Globe Life markets its insurance products through a number of distribution channels, each of which sells the products of one or more of Globe Life's insurance segments. Our distribution channels consist of the following exclusive agencies: American Income Life Division (American Income), Liberty National Division (Liberty National) and Family Heritage Division (Family Heritage); an independent agency, United American Division (United American); and our Direct to Consumer Division (DTC).
Basis of Presentation: The accompanying condensed consolidated financial statements of Globe Life have been prepared in accordance with the instructions to Form 10-Q. Therefore, they do not include all of the disclosures required by accounting principles generally accepted in the United States of America (GAAP) for annual financial statements. However, in the opinion of management, these statements include all adjustments, consisting of normal recurring adjustments, which are necessary for a fair presentation of the condensed consolidated financial position at March 31, 2026, and the condensed consolidated results of operations, comprehensive income, and cash flows for the periods ended March 31, 2026 and 2025. The interim period condensed consolidated financial statements should be read in conjunction with the Consolidated Financial Statements that were included in the Form 10-K filed with the Securities Exchange Commission (SEC) on February 25, 2026.
Use of Estimates: The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. See further documentation in the significant accounting policies or the accompanying notes.
Note 2—New Accounting Standards
Accounting Pronouncements Yet to be Adopted: ASU No. 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses, adds disclosure requirements to disaggregate information related to an entity's income statement. The disclosures will allow for enhanced transparency of an entity's expenses.
This standard is effective for the Company for annual periods beginning on January 1, 2027 and Interim periods within fiscal years beginning after December 15, 2027. The Company is evaluating the standard.
ASU No. 2025-06, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software, provides guidance for the evaluation of determining whether criteria is met to begin the capitalization of internal-use software costs. ASC 350 (Intangibles—Goodwill and Other) requires the capitalization of internal-use software costs begin when both of the following criteria are met: (1) when management has authorized and committed to funding the software project and (2) the probability that the project will be completed and will be used to perform the function intended. If uncertainty exists under the guidance issued in Subtopic 350-40 then a probable to complete threshold will not exist and any costs would be expensed until uncertainties are resolved.
6
GL Q1 2026 FORM 10-Q
Globe Life Inc.
Notes to Condensed Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
The updated guidance also requires the application of disclosure requirements in ASC 360 (Plant, Property, and Equipment) for all capitalized costs regardless of presentation in the financial statements. This standard is effective for the Company for annual periods beginning on January 1, 2028 and interim periods within the annual reporting periods. The Company is evaluating the standard.
7
GL Q1 2026 FORM 10-Q
Globe Life Inc.
Notes to Condensed Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
Note 3—Supplemental Information about Changes to Accumulated Other Comprehensive Income (Loss)
| Line item | Three Months Ended March 31, 2026Availablefor Sale Assets | Three Months Ended March 31, 2026Future Policy Benefits | Three Months Ended March 31, 2026Foreign Exchange | Three Months Ended March 31, 2026Pension Adjustments | Total |
|---|---|---|---|---|---|
| Balance at January 1, 2026 | $(969,982) | $(821,628) | $(9,044) | $29,210 | $(1,771,444) |
| Other comprehensive income (loss) before reclassifications, net of tax | (253,842) | 324,258 | 230 | — | |
| Reclassifications, net of tax | (1,240) | — | — | 1,247 | |
| Other comprehensive income (loss) | (255,082) | 324,258 | 230 | 1,247 | |
| Balance at March 31, 2026 | $(1,225,064) | $(497,370) | $(8,814) | $30,457 | $(1,700,791) |
| Line item | Three Months Ended March 31, 2025Availablefor Sale Assets | Three Months Ended March 31, 2025Future Policy Benefits | Three Months Ended March 31, 2025Foreign Exchange | Three Months Ended March 31, 2025Pension Adjustments | Total |
|---|---|---|---|---|---|
| Balance at January 1, 2025 | $(1,319,618) | $(709,042) | $(21,757) | $20,697 | $(2,029,720) |
| Other comprehensive income (loss) before reclassifications, net of tax | 169,609 | (110,089) | 1,913 | — | |
| Reclassifications, net of tax | (2,639) | — | — | 53 | () |
| Other comprehensive income (loss) | 166,970 | (110,089) | 1,913 | 53 | |
| Balance at March 31, 2025 | $(1,152,648) | $(819,131) | $(19,844) | $20,750 | $(1,970,873) |
Reclassification Adjustments: Reclassification adjustments out of accumulated other comprehensive income are presented below for the three month periods ended March 31, 2026 and 2025.
| Component Line Item | Three Months Ended March 31, 2026 | Affected line items in the Statements of Operations | |
|---|---|---|---|
| Unrealized investment (gains) losses on available for sale assets: | |||
| Realized (gains) losses | $717 | $(828) | Realized (gains) losses |
| Amortization of (discount) premium | (2,286) | (2,513) | Net investment income |
| Total before tax | (1,569) | (3,341) | |
| Tax | 329 | 702 | Income taxes |
| Total after-tax | (1,240) | (2,639) | |
| Pension adjustments: | |||
| Amortization of prior service cost | 252 | 292 | Other operating expense |
| Amortization of actuarial (gain) loss | 1,328 | (224) | Other operating expense |
| Total before tax | 1,580 | 68 | |
| Tax | (333) | (15) | Income taxes |
| Total after-tax | 1,247 | 53 | |
| Total reclassification (after-tax) | $7 | $(2,586) |
8
GL Q1 2026 FORM 10-Q
Globe Life Inc.
Notes to Condensed Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
Note 4—Investments
Portfolio Composition: Summaries of fixed maturities available for sale by amortized cost, fair value, and allowance for credit losses at March 31, 2026 and December 31, 2025, and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income (loss) are as follows. Redeemable preferred stock is included within "Corporates, by sector."
At March 31, 2026
| Line item | Amortized Cost | Allowance for Credit Losses | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value(1) | % of Total Fixed Maturities(2) |
|---|---|---|---|---|---|---|
| Fixed maturities available for sale: | ||||||
| U.S. Government direct, guaranteed, and government-sponsored enterprises | $417,459 | — | $70 | $(28,378) | $389,151 | 2 |
| States, municipalities, and political subdivisions | 3,403,657 | — | 27,574 | (546,601) | 2,884,630 | 16 |
| Foreign governments | 48,051 | — | 19 | (9,235) | 38,835 | — |
| Corporates, by sector: | ||||||
| Industrials | 7,919,363 | — | 125,412 | (747,376) | 7,297,399 | 42 |
| Financial | 5,056,081 | — | 91,401 | (400,765) | 4,746,717 | 27 |
| Utilities | 2,170,151 | — | 50,658 | (113,923) | 2,106,886 | 12 |
| Total corporates | 15,145,595 | — | 267,471 | (1,262,064) | 14,151,002 | 81 |
| Collateralized debt obligations | — | — | — | — | — | — |
| Other asset-backed securities | 118,623 | (3,297) | 699 | (267) | 115,758 | 1 |
| Total fixed maturities | $() | $() |
(1) Amount reported in the balance sheet.
(2) At fair value.
At December 31, 2025
| Line item | Amortized Cost | Allowance for Credit Losses | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value(1) | % of Total Fixed Maturities(2) |
|---|---|---|---|---|---|---|
| Fixed maturities available for sale: | ||||||
| U.S. Government direct, guaranteed, and government-sponsored enterprises | $409,170 | — | $161 | $(25,478) | $383,853 | 2 |
| States, municipalities, and political subdivisions | 3,385,433 | — | 26,955 | (531,762) | 2,880,626 | 16 |
| Foreign governments | 47,448 | — | 138 | (8,040) | 39,546 | — |
| Corporates, by sector: | ||||||
| Industrials | 7,787,885 | — | 175,164 | (645,363) | 7,317,686 | 42 |
| Financial | 4,982,187 | — | 134,105 | (333,966) | 4,782,326 | 27 |
| Utilities | 2,093,010 | — | 71,582 | (93,086) | 2,071,506 | 12 |
| Total corporates | 14,863,082 | — | 380,851 | (1,072,415) | 14,171,518 | 81 |
| Collateralized debt obligations | — | — | — | — | — | — |
| Other asset-backed securities | 115,331 | (3,297) | 1,877 | (112) | 113,799 | 1 |
| Total fixed maturities | $() | $() |
(1) Amount reported in the balance sheet.
(2) At fair value.
The Company had unfunded commitments of $340 million and $313 million in fixed maturities at March 31, 2026 and December 31, 2025, respectively.
9
GL Q1 2026 FORM 10-Q
Globe Life Inc.
Notes to Condensed Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
A schedule of fixed maturities available for sale by contractual maturity date at March 31, 2026, is shown below on an amortized cost basis, net of allowance for credit losses, and on a fair value basis. Actual disposition dates could differ from contractual maturities due to call or prepayment provisions.
At March 31, 2026
| Line item | Amortized Cost, net | Fair Value |
|---|---|---|
| Fixed maturities available for sale: | ||
| Due in one year or less | ||
| Due after one year through five years | ||
| Due after five years through ten years | ||
| Due after ten years through twenty years | ||
| Due after twenty years | ||
| Mortgage-backed and asset-backed securities | ||
Analysis of Investment Operations: "Net investment income" for the three month periods ended March 31, 2026 and 2025 is summarized as follows:
| Line item | Three Months Ended March 31, 2026 | 2025 | % Change |
|---|---|---|---|
| Fixed maturities available for sale | $245,819 | $242,210 | 1 |
| Policy loans | 14,281 | 13,658 | 5 |
| Mortgage loans | 7,586 | 6,668 | 14 |
| Other long-term investments(1) | 26,080 | 23,079 | 13 |
| Short-term investments | 2,869 | 1,476 | |
| 296,635 | 287,091 | 3 | |
| Less investment expense | () | () | 5 |
| Net investment income | 3 |
(1) For the three months ended March 31, 2026 and 2025 the investment funds, accounted for under the fair value option method, recorded $21.3 million and $19.2 million in net investment income, respectively, in net investment income. Refer to Other Long-Term Investments below for further discussion on the investment funds.
Selected information about sales of fixed maturities available for sale is as follows:
| Line item | Three Months Ended March 31, 2026 | 2025 |
|---|---|---|
| Fixed maturities available for sale: | ||
| Proceeds from sales(1) | $14,766 | $53,911 |
| Gross realized gains | 249 | 1,478 |
| Gross realized losses | () |
(1) As of March 31, 2026, the Company had unsettled trades. There were unsettled trades for the same period in 2025.
10
GL Q1 2026 FORM 10-Q
Globe Life Inc.
Notes to Condensed Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
An analysis of "realized gains (losses)" is as follows:
| Line item | Three Months Ended March 31, 2026 | 2025 |
|---|---|---|
| Realized investment gains (losses): | ||
| Fixed maturities available for sale: | ||
| Sales and other(1) | $() | |
| Provision for credit losses | — | 40 |
| Fair value option—change in fair value | ||
| Mortgage loans | (141) | 433 |
| Other investments | () | () |
| Realized gains (losses) from investments | 3,389 | 2,554 |
| Other gains (losses) | (4,867) | (2,469) |
| Total realized gains (losses) | () | |
| Applicable tax | 311 | (18) |
| Realized gains (losses), net of tax | $(1,167) | $67 |
(1) During the three months ended March 31, 2026 and 2025, the Company recorded $281.5 thousand and $55.7 million of issuer-initiated exchanges of fixed maturities (noncash transactions) that resulted in $0 and $0 net realized gains (losses), respectively.
11
GL Q1 2026 FORM 10-Q
Globe Life Inc.
Notes to Condensed Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
Fair Value Measurements: The following tables represent the fair value of fixed maturities measured on a recurring basis at March 31, 2026 and December 31, 2025:
Fair Value Measurement at March 31, 2026:
| Line item | Quoted Prices in Active Marketsfor Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total Fair Value |
|---|---|---|---|---|
| Fixed maturities available for sale | ||||
| U.S. Government direct, guaranteed, and government-sponsored enterprises | — | $389,151 | — | $389,151 |
| States, municipalities, and political subdivisions | — | 2,881,653 | 2,977 | 2,884,630 |
| Foreign governments | — | 38,835 | — | 38,835 |
| Corporates, by sector: | ||||
| Financial | — | 4,627,718 | 118,999 | 4,746,717 |
| Utilities | — | 1,995,488 | 111,398 | 2,106,886 |
| Other corporate sectors | — | 7,217,293 | 80,106 | 7,297,399 |
| Total corporates | — | 13,840,499 | 310,503 | 14,151,002 |
| Collateralized debt obligations | — | — | — | — |
| Other asset-backed securities | — | 16,134 | 99,624 | 115,758 |
| Total fixed maturities | — | $17,166,272 | $413,104 | |
| Percentage of total | — | 98% | 2% | % |
Fair Value Measurement at December 31, 2025:
| Line item | Quoted Prices in Active Marketsfor Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total Fair Value |
|---|---|---|---|---|
| Fixed maturities available for sale | ||||
| U.S. Government direct, guaranteed, and government-sponsored enterprises | — | $383,853 | — | $383,853 |
| States, municipalities, and political subdivisions | — | 2,880,626 | — | 2,880,626 |
| Foreign governments | — | 39,546 | — | 39,546 |
| Corporates, by sector: | ||||
| Industrials | — | 7,232,179 | 85,507 | 7,317,686 |
| Financial | — | 4,661,175 | 121,151 | 4,782,326 |
| Utilities | — | 1,968,840 | 102,666 | 2,071,506 |
| Total corporates | — | 13,862,194 | 309,324 | 14,171,518 |
| Collateralized debt obligations | — | — | — | — |
| Other asset-backed securities | — | 27,898 | 85,901 | 113,799 |
| Total fixed maturities | — | $17,194,117 | $395,225 | |
| Percentage of total | — | 98% | 2% | % |
12
GL Q1 2026 FORM 10-Q
Globe Life Inc.
Notes to Condensed Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
The following tables represent changes in fixed maturities measured at fair value on a recurring basis using significant unobservable inputs (Level 3):
| Line item | Analysis of Changes in Fair Value Measurements Using Significant Unobservable Inputs (Level 3)Asset-backed Securities | Analysis of Changes in Fair Value Measurements Using Significant Unobservable Inputs (Level 3)Collateralized Debt Obligations | Analysis of Changes in Fair Value Measurements Using Significant Unobservable Inputs (Level 3)States, Municipalities and Political Subdivisions Debt Obligations | Analysis of Changes in Fair Value Measurements Using Significant Unobservable Inputs (Level 3)Corporates | Analysis of Changes in Fair Value Measurements Using Significant Unobservable Inputs (Level 3)Total |
|---|---|---|---|---|---|
| Balance at January 1, 2026 | $85,901 | — | — | $309,324 | $395,225 |
| Included in realized gains / losses | — | — | — | 757 | 757 |
| Included in other comprehensive income | 251 | — | — | (2,215) | (1,964) |
| Acquisitions | 13,472 | — | 2,977 | 10,000 | 26,449 |
| Sales | — | — | — | (4,480) | (4,480) |
| Amortization | — | — | — | (1) | (1) |
| Other(1) | — | — | — | (2,882) | (2,882) |
| Transfers into Level 3(2) | — | — | — | — | — |
| Transfers out of Level 3(2) | — | — | — | — | — |
| Balance at March 31, 2026 | $99,624 | — | $2,977 | $310,503 | $413,104 |
| Percent of total fixed maturities | — | — | — | 2% | 2% |
(1) Includes capitalized interest, foreign exchange adjustments, and principal repayments.
(2) Considered to be transferred at the end of the period. Transfers into Level 3 occur when observable inputs are no longer available. Transfers out of Level 3 occur when observable inputs become available.
| Line item | Analysis of Changes in Fair Value Measurements Using Significant Unobservable Inputs (Level 3)Asset-backed Securities | Analysis of Changes in Fair Value Measurements Using Significant Unobservable Inputs (Level 3)Collateralized Debt Obligations | Analysis of Changes in Fair Value Measurements Using Significant Unobservable Inputs (Level 3)States, Municipalities and Political Subdivisions Debt Obligations | Analysis of Changes in Fair Value Measurements Using Significant Unobservable Inputs (Level 3)Corporates | Analysis of Changes in Fair Value Measurements Using Significant Unobservable Inputs (Level 3)Total |
|---|---|---|---|---|---|
| Balance at January 1, 2025 | $11,183 | $42,866 | — | $420,065 | $474,114 |
| Included in realized gains / losses | — | — | — | (1) | (1) |
| Included in other comprehensive income | 30 | 5,046 | — | (7,000) | (1,924) |
| Acquisitions | 12,380 | — | — | 9,200 | 21,580 |
| Sales | — | — | — | — | — |
| Amortization | — | 1,136 | — | (3) | 1,133 |
| Other(1) | — | (7,393) | — | 3,925 | (3,468) |
| Transfers into Level 3(2) | — | — | — | — | — |
| Transfers out of Level 3(2) | — | — | — | — | — |
| Balance at March 31, 2025 | $23,593 | $41,655 | — | $426,186 | $491,434 |
| Percent of total fixed maturities | — | — | — | 3% | 3% |
(1) Includes capitalized interest, foreign exchange adjustments, and principal repayments.
(2) Considered to be transferred at the end of the period. Transfers into Level 3 occur when observable inputs are no longer available. Transfers out of Level 3 occur when observable inputs become available.
13
GL Q1 2026 FORM 10-Q
Globe Life Inc.
Notes to Condensed Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
The following table presents changes in unrealized gains and losses for the period included in accumulated other comprehensive income for assets held at the end of the reporting period for Level 3 classification:
| Line item | Changes in Unrealized Gains (Losses) included in Accumulated Other Comprehensive Income for Assets Held at the End of the PeriodAsset-backed Securities | Changes in Unrealized Gains (Losses) included in Accumulated Other Comprehensive Income for Assets Held at the End of the PeriodCollateralized Debt Obligations | Changes in Unrealized Gains (Losses) included in Accumulated Other Comprehensive Income for Assets Held at the End of the PeriodStates, Municipalities and Political Subdivisions Debt Obligations | Changes in Unrealized Gains (Losses) included in Accumulated Other Comprehensive Income for Assets Held at the End of the PeriodCorporates | Changes in Unrealized Gains (Losses) included in Accumulated Other Comprehensive Income for Assets Held at the End of the PeriodTotal |
|---|---|---|---|---|---|
| At March 31, 2026 | $251 | — | — | $(2,215) | $(1,964) |
| At March 31, 2025 | 30 | 5,046 | — | (7,000) | (1,924) |
Transfers between levels within the hierarchy occur when there are changes in the observability of the inputs and market data. Transfers into Level 3 occur when there is little unobservable market activity for the asset/liability as of the measurement date and the Company is required to rely upon internally-developed assumptions or third parties. Transfers out of Level 3 occur when quoted prices in active markets become available for identical assets/liabilities or the ability to corroborate by observable market data.
The following table represents quantitative information about Level 3 fair value measurements:
March 31, 2026
| Line item | Quantitative Information about Level 3 Fair Value MeasurementsFair Value | Quantitative Information about Level 3 Fair Value MeasurementsValuation Technique | Quantitative Information about Level 3 Fair Value MeasurementsSignificant Unobservable Input | Quantitative Information about Level 3 Fair Value MeasurementsRange | Quantitative Information about Level 3 Fair Value MeasurementsWeighted-Average(1) |
|---|---|---|---|---|---|
| Corporates | $310,503 | Discounted cash flow | Credit rating | BB- to AA | BBB+ |
| States, municipalities and political subdivisions | 2,977 | Discounted cash flow | Credit rating | AAA | AAA |
| Asset-backed securities | 99,624 | Discounted cash flow | Credit rating | CC to A- | BBB- |
| $413,104 |
(1) Unobservable inputs were weighted by the relative fair value of the instruments.
Level 3 securities are valued based on the contractual cash flows discounted by a rate determined as a treasury benchmark rate adjusted for a credit spread. The credit spread is developed from observable indices for similar securities and unobservable indices for private securities or private comparable securities for corresponding credit ratings. The credit ratings for the securities may be considered unobservable inputs, as they are private letter ratings issued by a nationally recognized statistical rating organization or are assigned by the third-party investment manager based on a quantitative and qualitative assessment of the credit underwritten. A higher (lower) credit rating would result in a higher (lower) valuation. For more information regarding valuation procedures, please refer to Note 1—Significant Accounting Policies under the caption Fair Value Measurements, Investments in Securities disclosed in the Form 10-K.
Unrealized Loss Analysis: The following table discloses information about fixed maturities available for sale in an unrealized loss position.
| Line item | Less than Twelve Months | Twelve Months or Longer | Total |
|---|---|---|---|
| Number of issues (CUSIPs) held: | |||
| As of March 31, 2026 | |||
| As of December 31, 2025 |
14
GL Q1 2026 FORM 10-Q
Globe Life Inc.
Notes to Condensed Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
Globe Life's entire fixed maturity portfolio consisted of issues by different issuers at March 31, 2026 and issues by different issuers at December 31, 2025. The weighted-average quality rating of all unrealized loss positions at amortized cost was A as of March 31, 2026 and A as of December 31, 2025.
The following tables disclose unrealized investment losses by class and major sector of fixed maturities available for sale at March 31, 2026 and December 31, 2025.
