July 24, 2024

GLOBE LIFE INC. REPORTS SECOND QUARTER 2024 RESULTS

MCKINNEY, Texas, July 24, 2024 /PRNewswire/ — Globe Life Inc. (NYSE: GL) reported today that for the quarter ended June 30, 2024, net income was $2.83 per diluted common share, compared with $2.24 per diluted common share for the year-ago quarter. Net operating income for the quarter was $2.97 per diluted common share, compared with $2.61 per diluted common share for the year-ago quarter.

HIGHLIGHTS:

Net income as an ROE was 20.8% for the six months ended June 30, 2024. Net operating income as an ROE excluding accumulated other comprehensive income (AOCI) was 14.5% for the same period.Net income increased 20% and net operating income increased 8% over the year-ago quarter.At the American Income Life Division, life net sales and premiums increased over the year-ago quarter by 16% and 7%, respectively. Additionally, the average producing agent count increased 13% over the year-ago quarter.At the Liberty National Division, the average producing agent count increased 16% over the year-ago quarter and life net sales and premiums increased 11% and 6%, respectively.At the Family Heritage Division, health net sales increased 7% and premiums increased 8% over the year-ago quarter.Total underwriting margin increased 8% over the year-ago quarter.Net investment income grew 9% over the year-ago quarter.3.8 million shares of Globe Life Inc. common stock were repurchased during the quarter.

Note: As used in the earnings release, “Globe Life,” the “Company,” “we,” “our,” and “us” refer to Globe Life Inc., a Delaware corporation incorporated in 1979, its subsidiaries and affiliates.

GLOBE LIFE INC.
Earnings Release—Q2 2024
(Dollar amounts in thousands, except share and per share data)
(Unaudited)

RESULTS OF OPERATIONS

Net operating income, a non-GAAP(1) financial measure, has been used consistently by Globe Life’s 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 net income primarily because it excludes certain non-operating items such as
realized investment gains and losses and certain 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.

The following table represents Globe Life’s operating summary for the three months ended June 30, 2024 and 2023:

Operating Summary

Per Share

Three Months Ended

June 30,

Three Months Ended

June 30,

2024

2023

Chg.

2024

2023

Chg.

Insurance underwriting income(2)

$ 3.72

$ 3.28

$ 340,437

$ 315,356

Excess investment income(2)

0.47

0.33

42,791

31,385

Interest on debt

(0.34)

(0.27)

(31,404)

(25,818)

Parent company expense

(0.03)

(3,130)

(3,088)

Income tax expense

(0.75)

(0.63)

(68,857)

(60,801)

Stock compensation benefit (expense), net of tax

(0.09)

(0.06)

(8,620)

(5,558)

Net operating income

2.97

2.61

271,217

251,476

Reconciling items, net of tax:

Realized gain (loss)—investments

(0.11)

(0.38)

(9,945)

(36,216)

Non-operating expenses

(0.01)

—

(993)

—

Legal proceedings

(0.02)

—

(1,924)

—

Net income(3)

$ 2.83

$ 2.24

$ 258,355

$ 215,260

Weighted average diluted shares outstanding

91,441

96,251

(1) GAAP is defined as accounting principles generally accepted in the United States of America.

(2) Definitions included within this document.

(3) A GAAP-basis condensed consolidated statement of operations is included in the appendix of this report.

Note: Tables in this earnings release may not sum due to rounding.

GLOBE LIFE INC.
Earnings Release—Q2 2024
(Dollar amounts in thousands, except share and per share data)
(Unaudited)

MANAGEMENT VS. GAAP MEASURES

Shareholders’ equity, excluding AOCI, and book value per share, excluding AOCI, are non-GAAP measures that are
utilized by management to view the business without the effect of changes in AOCI, which are primarily attributable
to fluctuation in interest rates. Management views the business in this manner because it creates more meaningful
and easily identifiable trends, as we exclude fluctuations resulting from changes in interest rates. Shareholders’ equity
and book value per share are the most directly comparable GAAP measures.

