AI interpretation based on checked source excerpts. Issuer assertions and evidence limitations remain explicit.
Policy quality-scores-2: six equally weighted categories. The overall score requires full coverage. Missing inputs are not zero. Qualitative grades are sourced interpretations, not probabilities. 6/6 · 18/10/2026
Moat44
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
structural advantage · 2/4 · Exclusive distribution and affinity access are established operating structures, supported by continuing sales growth. Relative cost superiority is disclosed but lacks comparative measurements.
durability · 2/4 · Long market experience and an established in-force business support persistence. The protective value of accumulated data is management's claim, and agent attrition limits confidence.
customer dependency · 1/4 · In-force premium supports an ongoing customer relationship, but dependency appears weakly evidenced: products compete on service, price and design, and no contractual lock-in or switching friction is established.
erosion resilience · 2/4 · Premium and total sales increased despite American Income agent attrition and DTC sales declines. This demonstrates partial resilience, while classification risk could impair distribution economics.
Pricing power44
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
realized pricing · 2/4 · Medicare Supplement rate increases contributed to health margin growth. Liberty National's higher average issued premium is supporting but mix-sensitive evidence. Neither establishes broad ability to charge a premium over rivals.
retention · 2/4 · Life premium in force grew 2% and first-year collected premiums grew 2%, providing indirect evidence of continuing demand and premium collection after early lapses. These are not retention rates and include new business.
margin resilience · 2/4 · Life underwriting margin held at 41% in the first half of 2026, and health margin improved in 2025. Better mortality and reserve assumption gains contributed, so resilience cannot be attributed solely to pricing; underwriting margin also excludes administrative expenses.
contractual freedom · 1/4 · Regulators approve certain premium rates and policy forms, and health rate increases depend on timely regulatory approval. These are disclosed constraints on repricing; unrestricted repricing of existing life contracts is not established.
Predictability100
Financial-sector stability over five consecutive reported annual periods: equal weights for nondeclining revenue frequency, revenue-growth volatility (5–40pp), positive consolidated earnings frequency, and net-income/revenue margin volatility (3–20pp). Uses reported accounting scope; not industrial FCF or a growth forecast.
- Nondeclining revenue years (%)
- 100.00
- Revenue growth volatility (pp)
- 1.46
- positiveEarningsShare
- 100.00
- netMarginStdDev
- 2.12
Financial strength63
Qualitative insurance assessment: equal-weight average of four current evidence-backed grades (0–4), scaled to 100. Policy financial-industry-1; not an industrial ratio score or credit rating.
capital adequacy · 2/4 · The disclosed 2025 consolidated Company Action Level RBC ratio of 316% sits within the stated 300%–320% target. Bermuda subsidiaries exceeded their required minimum solvency margins. This supports adequate capital, but no interim RBC update, quantified Bermuda buffer or stress-tested sufficiency is supplied. No conversion to another RBC denominator is made.
liquidity funding · 3/4 · First-half operating cash flow was $735 million and closing consolidated cash was $257 million. The contractual P-CAP right had $493 million capacity. These support substantial liquidity, tempered by holding-company dependence on restricted subsidiary dividends and use of debt funding.
asset liability risk · 2/4 · Long-term fixed maturities are used to match long-term obligations, but full duration and reserve stress evidence is absent. Mortgage loans with debt-service coverage below 1.00x increased from $69.4 million to $92.2 million, and material negative AOCI demonstrates interest-rate sensitivity. These concerns do not establish an inability to pay claims.
earnings resilience · 3/4 · Reported net income increased across 2023–2025 and rose another 10% in the first half of 2026. Stable life underwriting margin and improved mortality support current resilience. Reserve remeasurement gains contributed to earlier improvement, and the supplied history does not establish resilience through severe stress.