Analysis of Gross Unrealized Investment Losses
At March 31, 2026
| Line item | Less than Twelve MonthsFair Value | Less than Twelve MonthsUnrealized Loss | Twelve Months or LongerFair Value | Twelve Months or LongerUnrealized Loss | TotalFair Value | TotalUnrealized Loss |
|---|---|---|---|---|---|---|
| Fixed maturities available for sale: | ||||||
| Investment grade securities: | ||||||
| U.S. Government direct, guaranteed, and government-sponsored enterprises | $12,947 | $(185) | $366,139 | $(28,193) | $379,086 | $(28,378) |
| States, municipalities, and political subdivisions | 420,682 | (9,520) | 1,647,106 | (536,830) | 2,067,788 | (546,350) |
| Foreign governments | 11,087 | (227) | 24,784 | (9,008) | 35,871 | (9,235) |
| Corporates, by sector: | ||||||
| Industrials | 1,232,612 | (40,881) | 3,461,668 | (660,477) | 4,694,280 | (701,358) |
| Financial | 953,591 | (47,721) | 1,774,944 | (335,824) | 2,728,535 | (383,545) |
| Utilities | 495,550 | (14,627) | 546,119 | (92,791) | 1,041,669 | (107,418) |
| Total corporates | 2,681,753 | (103,229) | 5,782,731 | (1,089,092) | 8,464,484 | (1,192,321) |
| Other asset-backed securities | 28,369 | (182) | 1,311 | (57) | 29,680 | (239) |
| Total investment grade securities | 3,154,838 | (113,343) | 7,822,071 | (1,663,180) | 10,976,909 | (1,776,523) |
| Below investment grade securities: | ||||||
| States, municipalities, and political subdivisions | — | — | 1,709 | (251) | 1,709 | (251) |
| Industrials | 31,189 | (6,090) | 129,820 | (39,928) | 161,009 | (46,018) |
| Financial | 11,943 | (102) | 84,670 | (17,118) | 96,613 | (17,220) |
| Utilities | 13,738 | (283) | 37,958 | (6,222) | 51,696 | (6,505) |
| Total corporates | 56,870 | (6,475) | 252,448 | (63,268) | 309,318 | (69,743) |
| Other asset-backed securities | 13,573 | (28) | — | — | 13,573 | (28) |
| Total below investment grade securities | 70,443 | (6,503) | 254,157 | (63,519) | 324,600 | (70,022) |
| Total fixed maturities | $() | $() | $() |
15
GL Q1 2026 FORM 10-Q
Globe Life Inc.
Notes to Condensed Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
At December 31, 2025
| Line item | Less than Twelve MonthsFair Value | Less than Twelve MonthsUnrealized Loss | Twelve Months or LongerFair Value | Twelve Months or LongerUnrealized Loss | TotalFair Value | TotalUnrealized Loss |
|---|---|---|---|---|---|---|
| Fixed maturities available for sale: | ||||||
| Investment grade securities: | ||||||
| U.S. Government direct, guaranteed, and government-sponsored enterprises | $4,894 | $(454) | $368,750 | $(25,024) | $373,644 | $(25,478) |
| States, municipalities, and political subdivisions | 535,186 | (12,491) | 1,731,104 | (519,061) | 2,266,290 | (531,552) |
| Foreign governments | 5,616 | (26) | 25,370 | (8,014) | 30,986 | (8,040) |
| Corporates, by sector: | ||||||
| Industrials | 680,126 | (14,131) | 3,667,956 | (591,006) | 4,348,082 | (605,137) |
| Financial | 469,436 | (29,118) | 1,806,739 | (294,440) | 2,276,175 | (323,558) |
| Utilities | 302,325 | (4,274) | 555,085 | (82,694) | 857,410 | (86,968) |
| Total corporates | 1,451,887 | (47,523) | 6,029,780 | (968,140) | 7,481,667 | (1,015,663) |
| Other asset-backed securities | 18,217 | (62) | 1,379 | (50) | 19,596 | (112) |
| Total investment grade securities | 2,015,800 | (60,556) | 8,156,383 | (1,520,289) | 10,172,183 | (1,580,845) |
| Below investment grade securities: | ||||||
| States, municipalities, and political subdivisions | — | — | 1,751 | (210) | 1,751 | (210) |
| Corporates, by sector: | ||||||
| Industrials | 35,564 | (6,631) | 141,446 | (33,595) | 177,010 | (40,226) |
| Financial | 6,185 | (36) | 101,427 | (10,372) | 107,612 | (10,408) |
| Utilities | 5,025 | (60) | 38,121 | (6,058) | 43,146 | (6,118) |
| Total corporates | 46,774 | (6,727) | 280,994 | (50,025) | 327,768 | (56,752) |
| Other asset-backed securities | — | — | — | — | — | — |
| Total below investment grade securities | 46,774 | (6,727) | 282,745 | (50,235) | 329,519 | (56,962) |
| Total fixed maturities | $() | $() | $() |
Gross unrealized losses may fluctuate quarter over quarter due to factors in the market that affect the holdings, such as changes in interest rates or credit spreads. The Company considers many factors when determining whether an allowance for a credit loss should be recorded. While the Company holds securities that may be in an unrealized loss position, Globe Life does not generally intend to sell and it is unlikely that the Company will be required to sell the fixed maturities prior to their anticipated recovery or maturity due to the strong cash flows generated by its insurance operations.
16
GL Q1 2026 FORM 10-Q
Globe Life Inc.
Notes to Condensed Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
Fixed Maturities, Allowance for Credit Losses: A summary of the activity in the allowance for credit losses is as follows.
| Line item | Three Months Ended March 31, 2026 | 2025 |
|---|---|---|
| Allowance for credit losses beginning balance | ||
| Additions to allowance for which credit losses were not previously recorded | — | — |
| Additions (reductions) to allowance for fixed maturities that previously had an allowance | — | (40) |
| Reduction of allowance for which the Company intends to sell or more likely than not will be required to sell or sold during the period | — | — |
| Allowance for credit losses ending balance |
As of March 31, 2026, the Company had one fixed maturity security in non-accrual status at amortized cost of $5.5 million with an allowance of $3.3 million. As of December 31, 2025, the Company had two fixed maturity securities in non-accrual status with an amortized cost of $9.2 million and an allowance of $3.3 million.
Mortgage Loans (commercial mortgage loans): Investments in commercial mortgage loans are made through direct investments and through investment funds. We have total commercial mortgage loan investments made directly and through investment funds of $1.04 billion at March 31, 2026 and December 31, 2025. The commercial mortgage loan summaries provided in this section pertain only to those commercial mortgage loans made directly.
Summaries of commercial mortgage loans by property type and geographical location at March 31, 2026 and December 31, 2025 are as follows:
| Line item | March 31, 2026Carrying Value | March 31, 2026% of Total | December 31, 2025Carrying Value | December 31, 2025% of Total |
|---|---|---|---|---|
| Property type: | ||||
| Industrial | $167,327 | 36 | $155,208 | 36 |
| Hospitality | 100,857 | 22 | 99,492 | 23 |
| Multi-family | 118,852 | 26 | 99,212 | 23 |
| Retail | 75,558 | 16 | 76,059 | 18 |
| Office | 3,087 | 1 | 3,061 | 1 |
| Total recorded investment | ||||
| Less allowance for credit losses | () | () | () | () |
| Carrying value, net of allowance for credit losses |
17
GL Q1 2026 FORM 10-Q
Globe Life Inc.
Notes to Condensed Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
| Line item | March 31, 2026Carrying Value | March 31, 2026% of Total | December 31, 2025Carrying Value | December 31, 2025% of Total |
|---|---|---|---|---|
| Geographic location: | ||||
| Florida | ||||
| Texas | ||||
| North Carolina | ||||
| New Jersey | ||||
| Alabama | ||||
| New York | ||||
| Other | ||||
| Total recorded investment | ||||
| Less allowance for credit losses | () | () | () | () |
| Carrying value, net of allowance for credit losses |
The following tables are reflective of the key factors, debt service coverage ratios, and loan-to-value ("LTV") ratios that are utilized by management to monitor the performance of the portfolios. The Company only makes new investments in commercial mortgage loans that have a LTV ratio less than or equal to 80%. LTV ratios that exceed 80% are generally a result of decreases in the valuation of the underlying property. Generally, a higher LTV ratio and a lower debt service coverage ratio equates to higher risk of loss.
March 31, 2026
| Recorded Investment | |||||
| Debt Service Coverage Ratios(1) | |||||
| <1.00x | 1.00x—1.20x | >1.20x | Total | % of Gross Total | |
| Loan-to-value ratio(2): | |||||
| Less than 70% | $84,886 | $49,091 | $324,042 | $458,019 | 98 |
| 70% to 80% | — | — | — | — | — |
| 81% to 90% | — | — | — | — | — |
| Greater than 90% | 7,662 | — | — | 7,662 | 2 |
| Total | $92,548 | $49,091 | $324,042 | ||
| Less allowance for credit losses | () | ||||
| Total, net of allowance for credit losses |
(1) Annual net operating income divided by annual mortgage debt service (principal and interest).
(2) Loan balance divided by stabilized appraised value at origination, including planned renovations and stabilized occupancy. Updated internal valuations are used when a loan is materially underperforming.
18
GL Q1 2026 FORM 10-Q
Globe Life Inc.
Notes to Condensed Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
December 31, 2025
| Recorded Investment | |||||
| Debt Service Coverage Ratios(1) | |||||
| <1.00x | 1.00x—1.20x | >1.20x | Total | % of Gross Total | |
| Loan-to-value ratio(2): | |||||
| Less than 70% | $61,159 | $50,009 | $313,634 | $424,802 | 98 |
| 70% to 80% | — | — | — | — | — |
| 81% to 90% | — | — | — | — | — |
| Greater than 90% | 8,230 | — | — | 8,230 | 2 |
| Total | $69,389 | $50,009 | $313,634 | ||
| Less allowance for credit losses | () | ||||
| Total, net of allowance for credit losses |
(1) Annual net operating income divided by annual mortgage debt service (principal and interest).
(2) Loan balance divided by stabilized appraised value at origination, including planned renovations and stabilized occupancy. Updated internal valuations are used when a loan is materially underperforming.
As of March 31, 2026, the Company had loans in the portfolio. During the quarter, the Company evaluated the commercial mortgage loan portfolio on both an individual and pooling basis to determine the allowance for credit losses and determined loans were collateral dependent or likely to foreclose.
For the three months ended March 31, 2026, the allowance for credit losses increased by $0.1 million to million. The provision for credit losses is included in "Realized gains (losses)" on the Condensed Consolidated Statements of Operations.
| Line item | Three Months Ended March 31, 2026 | 2025 |
|---|---|---|
| Allowance for credit losses beginning balance | ||
| Provision (reversal) for credit losses | () | |
| Reduction in allowance due to dispositions | — | (665) |
| Allowance for credit losses ending balance |
As of March 31, 2026 and December 31, 2025, the Company had two commercial mortgage loans in non-accrual status with a principal balance of $3 million and no delinquent commercial mortgage loans. The Company's unfunded commitment balance to commercial loan borrowers was $21 million as of March 31, 2026.
Other Long-Term Investments: Other long-term investments consist of the following assets:
| Line item | March 31,2026 | December 31, 2025 |
|---|---|---|
| Investment funds | $1,070,296 | $1,109,719 |
| Company-owned life insurance(1) | 323,014 | 243,721 |
| Other | 41,789 | 42,624 |
| Total |
(1) Company-owned life insurance is reported at cash surrender value.
19
GL Q1 2026 FORM 10-Q
Globe Life Inc.
Notes to Condensed Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
The following table presents additional information about the Company's investment funds as of March 31, 2026 and December 31, 2025 at fair value:
| Investment Category | Fair ValueMarch 31,2026 | Fair ValueDecember 31, 2025 | Unfunded Commitments(2)March 31,2026 | Redemption Term/Notice(1) |
|---|---|---|---|---|
| Commercial mortgage loans | $579,280 | $614,080 | $512,426 | Fully redeemable and non-redeemable with varying terms. |
| Opportunistic and private credit | 209,523 | 223,665 | 227,688 | Fully redeemable and non-redeemable with varying terms. |
| Infrastructure | 194,367 | 187,964 | 19,372 | Fully redeemable and non-redeemable with varying terms. |
| Other | 87,126 | 84,010 | 51,037 | Non-redeemable with varying terms |
| Total investment funds | $1,070,296 | $1,109,719 | $810,523 |
(1) Non-redeemable funds generally have an expected life of 7 to 12 years from fund closing with extension options of 1 to 4 years. Redemptions are paid out throughout the life of the funds at the General Partner's discretion. Redeemable funds can generally be redeemed over 6 to 36 months upon request from limited partners.
(2) Unfunded commitments include unfunded balances during the investment period. After an investment period ends, the fund can call capital based on limited and specified reasons. As of March 31, 2026, unfunded commitments totaled $983 million, including funds past the investment period.
The Company had $11 million of capital called during the period from existing investment funds. The Company's unfunded commitments were million as of March 31, 2026.
20
GL Q1 2026 FORM 10-Q
Globe Life Inc.
Notes to Condensed Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
Note 5—Commitments and Contingencies
Guarantees: In connection with the Pre-capitalized Trust Securities agreement signed on July 1, 2025, Globe Life Inc. is required to purchase any treasury securities in default. Management believes it is unlikely the Company will have to make any material payments under this agreement due to default. In addition, Globe Life Inc. has guaranteed letters of credit in connection with its credit facility with a group of banks as disclosed in Note 11—Debt. The letters of credit were issued by TMK Re, Ltd., a wholly-owned subsidiary ("TMK Re"), to secure TMK Re's obligation for claims on certain policies reinsured by TMK Re that were sold by other Globe Life Inc. insurance subsidiaries. These letters of credit facilitate TMK Re's ability to reinsure the business of Globe Life Inc.'s insurance subsidiaries. The credit facility expires in 2029. The maximum amount of letters of credit available is $250 million. Globe Life Inc. would be liable to the extent that TMK Re does not pay the reinsured party. The amount of letters of credit outstanding at March 31, 2026 was million.
Litigation: The Company, as is common with the insurance industry in general, is subject to litigation, including: putative class action litigation; alleged breaches of contract; torts, including bad faith and fraud claims based on alleged wrongful or fraudulent acts of agents of Globe Life Inc.'s insurance subsidiaries; alleged employment discrimination; alleged worker misclassification; and miscellaneous other causes of action. Based upon information presently available, and in light of legal and other factual defenses available to the Company, management does not believe that it is reasonably possible that such litigation will have a material adverse effect on Globe Life Inc.'s financial condition, future operating results or liquidity; however, assessing the eventual outcome of litigation necessarily involves forward-looking speculation as to judgments to be made by judges, juries and appellate courts in the future. This bespeaks caution, particularly in states with reputations for high punitive damage verdicts.
On April 30, 2024, a putative securities class action was filed against Globe Life Inc. and of its current/former executives and directors in the United States District Court for the Eastern District of Texas (City of Miami Gen. Emp. & Sanitation Emp. Ret. Trust, et al. v. Globe Life Inc., et al., Case No. 4:24-cv-00376). On July 24, 2024, the Court appointed Lead Plaintiffs and Lead Counsel for the putative class of shareholders. The Lead Plaintiffs filed a Consolidated Complaint on October 4, 2024 that asserts claims under §§ 10(b), 20(a), and 20(A) of the Securities Exchange Act of 1934 and SEC Rules 10b-5(a), 10b-5(b), and 10b-5(c) promulgated thereunder, on behalf of a putative class of purchasers of Globe Life Inc.'s securities from May 8, 2019 through April 10, 2024. The Consolidated Complaint added four additional executives as defendants and alleges that certain of Globe Life Inc.'s disclosures about financial performance and certain other public statements during the putative class period were materially false or misleading. Pursuant to Globe Life Inc.'s Restated Certificate of Incorporation and indemnification agreements with the individual defendants, Globe Life Inc. has agreed to indemnify the individual director and executive officer defendants for all expenses and losses related to the litigation, subject to the terms of those indemnification agreements. Defendants filed a motion to dismiss the litigation on December 3, 2024, which motion was denied on September 29, 2025. Globe Life Inc. plans to vigorously defend against the lawsuit. The outcome of litigation of this type is inherently uncertain, and there is always the possibility that a court rules in a manner that is adverse to the interests of Globe Life Inc. and the individual defendants. However, the amount of any such loss in that outcome cannot be reasonably estimated at this time.
Also pending in the Eastern District of Texas is a consolidated shareholder derivative suit that is closely related to the putative securities class action disclosed above (the “City of Miami Matter”). On November 7, 2024, Globe Life Inc. shareholder Jui Cheng Hsiao (“Hsiao”) filed a shareholder derivative complaint against Globe Life Inc. as a nominal defendant, as well as certain current and former Globe Life Inc. executives and members of its Board of Directors. On November 14, 2024, Globe Life Inc. shareholder Gautam Jadhav (“Jadhav”) filed a shareholder derivative complaint against the same set of defendants. Each shareholder derivative complaint asserts claim for breach of fiduciary duty against the individual defendants and alleges that the individual defendants breached their fiduciary duties to Globe Life Inc. by causing or permitting Globe Life Inc. to make misleading statements about its performance and financial results. The allegations are substantially similar to those made in the City of Miami Matter and derive from certain short seller reports. Pursuant to Globe Life Inc.'s Restated Certificate of Incorporation and indemnification agreements with the individual defendants, Globe Life Inc. has agreed to indemnify the individual director and executive officer defendants for all expenses and losses related to the litigation, subject to the terms of those indemnification agreements. On January 3, 2025, the Court consolidated the two actions and
21
GL Q1 2026 FORM 10-Q
Globe Life Inc.
Notes to Condensed Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
appointed Hsiao and Jadhav as Lead Plaintiffs and their counsel as Lead Counsel for the consolidated derivative action (In re Globe Life Inc. Stockholder Derivative Litigation, Lead Case No. 4:24-cv-00993-ALM (E.D. Tex.)). On January 25, 2025, the Court granted the parties’ joint motion to stay such proceedings pending the Court’s resolution of the motion to dismiss filed by Globe Life Inc. in the City of Miami Matter. On October 14, 2025, the parties informed the Court that the motion to dismiss in the City of Miami Matter was denied and of their agreement for the terms of the stay to remain in place as they coordinated a schedule. On October 27, 2025 and December 5, 2025, the parties again notified the Court of their continued agreement for the terms of the stay to remain in place and further notified the Court of two related derivative cases filed in the Eastern District of Texas by Globe Life Inc. shareholders, as referenced below.
On November 19, 2025, Globe Life Inc. shareholder Plymouth County Retirement Association (“Plymouth”) filed a Verified Shareholder Derivative Action Complaint in the United States District Court for the Eastern District of Texas against Globe Life Inc. as a nominal defendant, as well as certain current and former Globe Life Inc. executives and members of its Board of Directors (Plymouth County Retirement Association v. Darden, et al., No. 4:25-cv-01246-ALM (E.D. Tex.)). On November 21, 2025, Globe Life Inc. shareholder Catherine M. Sugarbaker Family Trust (“Sugarbaker”) filed a Verified Shareholder Derivative Action Complaint against Globe Life Inc. as a nominal defendant, as well as certain current and former Globe Life Inc. executives and members of its Board of Directors (Catherine M. Sugarbaker Family Trust v. Gary L. Coleman, et al., No. 4:25-cv-01274-ALM (E.D. Tex.)). Both the Plymouth and the Sugarbaker shareholder derivative complaints assert a claim for breach of fiduciary duty against the individual defendants and allege that the individual defendants breached their fiduciary duties to Globe Life Inc. by causing or permitting Globe Life Inc. to make misleading statements about its performance and financial results, as well as a claim against the individual defendants under Section 14(A) of the Securities Exchange Act of 1934, and SEC Rule 14a-9 promulgated thereunder, for allegedly causing Globe Life Inc. to make false and misleading statements in its 2024 Proxy Statement and Notice of Annual Meeting of Shareholders. In addition, Plymouth’s shareholder derivative complaint asserts claims for violation of § 10(b) of the Securities Exchange Act of 1934, and SEC Rule 10b-5(b) promulgated thereunder, on behalf of a putative class of purchasers of Globe Life Inc.'s securities from January 1, 2022 through April 11, 2024, alleging that certain of Globe Life Inc.'s disclosures about financial performance and certain other public statements during the putative class period were materially false or misleading, and that certain individuals traded in Globe Life Inc.’s securities while in possession of material non-public information. The allegations in both complaints are substantially similar to those made in the City of Miami Matter and the consolidated federal derivative action and derive from certain short seller reports. Pursuant to Globe Life Inc.'s Restated Certificate of Incorporation and indemnification agreements with the individual defendants, Globe Life Inc. has agreed to indemnify the individual director and executive officer defendants for all expenses and losses related to the Plymouth and Sugarbaker litigation, subject to the terms of those indemnification agreements. On December 11, 2025, defendants filed a notice of related case in the action filed by Plymouth to inform the Court that the matter should be consolidated with the consolidated federal derivative action. On December 9, 2025, Sugarbaker filed notices of related case in its own action and in the consolidated federal derivative action to inform the respective courts that Sugarbaker’s action should be consolidated with the consolidated federal derivative action. Plymouth and Sugarbaker have motioned the In re Globe Life Inc. Stockholder Derivative Litigation Court to vacate the current lead counsel structure. A hearing on the motion was held on March 25, 2026, but the Court has not yet decided on the motion. In the meantime, the case remains stayed.
On September 19, 2025, a shareholder filed a derivative lawsuit in the Business Court for Dallas County, Texas, against Globe Life Inc. as a nominal defendant, as well as certain current and former Globe Life Inc. executives and members of its Board of Directors (James E. Walker v. Gary L. Coleman, et al., Case No. 25-BC01B-0041). Like the consolidated shareholder derivative lawsuit disclosed above, this litigation is largely similar to the City of Miami Matter and derives in part from certain short seller reports. The petition asserts three causes of action relating to the 2019 through 2024 time period, including: (i) a breach of fiduciary duty claim for failing to provide adequate oversight to prevent purportedly widespread corporate misconduct including fraud, discrimination and harassment; (ii) a breach of fiduciary duty claim against certain individual defendants who allegedly engaged in insider trading; and (iii) a claim for wasting corporate assets by paying excessive compensation and/or bonuses to certain of its executive officers. The petition alleges that Globe Life Inc. was thus exposed to potential legal liability and costs, and that Globe Life Inc. repurchased shares at an artificially inflated price. The petition seeks monetary damages as well as restitution, governance reforms, and accountability for executives and board members. Pursuant to Globe
22
GL Q1 2026 FORM 10-Q
Globe Life Inc.