Six Months Ended

June 30,

2024

2023

Net income

$ 512,572

$ 438,870

Net operating income

535,316

499,518

Net income as an ROE(1)

20.8 %

22.4 %

Net operating income as an ROE (excluding AOCI)(1)

14.5 %

14.6 %

June 30,

2024

2023

Shareholders’ equity

$ 5,227,754

$ 3,980,306

Impact of adjustment to exclude AOCI

2,189,620

2,943,897

Shareholders’ equity, excluding AOCI

$ 7,417,374

$ 6,924,203

Book value per share

$ 58.06

$ 41.44

Impact of adjustment to exclude AOCI

24.32

30.65

Book value per share, excluding AOCI

$ 82.38

$ 72.09

(1) Calculated using average shareholders’ equity for the measurement period.

INSURANCE OPERATIONS:

Life insurance accounted for 76% of the Company’s insurance underwriting margin for the quarter and 70% of total premium revenue.

Health insurance accounted for 24% of the Company’s insurance underwriting margin for the quarter and 30% of total premium revenue.

Net sales of life insurance increased 10% for the quarter, and net health sales increased 17%.

The following table summarizes Globe Life’s premium revenue by product type for the three months ended June 30, 2024 and 2023:

GLOBE LIFE INC.
Earnings Release—Q2 2024
(Dollar amounts in thousands, except share and per share data)
(Unaudited)

Insurance Premium Revenue

Quarter Ended

June 30, 2024

June 30, 2023

Chg.

Life insurance

$ 815,482

$ 781,733

Health insurance

351,643

329,187

Annuity

—

Total

$ 1,167,125

$ 1,110,920

INSURANCE UNDERWRITING INCOME

Insurance underwriting margin is management’s measure of profitability of the Company’s life, health, and annuity
segments’ underwriting performance, and consists of premiums less policy obligations (excluding interest on policy
liabilities), commissions and other acquisition expenses. Insurance underwriting income is the sum of the insurance
underwriting margins of the life, health, and annuity segments, plus other income, less administrative expenses. It
excludes the investment segment, interest on debt, Parent Company expense, stock compensation expense and
income taxes. Management believes this information helps provide a better understanding of the business and a more
meaningful analysis of underwriting results by distribution channel. Insurance underwriting income, a non-GAAP
measure, is a component of net operating income, which is reconciled to net income in the Results of Operations
section above.

The following table summarizes Globe Life’s insurance underwriting income by segment for the three months ended
June 30, 2024 and 2023:

Insurance Underwriting Income

Quarter Ended

June 30, 2024

% of

Premium

June 30, 2023

% of

Premium

Chg.

Insurance underwriting margins:

Life

$ 320,323

$ 296,130

Health

100,488

92,419

Annuity

1,748

2,181

422,559

390,730

Other income

Administrative expenses

(82,196)

(75,459)

Insurance underwriting income

$ 340,437

$ 315,356

Per share

$ 3.72

$ 3.28

The ratio of administrative expenses to premium was 7.0%, compared with 6.8% for the year-ago quarter.

GLOBE LIFE INC.
Earnings Release—Q2 2024
(Dollar amounts in thousands, except share and per share data)
(Unaudited)

LIFE INSURANCE RESULTS BY DISTRIBUTION CHANNEL

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 (Direct to Consumer).

Total premium, underwriting margins, first-year collected premium and net sales by all distribution channels are shown
at https://investors.globelifeinsurance.com at “Financial Reports and Other Financial Information.”

Life Underwriting Margin

Quarter Ended

June 30,

2024

2023

Amount

% of
Premium

Amount

% of
Premium

%
Chg.

American Income

$ 192,662

$ 179,537

Direct to Consumer

63,848

56,433

Liberty National

31,072

28,386

Other

32,741

31,774

Total

$ 320,323

$ 296,130

Life Premium

Quarter Ended

June 30,

2024

2023

Chg.