Capital allocation56
Qualitative insurance assessment: equal-weight average of four current evidence-backed grades (0–4), scaled to 100. Policy financial-industry-1; not an industrial ratio score or credit rating.
capital efficiency · 3/4 · First-half 2026 reported net-income ROE was 18.4%; operating ROE excluding AOCI was 14.3%. These demonstrate productive equity use, with the distinction that negative AOCI reduces GAAP equity and the adjusted measure excludes that effect. Neither measure alone establishes a moat.
distributions and buffers · 2/4 · First-half cash buybacks of $515 million and shareholder dividends of $47 million accompanied $558 million net income and rising equity. Year-end 2025 RBC was within target, but repurchases anticipated future cash flows, subsidiary dividend access is constrained and extraordinary dividends are nonrecurring.
dilution and cost · 2/4 · The share rollforward demonstrates net share reduction despite option exercises and award vesting. Offsetting dilution consumes cash, while stock compensation and financing costs remain material: 2025 noncash stock compensation was $53.4 million, and first-half 2026 included $350 million debt issuance and $7 million issuance costs.
investment discipline · 2/4 · Reinsurance recapture produced $39 million cash proceeds and a roughly $14 million gain, demonstrating a completed transaction outcome. However, excess investment income declined in 2025 and mortgage debt-service coverage weakened. The passages do not quantify incremental returns from technology or broader reinvestment sufficiently to establish consistently superior allocation.
Management63
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
capital discipline · 2/4 · Cash generation and retained equity growth coexist with substantial distributions. However, 2026 debt issuance, repurchases anticipating future cash flows and lower expected subsidiary distributions make discipline mixed rather than exceptional.
incentive alignment · 3/4 · Actual 2025 incentives combine annual financial measures with three-year book-value and operating-ROE measures. Completed 2023–2025 performance results and existing clawback and ownership policies provide demonstrated alignment. Buybacks can influence per-share measures, and ownership compliance is not verified.
execution · 3/4 · Net income grew 10%, total net sales grew 10% and premiums grew 6% in the first half of 2026. These operating outcomes support strong aggregate execution, with meaningful weaknesses in agent retention and DTC production. Technology returns are not separately quantified.
governance · 2/4 · Independent director sessions, actual meeting attendance, board risk oversight and compensation safeguards establish functioning governance processes. Their effectiveness in preventing agency conduct and classification problems is less established; the nonbinding EEOC finding is a concern rather than proof of governance failure.
Evidence
The Company effectively competes with other carriers, in part, due to its ability to operate at lower policy acquisition and administrative expense levels than peer companies.
Business—Competition; issuer comparative cost assertion · Filed 25/02/2026
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).
Note 1—Business; distribution channel structure · Filed 05/08/2026
The American Income Life Division is an exclusive agency that markets to members of affinity groups, including labor unions, and continues to diversify its lead sources by utilizing internally generated leads, third-party internet vendor leads, and referrals to facilitate sustainable growth.
MD&A—American Income; affinity distribution and lead sources · Filed 05/08/2026
•Total premium increased 6% over the same period in the prior year.
MD&A—Current Highlights; premium growth · Filed 05/08/2026
•Total net sales increased 10% over the same period in the prior year from $439 million in 2025 to $484 million in 2026.
MD&A—Current Highlights; net sales growth · Filed 05/08/2026
The average producing agent count decreased 5% over the year-ago period driven by lower retention of new agents.
MD&A—American Income; producing agent decline and retention · Filed 05/08/2026
Life Insurance Net Sales by Distribution Channel (Dollar amounts in thousands) Six Months Ended June 30, Change 2026 2025 Amount % of Total Amount % of Total Amount % American Income $ 196,070 64 $ 194,782 64 $ 1,288 1 Direct to Consumer 53,766 17 56,271 19 (2,505) (4) Liberty National 51,489 17 47,084 15 4,405 9 Other 5,653 2 5,099 2 554 11 Total $ 306,978 100 $ 303,236 100 $ 3,742 1 First-year collected life premium by distribution channel is presented in the table below.
MD&A—Life Insurance Net Sales by Distribution Channel · Filed 05/08/2026
In September 2024, the Equal Employment Opportunity Commission ("EEOC") notified us that it had determined that all sales agents affiliated with State General Agent Simon Arias were employees, not independent contractors, of Globe Life Inc.
Risk Factors—Independent contractor classification; EEOC determination · Filed 25/02/2026
and/or AIL. Such determination is not binding but any potential civil action brought by the EEOC would likely include such an allegation.
Risk Factors—Nonbinding status of EEOC determination · Filed 25/02/2026
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.