Notes to Condensed Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
Life Inc.'s Restated Certificate of Incorporation and indemnification agreements with the individual defendants, Globe Life Inc. has agreed to indemnify the individual director and executive officer defendants for all expenses and losses related to the litigation, subject to the terms of those indemnification agreements. Globe Life Inc. intends to mount a robust defense against the litigation. Defendants filed a motion to dismiss the petition on November 20, 2025 for failure to plead demand futility, and a motion to stay the proceedings in the Texas Business Court pending final resolution of the related City of Miami Matter if the Court determines that demand futility is satisfied. On November 19, 2025, Plymouth filed a motion to intervene in the matter and requested that the Court stay the action in favor of the consolidated derivative action in the Eastern District of Texas, or in the alternative, to limit the preclusive effect of the Court’s order on the motion to dismiss for lack of demand futility. On December 1, 2025, the Lead Plaintiffs in the consolidated federal derivative action (Hsiao and Jadhav) also filed a motion to intervene and stay the Texas Business Court proceedings in favor of their consolidated federal derivative action, or in the alternative, to limit the preclusive effect of the Court’s order on the motion to dismiss the petition for lack of demand futility. On December 4, 2025, plaintiff James E. Walker Jr. (“Walker”) filed a motion to strike Plymouth’s motion to intervene. On December 15, 2025, Walker filed a motion to strike the motion to intervene filed by the Lead Plaintiffs in the consolidated federal derivative action. On February 5, 2026, the Court cancelled the hearing it had scheduled for February 6, 2026 to hear all of the above motions and stayed the case pending further order of the Court. Walker has filed a motion to intervene in the In re Globe Life Inc. Stockholder Derivative Litigation case discussed above. A hearing on the motion was held on March 25, 2026, but the Court has not yet decided on the motion. In the meantime, the case remains stayed.
23
GL Q1 2026 FORM 10-Q
Globe Life Inc.
Notes to Condensed Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
Note 6—Policy Liabilities
The liability for future policy benefits is determined based on the net level premium method, which requires the liability be calculated as the present value of estimated future policyholder benefits and the related termination expenses, less the present value of estimated future net premiums to be collected from policyholders.
The following tables summarize balances and changes in the net liability for future policy benefits, before reinsurance, for traditional life long-duration contracts for the three month periods ended March 31, 2026 and 2025:
| Line item | Life · Present value of expected future net premiumsAmerican Income | Life · Present value of expected future net premiumsDTC | Life · Present value of expected future net premiumsLiberty National | Life · Present value of expected future net premiumsOther | Life · Present value of expected future net premiumsTotal |
|---|---|---|---|---|---|
| Balance at January 1, 2025 | |||||
| Beginning balance at original discount rates | |||||
| Effect of changes in assumptions on future cash flows | |||||
| Effect of actual variances from expected experience | () | () | () | () | () |
| Adjusted balance at January 1, 2025 | |||||
| Issuances(1) | |||||
| Interest accrual(2) | |||||
| Net premiums collected(3) | () | () | () | () | () |
| Effect of changes in the foreign exchange rate | |||||
| Ending balance at original discount rates | |||||
| Effect of change from original to current discount rates | |||||
| Balance at March 31, 2025 | |||||
| Balance at January 1, 2026 | |||||
| Beginning balance at original discount rates | |||||
| Effect of changes in assumptions on future cash flows | |||||
| Effect of actual variances from expected experience | () | () | () | () | () |
| Adjusted balance at January 1, 2026 | |||||
| Issuances(1) | |||||
| Interest accrual(2) | |||||
| Net premiums collected(3) | () | () | () | () | () |
| Effect of changes in the foreign exchange rate | () | () | |||
| Ending balance at original discount rates | |||||
| Effect of change from original to current discount rates | |||||
| Balance at March 31, 2026 |
(1) Issuances represent the present value, using the original discount rate, of the expected net premiums related to new policies issued during each respective period.
(2) The interest accrual is the interest earned on the beginning present value of the expected net premiums, as well as the interest on actual net premiums earned during the period, using the original interest rate.
(3) Net premiums collected represent the product of the current period net premium ratio and the gross premiums collected during the period on the in force business.
24
GL Q1 2026 FORM 10-Q
Globe Life Inc.
Notes to Condensed Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
| Line item | Life · Present value of expected future policy benefitsAmerican Income | Life · Present value of expected future policy benefitsDTC | Life · Present value of expected future policy benefitsLiberty National | Life · Present value of expected future policy benefitsOther | Life · Present value of expected future policy benefitsTotal |
|---|---|---|---|---|---|
| Balance at January 1, 2025 | |||||
| Beginning balance at original discount rates | |||||
| Effect of changes in assumptions on future cash flows | |||||
| Effect of actual variances from expected experience | () | () | () | () | () |
| Adjusted balance at January 1, 2025 | |||||
| Issuances(1) | |||||
| Interest accrual(2) | |||||
| Benefit payments(3) | () | () | () | () | () |
| Effect of changes in the foreign exchange rate | |||||
| Ending balance at original discount rates | |||||
| Effect of change from original to current discount rates | |||||
| Balance at March 31, 2025 |
| Balance at January 1, 2026 | |||||
| Beginning balance at original discount rates | |||||
| Effect of changes in assumptions on future cash flows | |||||
| Effect of actual variances from expected experience | () | () | () | () | () |
| Adjusted balance at January 1, 2026 | |||||
| Issuances(1) | |||||
| Interest accrual(2) | |||||
| Benefit payments(3) | () | () | () | () | () |
| Effect of changes in the foreign exchange rate | () | () | |||
| Ending balance at original discount rates | |||||
| Effect of change from original to current discount rates | |||||
| Balance at March 31, 2026 |
(1) Issuances represent the present value, using the original discount rate, of the expected future policy benefits related to new policies issued during each respective period.
(2) The interest accrual is the interest earned on the beginning present value of the expected future policy benefits, as well as the interest on actual benefits and expenses paid during the period, using the original interest rate.
(3) Benefit payments represent the release of the present value, using the original discount rate, of the actual future policy benefits incurred during the period due to death, surrender, and maturity benefit payments based on the expected assumptions.
25
GL Q1 2026 FORM 10-Q
Globe Life Inc.
Notes to Condensed Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
Net liability for future policy benefits as of March 31, 2025
| Line item | LifeAmerican Income | LifeDTC | LifeLiberty National | LifeOther | LifeTotal |
|---|---|---|---|---|---|
| Net liability for future policy benefits at original discount rates | |||||
| Effect of changes in discount rate assumptions | |||||
| Other adjustments(1) | |||||
| Net liability for future policy benefits, after other adjustments, at current discount rates | |||||
| Reinsurance recoverable | () | () | () | () | |
| Net liability for future policy benefits, after reinsurance recoverable, at current discount rates |
(1) Other adjustments include the effects of capping and flooring the liability (guidance requires an amount not less than zero at the calculation level of the liability for future policy benefits).
Net liability for future policy benefits as of March 31, 2026
| Line item | LifeAmerican Income | LifeDTC | LifeLiberty National | LifeOther | LifeTotal |
|---|---|---|---|---|---|
| Net liability for future policy benefits at original discount rates | |||||
| Effect of changes in discount rate assumptions | |||||
| Other adjustments(1) | |||||
| Net liability for future policy benefits, after other adjustments, at current discount rates | |||||
| Reinsurance recoverable | () | () | () | () | |
| Net liability for future policy benefits, after reinsurance recoverable, at current discount rates |
(1) Other adjustments include the effects of flooring the liability (guidance requires an amount not less than zero at the calculation level of the liability for future policy benefits).
26
GL Q1 2026 FORM 10-Q
Globe Life Inc.
Notes to Condensed Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
The following tables summarize balances and changes in the net liability for future policy benefits for long-duration health contracts for the three month periods ended March 31, 2026 and 2025:
| Line item | Health · Present value of expected future net premiumsUnited American | Health · Present value of expected future net premiumsFamily Heritage | Health · Present value of expected future net premiumsLiberty National | Health · Present value of expected future net premiumsAmerican Income | Health · Present value of expected future net premiumsDTC | Health · Present value of expected future net premiumsTotal |
|---|---|---|---|---|---|---|
| Balance at January 1, 2025 | ||||||
| Beginning balance at original discount rates | ||||||
| Effect of changes in assumptions on future cash flows | ||||||
| Effect of actual variances from expected experience | () | () | () | () | () | () |
| Adjusted balance at January 1, 2025 | ||||||
| Issuances(1) | ||||||
| Interest accrual(2) | ||||||
| Net premiums collected(3) | () | () | () | () | () | () |
| Effect of changes in the foreign exchange rate | ||||||
| Ending balance at original discount rates | ||||||
| Effect of change from original to current discount rates | () | () | () | |||
| Balance at March 31, 2025 | ||||||
| Balance at January 1, 2026 | ||||||
| Beginning balance at original discount rates | ||||||
| Effect of changes in assumptions on future cash flows | ||||||
| Effect of actual variances from expected experience | () | () | () | () | () | () |
| Adjusted balance at January 1, 2026 | ||||||
| Issuances(1) | ||||||
| Interest accrual(2) | ||||||
| Net premiums collected(3) | () | () | () | () | () | () |
| Effect of changes in the foreign exchange rate | () | () | ||||
| Ending balance at original discount rates | ||||||
| Effect of change from original to current discount rates | () | () | () | () | ||
| Balance at March 31, 2026 |
(1) Issuances represent the present value, using the original discount rate, of the expected net premiums related to new policies issued during each respective period.
(2) The interest accrual is the interest earned on the beginning present value of the expected net premiums, as well as the interest on actual net premiums earned during the period, using the original interest rate.
(3) Net premiums collected represent the product of the current period net premium ratio and the gross premiums collected during the period on the in force business.
27
GL Q1 2026 FORM 10-Q
Globe Life Inc.
Notes to Condensed Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
| Line item | Health · Present value of expected future policy benefitsUnited American | Health · Present value of expected future policy benefitsFamily Heritage | Health · Present value of expected future policy benefitsLiberty National | Health · Present value of expected future policy benefitsAmerican Income | Health · Present value of expected future policy benefitsDTC | Health · Present value of expected future policy benefitsTotal |
|---|---|---|---|---|---|---|
| Balance at January 1, 2025 | ||||||
| Beginning balance at original discount rates | ||||||
| Effect of changes in assumptions on future cash flows | ||||||
| Effect of actual variances from expected experience | () | () | () | () | () | () |
| Adjusted balance at January 1, 2025 | ||||||
| Issuances(1) | ||||||
| Interest accrual(2) | ||||||
| Benefit payments(3) | () | () | () | () | () | () |
| Effect of changes in the foreign exchange rate | ||||||
| Ending balance at original discount rates | ||||||
| Effect of change from original to current discount rates | () | () | () | |||
| Balance at March 31, 2025 |
| Balance at January 1, 2026 | ||||||
| Beginning balance at original discount rates | ||||||
| Effect of changes in assumptions on future cash flows | ||||||
| Effect of actual variances from expected experience | () | () | () | () | () | () |
| Adjusted balance at January 1, 2026 | ||||||
| Issuances(1) | ||||||
| Interest accrual(2) | ||||||
| Benefit payments(3) | () | () | () | () | () | () |
| Effect of changes in the foreign exchange rate | () | () | ||||
| Ending balance at original discount rates | ||||||
| Effect of change from original to current discount rates | () | () | () | |||
| Balance at March 31, 2026 |
(1) Issuances represent the present value, using the original discount rate, of the expected future policy benefits related to new policies issued during each respective period.
(2) The interest accrual is the interest earned on the beginning present value of the expected future policy benefits, as well as the interest on actual benefits and expenses paid during the period, using the original interest rate.
(3) Benefit payments represent the release of the present value, using the original discount rate, of the actual future policy benefits incurred during the period based on the expected assumptions.
28
GL Q1 2026 FORM 10-Q
Globe Life Inc.
Notes to Condensed Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
Net liability for future policy benefits as of March 31, 2025
| Line item | HealthUnited American | HealthFamily Heritage | HealthLiberty National | HealthAmerican Income | HealthDirect to Consumer | HealthTotal |
|---|---|---|---|---|---|---|
| Net liability for future policy benefits at original discount rates | $() | |||||
| Effect of changes in discount rate assumptions | () | () | () | () | ||
| Other adjustments(1) | ||||||
| Net liability for future policy benefits, after other adjustments, at current discount rates | ||||||
| Reinsurance recoverable | () | () | () | |||
| Net liability for future policy benefits, after reinsurance recoverable, at current discount rates |
(1) Other adjustments include the effects of capping and flooring the liability (guidance requires an amount not less than zero at the calculation level of the liability for future policy benefits).
Net liability for future policy benefits as of March 31, 2026
| Line item | HealthUnited American | HealthFamily Heritage | HealthLiberty National | HealthAmerican Income | HealthDirect to Consumer | HealthTotal |
|---|---|---|---|---|---|---|
| Net liability for future policy benefits at original discount rates | () | |||||
| Effect of changes in discount rate assumptions | () | () | () | () | ||
| Other adjustments(1) | ||||||
| Net liability for future policy benefits, after other adjustments, at current discount rates | ||||||
| Reinsurance recoverable | () | () | () | |||
| Net liability for future policy benefits, after reinsurance recoverable, at current discount rates |
(1) Other adjustments include the effects of flooring the liability (guidance requires an amount not less than zero at the calculation level of the liability for future policy benefits).
29
GL Q1 2026 FORM 10-Q
Globe Life Inc.
Notes to Condensed Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
The following tables include the total remeasurement gain or loss, bifurcated between the gain or loss due to differences between actual and expected experience for three months ended March 31, 2026 and 2025:
| Line item | Three Months Ended March 31, 2026 | 2025 |
|---|---|---|
| Life Remeasurement Gain (Loss)—Experience: | ||
| American Income | ||
| Direct to Consumer | ||
| Liberty National | ||
| Other | ||
| Total Life Remeasurement Gain (Loss)—Experience | ||
| Life Remeasurement Gain (Loss)—Assumption Updates: | ||
| American Income | — | — |
| Direct to Consumer | — | — |
| Liberty National | — | — |
| Other | — | — |
| Total Life Remeasurement Gain (Loss)—Assumption Updates(1) | — | — |
| Total Life Remeasurement Gain (Loss) | 18,940 | 8,525 |
| Health Remeasurement Gain (Loss)—Experience: | ||
| United American | () | |
| Family Heritage | ||
| Liberty National | ||
| American Income | ||
| Direct to Consumer | () | |
| Total Health Remeasurement Gain (Loss)—Experience | ||
| Health Remeasurement Gain (Loss)—Assumption Updates: | ||
| United American | — | — |
| Family Heritage | — | — |
| Liberty National | — | — |
| American Income | — | — |
| Direct to Consumer | — | — |
| Health Remeasurement Gain (Loss)—Assumption Updates(1) | — | — |
| Total Health Remeasurement Gain (Loss) | $6,016 | $444 |
(1) Changes to the judgments, assumptions, and methods used in measuring the liability for future policy benefits occur annually, unless otherwise necessary. There were no changes to the judgments, assumptions, and methods used in measuring the liability for future policy benefits during the three months ended March 31, 2026 and 2025.
30
GL Q1 2026 FORM 10-Q
Globe Life Inc.
Notes to Condensed Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
The following table reconciles the liability for future policy benefits to the Condensed Consolidated Balance Sheets as of March 31, 2026 and 2025:
| Line item | At Original Discount RatesAs of March 31, 2026 | At Original Discount RatesAs of March 31, 2025 | At Current Discount RatesAs of March 31, 2026 | At Current Discount RatesAs of March 31, 2025 |
|---|---|---|---|---|
| Life(1): | ||||
| American Income | ||||
| Direct to Consumer | ||||
| Liberty National | ||||
| Other | ||||
| Net liability for future policy benefits—long duration life | ||||
| Health(1): | ||||
| United American | ||||
| Family Heritage | ||||
| Liberty National | ||||
| American Income | ||||
| Direct to Consumer | ||||
| Net liability for future policy benefits—long duration health | ||||
| Deferred profit liability | ||||
| Deferred annuity | ||||
| Interest sensitive life | ||||
| Other | ||||
| Total future policy benefits |
(1) Balances are presented net of the effects of capping and flooring the liability (guidance requires an amount not less than zero at the calculation level of the liability for future policy benefits).
31
GL Q1 2026 FORM 10-Q
Globe Life Inc.
Notes to Condensed Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
The following tables provide the weighted-average original and current discount rates for the liability for future policy benefits and the additional insurance liabilities as of March 31, 2026 and 2025:
| Line item | As of March 31, 2026Original discount rate | As of March 31, 2026Current discount rate | As of March 31, 2025Original discount rate | As of March 31, 2025Current discount rate |
|---|---|---|---|---|
| Life | ||||
| American Income | % | % | % | % |
| Direct to Consumer | % | % | % | % |
| Liberty National | % | % | % | % |
| Other | % | % | % | % |
| Health | ||||
| United American | % | % | % | % |
| Family Heritage | % | % | % | % |
| Liberty National | % | % | % | % |
| American Income | % | % | % | % |
| Direct to Consumer | % | % | % | % |
The following table provides the weighted-average durations of the liability for future policy benefits and the additional insurance liabilities as of March 31, 2026 and 2025:
| Line item | As of March 31, 2026At original discount rates | As of March 31, 2026At current discount rates | As of March 31, 2025At original discount rates | As of March 31, 2025At current discount rates |
|---|---|---|---|---|
| Life | ||||
| American Income | 22.19 | 21.92 | 22.67 | 22.59 |
| Direct to Consumer | 18.56 | 19.23 | 19.17 | 20.11 |
| Liberty National | 15.26 | 14.97 | 15.32 | 15.27 |
| Other | 15.48 | 15.99 | 15.90 | 16.74 |
| Health | ||||
| United American | 12.42 | 11.05 | 11.70 | 10.60 |
| Family Heritage | 16.24 | 14.76 | 15.31 | 14.16 |
| Liberty National | 9.59 | 9.32 | 9.37 | 9.24 |
| American Income | 13.24 | 13.03 | 12.47 | 12.50 |
| Direct to Consumer | 12.42 | 11.05 | 11.70 | 10.60 |
32
GL Q1 2026 FORM 10-Q
Globe Life Inc.
Notes to Condensed Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
The following tables summarize the amount of gross premiums and interest related to long duration life and health contracts that are recognized on the Condensed Consolidated Statements of Operations for three months ended March 31, 2026 and 2025:
| Line item | Life · Three Months Ended March 31, 2026Gross Premiums | Life · Three Months Ended March 31, 2026Interest Expense | Life · Three Months Ended March 31, 2025Gross Premiums | Life · Three Months Ended March 31, 2025Interest Expense |
|---|---|---|---|---|
| American Income | ||||
| Direct to Consumer | ||||
| Liberty National | ||||
| Other | ||||
| Total |
| Line item | Health · Three Months Ended March 31, 2026Gross Premiums | Health · Three Months Ended March 31, 2026Interest Expense | Health · Three Months Ended March 31, 2025Gross Premiums | Health · Three Months Ended March 31, 2025Interest Expense |
|---|---|---|---|---|
| United American | ||||
| Family Heritage | ||||
| Liberty National | ||||
| American Income | ||||
| Direct to Consumer | ||||
| Total |
Gross premiums are included within life and health premium on the Condensed Consolidated Statements of Operations, while the related interest expense is included in life and health policyholder benefits.
33
GL Q1 2026 FORM 10-Q
Globe Life Inc.
Notes to Condensed Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
The following tables provide the undiscounted and discounted expected future net premiums, expected future gross premiums, and expected future policy benefits, at both original and current discount rates, for life and health contracts for three months ended March 31, 2026 and 2025:
| Line item | Life · As of March 31, 2026Not discounted | Life · As of March 31, 2026At original discount rates | Life · As of March 31, 2026At current discount rates | Life · As of March 31, 2025Not discounted | Life · As of March 31, 2025At original discount rates | Life · As of March 31, 2025At current discount rates |
|---|---|---|---|---|---|---|
| American Income | ||||||
| PV of expected future gross premiums | ||||||
| PV of expected future net premiums | ||||||
| PV of expected future policy benefits | ||||||
| DTC | ||||||
| PV of expected future gross premiums | ||||||
| PV of expected future net premiums | ||||||
| PV of expected future policy benefits | ||||||
| Liberty National | ||||||
| PV of expected future gross premiums | ||||||
| PV of expected future net premiums | ||||||
| PV of expected future policy benefits | ||||||
| Other | ||||||
| PV of expected future gross premiums | ||||||
| PV of expected future net premiums | ||||||
| PV of expected future policy benefits | ||||||
| Total | ||||||
| PV of expected future gross premiums | ||||||
| PV of expected future net premiums | ||||||
| PV of expected future policy benefits |
The determination of the liability for future policy benefits on the balance sheet does not include the difference between the expected future gross premiums and the expected future net premiums of billion and billion, as of March 31, 2026 and 2025, respectively, and rather only includes the expected future net premiums.
34
GL Q1 2026 FORM 10-Q
Globe Life Inc.
Notes to Condensed Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
| Line item | Health · As of March 31, 2026Not discounted | Health · As of March 31, 2026At original discount rates | Health · As of March 31, 2026At current discount rates | Health · As of March 31, 2025Not discounted | Health · As of March 31, 2025At original discount rates | Health · As of March 31, 2025At current discount rates |
|---|---|---|---|---|---|---|
| United American | ||||||
| PV of expected future gross premiums | ||||||
| PV of expected future net premiums | ||||||
| PV of expected future policy benefits | ||||||
| Family Heritage | ||||||
| PV of expected future gross premiums | ||||||
| PV of expected future net premiums | ||||||
| PV of expected future policy benefits | ||||||
| Liberty National | ||||||
| PV of expected future gross premiums | ||||||
| PV of expected future net premiums | ||||||
| PV of expected future policy benefits | ||||||
| American Income | ||||||
| PV of expected future gross premiums | ||||||
| PV of expected future net premiums | ||||||
| PV of expected future policy benefits | ||||||
| Direct to Consumer | ||||||
| PV of expected future gross premiums | ||||||
| PV of expected future net premiums | ||||||
| PV of expected future policy benefits | ||||||
| Total | ||||||
| PV of expected future gross premiums | ||||||
| PV of expected future net premiums | ||||||
| PV of expected future policy benefits |
The determination of the liability for future policy benefits on the balance sheet does not include the difference between the expected future gross premiums and the expected future net premiums of billion and billion as of March 31, 2026 and 2025, respectively, and rather only includes the expected future net premiums.
35
GL Q1 2026 FORM 10-Q
Globe Life Inc.