American Income

$ 423,534

$ 394,620

Direct to Consumer

248,839

248,607

—

Liberty National

92,197

86,634

Other

50,912

51,872

(2)

Total

$ 815,482

$ 781,733

Life Net Sales(1)

Quarter Ended

June 30,

2024

2023

Chg.

American Income

$ 94,668

$ 81,940

Direct to Consumer

30,614

31,629

(3)

Liberty National

25,889

23,269

Other

2,332

2,450

(5)

Total

$ 153,503

$ 139,288

(1)

Net sales is calculated as annualized premium issued, net of cancellations in the first thirty 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 1 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 excludes cancellations, and cancellations do not contribute to premium income.

GLOBE LIFE INC.
Earnings Release—Q2 2024
(Dollar amounts in thousands, except share and per share data)
(Unaudited)

HEALTH INSURANCE RESULTS BY DISTRIBUTION CHANNEL

Health Underwriting Margin

Quarter Ended

June 30,

2024

2023

Amount

% of Premium

Amount

% of Premium

% Chg.

United American

$ 16,571

$ 14,753

Family Heritage

36,611

32,704

Liberty National

26,400

26,208

American Income

19,092

18,169

Direct to Consumer

1,814

585

210

Total

$ 100,488

$ 92,419

Health Premium

Quarter Ended

June 30,

2024

2023

Chg.

United American

$ 149,230

$ 137,453

Family Heritage

105,855

98,129

Liberty National

47,705

46,903

American Income

30,721

29,527

Direct to Consumer

18,132

17,175

Total

$ 351,643

$ 329,187

Health Net Sales(1)

Quarter Ended

June 30,

2024

2023

Chg.

United American

$ 18,228

$ 12,933

Family Heritage

24,570

23,010

Liberty National

8,356

8,058

American Income

5,792

4,712

Direct to Consumer

839

707

Total

$ 57,785

$ 49,420

(1)

GLOBE LIFE INC.
Earnings Release—Q2 2024
(Dollar amounts in thousands, except share and per share data)
(Unaudited)

PRODUCING EXCLUSIVE AGENT COUNT RESULTS BY DISTRIBUTION CHANNEL

Quarterly Average

Producing Agent Count(1)

Quarter Ended

June 30,

March 31,

2024

2023

%
Chg.

2024

American Income

11,869

10,488

11,139

Liberty National

3,700

3,180

3,419

Family Heritage

1,361

1,345

1,295

(1) The quarterly average producing agent count is based on the actual count at the beginning and end of each week during the period.

INVESTMENTS

Management uses excess investment income as the measure to evaluate the performance of the investment
segment. It is defined as net investment income less the required interest attributable to policy liabilities. We also view
excess investment income per diluted common share as an important and useful measure to evaluate performance
of the investment segment, since it takes into consideration our stock repurchase program.

The following table summarizes Globe Life’s investment income, excess investment income, and excess investment
income per diluted common share.

Excess Investment Income

Quarter Ended

June 30,

2024

2023

Chg.

Net investment income

$ 285,636

$ 261,244

Interest on policy liabilities(1)

(242,845)

(229,859)

Excess investment income

$ 42,791

$ 31,385

Per share

$ 0.47

$ 0.33

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

Net investment income increased 9% and average invested assets increased 6%. Required interest on policy liabilities increased 6% and average policy liabilities increased 5%.

GLOBE LIFE INC.
Earnings Release—Q2 2024
(Dollar amounts in thousands, except share and per share data)
(Unaudited)

The composition of the investment portfolio at book value at June 30, 2024 is as follows:

Investment Portfolio

As of

June 30, 2024

Amount

% of Total

Fixed maturities at fair value(1)

$ 17,613,008

Mortgage Loans

343,492

Policy loans

676,077

Other long-term investments(2)

974,515

Short-term investments

100,560

Total

$ 19,707,652

(1) As of June 30, 2024, fixed maturities at amortized cost were $19.2 billion, net of $7.1 million of allowance for credit losses.