MD&A—Market positioning; issuer experience and data claim · Filed 05/08/2026
Life Insurance Premium by Distribution Channel (Dollar amounts in thousands) Six Months Ended June 30, Change 2026 2025 Amount % of Total Amount % of Total Amount % American Income $ 925,534 54 $ 883,377 53 $ 42,157 5 Direct to Consumer 488,443 28 491,823 29 (3,380) (1) Liberty National 200,401 12 193,445 12 6,956 4 Other 99,594 6 100,762 6 (1,168) (1) Total $ 1,713,972 100 $ 1,669,407 100 $ 44,565 3 Annualized life premium in force was $3.46 billion at June 30, 2026, an increase of 2% over $3.38 billion a year earlier.
MD&A—Life premiums by channel and annualized premium in force · Filed 05/08/2026
Deterioration of our relationships with either organized labor union groups or affinity groups, or adverse changes in the public’s receptivity to Direct to Consumer marketing initiatives could negatively affect our life insurance business.
Risk Factors—Union and affinity relationships · Filed 25/02/2026
Future changes in rules, regulations or interpretations of existing rules and regulations, or significant adverse judgments in litigation, could require us to reclassify all or a portion of our agents as employees and the impact could significantly increase our operating costs and negatively impact our insurance business.
Risk Factors—Potential costs of agent reclassification · Filed 25/02/2026
In 2025, underwriting margin in the health segment increased to $390 million due to increased sales and rate increases in our Medicare supplement business, compared with $372 million in 2024 and $378 million in 2023.
MD&A—Health underwriting margin and Medicare Supplement rate increases · Filed 25/02/2026
In 2025, the average monthly life premium issued per policy was $45 as compared to $43 in 2024.
MD&A—Liberty National; average premium issued per policy · Filed 25/02/2026
The laws of the various states establish agencies with broad administrative and supervisory powers which include, among other things, granting and revoking licenses to transact business, regulating trade practices, licensing agents, approving policy forms, approving certain premium rates, setting minimum reserve and loss ratio requirements, subsidiary dividend declaration approval, determining the form and content of required financial statements, and prescribing the type and amount of investments permitted.
Business—Regulation; policy and premium approvals · Filed 25/02/2026
economy and/or U.S. consumer confidence, leading to unexpected changes in lapse rates and/or sales of our policies, as well as levels of mortality, morbidity, and/or 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 affect Medicare Supplement insurance sales, claims utilization or use); 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 affect the sales of traditional Medicare Supplement insurance; 4.Ratings changes with respect to our financial performance and condition; 5.Interest rate changes that affect product sales, financing costs, and/or investment yields; 6.General economic, industry sector or individual debt issuers’ financial conditions (including developments and volatility arising from geopolitical events, particularly in certain industries that may comprise part of our investment portfolio) that 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; 7.Changes in the competitiveness of the Company's products and pricing; 8.Litigation results and regulatory actions; 9.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); 10.The ability to obtain timely and appropriate premium rate increases for health insurance policies from our regulators; 11.The ability of our subsidiaries to pay dividends to the Parent Company and to receive required regulatory approvals on such amounts; 12.The customer response to new products and marketing initiatives; 13.Reported amounts in the consolidated financial statements which are based on management estimates and judgments which may differ from the actual amounts ultimately realized; 14.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; 15.The Company's ability to attract and retain agents; 16.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, level of claims, and demand for our products; and 17.Globe Life's ability to access the commercial paper and debt markets, particularly if such markets become unpredictable or unstable for a certain period.
Cautionary Statements—Health rate approval and other operating risks · Filed 05/08/2026
Life Insurance Summary of Results (Dollar amounts in thousands) Six Months Ended June 30, Change 2026 2025 Amount % of Premium Amount % of Premium Amount % Premium and policy charges $ 1,713,972 100 $ 1,669,407 100 $ 44,565 3 Policy obligations 1,032,809 60 1,029,111 62 3,698 — Required interest on reserves (435,078) (25) (419,696) (25) (15,382) 4 Net policy obligations 597,731 35 609,415 37 (11,684) (2) Amortization of acquisition costs 207,345 12 186,834 11 20,511 11 Commission expense 87,707 5 87,924 5 (217) — Premium taxes 36,033 2 34,693 2 1,340 4 Non-deferred acquisition costs 76,748 5 73,203 4 3,545 5 Total expense 1,005,564 59 992,069 59 13,495 1 Insurance underwriting margin $ 708,408 41 $ 677,338 41 $ 31,070 5 Net policy obligations decreased to 35% of premium for the six months ended June 30, 2026 reflecting improved mortality results when compared with 37% of premium in the year-ago period.