Notes to Condensed Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
The following table summarizes the balances of, and changes in, policyholders’ account balances as of March 31, 2026 and 2025:
| Line item | Policyholders' Account Balances · 2026Interest Sensitive Life | Policyholders' Account Balances · 2026Deferred Annuity(1) | Policyholders' Account Balances · 2026Other Policy-holders' Funds | Policyholders' Account Balances · 2025Interest Sensitive Life | Policyholders' Account Balances · 2025Deferred Annuity(1) | Policyholders' Account Balances · 2025Other Policy-holders' Funds |
|---|---|---|---|---|---|---|
| Balance at January 1, | ||||||
| Issuances | ||||||
| Premiums and deposits received | ||||||
| Policy charges | () | () | ||||
| Surrenders and withdrawals | () | () | () | () | () | () |
| Benefit payments | () | () | () | () | ||
| Interest credited | ||||||
| Other | () | () | () | () | ||
| Balance at March 31, |
| Weighted-average credit rate | % | % | % | % | % | % |
| Net amount at risk | N/A | N/A | N/A | N/A | ||
| Cash surrender value |
(1) At March 31, 2026 and 2025, million and million, respectively, has been reinsured with third-party reinsurers under existing reinsurance agreements.
36
GL Q1 2026 FORM 10-Q
Globe Life Inc.
Notes to Condensed Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
The following tables present the policyholders' account balances by range of guaranteed minimum crediting rates and the related range of difference, if any, in basis points between rates being credited to policyholders and the respective guaranteed minimums as of March 31, 2026 and 2025:
At March 31, 2026
| Range of guaranteed minimum crediting rates | Interest Sensitive Life | Deferred Annuity(1) | Other Policyholders' Funds |
|---|---|---|---|
| At guaranteed minimum: | |||
| Less than 3.00% | — | $2,014 | $483,399 |
| 3.00%-3.99% | 29,372 | 393,470 | 3,158 |
| 4.00%-4.99% | 590,468 | 88,022 | 55,134 |
| Greater than % | 88,889 | 84,572 | 34,761 |
| Total |
(1) At March 31, 2026, million has been reinsured with third-party reinsurers under existing reinsurance agreements.
At March 31, 2025
| Range of guaranteed minimum crediting rates | Interest Sensitive Life | Deferred Annuity(1) | Other Policyholders' Funds |
|---|---|---|---|
| At guaranteed minimum: | |||
| Less than 3.00% | — | $1,866 | $368,459 |
| 3.00%-3.99% | 29,408 | 455,618 | 3,145 |
| 4.00%-4.99% | 601,367 | 178,735 | 55,767 |
| Greater than % | 89,494 | — | 35,777 |
| Total |
(1) At March 31, 2025, million has been reinsured with third-party reinsurers under existing reinsurance agreements.
37
GL Q1 2026 FORM 10-Q
Globe Life Inc.
Notes to Condensed Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
Note 7—Deferred Acquisition Costs
The following tables roll forward the deferred policy acquisition costs for the three month periods ended March 31, 2026 and 2025:
| Line item | LifeAmerican Income | LifeDTC | LifeLiberty National | LifeOther | LifeTotal |
|---|---|---|---|---|---|
| Balance at January 1, 2025 | |||||
| Capitalizations | |||||
| Amortization expense | () | () | () | () | () |
| Foreign exchange adjustment | |||||
| Balance at March 31, 2025 | |||||
| Balance at January 1, 2026 | |||||
| Capitalizations | |||||
| Amortization expense | () | () | () | () | () |
| Foreign exchange adjustment | () | () | |||
| Balance at March 31, 2026 |
| Line item | HealthUnited American | HealthFamily Heritage | HealthLiberty National | HealthAmerican Income | HealthDTC | HealthTotal |
|---|---|---|---|---|---|---|
| Balance at January 1, 2025 | ||||||
| Capitalizations | ||||||
| Amortization expense | () | () | () | () | () | () |
| Foreign exchange adjustment | ||||||
| Balance at March 31, 2025 | ||||||
| Balance at January 1, 2026 | ||||||
| Capitalizations | ||||||
| Amortization expense | () | () | () | () | () | () |
| Foreign exchange adjustment | ||||||
| Balance at March 31, 2026 |
38
GL Q1 2026 FORM 10-Q
Globe Life Inc.
Notes to Condensed Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
The following table presents a reconciliation of deferred policy acquisition costs to the Condensed Consolidated Balance Sheets for the three months ended March 31, 2026 and 2025:
| Line item | March 31, 2026 | March 31, 2025 |
|---|---|---|
| Life | ||
| American Income | ||
| Direct to Consumer | ||
| Liberty National | ||
| Other | ||
| Total DAC—Life | ||
| Health | ||
| United American | ||
| Family Heritage | ||
| Liberty National | ||
| American Income | ||
| Direct to Consumer | ||
| Total DAC—Health | ||
| Annuity | ||
| Total |
39
GL Q1 2026 FORM 10-Q
Globe Life Inc.
Notes to Condensed Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
Note 8—Liability for Unpaid Claims
Activity in the liability for unpaid health claims is summarized as follows:
| Line item | March 31,2026 | December 31,2025 |
|---|---|---|
| Balance at beginning of period | ||
| Less reinsurance recoverables | () | () |
| Net balance at beginning of period | ||
| Incurred related to: | ||
| Current year | ||
| Prior years | () | () |
| Total incurred | ||
| Paid related to: | ||
| Current year | ||
| Prior years | ||
| Total paid | ||
| Net balance at end of period | ||
| Plus reinsurance recoverables | ||
| Balance at end of period |
Below is the reconciliation of the liability of "Policy claims and other benefits payable" on the Condensed Consolidated Balance Sheets.
| Line item | March 31,2026 | December 31,2025 |
|---|---|---|
| Policy claims and other benefits payable: | ||
| Life insurance | ||
| Health insurance | ||
| Total |
40
GL Q1 2026 FORM 10-Q
Globe Life Inc.
Notes to Condensed Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
Note 9—Postretirement Benefits
Globe Life has qualified noncontributory defined benefit pension plans (the "Pension Plans") and contributory savings plans that cover substantially all employees. There is also a nonqualified noncontributory supplemental executive retirement plan ("SERP") that covers a limited number of officers. The tables included herein will focus on the Pension Plans and SERP.
Pension Assets: The following table presents the assets of the Company's Pension Plans at March 31, 2026 and December 31, 2025.
Pension Assets by Component at March 31, 2026
| Line item | Fair Value Determined by:Quoted Prices in Active Marketsfor Identical Assets (Level 1) | Fair Value Determined by:Significant Observable Inputs (Level 2) | Fair Value Determined by:Significant Unobservable Inputs (Level 3) | Total Amount | % of Total |
|---|---|---|---|---|---|
| Exchange traded fund(4) | $52,641 | — | — | $52,641 | 8 |
| Equity exchange traded fund(1) | 328,164 | — | — | 328,164 | 50 |
| U.S. Government and Agency | — | 180,553 | — | 180,553 | 27 |
| Other bonds | — | 3 | — | 3 | — |
| Guaranteed annuity contract(2) | — | 46,454 | — | 46,454 | 7 |
| Short-term investments | 2,620 | — | — | 2,620 | — |
| Other | 1,127 | — | — | 1,127 | — |
| $384,552 | $227,010 | — | 611,562 | 92 | |
| Other long-term investments(3) | 48,519 | 8 | |||
| Total pension assets | $660,081 | 100 |
(1) A fund including marketable securities that mirror the S&P 500 index.
(2) Representing a guaranteed annuity contract issued by Globe Life Inc.'s subsidiary, American Income Life Insurance Company, to fund the obligations of the American Income Life Insurance Company Collective Bargaining Agreement Employees Pension Plan.
(3) Includes non-redeemable investment funds that report the Globe Life Inc. Pension Plan's pro-rata share of the limited partnership's net asset value (NAV) per share, or its equivalent, as a practical expedient for fair value. As of March 31, 2026, the Globe Life Inc. Pension Plan owned less than 1% of three long-term investment funds.
(4) A fund including U.S. dollar-denominated investment-grade securities issued by industrial, utility, and financial companies with maturities greater than 10 years.
41
GL Q1 2026 FORM 10-Q
Globe Life Inc.
Notes to Condensed Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
Pension Assets by Component at December 31, 2025
| Line item | Fair Value Determined by:Quoted Prices in Active Marketsfor Identical Assets (Level 1) | Fair Value Determined by:Significant Observable Inputs (Level 2) | Fair Value Determined by:Significant Unobservable Inputs (Level 3) | Total Amount | % of Total |
|---|---|---|---|---|---|
| Exchange traded fund(4) | $53,437 | — | — | $53,437 | 8 |
| Equity exchange traded fund(1) | 344,409 | — | — | 344,409 | 50 |
| U.S. Government and Agency | — | 180,974 | — | 180,974 | 26 |
| Other bonds | — | 3 | — | 3 | — |
| Guaranteed annuity contract(2) | — | 46,341 | — | 46,341 | 7 |
| Short-term investments | 6,957 | — | — | 6,957 | 1 |
| Other | 3,747 | — | — | 3,747 | 1 |
| $408,550 | $227,318 | — | 635,868 | 93 | |
| Other long-term investments(3) | 48,411 | 7 | |||
| Total pension assets | $684,279 | 100 |
(1) A fund including marketable securities that mirror the S&P 500 index.
(2) Representing a guaranteed annuity contract issued by Globe Life Inc.'s subsidiary, American Income Life Insurance Company, to fund the obligations of the American Income Life Insurance Company Collective Bargaining Agreement Employees Pension Plan.
(3) Includes non-redeemable investment funds that report the Globe Life Inc. Pension Plan's pro-rata share of the limited partnership's net asset value (NAV) per share, or its equivalent, as a practical expedient for fair value. As of December 31, 2025, the Globe Life Inc. Pension Plan owned less than 1% of two long-term investment funds.
(4) A fund including U.S. dollar-denominated investment-grade securities issued by industrial, utility, and financial companies with maturities greater than 10 years.
SERP: The following tables include premiums paid for COLI at March 31, 2026 and 2025 and investments of the Rabbi Trust at March 31, 2026 and December 31, 2025.
| Line item | March 31,2026 | December 31,2025 |
|---|---|---|
| Total investments: | ||
| COLI | ||
| Exchange traded funds | ||
Pension Plans and SERP Liabilities: The following table presents liabilities for the defined benefit pension plans and SERP at March 31, 2026 and December 31, 2025.
| Line item | March 31,2026 | December 31,2025 |
|---|---|---|
| Pension Plans | $579,330 | $597,695 |
| SERP | 79,449 | 79,093 |
| Benefit obligation |
42
GL Q1 2026 FORM 10-Q
Globe Life Inc.
Notes to Condensed Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
Net Periodic Benefit Cost: The following table presents the net periodic benefit costs for the defined benefit pension plans and SERP by expense components for the three month periods ended March 31, 2026 and 2025.
Components of Net Periodic Benefit Cost
| Line item | Three Months Ended March 31, 2026 | 2025 |
|---|---|---|
| Service cost—benefits earned during the period | ||
| Interest cost on projected benefit obligation | ||
| Expected return on assets | (12,338) | (11,563) |
| Amortization: | ||
| Prior service cost | 252 | 292 |
| Actuarial (gain) loss | ||
| Net periodic benefit cost |
Note 10—Earnings Per Share
Earnings per Share: A reconciliation of basic and diluted weighted-average shares outstanding used in the computation of basic and diluted earnings per share is as follows:
| Line item | Three Months Ended March 31, 2026 | 2025 |
|---|---|---|
| Basic weighted average shares outstanding | ||
| Weighted average dilutive options outstanding | ||
| Diluted weighted average shares outstanding | ||
| Antidilutive shares |
Antidilutive shares are excluded from the calculation of diluted earnings per share. All antidilutive shares noted above result from outstanding out-of-the-money employee and Director stock options.
43
GL Q1 2026 FORM 10-Q
Globe Life Inc.
Notes to Condensed Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
Note 11—Debt
The following table presents information about the terms and outstanding balances of Globe Life's debt.
Selected Information about Debt Issues
| Instrument | Issue Date | Maturity Date | Coupon Rate | As of · March 31,2026Par Value | As of · March 31,2026Unamortized Discount & Issuance Costs | As of · March 31,2026Book Value | As of · March 31,2026Fair Value | As of · December 31,2025Book Value |
|---|---|---|---|---|---|---|---|---|
| Senior notes | 09/27/2018 | 09/15/2028 | 4.550% | $550,000 | $(2,055) | $547,945 | $549,104 | $547,748 |
| Senior notes | 08/21/2020 | 08/15/2030 | 2.150% | 400,000 | (2,275) | 397,725 | 359,252 | 397,604 |
| Senior notes(1) | 05/19/2022 | 06/15/2032 | 4.800% | 250,000 | (3,198) | 246,802 | 247,225 | 246,692 |
| Senior notes | 08/23/2024 | 09/15/2034 | 5.850% | 450,000 | (4,675) | 445,325 | 463,991 | 445,218 |
| Junior subordinated debentures | 11/17/2017 | 11/17/2057 | 5.275% | 125,000 | (1,534) | 123,466 | 108,704 | 123,461 |
| Junior subordinated debentures | 06/14/2021 | 06/15/2061 | 4.250% | 325,000 | (7,506) | 317,494 | 200,200 | 317,472 |
| Term loan(2) | 05/11/2023 | 08/15/2027 | 5.127% | 250,000 | (982) | 249,018 | 249,018 | 248,890 |
| Subtotal | () | |||||||
| Unamortized issuance costs(3) | — | () | () | — | () | |||
| Total long-term debt | () | |||||||
| Commercial paper | 459,250 | (2,203) | 457,047 | 457,047 | 304,656 | |||
| Total short-term debt | () | |||||||
| Total debt | $() |
(1) An additional $150 million par value and book value is held by insurance subsidiaries that eliminates in consolidation.
(2) Interest calculated quarterly using Secured Overnight Financing Rate (SOFR) plus 135 basis points. The term loan was amended on August 15, 2024 extending the maturity date from November 11, 2024 to August 15, 2027 and increasing the principal amount from $170 million to $250 million.
(3) Unamortized issuance costs for P-CAPS facility agreement.
The commercial paper has the highest priority of all unsecured debt, followed by senior notes then junior subordinated debentures. The senior notes are callable under a make-whole provision, and the junior subordinated debentures are subject to an optional redemption five years from issuance. Interest on the 4.25% junior subordinated debentures and the term loan are payable quarterly while all other long-term debt is payable semi-annually.
Credit Facility: Globe Life has in place a credit facility which provides for a $1 billion revolving credit facility that may be increased to $1.25 billion. The credit facility matures March 29, 2029 and may be extended up to two one-year periods upon the Company's request. Pursuant to this agreement, the participating lenders have agreed to make revolving loans to Globe Life and to issue secured or unsecured letters of credit. The Company has not drawn on any of the credit to date.
The facility is further designated as a back-up credit line for a commercial paper program under which the Company may either borrow from the credit line or issue commercial paper at any time, with total commercial paper outstanding not to exceed the facility maximum of $1 billion, less any letters of credit issued. Interest is charged at variable rates. In accordance with the agreement, Globe Life is subject to certain covenants regarding capitalization.
44
GL Q1 2026 FORM 10-Q
Globe Life Inc.
Notes to Condensed Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
As of March 31, 2026, the Company was in full compliance with these covenants.
Pre-capitalized Trust Securities: On July 1, 2025, the Company entered into a 30-year Facility Agreement with a Delaware trust (the "Trust") following the completion of a private placement of Trust securities for $500 million of Pre-Capitalized Trust Securities ("P-CAPS"), conducted pursuant to Rule 144A under the Securities Act. The Trust invested the proceeds from this offering in a portfolio of U.S. Treasury principal and interest strips ("Treasury securities"). P-CAPS provide the Company with a source of liquidity, the proceeds of which, if drawn, would be used for general corporate purposes.
Under the Facility Agreement, the Company has the right, on one or more occasions, to issue and sell up to $500 million of its 6.580% Senior Notes to the Trust in exchange for a corresponding amount of Treasury securities held by the Trust. In consideration for this right, the Company pays the Trust a semi-annual facility fee at a rate of 1.789% per annum on the unexercised portion of the facility. These fees are recorded in "Interest expense" on the Condensed Consolidated Statements of Operations. The Company also reimburses the Trust for its administrative expenses. The Issuance Right will be exercised automatically in full upon (i) our failure to pay the facility fee or to purchase any Strips required to be purchased under the Facility, if the failure to pay is not cured within 30 days, or (ii) certain bankruptcy events involving the Company. We are also required to exercise the Issuance Right in full if our consolidated stockholders’ equity (excluding accumulated other comprehensive income ("AOCI") falls below $1.85 billion, subject to certain adjustments. As of March 31, 2026, the Company had no senior note issuances under the Facility Agreement.
Commercial Paper: The following tables present selected information concerning our commercial paper borrowings.
Credit Facility—Commercial Paper
| Line item | As ofMarch 31,2026 | As ofDecember 31, 2025 | As ofMarch 31,2025 |
|---|---|---|---|
| Balance of commercial paper at end of period (par value) | $459,250 | $306,000 | $409,500 |
| Annualized interest rate | % | % | % |
| Letters of credit outstanding | |||
| Remaining amount available under credit line |
Credit Facility—Commercial Paper Activity
| Line item | Three Months Ended March 31, 2026 | Three Months Ended March 31, 2025 |
|---|---|---|
| Average balance of commercial paper outstanding during period (par value) | $373,981 | $478,950 |
| Daily-weighted average interest rate (annualized) | 3.98% | 5.08% |
| Maximum daily amount outstanding during period (par value) | ||
| Commercial paper issued during period (par value) | 759,250 | 586,000 |
| Commercial paper matured during period (par value) | (606,000) | (595,500) |
| Net commercial paper issued (matured) during period (par value) | 153,250 | (9,500) |
Federal Home Loan Bank: FHLB membership provides certain of our insurance subsidiaries with access to various low-cost collateralized borrowings and funding agreements. The membership requires ownership of FHLB common stock, as well as the purchase of activity-based common stock equal to approximately 4.1% of outstanding borrowings.
Globe Life owned million in FHLB common stock as of March 31, 2026 and million as of December 31, 2025. The FHLB stock is restricted from redemption or repurchases for the duration of the membership and recorded at cost (par) as required by applicable guidance. The FHLB stock is included in "Other long-term
45
GL Q1 2026 FORM 10-Q
Globe Life Inc.
Notes to Condensed Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
investments" on the Condensed Consolidated Balance Sheets. Borrowings with the FHLB are subject to the availability of pledged assets at the insurance subsidiaries of Globe Life. As of March 31, 2026, Globe Life's insurance subsidiaries' maximum borrowing capacity under the FHLB facility was approximately $969 million, net of outstanding funding agreements and short-term borrowings, on pledged assets with a fair value of $1.8 billion. As of March 31, 2026, $482 million in funding agreements were outstanding with the FHLB, compared to $437 million as of December 31, 2025. This amount is included in "Other policyholders' funds" on the Condensed Consolidated Balance Sheets. The Company had no short-term borrowings from the FHLB as of March 31, 2026. Short-term borrowings were $70 million for the same period in 2025.
46
GL Q1 2026 FORM 10-Q
Globe Life Inc.
Notes to Condensed Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
Note 12—Business Segments
Globe Life is organized into operating segments: life, health, and investments.
Globe Life's reportable insurance segments are based on the insurance product lines it markets and administers: life insurance and supplemental health insurance. There is also an investment segment that manages the investment portfolio and cash flow for the insurance segments. The Company's chief operating decision makers (the "CODM"), our Co-CEOs, evaluate the overall performance of the operations of the Company in accordance with these segments.
Life insurance products marketed by Globe Life include traditional whole life and term life insurance. Health insurance products are generally guaranteed renewable and include Medicare Supplement, cancer, critical illness, accident, and other limited-benefit supplemental hospital and surgical products.
The following tables present segment premium revenue by each of Globe Life's distribution channels.
| Premium Income by Distribution ChannelDistribution Channel | Premium Income by Distribution Channel · Three Months Ended March 31, 2026 · LifeAmount | Premium Income by Distribution Channel · Three Months Ended March 31, 2026 · Life% of Total | Premium Income by Distribution Channel · Three Months Ended March 31, 2026 · HealthAmount | Premium Income by Distribution Channel · Three Months Ended March 31, 2026 · Health% of Total | TotalAmount | % of Total |
|---|---|---|---|---|---|---|
| American Income | ||||||
| Direct to Consumer | ||||||
| Liberty National | ||||||
| United American | ||||||
| Family Heritage | ||||||
| Other | ||||||
| Total | 100 |
| Premium Income by Distribution ChannelDistribution Channel | Premium Income by Distribution Channel · Three Months Ended March 31, 2025 · LifeAmount | Premium Income by Distribution Channel · Three Months Ended March 31, 2025 · Life% of Total | Premium Income by Distribution Channel · Three Months Ended March 31, 2025 · HealthAmount | Premium Income by Distribution Channel · Three Months Ended March 31, 2025 · Health% of Total | TotalAmount | % of Total |
|---|---|---|---|---|---|---|
| American Income | ||||||
| Direct to Consumer | ||||||
| Liberty National | ||||||
| United American | ||||||
| Family Heritage | ||||||
| Other | ||||||
| Total | 100 |
47
GL Q1 2026 FORM 10-Q
Globe Life Inc.
Notes to Condensed Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
Three Months Ended March 31, 2026
| Line item | Life | Health | Investment | Consolidated |
|---|---|---|---|---|
| Revenue: | ||||
| Premium | $1,270,113 | |||
| Net investment income | ||||
| Segment revenue | 1,559,937 | |||
| Realized gains (losses) | () | |||
| Other income | ||||
| Total consolidated revenue | ||||
| Expenses: | ||||
| Policy obligations(1) | 788,130 | |||
| Required interest on reserves | () | () | 2,204 | |
| Amortization of acquisition costs | 118,282 | |||
| Commissions | 90,992 | |||
| Premium taxes | 25,996 | |||
| Non-deferred acquisition costs | 54,117 | |||
| Segment profit or (loss) | 480,216 | |||
| Insurance administrative expenses: | ||||
| Salaries | ||||
| Other employee costs | ||||
| Information technology costs | 21,872 | |||
| Legal costs | ||||
| Other administrative costs | ||||
| Parent expense | 3,533 | |||
| Stock-based compensation expense | ||||
| Interest expense | ||||
| Legal proceedings | 2,222 | |||
| Other expenses | ||||
| Annuity | (1,969) | |||
| Total expenses | 1,225,487 | |||
| Income before income taxes per Condensed Consolidated Statement of Operations |
(1) Policy obligations are based upon policyholder behavior and impacts related to lapses, mortality, and morbidity. For detailed information, including remeasurement gains and losses, see Note 6—Policy Liabilities.