(2) Includes $916 million of investments accounted for under the fair value option which have a cost of $898 million as of June 30, 2024.

Fixed maturities at amortized cost, net of allowance for credit losses, by asset class as of June 30, 2024 are as follows:

Fixed Maturity Portfolio by Sector

As of

June 30, 2024

Investment
Grade

Below
Investment
Grade

Total
Amortized
Cost, net

Corporate bonds

$ 14,884,237

$ 521,168

$ 15,405,405

Municipals

3,255,829

—

3,255,829

Government, agencies, and GSEs(1)

443,826

—

443,826

Collateralized debt obligations

—

36,945

Other asset-backed securities

74,147

5,989

80,136

Total

$ 18,658,039

$ 564,102

$ 19,222,141

(1) Government-Sponsored Enterprises

Below are fixed maturities available for sale by amortized cost, allowance for credit losses, and fair value at June 30, 2024 and the corresponding amounts of net unrealized gains and losses recognized in accumulated other comprehensive income (loss).

As of

Amortized

Cost

Allowance for
Credit Losses

Net Unrealized
Gains
(Losses)

Fair

Value

June 30, 2024

$ 19,229,273

$ (7,132)

$ (1,609,133)

$ 17,613,008

At amortized cost, net of allowance for credit losses, 97% of fixed maturities (97% at fair value) were rated “investment grade.” The fixed maturity portfolio earned an annual taxable equivalent effective yield of 5.26% during the second quarter of 2024, compared with 5.18% in the year-ago quarter.

Globe Life is not a party to any credit default swaps and does not participate in securities lending.

GLOBE LIFE INC.
Earnings Release—Q2 2024
(Dollar amounts in thousands, except share and per share data)
(Unaudited)

Comparable information for acquisitions of fixed maturity investments is as follows:

Fixed Maturity Acquisitions

Quarter Ended

June 30,

2024

2023

Amount

$ 240,669

$ 359,487

Average annual effective yield

6.2 %

5.8 %

Average rating

A-

AA-

Average life (in years) to:

Next call

32.2

15.5

Maturity

34.8

24.4

SHARE REPURCHASE:

During the quarter, the Company repurchased 3.8 million shares of Globe Life Inc. common stock at a total cost of $314 million and an average share price of $81.87.

LIQUIDITY/CAPITAL:

Globe Life’s operations consist primarily of writing basic protection life and supplemental health insurance policies which generate strong and stable cash flows. These cash flows are not impacted by volatile equity markets. Liquidity at the Parent Company is sufficient to meet additional capital needs of the insurance companies.

EARNINGS GUIDANCE FOR THE YEAR ENDING DECEMBER 31, 2024:

Globe Life projects net operating income between $11.80 to $12.10 per diluted common share for the year ending December 31, 2024.

NON-GAAP MEASURES:

In this news release, Globe Life includes non-GAAP measures to enhance investors’ understanding of management’s view of the business. The non-GAAP measures are not a substitute for GAAP, but rather a supplement to increase transparency by providing broader perspective. Globe Life’s definitions of non-GAAP measures may differ from other companies’ definitions. More detailed financial information, including various GAAP and non-GAAP measurements, is located at https://investors.globelifeinsurance.com on the Investors page under “Financial Reports and Other Financial Information.”