MD&A—Life Insurance Summary of Results; margin and mortality experience · Filed 05/08/2026
This was primarily a result of increased premiums and favorable policy obligations as a percent of premium due to a remeasurement gain resulting from the assumption updates in 2025.
MD&A—Life margin improvement from assumption updates · Filed 25/02/2026
Life Insurance First-Year Collected Premium by Distribution Channel (Dollar amounts in thousands) Six Months Ended June 30, Change 2026 2025 Amount % of Total Amount % of Total Amount % American Income $ 158,273 68 $ 157,171 68 $ 1,102 1 Direct to Consumer 31,407 13 30,676 13 731 2 Liberty National 39,908 17 38,799 17 1,109 3 Other 4,703 2 3,900 2 803 Total $ 234,291 100 $ 230,546 100 $ 3,745 2 67 GL Q2 2026 FORM 10-Q Table of Contents Globe Life Inc.
MD&A—First-Year Collected Life Premium by Distribution Channel · Filed 05/08/2026
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.
Appendix—First-year collected premium and lapses · Filed 19/03/2026
•Net income totaled $558 million during the six months ended June 30, 2026, compared with $507 million, in the same period in 2025, an increase of 10%.
MD&A—Summary of Operations; net income · Filed 05/08/2026
Condensed Consolidated Statements of Cash Flows (Unaudited) (Dollar amounts in thousands) Six Months Ended June 30, 2026 2025 Cash provided from (used for) operating activities $ 735,000 $ 739,813 Cash provided from (used for) investing activities: Investments sold or matured: Fixed maturities available for sale—sold 75,713 272,067 Fixed maturities available for sale—matured or other redemptions 242,641 132,253 Mortgage loans 36,430 3,437 Other long-term investments 98,959 25,939 Total investments sold or matured 453,743 433,696 Acquisition of investments: Fixed maturities—available for sale (812,686) (511,297) Mortgage loans (83,698) (66,686) Other long-term investments (153,345) (53,799) Total investments acquired (1,049,729) (631,782) Net (increase) decrease in policy loans (17,301) (18,952) Net (increase) decrease in short-term investments 116,384 (31,689) Additions to property and equipment (41,406) (24,687) Investments in low-income housing interests (14,823) (30,569) Cash provided from (used for) investing activities (553,132) (303,983) Cash provided from (used for) financing activities: Issuance of common stock 108,981 93,391 Cash dividends paid to shareholders (47,052) (42,524) Proceeds from issuance of debt 350,000 — Payment for debt issuance costs (7,042) — Net borrowing from Federal Home Loan Bank (FHLB) — 70,000 Net borrowing (repayment) of commercial paper (93,103) 26,983 Proceeds from commercial paper with original maturities greater than 90 days 187,522 361,118 Repayment of commercial paper with original maturities greater than 90 days (121,122) (408,962) Acquisition of treasury stock (515,187) (514,855) Net receipts (payments) from deposit-type products 59,287 59,600 Cash provided from (used for) financing activities (77,716) (355,249) Effect of foreign exchange rate changes on cash 8,198 (6,784) Net increase (decrease) in cash 112,350 73,797 Cash at beginning of year 144,704 165,325 Cash at end of period $ 257,054 $ 239,122 See accompanying Notes to Condensed Consolidated Financial Statements.