48
GL Q1 2026 FORM 10-Q
Globe Life Inc.
Notes to Condensed Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
Three Months Ended March 31, 2025
| Line item | Life | Health | Investment | Consolidated |
|---|---|---|---|---|
| Revenue: | ||||
| Premium | $1,199,654 | |||
| Net investment income | ||||
| Segment revenue | 1,480,268 | |||
| Realized gains (losses) | ||||
| Other income | ||||
| Total consolidated revenue | ||||
| Expenses: | ||||
| Policy obligations(1) | $749,079 | |||
| Required interest on reserves | () | () | 2,528 | |
| Amortization of acquisition costs | 105,152 | |||
| Commissions | 88,454 | |||
| Premium taxes | 25,504 | |||
| Non-deferred acquisition costs | 51,696 | |||
| Segment profit or (loss) | 457,855 | |||
| Insurance administrative expenses: | ||||
| Salaries | ||||
| Other employee costs | ||||
| Information technology costs | 20,936 | |||
| Legal costs | ||||
| Other administrative costs | ||||
| Parent expense | 3,050 | |||
| Stock-based compensation expense | ||||
| Interest expense | ||||
| Legal proceedings | 6,128 | |||
| Other expenses | ||||
| Annuity | (1,810) | |||
| Total expenses | 1,164,341 | |||
| Income before income taxes per Condensed Consolidated Statement of Operations |
(1) Policy obligations are based upon policyholder behavior and impacts related to lapses, mortality, and morbidity. For detailed information, including remeasurement gains and losses, see Note 6—Policy Liabilities.
49
GL Q1 2026 FORM 10-Q
Globe Life Inc.
Notes to Condensed Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
Assets for each segment are reported based on a specific identification basis. The insurance segments’ assets contain DAC. The investment segment includes the investment portfolio, cash, and accrued investment income. Goodwill is assigned to the insurance segments at the time of purchase. All other assets are included in the annuity and other corporate category. The tables below reconcile segment assets to total assets as reported on the Condensed Consolidated Balance Sheets.
Assets by Segment
March 31, 2026
| Line item | Life | Health | Investment | Consolidated |
|---|---|---|---|---|
| Cash and invested assets | $20,663,607 | |||
| Accrued investment income | 289,633 | |||
| Deferred acquisition costs | 6,253,845 | 865,275 | 7,119,120 | |
| Goodwill | 490,446 | |||
| Total segment assets | 28,562,806 | |||
| Annuity and other corporate | 2,403,045 | |||
| Total assets |
December 31, 2025
| Line item | Life | Health | Investment | Consolidated |
|---|---|---|---|---|
| Cash and invested assets | $20,614,713 | |||
| Accrued investment income | 272,818 | |||
| Deferred acquisition costs | 6,147,750 | 851,386 | 6,999,136 | |
| Goodwill | 490,446 | |||
| Total segment assets | 28,377,113 | |||
| Annuity and other corporate | 2,436,579 | |||
| Total assets |
50
GL Q1 2026 FORM 10-Q
CAUTIONARY STATEMENTS
We caution readers regarding certain forward-looking statements contained in the foregoing discussion and elsewhere in this document, and in any other statements made by, or on behalf of Globe Life whether or not in future filings with the Securities and Exchange Commission. Any statement that is not a historical fact, or that might otherwise be considered an opinion or projection concerning the Company or its business, whether express or implied, is meant as and should be considered a forward-looking statement. Such statements represent management's opinions concerning future operations, strategies, financial results or other developments. We specifically disclaim any obligation to update or revise any forward-looking statement because of new information, future developments, or otherwise.
16.Globe Life's ability to access the commercial paper and debt markets, particularly if such markets become unpredictable or unstable for a certain period.
Readers are also directed to consider other risks and uncertainties described in other documents on file with the Securities and Exchange Commission, including those described under Item 1A. Risk Factors.
51
GL Q1 2026 FORM 10-Q
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
GLOBE LIFE INC.
Management's Discussion & Analysis
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
The following discussion should be read in conjunction with Globe Life's Condensed Consolidated Financial Statements and Notes thereto appearing elsewhere in this report. The following management discussion will only include comparison to prior year.
"Globe Life" and the "Company" refer to Globe Life Inc. and its subsidiaries and affiliates.
Results of Operations
How Globe Life Views Its Operations. Globe Life Inc. is the holding company for a group of insurance companies that market through exclusive, direct-to-consumer and independent distribution channels primarily individual life and supplemental health insurance to lower middle to middle-income households throughout the United States. We view our operations by segments, which are the insurance product lines of life and supplemental health, and the investment segment that supports the product lines.
Insurance Product Line Segments. The insurance product line segments involve the marketing, underwriting, and administration of policies. Each product line is further subdivided by the various distribution channels that market the insurance policies. Each distribution channel operates in a niche market offering insurance products designed for that particular market. Whether analyzing profitability of a segment as a whole, or the individual distribution channels within the segment, the measure of profitability used by management is the underwriting margin, as seen below:
Premium revenue (Policy obligations) (Policy acquisition costs and commissions) Underwriting margin
Investment Segment. The investment segment involves the management of our capital resources, including investments and the management of liquidity. Our measure of profitability for the investment segment is excess investment income, as seen below:
Net investment income (Required interest on policy liabilities) Excess investment income
52
GL Q1 2026 FORM 10-Q
GLOBE LIFE INC.
Management's Discussion & Analysis
Globe Life serves the lower-middle to middle-income market. We believe this market is underserved, has significant growth potential, and provides us with a distinct competitive advantage. This advantage is protected due not only to our ability to efficiently reach this market through both exclusive and direct to consumer distribution channels, but also due to the amount of data and experience we possess, as we have been in this same market for over 60 years with essentially the same products. The basic protection life and health insurance products we offer are specifically designed to help provide financial security to consumers in this market.
Current Highlights.
- Net income as a return on equity (ROE) for the three months ended March 31, 2026 was 17.9% and net operating income as an ROE, excluding accumulated other comprehensive income(1), was 14.0%.
- Total premium increased 6% over the same period in the prior year. Life premium increased 3% for the period from $830 million in 2025 to $853 million in 2026. Health premium increased 13% to $417 million from $370 million over the prior-year period.
- Total net sales increased 22% over the same period in the prior year from $216 million in 2025 to $264 million in 2026. The average producing agent count across all of the exclusive agencies remained flat over the prior year.
- Book value per share increased 19% over the same period in the prior year from $64.50 to $77.03. Book value per share, excluding accumulated other comprehensive income(1), increased 12% over the prior year from $87.92 in 2025 to $98.56 in 2026.
- For the three months ended March 31, 2026, the Company repurchased 1.4 million shares of Globe Life Inc. common stock at a total cost of $203 million for an average share price of $141.24.
The following graphs represent net income and net operating income(1) for the three month periods ended March 31, 2026 and 2025.
(1) As shown in the charts above, net operating income is primarily comprised of insurance underwriting margin plus excess investment income and annuity and other income, offset by operating expenses after tax and, as such, is considered a non-GAAP measure. It has been used consistently by Globe Life's management for many years to evaluate the operating performance of the Company. It differs from net income primarily because it excludes certain non-operating items such as realized gains and losses and certain significant and unusual items included in net income. Net income is the most directly comparable GAAP measure.
Net operating income as an ROE, excluding AOCI, is considered a non-GAAP measure. Management utilizes this measure to view the business without the effect of changes in AOCI, which are primarily attributable to fluctuation in interest rates. The impact of the adjustment to exclude AOCI is $(1.7) billion and $(2.0) billion for the three months ended March 31, 2026 and 2025, respectively.
Book value per share, excluding AOCI, is also considered a non-GAAP measure. Management utilizes this measure to view the book value of the business without the effect of changes in AOCI, which are primarily attributable to fluctuation in interest rates. The impact of the adjustment to exclude AOCI is $(21.53) and $(23.42) per share for the three months ended March 31, 2026 and 2025, respectively.
Refer to Analysis of Profitability by Segment for non-GAAP reconciliation to GAAP.
53
GL Q1 2026 FORM 10-Q
GLOBE LIFE INC.
Management's Discussion & Analysis
Summary of Operations.
- Net income totaled $271 million during the three months ended March 31, 2026, compared with $255 million in the same period in 2025.
- On a diluted per common share basis, net income per common share for the three months ended March 31, 2026 increased 13% from $3.01 to $3.39.
- Net operating income was $274 million for the three months ended March 31, 2026, compared with $259 million for the same period in 2025.
- On a diluted per common share basis, net operating income per common share for the three months ended March 31, 2026 increased from $3.07 to $3.43, a 12% increase.
Net operating income is primarily comprised of insurance underwriting margin plus excess investment income and annuity and other income, offset by operating expenses, after tax and, as such, is considered a non-GAAP measure. Net income is the most directly comparable GAAP measure. We do not consider realized gains and losses to be a component of our core insurance operations or operating segments. Additionally, net income is affected by certain non-operating items. We do not view these items as components of core operating results because they are not indicative of past performance or future prospects of the insurance operations. We remove items such as these that relate to prior periods or are non-operating items when evaluating the results of current operations, and therefore exclude such items from our segment analysis for current periods.
The Company continues to see positive signs in its core operations, including sales and premium growth, and continues to achieve an operating ROE (excluding accumulated other comprehensive income) generally in the mid-teens.
54
GL Q1 2026 FORM 10-Q
GLOBE LIFE INC.
Management's Discussion & Analysis
Globe Life's operations on a segment-by-segment basis are discussed in depth below. Net operating income has been used consistently by management for many years to evaluate the operating performance of the Company and is a measure commonly used in the life insurance industry. It differs from GAAP net income primarily because it excludes certain non-operating items such as realized gains and losses and other significant and unusual items included in net income. Management believes an analysis of net operating income is important in understanding the profitability and operating trends of the Company’s business. Net income is the most directly comparable GAAP measure.
Analysis of Profitability by Segment
(Dollar amounts in thousands)
| Line item | Three Months Ended March 31, 2026 | Three Months Ended March 31, 2025 | Three Months Ended March 31,Change | Three Months Ended March 31,% |
|---|---|---|---|---|
| Life insurance underwriting margin | $349,058 | $337,264 | $11,794 | 3 |
| Health insurance underwriting margin | 94,504 | 84,721 | 9,783 | 12 |
| Excess investment income | 36,654 | 35,870 | 784 | 2 |
| Segment profit or (loss) | 480,216 | 457,855 | 22,361 | 5 |
| Annuity and other income | 3,129 | 1,879 | 1,250 | 67 |
| Administrative expense | (94,286) | (87,549) | (6,737) | 8 |
| Other corporate expense | (51,136) | (50,061) | (1,075) | 2 |
| Pre-tax total | 337,923 | 322,124 | 15,799 | 5 |
| Applicable taxes | (64,403) | (62,787) | (1,616) | 3 |
| Net operating income | 273,520 | 259,337 | 14,183 | 5 |
| Reconciling items, net of tax: | ||||
| Realized gains (losses) | (1,167) | 67 | (1,234) | |
| Other expenses | (72) | — | (72) | |
| Legal proceedings | (1,755) | (4,841) | 3,086 | |
| Net income | $270,526 | $254,563 | $15,963 | 6 |
The life insurance segment is our primary segment and is the largest contributor to earnings in each period presented. The life insurance segment underwriting margin increased $12 million compared with the prior period, driven by premium growth and lower policy obligations as a percent of premium. Excess investment income increased $1 million compared with the prior period, as net investment income increased slightly primarily due to higher yields on fixed maturities and other long-term investments. The health segment experienced favorable underwriting margin as a result of higher premiums from strong growth in Medicare Supplement sales in addition to higher rates on individual Medicare Supplement policies.
55
GL Q1 2026 FORM 10-Q
GLOBE LIFE INC.
Management's Discussion & Analysis
In 2026, the largest contributor of total underwriting margin was the life insurance segment and the primary distribution channel was American Income. The following charts represent the breakdown of total underwriting margin by operating segment and distribution channel for the three months ended March 31, 2026.
Total premium income rose 6% for the three months ended March 31, 2026 to $1.3 billion. Total net sales increased 22% to $264 million when compared with 2025. Total first-year collected premium (defined in the following section) increased 16% to $196 million for 2026, compared to $169 million in 2025.
Life insurance premium income increased 3% to $853 million over the prior-year total of $830 million. Life net sales increased 6% to $157 million for the first three months of 2026 as compared to the year-ago period. First-year collected life premium increased 2% to $116 million. Life underwriting margin, as a percent of premium, was flat at 41% for 2026. Underwriting margin increased to $349 million in 2026, compared to $337 million in 2025.
Health insurance premium income increased 13% to $417 million over the prior-year total of $370 million. Health net sales rose 58% to $106 million for the first three months of 2026. First-year collected health premium rose 46% to $80 million. Health underwriting margin, as a percent of premium, was 23% for 2026 unchanged from 2025. Health underwriting margin increased to $95 million for the first three months of 2026, compared to $85 million in 2025.
Excess investment income, the measure of profitability of our investment segment, increased 2% during the first three months of 2026 to $37 million from $36 million in 2025. Excess investment income per common share, reflecting the impact of our share repurchase program, increased 10% to $0.46 from $0.42 when compared with the same period in 2025.
Insurance administrative expenses increased 8% primarily due to higher employee costs, which include salaries and other costs in addition to higher information technology expenses in 2026 when compared with the prior-year period. These expenses were 7.4% as a percent of premium for 2026, compared with 7.3% for 2025.
For the three months ended March 31, 2026, the Company repurchased 1.4 million shares of Globe Life Inc. common stock at a total cost of $203 million for an average share price of $141.24.
56
GL Q1 2026 FORM 10-Q
GLOBE LIFE INC.
Management's Discussion & Analysis
The discussions of our segments are presented in the manner we view our operations, as described in Note 12—Business Segments.
We use three measures as indicators of premium growth and sales over the near term: “annualized premium in force”, "net sales,” and “first-year collected premium.”
- Annualized premium in force is defined as the premium income that would be received over the following twelve months at any given date on all active policies if those policies remain in force throughout the 12-month period.
- Net sales is calculated as annualized premium issued, net of cancellations in the first 30 days after issue, except in the case of Direct to Consumer, where net sales is annualized premium issued at the time the first full premium is paid after any introductory offer period (typically one month) has expired. Management considers net sales to be a better indicator of the rate of premium growth than annualized premium issued since annualized premium issued is before cancellations, as cancellations do not contribute to premium income.
- First-year collected premium is defined as the premium collected during the reporting period for all policies in their first policy year. First-year collected premium takes lapses into account in the first year when lapses are more likely to occur, and thus is a useful indicator of how much new premium is expected to be added to premium income in the future. First-year collected premiums are lower than net sales over the prior 12 months because premiums are not collected on lapsed policies after the date of lapse.
Cancellations are not included in lapses.
See further discussion of the distribution channels below for Life and Health.
57
GL Q1 2026 FORM 10-Q
GLOBE LIFE INC.
Management's Discussion & Analysis
LIFE INSURANCE
Life insurance is the Company's predominant segment. During 2026, life premium represented 67% of total premium and life underwriting margin represented 79% of the total underwriting margin. Additionally, investments supporting the reserves for life products produce the majority of income attributable to the investment segment.
The following table presents the summary of results of life insurance. Further discussion of the results by distribution channel is included below.
Life Insurance
Summary of Results
(Dollar amounts in thousands)
| Line item | Three Months Ended March 31, 2026Amount | Three Months Ended March 31, 2026% of Premium | Three Months Ended March 31, 2025Amount | Three Months Ended March 31, 2025% of Premium | ChangeAmount | Change% |
|---|---|---|---|---|---|---|
| Premium and policy charges | $853,205 | 100 | $829,863 | 100 | $23,342 | 3 |
| Policy obligations | 518,850 | 61 | 509,756 | 61 | 9,094 | 2 |
| Required interest on reserves | (216,538) | (26) | (208,536) | (25) | (8,002) | 4 |
| Net policy obligations | 302,312 | 35 | 301,220 | 36 | 1,092 | — |
| Amortization of acquisition costs | 102,694 | 12 | 90,633 | 11 | 12,061 | 13 |
| Commission expense | 43,547 | 5 | 45,567 | 6 | (2,020) | (4) |
| Premium taxes | 17,773 | 2 | 18,011 | 2 | (238) | (1) |
| Non-deferred acquisition costs | 37,821 | 5 | 37,168 | 4 | 653 | 2 |
| Total expense | 504,147 | 59 | 492,599 | 59 | 11,548 | 2 |
| Insurance underwriting margin | $349,058 | 41 | $337,264 | 41 | $11,794 | 3 |
The table below summarizes life underwriting margin by distribution channel.
Life Insurance
Underwriting Margin by Distribution Channel
(Dollar amounts in thousands)
| Line item | Three Months Ended March 31, 2026Amount | Three Months Ended March 31, 2026% of Premium | Three Months Ended March 31, 2025Amount | Three Months Ended March 31, 2025% of Premium | ChangeAmount | Change% |
|---|---|---|---|---|---|---|
| American Income | $209,008 | 46 | $196,169 | 45 | $12,839 | 7 |
| Direct to Consumer | 73,638 | 30 | 64,200 | 26 | 9,438 | 15 |
| Liberty National | 35,292 | 35 | 31,772 | 33 | 3,520 | 11 |
| Other(1) | 31,120 | 62 | 45,123 | 90 | (14,003) | (31) |
| Total | $349,058 | 41 | $337,264 | 41 | $11,794 | 3 |
(1) Includes a gain of $14 million related to the recapture of reinsurance for three months ended March 31, 2025.
58
GL Q1 2026 FORM 10-Q
Globe Life Inc.
Management's Discussion & Analysis
The following table presents Globe Life's life insurance premium by distribution channel.
Life Insurance
Premium by Distribution Channel
(Dollar amounts in thousands)
| Line item | Three Months Ended March 31, 2026Amount | Three Months Ended March 31, 2026% of Total | Three Months Ended March 31, 2025Amount | Three Months Ended March 31, 2025% of Total | ChangeAmount | Change% |
|---|---|---|---|---|---|---|
| American Income | $459,200 | 54 | $437,866 | 53 | $21,334 | 5 |
| Direct to Consumer | 244,223 | 28 | 245,600 | 30 | (1,377) | (1) |
| Liberty National | 99,885 | 12 | 96,182 | 11 | 3,703 | 4 |
| Other | 49,897 | 6 | 50,215 | 6 | (318) | (1) |
| Total | $853,205 | 100 | $829,863 | 100 | $23,342 | 3 |
Annualized life premium in force was $3.44 billion at March 31, 2026, an increase of 3% over $3.34 billion a year earlier.
An analysis of life net sales, an indicator of new business production, by distribution channel is presented below.
Life Insurance
Net Sales by Distribution Channel
(Dollar amounts in thousands)
| Line item | Three Months Ended March 31, 2026Amount | Three Months Ended March 31, 2026% of Total | Three Months Ended March 31, 2025Amount | Three Months Ended March 31, 2025% of Total | ChangeAmount | Change% |
|---|---|---|---|---|---|---|
| American Income | $101,337 | 65 | $98,555 | 66 | $2,782 | 3 |
| Direct to Consumer | 27,188 | 17 | 25,175 | 17 | 2,013 | 8 |
| Liberty National | 25,358 | 16 | 22,469 | 15 | 2,889 | 13 |
| Other | 3,488 | 2 | 2,152 | 2 | 1,336 | 62 |
| Total | $157,371 | 100 | $148,351 | 100 | $9,020 | 6 |
First-year collected life premium by distribution channel is presented in the table below.
Life Insurance
First-Year Collected Premium by Distribution Channel
(Dollar amounts in thousands)
| Line item | Three Months Ended March 31, 2026Amount | Three Months Ended March 31, 2026% of Total | Three Months Ended March 31, 2025Amount | Three Months Ended March 31, 2025% of Total | ChangeAmount | Change% |
|---|---|---|---|---|---|---|
| American Income | $78,376 | 67 | $77,637 | 68 | $739 | 1 |
| Direct to Consumer | 15,841 | 14 | 15,219 | 13 | 622 | 4 |
| Liberty National | 19,904 | 17 | 19,381 | 17 | 523 | 3 |
| Other | 2,350 | 2 | 1,868 | 2 | 482 | 26 |
| Total | $116,471 | 100 | $114,105 | 100 | $2,366 | 2 |
59
GL Q1 2026 FORM 10-Q
Globe Life Inc.
Management's Discussion & Analysis
A discussion of life operations by distribution channel follows.
The American Income Life Division is an exclusive agency that markets to members of labor unions and other affinity groups and continues to diversify its lead sources by utilizing internally generated leads, third-party internet vendor leads, and referrals to facilitate sustainable growth. This Division is Globe Life's largest contributor of life premium of any distribution channel at 54% of the Company's March 31, 2026 total life premium. For the three months ended March 31, 2026, life premium was $459 million an increase of 5% when compared with the year ago period. For the three months ended March 31, 2026, the average monthly life premium issued per policy was $62 as compared to $59 for the same period in the prior year. Net sales were $101 million for the three months ended March 31, 2026, up from $99 million in the year-ago period. The underwriting margin, as a percent of premium, was 46% for the three months ended March 31, 2026 and 45% for the same period in the prior year.
The average producing agent count decreased 4% over the year-ago period driven by lower retention of new agents. While long term sales growth in this Division, and our other exclusive agencies is generally tied to expansion of the agency force, short-term declines in agent count provides an opportunity for improved sales productivity among veteran agents as they focus additional time on sales activities.
Below is the average producing agent count as of the indicated periods for the American Income Life Division. The average producing agent count is based on the actual count at the beginning and end of each week during the year.
| Line item | At March 31, 2026 | At March 31, 2025 | ChangeAmount | Change% |
|---|---|---|---|---|
| American Income | 11,064 | 11,510 | (446) | (4) |
American Income Life continues to focus on growing and strengthening the agency force, with particular emphasis on strengthening agency middle-management growth. The Division has made considerable investments in both financial incentives and agent training, as well as in information technology. A customer relationship management (CRM) tool equips agents with intuitive dashboards to drive productivity across lead distribution, business conservation, and new agent recruiting. The Division also continues to enhance technology enabling the agency force to recruit, sell and train virtually. This has benefited our agents as a vast majority of sales are now generated through virtual presentations. We find this flexibility to be enticing for new recruits as well as a driver of retention in our agency force.