CAUTION REGARDING FORWARD-LOOKING STATEMENTS:

This press release may contain forward-looking statements within the meaning of the federal securities laws. These prospective statements reflect management’s current expectations, but are not guarantees of future performance. Whether or not actual results differ materially from forward-looking statements may depend on numerous foreseeable and unforeseeable events or developments, which may be national in scope, related to the insurance industry generally, or applicable to the Company specifically. Such events or developments could include, but are not necessarily limited to:

1) Economic and other conditions, including the continued impact of inflation, geopolitical events, and the recent pandemic on the U.S. economy, leading to unexpected changes in lapse rates and/or sales of our policies, as well as levels of mortality, morbidity, and utilization of health care services that differ from Globe Life’s assumptions;

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

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

4) Interest rate changes that affect product sales, financing costs, and/or investment portfolio yield;

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

6) Changes in the competitiveness of the Company’s products and pricing;

7) Litigation results;

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

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

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

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

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

13) The impact of any reputational damage on the Company’s ability to attract and retain agents;

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

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

Readers are also directed to consider other risks and uncertainties described in other documents on file with the Securities and Exchange Commission. Globe Life specifically disclaims any obligation to update or revise any forward-looking statement because of new information, future developments or otherwise.

EARNINGS RELEASE CONFERENCE CALL WEBCAST:

Globe Life will provide a live audio webcast of its second quarter 2024 earnings release conference call with financial analysts at 11:00 am (Eastern) tomorrow, July 25, 2024. Access to the live webcast and replay will be available at https://investors.globelifeinsurance.com on the Calls and Meetings page, at the Conference Calls on the Web icon. Immediately following this press release, supplemental financial reports will be available before the conference call on the Investors page menu of the Globe Life website at “Financial Reports.”

APPENDIX

GLOBE LIFE INC.
GAAP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Three Months Ended

June 30,

Six Months Ended

June 30,

2024

2023

2024

2023

Revenue:

Life premium

$ 815,482

$ 781,733

$ 1,619,747

$ 1,554,330

Health premium

351,643

329,187

692,662

651,680

Other premium

—

Total premium

1,167,125

1,110,920

2,312,409

2,206,010

Net investment income

285,636

261,244

568,214

518,349

Realized gains (losses)

(12,589)

(45,843)

(24,388)

(76,770)

Other income

150

135

Total revenue

1,440,246

1,326,406

2,856,385

2,647,724

Benefits and expenses:

Life policyholder benefits(1)

518,792

512,664

1,038,663

1,020,641

Health policyholder benefits(2)

205,423

195,924

407,750

386,886

Other policyholder benefits

11,479

8,922

21,074

17,910

Total policyholder benefits

735,694

717,510

1,467,487

1,425,437

Amortization of deferred acquisition costs

101,915

94,080

201,393

186,402

Commissions, premium taxes, and non-deferred acquisition costs

149,802

138,459

297,912

276,256

Other operating expense

99,108

86,033

192,322

170,204

Interest expense

31,404

25,818

60,025

50,685

Total benefits and expenses

1,117,923

1,061,900

2,219,139

2,108,984

Income before income taxes

322,323

264,506

637,246

538,740

Income tax benefit (expense)

(63,968)

(49,246)

(124,674)

(99,870)

Net income

$ 258,355

$ 215,260

$ 512,572

$ 438,870

Basic net income per common share

$ 2.83

$ 2.26

$ 5.53

$ 4.58

Diluted net income per common share

$ 2.83

$ 2.24

$ 5.51

$ 4.52

(1)

Net of a remeasurement gain of $12.4 million for the three months ended June 30, 2024, and a remeasurement gain of $2.4 million for the same period in 2023. Net of a remeasurement gain of $17.3 million for the six months ended June 30, 2024, and a remeasurement gain of $5.1 million for the same period in 2023.

(2)

Net of a remeasurement gain of $3.2 million for the three months ended June 30, 2024, and a remeasurement gain of $2.6 million for the same period in 2023. Net of a remeasurement gain of $6.5 million for the six months ended June 30, 2024, and a remeasurement gain of $532 thousand for the same period in 2023.

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SOURCE Globe Life Inc.

GLOBE LIFE INC. REPORTS SECOND QUARTER 2024 RESULTS

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