The Direct to Consumer Division ("DTC") markets adult and juvenile life insurance across multiple channels including direct mail, insert media, and digital marketing using an integrated omnichannel approach where each channel supports and amplifies the others. Digital channels, including internet sales and inbound phone calls, continue to outpace direct mail in activity and growth.
DTC's long-term growth has been driven by consistent innovation and strong brand awareness. The Division also plays a valuable supporting role for our agency business, generating brand impressions, consumer inquiries and sales leads that convert into sales across our exclusive agency channels. Recent technology investments have meaningfully enhanced the underwriting process, improving the conversion of customer inquiries into sales, while new initiatives are continuously introduced to increase response rates, improve issue rates, and deliver a seamless customer experience.
The juvenile insurance market remains an important channel, though growth has slowed over recent quarters. It continues to serve as a valuable gateway for reaching the parents and grandparents of existing juvenile policyholders. These parents and grandparents have shown a higher likelihood of responding to direct-to-consumer life insurance offers compared to the general adult population, making future outreach to them a lower-cost opportunity to drive both adult and juvenile insurance sales.
DTC net sales increased 8% to $27 million for the three months ended March 31, 2026, compared to the year-ago period. This increase is the result of new underwriting tools and improved conversion of customer inquiries into sales, without incurring incremental underwriting risk. The Division has remained focused on improving profitability and underwriting margin improvement. DTC’s underwriting margin grew to $73.6 million or 30% of premium, for the three months ended March 31, 2026, compared to $64.2 million, or 26% of premium for the same period in 2025.
60
GL Q1 2026 FORM 10-Q
Globe Life Inc.
Management's Discussion & Analysis
For the three months ended March 31, 2026, the average monthly life premium issued for DTC adults increased to $19 as compared to $17 for the same period in the prior year.
The Liberty National Division is an exclusive agency serving middle-income households and worksite customers with individual life insurance products. Recent investments in new sales technologies, combined with growth in agency middle management, are expected to drive continued sales momentum. Underwriting margin rose 11% from the year ago period to $35 million and premium increased 4% to $100 million. The underwriting margin as a percent of premium increased for the three months ended March 31, 2026, to 35%, compared to 33% in year-ago period. For the three months ended March 31, 2026, the average monthly life premium per policy issued increased compared to the prior year to $48 from $44.
Below is the average producing agent count for the three months ended March 31, 2026 and 2025 for the Liberty National Division. The average producing agent count is based on the actual count at the beginning and end of each week during the year.
| Line item | At March 31, 2026 | At March 31, 2025 | ChangeAmount | Change% |
|---|---|---|---|---|
| Liberty National | 4,031 | 3,688 | 343 | 9 |
The Liberty National Division's average producing agent count increased when compared with the prior-year comparable period. This Division continues to execute a long-term plan to grow through expansion from small-town markets in the Southeast to more densely populated areas with larger pools of potential agent recruits and customers. Expansion of this Division’s presence in larger geographic cities with less penetrated areas will help create long-term sustainable agency growth. The Division is also focused on expanding worksite business development capabilities among its agents. A CRM platform and enhanced analytical tools have strengthened worksite marketing efforts and improved productivity across the individual life market. As Liberty National continues to build momentum through technology adoption and recruiting initiatives, it anticipates sustained growth in recruiting activity, average producing agent count, and net sales.
The Other agency distribution channels primarily include non-exclusive independent agencies selling primarily life insurance. The Other distribution channels contributed $50 million of life premium income, or 6% of Globe Life's total life premium income in the three months ended March 31, 2026, and contributed 2% of net sales for the period. Life underwriting margin for Other agency distribution increased in the first quarter of 2025 due to the recapture of an unaffiliated reinsurance treaty, this non-recurring transaction led to an elevated underwriting margin as of March 31, 2025.
61
GL Q1 2026 FORM 10-Q
Globe Life Inc.
Management's Discussion & Analysis
HEALTH INSURANCE
Health insurance sold by the Company primarily includes Medicare Supplement insurance as well as retiree health insurance, accident coverage, and other limited-benefit supplemental health products such as cancer, critical illness, heart disease, accident, intensive care, and other health products.
Health premium accounted for 33% of our total premium in 2026, while the health underwriting margin accounted for 21% of total underwriting margin. Health underwriting margin increased to $95 million compared to $85 million in the prior year. The Company continues to value the life insurance segment due to life’s long-term profitability and its greater contribution to excess investment income, and the health segment, as it provides a significant contribution to return on equity, as it does not require a substantial amount of up-front capital.
The following table presents underwriting margin data for health insurance.
Health Insurance
Summary of Results
(Dollar amounts in thousands)
| Line item | Three Months Ended March 31, 2026Amount | Three Months Ended March 31, 2026% of Premium | Three Months Ended March 31, 2025Amount | Three Months Ended March 31, 2025% of Premium | ChangeAmount | Change% |
|---|---|---|---|---|---|---|
| Premium | $416,908 | 100 | $369,791 | 100 | $47,117 | 13 |
| Policy obligations | 263,734 | 63 | 233,929 | 63 | 29,805 | 13 |
| Required interest on reserves | (28,882) | (7) | (28,286) | (8) | (596) | 2 |
| Net policy obligations | 234,852 | 56 | 205,643 | 55 | 29,209 | 14 |
| Amortization of acquisition costs | 15,588 | 4 | 14,519 | 4 | 1,069 | 7 |
| Commission expense | 47,445 | 11 | 42,887 | 12 | 4,558 | 11 |
| Premium taxes | 8,223 | 2 | 7,493 | 2 | 730 | 10 |
| Non-deferred acquisition costs | 16,296 | 4 | 14,528 | 4 | 1,768 | 12 |
| Total expense | 322,404 | 77 | 285,070 | 77 | 37,334 | 13 |
| Insurance underwriting margin | $94,504 | 23 | $84,721 | 23 | $9,783 | 12 |
Net policy obligations amounted to 56% of premium for the three months ended March 31, 2026 compared to 55% in the year ago period.
62
GL Q1 2026 FORM 10-Q
Globe Life Inc.
Management's Discussion & Analysis
The table below summarizes health underwriting margin by distribution channel.
Health Insurance
Underwriting Margin by Distribution Channel
(Dollar amounts in thousands)
| Line item | Three Months Ended March 31, 2026Amount | Three Months Ended March 31, 2026% of Premium | Three Months Ended March 31, 2025Amount | Three Months Ended March 31, 2025% of Premium | ChangeAmount | Change% |
|---|---|---|---|---|---|---|
| United American | $5,281 | 3 | $1,617 | 1 | $3,664 | 227 |
| Family Heritage | 43,745 | 36 | 39,249 | 35 | 4,496 | 11 |
| Liberty National | 25,670 | 54 | 25,982 | 54 | (312) | (1) |
| American Income | 18,771 | 60 | 19,389 | 63 | (618) | (3) |
| Direct to Consumer | 1,037 | 5 | (1,516) | (8) | 2,553 | 168 |
| Total | $94,504 | 23 | $84,721 | 23 | $9,783 | 12 |
Globe Life markets supplemental health insurance products through a number of distribution channels. The following table is an analysis of our health premium by distribution channel.
Health Insurance
Premium by Distribution Channel
(Dollar amounts in thousands)
| Line item | Three Months Ended March 31, 2026Amount | Three Months Ended March 31, 2026% of Total | Three Months Ended March 31, 2025Amount | Three Months Ended March 31, 2025% of Total | Increase(Decrease)Amount | Increase(Decrease)% |
|---|---|---|---|---|---|---|
| United American | $194,426 | 47 | $159,848 | 43 | $34,578 | 22 |
| Family Heritage | 123,139 | 30 | 112,354 | 31 | 10,785 | 10 |
| Liberty National | 47,579 | 11 | 47,922 | 13 | (343) | (1) |
| American Income | 31,119 | 7 | 30,691 | 8 | 428 | 1 |
| Direct to Consumer | 20,645 | 5 | 18,976 | 5 | 1,669 | 9 |
| Total | $416,908 | 100 | $369,791 | 100 | $47,117 | 13 |
Premiums from Medicare Supplement products totaled $191 million, or 46%, for the three months ended March 31, 2026, compared to $162 million, or 44%, in the same period in the prior year. Premiums primarily related to limited-benefit supplemental health products comprise $226 million, or 54%, of the total health premiums for the three months ended March 31, 2026, compared with $208 million, or 56%, in the same period in the prior year.
Annualized health premium in force was $1.72 billion at March 31, 2026, an increase of 14% over $1.51 billion a year earlier.
63
GL Q1 2026 FORM 10-Q
Globe Life Inc.
Management's Discussion & Analysis
Presented below is a table of health net sales by distribution channel.
Health Insurance
Net Sales by Distribution Channel
(Dollar amounts in thousands)
| Line item | Three Months Ended March 31, 2026Amount | Three Months Ended March 31, 2026% of Total | Three Months Ended March 31, 2025Amount | Three Months Ended March 31, 2025% of Total | Increase(Decrease)Amount | Increase(Decrease)% |
|---|---|---|---|---|---|---|
| United American | $61,534 | 58 | $27,708 | 41 | $33,826 | 122 |
| Family Heritage | 32,713 | 31 | 26,816 | 40 | 5,897 | 22 |
| Liberty National | 6,968 | 6 | 7,198 | 11 | (230) | (3) |
| American Income | 4,317 | 4 | 4,870 | 7 | (553) | (11) |
| Direct to Consumer | 618 | 1 | 645 | 1 | (27) | (4) |
| Total | $106,150 | 100 | $67,237 | 100 | $38,913 | 58 |
Health net sales related to limited-benefit supplemental health products and other health products comprise $76 million, or 72%, of the total health net sales for the three months ended March 31, 2026, compared with $48 million, or 72%, in the same period in the prior year. Medicare Supplement sales make up the remaining $30 million, or 28%, for 2026, compared to $19 million, or 28%, in the same period in the prior year.
The following table presents health insurance first-year collected premium by distribution channel.
Health Insurance
First-Year Collected Premium by Distribution Channel
(Dollar amounts in thousands)
| Line item | Three Months Ended March 31, 2026Amount | Three Months Ended March 31, 2026% of Total | Three Months Ended March 31, 2025Amount | Three Months Ended March 31, 2025% of Total | Increase(Decrease)Amount | Increase(Decrease)% |
|---|---|---|---|---|---|---|
| United American | $42,316 | 53 | $20,162 | 37 | $22,154 | 110 |
| Family Heritage | 24,279 | 31 | 21,476 | 39 | 2,803 | 13 |
| Liberty National | 7,031 | 9 | 7,045 | 13 | (14) | — |
| American Income | 4,300 | 5 | 4,767 | 9 | (467) | (10) |
| Direct to Consumer | 1,575 | 2 | 1,089 | 2 | 486 | 45 |
| Total | $79,501 | 100 | $54,539 | 100 | $24,962 | 46 |
First-year collected premium related to limited-benefit supplemental health products and other health products is $52 million, or 65%, of total first-year collected premium for the three months ended March 31, 2026, compared with $38 million, or 69%, in the same period in the prior year. First-year collected premium from Medicare Supplement policies make up the remaining $28 million, or 35%, for the three months ended March 31, 2026, compared to $17 million, or 31%, in the same period in the prior year.
64
GL Q1 2026 FORM 10-Q
Globe Life Inc.
Management's Discussion & Analysis
A discussion of health operations by distribution channel follows.
The United American Division consists of non-exclusive independent general agents and brokers who may also sell for other companies. The United American Division was Globe Life's largest health division in terms of health premium income, with net sales up 122% from the same period in the prior year.
This Division includes units that sell Medicare Supplement insurance to individuals through independent general agents and group retiree medical and other health insurance through brokers. The majority of the premium revenue comes from Medicare Supplement which has seen increased demand primarily due to the changes in the Medicare Advantage market. Underwriting margin as a percent of premium for the Division was 3% for the three months ended March 31, 2026 and 1% for the same period in 2025. The increase in underwriting margin as a percent of premium when compared to prior year is primarily attributable to premium from Medicare Supplement rate increases which were effective in 2025. We adjust premium rates periodically based upon an annual review of utilization and claim cost trends and submit proposed revisions for approval to the insurance department regulators. Approved premium rates generally become effective in the following year. For the United American Division, additional rate increases will be effective in the second quarter of 2026 from our annual rate review and approval process that are expected to improve margins over the remainder of the year.
The Family Heritage Division is an exclusive agency that primarily markets individual limited-benefit supplemental health insurance to small to medium-sized businesses. Most of its policies include a return of premium feature, where premium paid is returned less any claims paid to the policyholder at the end of a specified period stated within the insurance policy. Underwriting margin as a percent of premium was 36% for the three months ended March 31, 2026 and 35% for the same period in the prior year.
The Division experienced a 22% increase in health net sales as compared with the same three month period a year ago, primarily due to increased agent count and increased agent productivity. The Division will continue to implement incentive and retention programs to further these increases in the number of producing agents.
Below is the average producing agent count for the three months ended March 31, 2026 and 2025 for the Family Heritage Division. The average producing agent count is based on the actual count at the beginning and end of each week during the year.
| Line item | At March 31, 2026 | At March 31, 2025 | ChangeAmount | Change% |
|---|---|---|---|---|
| Family Heritage | 1,561 | 1,417 | 144 | 10 |
The average producing agent count increased 10% compared with the same period a year ago. Along with the Division's increased efforts to grow agent count, it is also focused on the further training and development of its agency middle management. While growth in net sales and earned premium is impacted by agent productivity, growth in the number of producing agents is the primary driver of future growth in sales, similar to our other exclusive agencies.
The Liberty National Division represented 11% of all Globe Life health premium income for the three months ended March 31, 2026. The Liberty National Division markets limited-benefit supplemental health products, consisting primarily of cancer, critical illness, and accident insurance. Much of Liberty National's health business is generated through worksite marketing targeting small businesses. Health premium at the Liberty National Division was $47.6 million for the three months ended March 31, 2026 down slightly from $47.9 million for the same period in 2025. Liberty National's first-year collected premium remained flat at $7.0 million in the three months ended March 31, 2026, compared with the same period in 2025. Health net sales for the three months ended March 31, 2026 fell 3% from the comparable period in 2025. For the three months ended March 31, 2026, underwriting margin as a percent of premium was 54%, unchanged from the same period in the prior year.
While both the American Income Life Division and the Direct to Consumer Division sell life insurance, they also market health products. The American Income Life Division primarily markets accident plans. The Direct to Consumer Division primarily markets Medicare Supplement insurance to employer or union-sponsored groups. On a combined basis, these other channels accounted for 12% of health premium for the three months ended March 31, 2026 and 13% for the same period in 2025.
65
GL Q1 2026 FORM 10-Q
Globe Life Inc.
Management's Discussion & Analysis
INVESTMENTS
We manage our capital resources, including investments and cash flow, through the investment segment. Excess investment income represents the profit margin attributable to investment operations and is the measure that we use to evaluate the performance of the investment segment as described in Note 12—Business Segments. It is defined as net investment income less the required interest attributable to policy liabilities.
Our life and health insurance companies collect premium income from policyholders for the eventual payment of policyholder benefits, sometimes paid for many years or even decades in the future. Since benefits are expected to be paid in future periods, premium receipts in excess of current expenses are invested to provide for these obligations. Our core investment strategy is to primarily invest in high-quality fixed maturities containing an adequate yield to provide for the cost of carrying these long-term insurance product obligations. As a result, fixed maturities are generally held for long periods to support these obligations. Expected yields on these investments are taken into account when setting insurance premium rates and product profitability expectations. We also invest in commercial mortgage loans and other long-term investments to diversify risks and enhance risk-adjusted, capital-adjusted returns.
Management views excess investment income per diluted common share as an important and useful measure to evaluate the performance of the investment segment. It is defined as excess investment income divided by the total diluted weighted-average shares outstanding, representing the contribution by the investment segment to the consolidated earnings per share of the Company.
Excess Investment Income. The following table summarizes Globe Life's net investment income, excess investment income, and excess investment income per diluted common share.
Analysis of Excess Investment Income
(Dollar amounts in thousands, except for per share data)
| Line item | Three Months Ended March 31, 2026 | Three Months Ended March 31, 2025 | ChangeAmount | Change% |
|---|---|---|---|---|
| Net investment income | $289,824 | $280,614 | $9,210 | 3 |
| Interest on policy liabilities(1) | (253,170) | (244,744) | (8,426) | 3 |
| Excess investment income | $36,654 | $35,870 | $784 | 2 |
| Excess investment income per diluted share | $0.46 | $0.42 | $0.04 | 10 |
| Mean invested assets (at amortized cost) | $21,787,902 | $21,435,420 | $352,482 | 2 |
| Average insurance policy liabilities | 18,364,274 | 17,620,769 | 743,505 | 4 |
(1) Interest on policy liabilities, at original rates, is a component of total policyholder benefits, a GAAP measure.
Excess investment income increased $1 million, or 2%, compared with the year-ago period. Excess investment income per diluted common share was $0.46 for the three months ended March 31, 2026, an increase of 10% from the prior-year period. Excess investment income per diluted common share generally increases or decreases at a different pace than excess investment income because the number of diluted shares outstanding generally decreases from year to year as a result of our share repurchase program.
Net investment income for the three months ended March 31, 2026 was $290 million, or 3% greater than the prior year quarter period. Mean invested assets increased 2% during the first three months of 2026 over the same period last year. Net investment income increased in the current period due to higher earned yields on fixed maturities, commercial mortgage loans and other investments compared to the prior year period. The effective annual yield earned on the fixed maturity portfolio was 5.32% in the first three months of 2026, compared to 5.25% for the comparable period in 2025. The earned yield on total long-term invested assets, which includes our fixed maturity, commercial mortgage loan and other long-term non-fixed maturity investments, was 5.50% for the first three months
66
GL Q1 2026 FORM 10-Q
Globe Life Inc.
Management's Discussion & Analysis
of 2026 compared to 5.40% for the comparable period of 2025. While our core investments are fixed maturities, the Company also invests in commercial mortgage loans and limited partnerships with debt-like characteristics that diversify risk and enhance risk-adjusted, capital-adjusted returns on the portfolio. The earned yield on the Company's commercial mortgage loans for the three months ended March 31, 2026 was 6.96% compared with 6.53% in the prior year period. The higher earned yield on commercial mortgage loans is due to a lower number of non-accrual loans in the current quarter compared to the prior year period. The earned yield on limited partnership investments for the three months ended March 31, 2026 was 7.95%, the same as in the comparable prior-year period. See additional information in Note 4—Investments.
Globe Life's net investment income benefits from higher interest rates on new investments. While increasing interest rates have resulted in a net unrealized loss from our available-for-sale debt securities included in accumulated other comprehensive income (loss) as of March 31, 2026, we are not concerned because we do not generally intend to sell, nor is it likely that we will be required to sell, the fixed maturities prior to their anticipated recovery.
Required interest on insurance policy liabilities reduces excess investment income, as it is the amount of net investment income necessary to cover the interest-related growth on insurance policy liabilities. As such, it is reclassified from the insurance segment to the investment segment. As discussed in Note 12—Business Segments, management regards this as a more meaningful analysis of the investment and insurance segments. Required interest is based on the original discount rate assumptions for our insurance policies in force.
The vast majority of our life and health insurance policies are fixed interest rate protection policies, not investment products, and are accounted for under current GAAP accounting guidance for long-duration insurance products which mandates that interest rate assumptions for a particular block of business be “locked in” for the life of that block of business. Each calendar year, we set the original discount rate to be used to calculate the benefit reserve liability for all insurance policies issued that year. The liability reported on the Condensed Consolidated Balance Sheets is updated in subsequent periods using current discount rates as of the end of the relevant reporting period with a corresponding adjustment to other comprehensive income.
The discount rate used for policies issued in the current year has no impact on the in force policies issued in prior years, as the rates of all prior issue years are also locked in for purposes of recognizing income. As such, the overall original discount rate for the entire in force block of 5.5% is a weighted average of the discount rates being used from all issue years. Changes in the overall weighted-average discount rate over time are caused by changes in the mix of the reserves on the entire block of in force business. Business issued in the current year has little impact on the overall weighted-average original discount rate due to the size of our in force business.
In comparison to the year-ago period, required interest on insurance policy liabilities increased $8 million, or 3%, to $253 million, consistent with the 4% growth in average interest-bearing insurance policy liabilities.
Realized Gains and Losses. Despite our intent to hold fixed maturity investments for a long period of time, investments are occasionally sold, exchanged, called, or experience a credit loss event, resulting in a realized gain or loss. Gains or losses are only secondary to our core insurance operations of providing insurance coverage to policyholders. In a bond exchange offer, bondholders may consent to exchange their existing bonds for another class of debt securities. The Company also has investments in certain limited partnerships, held under the fair value option, with fair value changes recognized in "Realized gains (losses)" on the Condensed Consolidated Statements of Operations.
Realized gains and losses can be significant in relation to the earnings from core insurance operations, and as a result, can have a material positive or negative impact on net income. The significant fluctuations caused by gains and losses can cause period-to-period trends of net income that are not indicative of historical core operating results or predictive of the future trends of core operations. Accordingly, they have no bearing on core insurance operations or segment results as we view operations. For these reasons, and in line with industry practice, we remove the effects of realized gains and losses when evaluating overall insurance operating results.
67
GL Q1 2026 FORM 10-Q
Globe Life Inc.
Management's Discussion & Analysis
The following table summarizes our tax-effected realized gains (losses) by component.
Analysis of Realized Gains (Losses), Net of Tax
(Dollar amounts in thousands, except for per share data)
| Line item | Three Months Ended March 31, 2026Amount | Three Months Ended March 31, 2026Per Share | Three Months Ended March 31, 2025Amount | Three Months Ended March 31, 2025Per Share |
|---|---|---|---|---|
| Fixed maturities: | ||||
| Sales | $197 | — | $11 | — |
| Matured or other redemptions(1) | (763) | (0.01) | 612 | 0.01 |
| Provision for credit losses | — | — | 32 | — |
| Fair value option—change in fair value | 4,401 | 0.05 | 1,873 | 0.02 |
| Mortgages | (111) | — | 342 | — |
| Other investments | (1,046) | (0.01) | (852) | (0.01) |
| Total realized gains (losses)—investments | 2,678 | 0.03 | 2,018 | 0.02 |
| Other gains (losses)(2) | (3,845) | (0.04) | (1,951) | (0.02) |
| Total realized gains (losses) | $(1,167) | $(0.01) | $67 | — |
(1) During the three months ended March 31, 2026 and 2025, the Company recorded $281 thousand and $55.7 million, respectively, of exchanges of fixed maturity securities (noncash transactions) that resulted in net realized gains (losses) of $0 and $42 thousand net of tax, respectively.
(2) Other realized gains (losses) are primarily a result of changes in the fair value for assets held in rabbi trust.
68
GL Q1 2026 FORM 10-Q
Globe Life Inc.
Management's Discussion & Analysis
Investment Acquisitions. Globe Life's investment policy calls for a core investment strategy of investing primarily in investment grade fixed maturities that meet our quality and yield objectives. We generally invest in securities with longer-term maturities because they more closely match the long-term nature of our life and health policy liabilities. We believe this strategy is appropriate since our expected future cash flows are generally stable and predictable and the likelihood that we will need to sell invested assets to raise cash is low.
The following table summarizes selected information for fixed maturity investments. The effective annual yield shown is based on the acquisition price and call features, if any, of the securities. For non-callable bonds, the yield is calculated to maturity date. For callable bonds acquired at a premium, the yield is calculated to the earliest known call date and call price after acquisition ("first call date"). For all other callable bonds, the yield is calculated to maturity date.
Fixed Maturity Acquisitions Selected Information
(Dollar amounts in thousands)
| Line item | Three Months Ended March 31, 2026 | Three Months Ended March 31, 2025 |
|---|---|---|
| Cost of acquisitions: | ||
| Investment-grade corporate securities | $376,015 | $236,723 |
| Investment-grade municipal securities | 24,267 | 1,000 |
| Other securities | 18,471 | 7,122 |
| Total fixed maturity acquisitions(1) | $418,753 | $244,845 |
| Effective annual yield (one year compounded)(2) | 6.23% | 6.41% |
| Average life (in years, to next call) | 41.1 | 40.7 |
| Average life (in years, to maturity) | 42.1 | 43.1 |
| Average rating | A | A- |
(1) Fixed maturity acquisitions included unsettled trades of $1 million in 2026 and $12 million in 2025.
(2) Tax-equivalent basis, where the yield on tax-exempt securities is adjusted to produce a yield equivalent to the pretax yield on taxable securities.
For investments in callable bonds, the actual life of the investment will depend on whether the issuer calls the investment prior to the maturity date. Given our investments in callable bonds, the actual average life of our investments cannot be known at the time of the investment. Absent sales and "make-whole calls," however, the average life will not be less than the average life to next call and will not exceed the average life to maturity. Data for both of these average life measures is provided in the above chart.
During the first three months of 2026 and 2025, acquisitions consisted primarily of corporate and municipal bonds with securities spanning a diversified range of issuers, industry sectors, and geographical regions. In the first three months of 2026, we invested primarily in the industrial, financial, and utility sectors. For the entire portfolio, the taxable equivalent effective yield earned was 5.32%, up approximately 7 basis point from the yield in the first three months of 2025. The increase in taxable equivalent effective yield was primarily due to new purchases at yields exceeding the yield on dispositions and the average portfolio yield. For the remainder of 2026, the Company will continue to execute on its existing strategy by seeking to invest in assets that satisfy our quality and other objectives, while striving to maximize the risk-adjusted, capital-adjusted return.
69
GL Q1 2026 FORM 10-Q
Globe Life Inc.
Management's Discussion & Analysis
In addition to the fixed maturity acquisitions, Globe Life invested in commercial mortgage loans and in other long-term investments. See Note—4 Investments for further discussion.
The following table summarizes Globe Life's other investment acquisitions of the following assets.
Other Investment Acquisitions
(Dollar amounts in thousands)
| Line item | Three Months Ended March 31, 2026 | Three Months Ended March 31, 2025 |
|---|---|---|
| Commercial mortgage loans: | ||
| Directly held | $58,519 | $35,621 |
| Limited partnerships | — | 103 |
| Total commercial mortgage loans | 58,519 | 35,724 |
| Other long-term investments: | ||
| Limited partnerships | 11,453 | 15,728 |
| Company-owned life insurance | 75,000 | — |
| Total other long-term investments | 86,453 | 15,728 |
| Common stock | 1,574 | 502 |
| Total | $146,546 | $51,954 |
Since fixed maturities represent such a significant portion of our investment portfolio, 87% of total amortized cost, net of allowance for credit losses, at March 31, 2026, the remainder of the discussion of portfolio composition will focus on fixed maturities. Selected information concerning the fixed maturity portfolio is as follows:
Fixed Maturity Portfolio Selected Information
| Line item | AtMarch 31,2026 | AtDecember 31, 2025 | AtMarch 31,2025 |
|---|---|---|---|
| Average annual effective yield(1) | 5.30% | 5.29% | 5.26% |
| Average life, in years, to: | |||
| Next call(2) | 15.8 | 15.2 | 15.3 |
| Maturity(2) | 19.8 | 19.4 | 19.4 |
| Effective duration to: | |||
| Next call(2,3) | 8.7 | 8.7 | 8.8 |
| Maturity(2,3) | 10.5 | 10.5 | 10.6 |
(1) Weighted average annual effective yield as of the end of the period, on a tax-equivalent basis. The yield on tax-exempt securities is adjusted to produce a yield equivalent to the pretax yield on taxable securities.
(2) Globe Life calculates the average life and duration of the fixed maturity portfolio two ways:
(a) based on the next call date which is the next call date for callable bonds and the maturity date for non-callable bonds; and
(b) based on the maturity date of all bonds, whether callable or not.
(3) Effective duration is a measure of the price sensitivity of a fixed-income security to a 1% change in interest rates.
70
GL Q1 2026 FORM 10-Q
Globe Life Inc.
Management's Discussion & Analysis
Credit Risk Sensitivity. The following tables summarize certain information about the major corporate sectors and security types held in our fixed maturity portfolio at March 31, 2026 and December 31, 2025.
Fixed Maturities by Sector
March 31, 2026
(Dollar amounts in thousands)
| Line item | Below Investment GradeAmortized Cost, net | Below Investment GradeGross Unrealized Gains | Below Investment GradeGross Unrealized Losses | Below Investment GradeFair Value | Total Fixed MaturitiesAmortized Cost, net | Total Fixed MaturitiesGross Unrealized Gains | Total Fixed MaturitiesGross Unrealized Losses | Total Fixed MaturitiesFair Value | % of Total Fixed MaturitiesAt Amortized Cost, net | % of Total Fixed MaturitiesAt Fair Value |
|---|---|---|---|---|---|---|---|---|---|---|
| Corporates: | ||||||||||
| Financial | ||||||||||
| Insurance - life, health, P&C | $7,968 | $77 | — | $8,045 | $2,960,137 | $55,374 | $(208,302) | $2,807,209 | 16 | 16 |
| Banks | 60,229 | 338 | (2,014) | 58,553 | 929,198 | 23,080 | (46,604) | 905,674 | 5 | 5 |
| Other financial | 74,975 | — | (15,206) | 59,769 | 1,166,746 | 12,947 | (145,859) | 1,033,834 | 6 | 6 |
| Total financial | 143,172 | 415 | (17,220) | 126,367 | 5,056,081 | 91,401 | (400,765) | 4,746,717 | 27 | 27 |
| Industrial | ||||||||||
| Energy | 44,480 | 166 | (3,611) | 41,035 | 1,320,423 | 38,849 | (64,710) | 1,294,562 | 7 | 7 |
| Basic materials | 41,631 | — | (9,755) | 31,876 | 1,102,518 | 22,259 | (99,836) | 1,024,941 | 6 | 6 |
| Consumer, non-cyclical | — | — | — | — | 2,176,915 | 14,466 | (242,063) | 1,949,318 | 11 | 11 |
| Other industrials | 25,000 | — | (3,974) | 21,026 | 1,107,248 | 21,248 | (88,710) | 1,039,786 | 6 | 6 |
| Communications | 20,229 | 226 | (4,622) | 15,833 | 822,469 | 12,421 | (90,838) | 744,052 | 4 | 4 |
| Transportation | — | — | — | — | 653,572 | 11,639 | (36,443) | 628,768 | 3 | 4 |
| Consumer, cyclical | 89,706 | — | (24,056) | 65,650 | 392,333 | 3,765 | (53,834) | 342,264 | 2 | 2 |
| Technology | 50,267 | 645 | — | 50,912 | 343,885 | 765 | (70,942) | 273,708 | 2 | 2 |
| Total industrial | 271,313 | 1,037 | (46,018) | 226,332 | 7,919,363 | 125,412 | (747,376) | 7,297,399 | 41 | 42 |
| Utilities | 58,201 | — | (6,505) | 51,696 | 2,170,151 | 50,658 | (113,923) | 2,106,886 | 11 | 12 |
| Total corporates | 472,686 | 1,452 | (69,743) | 404,395 | 15,145,595 | 267,471 | (1,262,064) | 14,151,002 | 79 | 81 |
| States, municipalities, and political divisions: | ||||||||||
| General obligations | — | — | — | — | 917,648 | 4,814 | (187,687) | 734,775 | 5 | 4 |
| Revenues | 1,960 | — | (251) | 1,709 | 2,486,009 | 22,760 | (358,914) | 2,149,855 | 13 | 12 |
| Total states, municipalities, and political divisions | 1,960 | — | (251) | 1,709 | 3,403,657 | 27,574 | (546,601) | 2,884,630 | 18 | 16 |
| Other fixed maturities: | ||||||||||
| Government (U.S. and foreign) | — | — | — | — | 465,510 | 89 | (37,613) | 427,986 | 2 | 2 |
| Other asset-backed securities | 35,945 | 217 | (28) | 36,134 | 115,326 | 699 | (267) | 115,758 | 1 | 1 |
| Total fixed maturities | $510,591 | $1,669 | $(70,022) | $442,238 | $19,130,088 | $295,833 | $(1,846,545) | $17,579,376 | 100 | 100 |
71
GL Q1 2026 FORM 10-Q
Globe Life Inc.
Management's Discussion & Analysis
Fixed Maturities by Sector
December 31, 2025
(Dollar amounts in thousands)
| Line item | Below Investment GradeAmortized Cost | Below Investment GradeGross Unrealized Gains | Below Investment GradeGross Unrealized Losses | Below Investment GradeFair Value | Total Fixed MaturitiesAmortized Cost | Total Fixed MaturitiesGross Unrealized Gains | Total Fixed MaturitiesGross Unrealized Losses | Total Fixed MaturitiesFair Value | % of Total Fixed MaturitiesAt Amortized Cost, net | % of Total Fixed MaturitiesAt Fair Value |
|---|---|---|---|---|---|---|---|---|---|---|
| Corporates: | ||||||||||
| Financial | ||||||||||
| Insurance - life, health, P&C | $7,978 | $119 | — | $8,097 | $2,898,137 | $80,468 | $(175,533) | $2,803,072 | 16 | 16 |
| Banks | 60,268 | 278 | (2,738) | 57,808 | 916,529 | 31,873 | (37,643) | 910,759 | 5 | 5 |
| Other financial | 74,975 | — | (7,670) | 67,305 | 1,167,521 | 21,764 | (120,790) | 1,068,495 | 6 | 6 |
| Total financial | 143,221 | 397 | (10,408) | 133,210 | 4,982,187 | 134,105 | (333,966) | 4,782,326 | 27 | 27 |
| Industrial | ||||||||||
| Energy | 44,500 | 55 | (3,120) | 41,435 | 1,313,734 | 50,113 | (56,624) | 1,307,223 | 7 | 7 |
| Basic materials | 41,620 | — | (9,835) | 31,785 | 1,116,746 | 29,964 | (91,011) | 1,055,699 | 6 | 6 |
| Consumer, non-cyclical | — | — | — | — | 2,092,995 | 23,547 | (198,498) | 1,918,044 | 11 | 11 |
| Other industrials | 25,000 | — | (4,187) | 20,813 | 1,096,807 | 27,723 | (78,215) | 1,046,315 | 6 | 6 |
| Communications | 20,258 | 263 | (3,709) | 16,812 | 800,452 | 16,981 | (80,227) | 737,206 | 4 | 4 |
| Transportation | — | — | — | — | 618,817 | 15,863 | (30,939) | 603,741 | 3 | 4 |
| Consumer, cyclical | 104,813 | 133 | (19,375) | 85,571 | 407,404 | 6,353 | (44,746) | 369,011 | 2 | 2 |
| Technology | 50,270 | 3,545 | — | 53,815 | 340,930 | 4,620 | (65,103) | 280,447 | 2 | 2 |
| Total industrial | 286,461 | 3,996 | (40,226) | 250,231 | 7,787,885 | 175,164 | (645,363) | 7,317,686 | 41 | 42 |
| Utilities | 58,199 | 110 | (6,118) | 52,191 | 2,093,010 | 71,582 | (93,086) | 2,071,506 | 11 | 12 |
| Total corporates | 487,881 | 4,503 | (56,752) | 435,632 | 14,863,082 | 380,851 | (1,072,415) | 14,171,518 | 79 | 81 |
| States, municipalities, and political divisions: | ||||||||||
| General obligations | — | — | — | — | 917,006 | 5,961 | (179,707) | 743,260 | 5 | 4 |
| Revenues | 1,961 | — | (210) | 1,751 | 2,468,427 | 20,994 | (352,055) | 2,137,366 | 13 | 12 |
| Total states, municipalities, and political divisions | 1,961 | — | (210) | 1,751 | 3,385,433 | 26,955 | (531,762) | 2,880,626 | 18 | 16 |
| Other fixed maturities: | ||||||||||
| Government (U.S., municipal, and foreign) | — | — | — | — | 456,618 | 299 | (33,518) | 423,399 | 2 | 2 |
| Other asset-backed securities | 31,490 | 136 | — | 31,626 | 112,034 | 1,877 | (112) | 113,799 | 1 | 1 |
| Total fixed maturities | $521,332 | $4,639 | $(56,962) | $469,009 | $18,817,167 | $409,982 | $(1,637,807) | $17,589,342 | 100 | 100 |
72
GL Q1 2026 FORM 10-Q
Globe Life Inc.
Management's Discussion & Analysis
Corporate securities, which consist of bonds and redeemable preferred stocks, were the largest component of the fixed-maturity portfolio as of March 31, 2026, representing 79% of amortized cost, net, and 81% of fair value. The remainder of the portfolio is invested primarily in securities issued by the U.S. government and U.S. municipalities. The Company holds insignificant amounts in foreign government bonds, asset-backed securities, and mortgage-backed securities. Corporate securities are diversified over a variety of industry sectors and issuers. At March 31, 2026, the total fixed maturity portfolio consisted of 1,015 issuers.
Fixed maturities had a fair value of $17.6 billion at March 31, 2026, compared to $17.6 billion at December 31, 2025. The net unrealized loss position in the fixed-maturity portfolio increased from $1.2 billion at December 31, 2025 to $1.6 billion at March 31, 2026 due to a change in market rates during the period.
For more information about our fixed-maturity portfolio by component at March 31, 2026 and December 31, 2025, including a discussion of allowance for credit losses, an analysis of unrealized investment losses, and a schedule of maturities, see Note 4—Investments.
An analysis of the fixed-maturity portfolio by composite quality rating at March 31, 2026 and December 31, 2025, is shown in the following tables. The company uses the NAIC designation for credit quality ratings. The NAIC designation is generally determined using the second lowest rating available from nationally recognized statistical rating organizations (“NRSRO”) when three or more ratings are available and the lowest rating when two or fewer rating are available. When NRSRO ratings are unavailable the rating may be assigned by the Securities Valuation Office (“SVO”) of the NAIC.
Fixed Maturities by Rating
At March 31, 2026
(Dollar amounts in thousands)
| Line item | Amortized Cost, net | % of Total | Fair Value | % of Total | Average Composite Quality Rating on Amortized Cost, net |
|---|---|---|---|---|---|
| Investment grade: | |||||
| AAA | $965,197 | 5 | $875,560 | 5 | |
| AA | 3,493,145 | 18 | 2,952,055 | 17 | |
| A | 6,304,310 | 33 | 5,928,237 | 33 | |
| BBB+ | 3,244,712 | 17 | 3,064,642 | 17 | |
| BBB | 3,514,131 | 18 | 3,310,161 | 19 | |
| BBB- | 1,098,002 | 6 | 1,006,483 | 6 | |
| Total investment grade | 18,619,497 | 97 | 17,137,138 | 97 | A |
| Below investment grade: | |||||
| BB | 450,819 | 3 | 392,365 | 2 | |
| B | 55,614 | — | 45,966 | 1 | |
| Below B | 4,158 | — | 3,907 | — | |
| Total below investment grade | 510,591 | 3 | 442,238 | 3 | BB |
| $19,130,088 | 100 | $17,579,376 | 100 | ||
| Weighted average composite quality rating | A- |
73
GL Q1 2026 FORM 10-Q
Globe Life Inc.
Management's Discussion & Analysis
Fixed Maturities by Rating
At December 31, 2025
(Dollar amounts in thousands)
| Line item | Amortized Cost, net | % of Total | Fair Value | % of Total | Average Composite Quality Rating on Amortized Cost |
|---|---|---|---|---|---|
| Investment grade: | |||||
| AAA | $955,561 | 5 | $872,139 | 5 | |
| AA | 3,455,082 | 18 | 2,941,349 | 16 | |
| A | 6,016,228 | 32 | 5,778,006 | 33 | |
| BBB+ | 3,133,353 | 17 | 3,007,623 | 17 | |
| BBB | 3,717,938 | 20 | 3,554,535 | 20 | |
| BBB- | 1,017,673 | 5 | 966,681 | 6 | |
| Total investment grade | 18,295,835 | 97 | 17,120,333 | 97 | A |
| Below investment grade: | |||||
| BB | 452,809 | 3 | 410,286 | 3 | |
| B | 64,364 | — | 54,774 | — | |
| Below B | 4,159 | — | 3,949 | — | |
| Total below investment grade | 521,332 | 3 | 469,009 | 3 | BB |
| $18,817,167 | 100 | $17,589,342 | 100 | ||
| Weighted average composite quality rating | A- |
The overall quality rating of the portfolio is A-, the same as of year-end 2025. Fixed maturities rated BBB are 41% of the total portfolio at March 31, 2026, down from 42% at December 31, 2025. While this ratio may be high relative to our peers, it is at its lowest level since 2003 and we have limited exposure to higher-risk assets such as derivatives, equities, and asset-backed securities. Additionally, the Company does not participate in securities lending and has no off-balance sheet investments as of March 31, 2026. Of our fixed maturity purchases, BBB securities generally provide the Company with the best risk-adjusted, capital-adjusted returns largely due to our ability to hold securities to maturity regardless of fluctuations in interest rates or equity markets. Our allocation to BBB rated bonds has decreased over the past few years as we have found better risk-adjusted, capital-adjusted value in higher-rated bonds.
An analysis of changes in our portfolio of below-investment grade fixed maturities at amortized cost, net of allowance for credit losses, is as follows:
Below-Investment Grade Fixed Maturities
(Dollar amounts in thousands)
| Line item | Three Months Ended March 31, 2026 | Three Months Ended March 31, 2025 |
|---|---|---|
| Balance at beginning of period | $521,332 | $529,120 |
| Downgrades by rating agencies | — | 5,074 |
| Upgrades by rating agencies | — | (30,555) |
| Dispositions | (16,026) | (916) |
| Acquisitions | 4,455 | 4,024 |
| Provision for credit losses | — | 36 |
| Amortization and other | 830 | (424) |
| Balance at end of period | $510,591 | $506,359 |
74
GL Q1 2026 FORM 10-Q
Globe Life Inc.
Management's Discussion & Analysis
Our investment policy calls for investing primarily in fixed maturities that are investment grade and meet our quality and yield objectives. Thus, the balance of below-investment grade issues is primarily the result of ratings downgrades of existing holdings. Below-investment grade bonds at amortized cost, net of allowance for credit losses, were 3% of total fixed maturities at amortized cost as of March 31, 2026.
OPERATING EXPENSES
Operating expenses are classified into two categories: insurance administrative expenses and expenses of the Parent Company. Insurance administrative expenses generally include expenses incurred after a policy has been issued. As these expenses relate to premium for a given period, management measures the expenses as a percentage of premium income. The Company also views stock-based compensation expense as a Parent Company expense. Expenses associated with the issuance of our insurance policies are reflected as acquisition expenses and included in the determination of underwriting margin.
An analysis of operating expenses is shown below.
Operating Expenses Selected Information
(Dollar amounts in thousands)
| Line item | Three Months Ended March 31, 2026Amount | Three Months Ended March 31, 2026% of Premium | Three Months Ended March 31, 2025Amount | Three Months Ended March 31, 2025% of Premium | Increase · (Decrease)Amount | Increase · (Decrease)% |
|---|---|---|---|---|---|---|
| Insurance administrative expenses: | ||||||
| Salaries | $35,379 | 2.8 | $33,688 | 2.8 | $1,691 | 5 |
| Other employee costs | 13,771 | 1.1 | 10,301 | 0.9 | 3,470 | 34 |
| Information technology costs | 21,872 | 1.7 | 20,936 | 1.7 | 936 | 4 |
| Legal costs | 3,192 | 0.2 | 6,249 | 0.5 | (3,057) | (49) |
| Other administrative costs | 20,072 | 1.6 | 16,375 | 1.4 | 3,697 | 23 |
| Total insurance administrative expenses | 94,286 | 7.4 | 87,549 | 7.3 | 6,737 | 8 |
| Parent company expense | 3,533 | 3,050 | 483 | |||
| Stock compensation expense | 13,603 | 12,019 | 1,584 | |||
| Legal proceedings | 2,222 | 6,128 | (3,906) | |||
| Other expenses | 91 | — | 91 | |||
| Total operating expenses, per Condensed Consolidated Statements of Operations | $113,735 | $108,746 | $4,989 | 5 |
Total operating expenses for March 31, 2026 increased in comparison with the prior year primarily due to increases in insurance administrative expenses. Insurance administrative expenses increased $7 million primarily due to higher employee costs, which include salaries and other costs. Insurance administrative expenses as a percent of premium were 7.4% for the three months ended March 31, 2026 and 7.3% for the comparable period in 2025.
75
GL Q1 2026 FORM 10-Q
Globe Life Inc.
Management's Discussion & Analysis
SHARE REPURCHASES
Globe Life has an ongoing share repurchase program that began in 1986. The share repurchase program is reviewed with the Board of Directors quarterly, and continues indefinitely unless and until the Board of Directors decides to suspend, terminate or modify the program. On November 18, 2024, the Board of Directors authorized the repurchase of up to $1.8 billion under the Company's existing share repurchase program. Management generally determines the amount of repurchases based on the amount of excess cash flows and other available sources after the payment of dividends to the Parent Company shareholders, general market conditions, and other alternative uses. At March 31, 2026, we had $911 million remaining under the authorization to repurchase. Since implementing our share repurchase program in 1986, we have used $11.2 billion to repurchase Globe Life Inc. common shares, after determining that the repurchases provide a greater risk-adjusted after-tax return than other alternatives and we expect to continue this program into the future.
Excess cash flow at the Parent Company is primarily comprised of dividends received from the insurance subsidiaries less interest expense paid on its debt and other limited operating activities. Additionally, when stock options are exercised, proceeds from these exercises and the resulting tax benefit are used to repurchase additional shares on the open market to minimize dilution as a result of the option exercises. Share repurchases were made in the first quarter of 2026 with anticipation of the expected cashflows for the year.
The following table summarizes share repurchases for the three month periods ended March 31, 2026 and 2025.
Analysis of Share Repurchases
(Amounts in thousands, except per share data)
| Purchases with: | Three Months Ended March 31, 2026Shares | Three Months Ended March 31, 2026Amount | Three Months Ended March 31, 2026Average Price | Three Months Ended March 31, 2025Shares | Three Months Ended March 31, 2025Amount | Three Months Ended March 31, 2025Average Price |
|---|---|---|---|---|---|---|
| Excess cash flow at the Parent Company(1) | 1,440 | $203,403 | $141.24 | 1,451 | $176,546 | $121.70 |
| Option exercise proceeds | 245 | 35,203 | 143.50 | 700 | 86,624 | 123.76 |
| Total | 1,685 | $238,606 | $141.57 | 2,151 | $263,170 | $122.37 |
(1) Excludes excise tax on the repurchase of treasury stock of $1.9 million and $1.4 million for the three months ended March 31, 2026 and 2025, respectively.
FINANCIAL CONDITION
Liquidity. Liquidity provides Globe Life with the ability to meet on demand the cash commitments required to support our business operations and meet our financial obligations. Our liquidity is primarily derived from multiple sources: positive cash flow from operations, a portfolio of marketable securities, pre-capitalized trust securities facility, a revolving credit facility, commercial paper, and advances from the Federal Home Loan Bank.
Insurance Subsidiary Liquidity. The operations of our insurance subsidiaries have historically generated substantial cash inflows in excess of immediate cash needs. Cash inflows for the insurance subsidiaries primarily include premium and investment income. In addition to investment income, maturities and scheduled repayments in the investment portfolio are cash inflows. Cash outflows from operations include policy benefit payments, commissions, administrative expenses, and taxes. A portion of cash inflows in the current year will provide for the payment of future policy benefits and are invested primarily in long-term fixed maturities as they better match the long-term nature of these obligations. While the insurance subsidiaries annually generate more operating cash inflows than cash outflows, the companies also have the entire available-for-sale fixed-maturity portfolio available to create additional cash flows if required.
Four of our insurance subsidiaries are members of the FHLB of Dallas. FHLB membership provides the insurance subsidiaries with access to various low-cost collateralized borrowings and funding agreements. While not the only source of liquidity, the FHLB could provide the insurance subsidiaries with an additional source of liquidity, if needed. Refer to Note 11—Debt for further details.
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GL Q1 2026 FORM 10-Q
Globe Life Inc.
Management's Discussion & Analysis
Parent Company Liquidity. An important source of Parent Company liquidity is the dividends from its insurance subsidiaries. These dividends are received throughout the year and are used by the Parent Company to pay dividends on common and preferred stock, interest and principal repayment requirements on Parent Company debt, and operating expenses of the Parent Company.
| Line item | Three Months Ended March 31, 2026 | Three Months Ended March 31, 2025 | Twelve Months Ended December 31,Projected 2026 | Twelve Months Ended December 31, 2025 |
|---|---|---|---|---|
| Liquidity Sources: | ||||
| Dividends from Subsidiaries | $115,390 | $23,260 | $700,000—$740,000 | $815,741 |
| Excess Cash Flows(1) | 97,019 | 196,678 | 650,000—700,000 | 890,311 |
(1) Excess cash flows are reported gross of shareholder dividends. For the three months ended March 31, 2026 and 2025, shareholder dividends were $21 million and $20 million, respectively. For the twelve months ended December 31, 2026, we project approximately $88 million in shareholder dividends, compared to the $86 million paid in 2025.
Subsidiary dividends are generally paid in amounts equal to the subsidiaries’ prior year statutory net income excluding net realized capital gains. Dividends from subsidiaries and excess cash flows are projected to be lower for the full-year of 2026 than received in 2025 due to increased excess cash flows in 2025 from extraordinary dividends totaling $272 million. Additional sources of liquidity for the Parent Company are cash, intercompany receivables, intercompany borrowings, debt markets, term loans, and a revolving credit facility.
The Company has access to a P-CAP Facility Agreement that provides us with the right to sell at any time to the Trust up to $500 million of our 6.580% Senior Notes due 2055 (the “6.580% Senior Notes”) in exchange for a corresponding amount of the Strips held by the Trust (the “Issuance Right”). Our capacity under the agreement is based on the value of the Strips which was $499.8 million as of March 31, 2026. We agreed to pay a semi-annual facility fee of 1.789% per annum on the unexercised portion of the Issuance Right.
The Company can redeem the 6.580% Senior Notes at any time, in whole or in part, at a price equal to the greater of par or a make-whole redemption price. At March 31, 2026, the Company had no senior note issuances under the Facility Agreement.
Short-Term Borrowings. An additional source of Parent Company liquidity is a credit facility with a group of lenders. The facility was amended on March 29, 2024, resulting in an increased capacity of $250 million. The facility allows for unsecured borrowings and stand-by letters of credit up to $1 billion, which could be increased up to $1.25 billion. While the Parent Company may request the increase, it is not guaranteed. The updated five-year credit agreement will mature on March 29, 2029. Up to $250 million in letters of credit can be issued against the facility. The facility serves as a backup line of credit for a commercial paper program under which commercial paper may be issued at any time, with total commercial paper outstanding not to exceed the facility maximum less any letters of credit issued. Interest charged on the commercial paper program resembles variable rate debt due to its short term nature. As of March 31, 2026, we had available $426 million of additional borrowing capacity under this facility, compared to $476 million a year earlier. As of March 31, 2026, the Parent Company was in full compliance with all covenants related to the aforementioned debt.
As a part of the credit facility, Globe Life has stand-by letters of credits. These letters of credit are issued on behalf of our insurance subsidiaries.
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GL Q1 2026 FORM 10-Q
Globe Life Inc.
Management's Discussion & Analysis
The following tables present certain information about our commercial paper borrowings.
Credit Facility—Commercial Paper
(Dollar amounts in thousands)
| Line item | AtMarch 31,2026 | AtDecember 31, 2025 | AtMarch 31,2025 |
|---|---|---|---|
| Balance of commercial paper at end of period (par value) | $459,250 | $306,000 | $409,500 |
| Annualized interest rate | 4.02% | 4.05% | 5.13% |
| Letters of credit outstanding | $115,000 | $115,000 | $115,000 |
| Remaining amount available under credit line | 425,750 | 579,000 | 475,500 |
Credit Facility—Commercial Paper Activity
(Dollar amounts in thousands)
| Line item | Three Months Ended March 31, 2026 | Three Months Ended March 31, 2025 |
|---|---|---|
| Average balance of commercial paper outstanding during period (par value) | $373,981 | $478,950 |
| Daily-weighted average interest rate (annualized) | 3.98% | 5.08% |
| Maximum daily amount outstanding during period (par value) | $559,250 | $605,500 |
The Company increased commercial paper borrowings by $153 million since year end. The increase is related to the timing of dividends from subsidiaries to the Parent Company relative to cash needs.
The Parent Company expects to have readily available funds for 2026 and the foreseeable future to conduct its operations and to maintain target capital ratios in the insurance subsidiaries. In the unlikely event that more liquidity is needed, the Company could generate additional funds through multiple sources including, but not limited to the issuance of debt and intercompany borrowings. The Parent Company had access to $85 million of liquid assets available as of March 31, 2026. This liquidity is available to the Company in the event additional funds are needed to support the targeted capital levels within our insurance subsidiaries.
Consolidated Liquidity. Consolidated net cash inflows from operations were $421 million in the first three months of 2026, compared with $432 million in the same period of 2025. The decrease is attributable to routine fluctuations in the settlement of operating activities. In addition to cash inflows from operations, our insurance companies received proceeds from dispositions of fixed maturities available for sale, mortgage loans, and other long-term investments in the amount of $191 million during the first three months of 2026. The Parent Company has in place a revolving credit facility and a P-CAPS facility. SeeNote 11—Debt for further details. The insurance companies have no additional outstanding credit facilities.
Cash and short-term investments were $439 million at March 31, 2026, compared with $459 million at December 31, 2025. In addition to these liquid assets, $18 billion (fair value at March 31, 2026) of fixed income securities are available for sale in the event of an unexpected need. Approximately $1.8 billion, at fair value, are pledged for outstanding FHLB advances and reinsurance. Further, approximately 98% of our fixed income securities are publicly traded, freely tradable under SEC Rule 144, or qualified for resale under SEC Rule 144A. While our fixed income securities are classified as available for sale, we have the ability and general intent to hold any securities to recovery or maturity. Our strong cash flows from operations, on-going investment maturities, and available liquidity under our credit facility, FHLB and P-CAPS facility make any need to sell securities for liquidity highly unlikely.
Capital Resources. The Parent Company's capital structure consists of short-term debt (the commercial paper facility and current maturities of long-term debt), long-term debt, and shareholders’ equity. It does not include short-term FHLB borrowings, which are obligations of the insurance subsidiaries and typically repaid over the course of the year.
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GL Q1 2026 FORM 10-Q
GLOBE LIFE INC.
Management's Discussion & Analysis
Long-Term Borrowings. At March 31, 2026, the outstanding long-term debt at book value was $2.3 billion unchanged from December 31, 2025.
Selected Information about Debt Issues
As of March 31, 2026
(Dollar amounts in thousands)
| Instrument | Issue Date | Maturity Date | Coupon Rate | Interest Payment Dates | Par Value | Book Value | Fair Value |
|---|---|---|---|---|---|---|---|
| Senior notes | 09/27/2018 | 09/15/2028 | 4.550% | semiannual | $550,000 | $547,945 | $549,104 |
| Senior notes | 08/21/2020 | 08/15/2030 | 2.150% | semiannual | 400,000 | 397,725 | 359,252 |
| Senior notes(1) | 05/19/2022 | 06/15/2032 | 4.800% | semiannual | 250,000 | 246,802 | 247,225 |
| Senior notes | 08/23/2024 | 09/15/2034 | 5.850% | semiannual | 450,000 | 445,325 | 463,991 |
| Junior subordinated debentures | 11/17/2017 | 11/17/2057 | 5.275% | semiannual | 125,000 | 123,466 | 108,704 |
| Junior subordinated debentures | 06/14/2021 | 06/15/2061 | 4.250% | quarterly | 325,000 | 317,494 | 200,200 |
| Term loan(2) | 05/11/2023 | 08/15/2027 | 5.127% | quarterly | 250,000 | 249,018 | 249,018 |
| Subtotal | 2,350,000 | 2,327,775 | 2,177,494 | ||||
| Unamortized issuance costs(3) | — | (6,238) | — | ||||
| Total long-term debt | 2,350,000 | 2,321,537 | 2,177,494 | ||||
| FHLB borrowings | — | — | — | ||||
| Commercial paper | 459,250 | 457,047 | 457,047 | ||||
| Total short-term debt | 459,250 | 457,047 | 457,047 | ||||
| Total debt | $2,809,250 | $2,778,584 | $2,634,541 |
(1) An additional $150 million par value and book value is held by insurance subsidiaries that eliminates in consolidation.
(2) Interest calculated quarterly using Secured Overnight Financing Rate (SOFR) plus 135 basis points. The term loan was amended on August 15, 2024 extending the maturity date from November 11, 2024 to August 15, 2027 and increasing the principal amount from $170 million to $250 million.
(3) Unamortized issuance costs for P-CAPS facility agreement.
Financing costs consist primarily of interest on our various debt instruments. The table below presents the components of financing costs and reconciles interest expense per the Condensed Consolidated Statements of Operations.
Analysis of Financing Costs
(Dollar amounts in thousands)
| Line item | Three Months Ended March 31, 2026 | Three Months Ended March 31, 2025 | Increase(Decrease)Amount | Increase(Decrease)% |
|---|---|---|---|---|
| Interest on funded debt | $23,650 | $23,553 | $97 | — |
| Interest on term loans | 3,411 | 3,889 | (478) | (12) |
| Interest on short-term debt | 4,649 | 7,550 | (2,901) | (38) |
| Other | 2,290 | — | 2,290 | |
| Financing costs | $34,000 | $34,992 | $(992) | (3) |
During the first three months of 2026, financing costs decreased 3% compared to the prior year. The decrease in financing costs is primarily due to lower average balances in short-term debt in the current year. Other financing costs increased due to the P-CAPS facility fee. More information on our debt transactions is disclosed in the Financial Condition section of this report.
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GL Q1 2026 FORM 10-Q
GLOBE LIFE INC.
Management's Discussion & Analysis
Subsidiary Capital: The National Association of Insurance Commissioners has established a risk-based factor approach for determining threshold risk-based capital levels for all U.S. insurance companies. This approach was designed to assist the regulatory bodies in identifying companies that may require regulatory attention. A Risk-Based Capital ratio is typically determined by dividing adjusted total statutory capital by the amount of RBC determined using the NAIC’s factors. If a company’s RBC ratio approaches two times the RBC amount, the company must file a plan with the NAIC for improving its capital levels (this level is commonly referred to as “Company Action Level” RBC). Companies typically hold a multiple of the Company Action Level RBC depending on their particular business needs and risk profile.
Our goal is to maintain statutory capital within our insurance subsidiaries at levels necessary to support our current ratings. Globe Life targets a consolidated Company Action Level RBC ratio of 300% to 320% for our U.S. insurance subsidiaries. The Company has concluded that this capital level is more than adequate and sufficient to support its current ratings, given the nature of its business and its risk profile. For 2025, our consolidated Company Action Level RBC ratio was 316%. The Parent Company is committed to maintaining the targeted consolidated RBC ratio at its insurance subsidiaries and has sufficient liquidity available to provide additional capital if necessary.
In addition, our Bermuda-based insurance subsidiaries are subject to regulation in Bermuda and the BMA has capital requirements and solvency standards including limitations on dividends or distributions to shareholders. Our Bermuda subsidiaries' level of capitalization exceeded the required minimum solvency margins for the year ended 2025.
Shareholders' Equity: Shareholders’ equity was $6.1 billion at March 31, 2026. This compares with $6.0 billion at December 31, 2025 and $5.4 billion at March 31, 2025. During the three months since December 31, 2025, shareholders’ equity increased as a result of net income of $271 million during the first three months of 2026, but was offset by share repurchases of $203 million and an additional $35 million in share repurchases to offset the dilution from stock option exercises. Additionally, the change in the balance of AOCI increased shareholders' equity $71 million primarily due to changes in interest rates and discount rates over the period.
On February 26, 2026, the Parent Company announced that it had declared a quarterly dividend of $0.33 per share, an increase of 22% from the previous amount of $0.27 per share. This dividend was paid on May 1, 2026.
We plan to use excess cash available at the Parent Company as efficiently as possible in the future. Excess cash flow, as we define it, results primarily from the dividends received by the Parent Company from its insurance subsidiaries less the interest paid on debt. The cash received by the Parent Company from our insurance subsidiaries is after they have made substantial investments during the year to grow the business. Possible uses of excess cash flow include, but are not limited to, share repurchases, acquisitions, shareholder dividend payments, subsidiary capital contributions, investments in securities, or repayment of short-term debt. We will determine the best use of excess cash after ensuring that targeted capital levels are maintained in our insurance subsidiaries. If market conditions are favorable, we currently expect that share repurchases will continue to be a primary use of those funds.
Future policy benefits are computed using current discount rates with the impact of changes in discount rates included in accumulated other comprehensive income. Additionally, the liability for future policy benefits is calculated using net premiums rather than gross premiums. Given that gross premiums are considerably higher than net premiums for our business, as seen in Note 6—Policy Liabilities, the measurement of the liability is higher than what it would be had it been computed using gross premiums. This is an important consideration when analyzing shareholders' equity.
We maintain a significant available-for-sale fixed maturity portfolio to support our insurance policy liabilities. Current accounting guidance requires that we revalue our portfolio to fair market value at the end of each accounting period. The period-to-period changes in fair value, net of their associated impact on income tax, are reflected directly in shareholders’ equity in AOCI. Changes in the fair value of the portfolio can result from changes in market rates.
While a majority of invested assets are revalued, accounting rules do not permit interest-bearing insurance policy liabilities to be valued at fair value in a consistent manner as that of assets, with changes in value applied directly to shareholders’ equity. Due to the size of our policy liabilities in relation to our shareholders’ equity, an inconsistency exists in measurement, which may have a material impact on the reported value of shareholders’ equity.
80
GL Q1 2026 FORM 10-Q
GLOBE LIFE INC.
Management's Discussion & Analysis
Fluctuations in interest rates cause undue volatility in the period-to-period presentation of our shareholders’ equity, capital structure, and financial ratios. Due to the long-term nature of our fixed maturity investments and liabilities and the strong cash flows consistently generated by our insurance subsidiaries, we have the ability to hold our securities to maturity. As such, we do not expect to incur losses due to fluctuations in market value of fixed maturities caused by market rate changes and temporarily illiquid markets. Accordingly, our management, credit rating agencies, lenders, many industry analysts, and certain other financial statement users prefer to remove the effects of AOCI when analyzing our balance sheet, capital structure, and financial ratios.
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GL Q1 2026 FORM 10-Q
Item 3. Quantitative and Qualitative Disclosures About Market Risk
There have been no quantitative or qualitative changes with respect to market risk exposure during the three months ended March 31, 2026.
Item 4. Controls and Procedures
Evaluation of Disclosure Controls and Procedures: Globe Life Inc., under the direction of the Co-Chairmen and Chief Executive Officers and the Executive Vice President and Chief Financial Officer, has established disclosure controls and procedures that are designed to ensure that information required to be disclosed by Globe Life in the reports that it files or submits under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms. The disclosure controls and procedures are also intended to ensure that such information is accumulated and communicated to Globe Life's management, including the Co-Chairmen and Chief Executive Officers and the Executive Vice President and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosures.
As of the end of the fiscal quarter completed March 31, 2026, an evaluation was performed under the supervision and with the participation of Globe Life management, including the Co-Chairmen and Chief Executive Officers and the Executive Vice President and Chief Financial Officer, of the disclosure controls and procedures (as those terms are defined in Rule 13a-15(e) under the Securities Exchange Act of 1934). Based upon their evaluation, the Co-Chairmen and Chief Executive Officers and the Executive Vice President and Chief Financial Officer have concluded that disclosure controls and procedures are effective as of the date of this Form 10-Q. In compliance with Section 302 of the Sarbanes Oxley Act of 2002 (18 U.S.C. § 1350), each of these officers executed a Certification included as an exhibit to this Form 10-Q.
Changes in Internal Control over Financial Reporting: During the period ended March 31, 2026, there were no changes to Globe Life Inc.'s internal control over financial reporting or in other factors that could significantly affect the internal control over financial reporting subsequent to the date of their evaluation which have materially affected, or are reasonably likely to materially affect, internal control over financial reporting.
Part II—Other Information
Item 1. Legal Proceedings
Discussion regarding litigation is provided in Note 5—Commitments and Contingencies.
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GL Q1 2026 FORM 10-Q
Item 1A. Risk Factors
The Company had no material changes to its risk factors.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Purchases of Certain Equity Securities by the Issuer and Others for the First Quarter of 2026
| Period | (a) Total Numberof Shares Purchased | (b) Average Price Paid Per Share | (c) Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | (d) Maximum Numberof Shares (or Approximate Dollar Amount) that May Yet Be Purchased Under the Plans or Programs |
|---|---|---|---|---|
| January 1-31, 2026 | 498,473 | $139.73 | 498,473 | — |
| February 1-28, 2026 | 510,262 | 144.21 | 510,262 | — |
| March 1-31, 2026 | 676,673 | 140.94 | 676,673 | — |
Item 5. Other Information
(c) Trading arrangements
During the three months ended March 31, 2026, none of our directors or officers adopted or terminated a Rule 10b5-1 trading arrangement or a Non-Rule 10b5-1 trading arrangement, as each term is defined under Item 408(a) of Regulation S-K.
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GL Q1 2026 FORM 10-Q
Item 6. Exhibits
Exhibit No. Description
10.1 Globe Life Inc. 2026 Incentive Plan 31.1 Rule 13a-14(a)/15d-14(a) Certification by J. Matthew Darden 31.2 Rule 13a-14(a)/15d-14(a) Certification by Frank M. Svoboda 31.3 Rule 13a-14(a)/15d-14(a) Certification by Thomas P. Kalmbach 32.1 Section 1350 Certification by J. Matthew Darden, Frank M. Svoboda, and Thomas P. Kalmbach 101.INS XBRL Instance Document- the instance document does not appear in the Interactive Data file because the XBRL tags are embedded within the Inline XBRL document. 101.SCH Inline XBRL Taxonomy Extension Schema Document. 101.CAL Inline XBRL Taxonomy Extension Calculation Linkbase Document. 101.LAB Inline XBRL Taxonomy Extension Label Linkbase Document. 101.PRE Inline XBRL Taxonomy Extension Presentation Linkbase Document. 101.DEF Inline XBRL Taxonomy Extension Definition Linkbase Document. (104) Cover Page Interactive Data File (formatted as inline XBRL with applicable taxonomy extension information contained in Exhibits 101).
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GL Q1 2026 FORM 10-Q
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GL Q1 2026 FORM 10-Q