Condensed Consolidated Statements of Cash Flows; six months ended June 30 · Filed 05/08/2026
Condensed Consolidated Statements of Shareholders' Equity (Unaudited) (Dollar amounts in thousands, except share and per share data) 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) $ 5,974,579 Comprehensive income (loss) — — — 70,653 270,526 — 341,179 Common dividends declared ($0.3300 per share) — — — — (25,697) — (25,697) Acquisition of treasury stock — — — — — (240,465) (240,465) Stock-based compensation — — (12,134) — — 25,737 13,603 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) 6,084,596 Comprehensive income (loss) — — — (20,938) 287,747 — 266,809 Common dividends declared ($0.3300 per share) — — — — (25,426) — (25,426) Acquisition of treasury stock — — — — — (274,722) (274,722) Stock-based compensation — — 12,118 — — 4,856 16,974 Exercise of stock options — — — — (11,318) 98,902 87,584 Balance at June 30, 2026 $ — $ 92,218 $ 536,347 $ (1,721,729) $ 9,037,395 $ (1,788,416) $ 6,155,815 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) $ 5,305,520 Comprehensive income (loss) — — — 58,847 254,563 — 313,410 Common dividends declared ($0.2700 per share) — — — — (22,383) — (22,383) Acquisition of treasury stock — — — — — (264,544) (264,544) Stock-based compensation — — (3,754) — — 15,773 12,019 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) 5,425,416 Comprehensive income (loss) — — — (12,995) 252,749 — 239,754 Common dividends declared ($0.2700 per share) — — — — (21,869) — (21,869) Acquisition of treasury stock — — — — — (250,311) (250,311) Stock-based compensation — — 14,009 — — 34 14,043 Exercise of stock options — — — — (1,935) 13,932 11,997 Balance at June 30, 2025 $ — $ 97,218 $ 538,050 $ (1,983,868) $ 8,453,893 $ (1,686,263) $ 5,419,030 See accompanying Notes to Condensed Consolidated Financial Statements.
Condensed Consolidated Statements of Shareholders' Equity · Filed 05/08/2026
Share repurchases were made in the current period with anticipation of the expected cashflows for the year.
MD&A—Share Repurchases; purchases ahead of expected annual cash flows · Filed 05/08/2026
Dividends from subsidiaries and excess cash flows are projected to be lower in 2026 than in 2025 primarily due to nonrecurring extraordinary dividends received of $192 million in late 2024 and $80 million in 2025 which increased excess cash flows in 2025.
MD&A—Parent liquidity; extraordinary dividends and 2026 outlook · Filed 25/02/2026
In 2025, these elements included the following: Form of Payment Vesting/ Performance Period 2025 Overview Base Salary Cash Ongoing •Alignment of salary with performance is evaluated on an annual basis Annual Incentive - Management Incentive Plan (MIP) Cash 1 Year •Co-CEOs are 100% and NEOs are 75% based on corporate financial performance ◦50% based on operating EPS growth ◦30% based on growth in earned premium ◦20% based on growth in 1st-year collected premium •Other NEOs' remaining 25% is based on business unit/individual performance ◦Mix of financial, strategic and qualitative factors Long-Term Incentive Plan Stock Options 3 Years (Ratable) •Service-based vesting; ultimate value based on stock price appreciation Performance Shares 3 Years (Cliff) •50% based on growth of book value per share (inclusive of dividends paid) •50% based on average of the annual NOI ROE over the performance period Restricted Stock 3 Years (Cliff) •Service-based vesting; ultimate value based on stock price performance Retirement Benefits Supplemental Executive Retirement Plan (SERP) No benefits are payable to persons retiring prior to age 55 •17 participants (including NEOs) in 2025 •Encourages executives at certain levels to continue to work past the Company’s established early retirement age of 55 Defined Benefit Pension Plan Benefits are payable upon participant's retirement •All employees are eligible •Benefits are determined by multiplying the average of the participant's earnings in the five consecutive years in which they were highest during the 10 years before retirement by one percent for each of the first 40 years of credited service plus two percent for each year of credited service after the participant's 45th birthday and then reducing that result by a Social Security offset and by other benefits from certain other plans of affiliates •Benefits under the Pension Plan vest 100% at five years of credited service Some of these elements focus on compensation paid during the executive's active working career, while others focus on compensation and benefits paid upon or related to retirement.
Compensation Discussion and Analysis—Actual 2025 compensation structure · Filed 19/03/2026
3-Year Performance Achievement (01/01/2023 to 12/31/2025) for 2023 Performance Share Awards Performance Level Payout Level as a % of Target Annual Incentive Opportunity Book Value + Dividends per Diluted Shares Outstanding (50% Weighting) Average Net Operating Income ROE (50% Weighting) Threshold 50% $86.00 11.50% Target 100% $93.00 13.50% Maximum 200% $101.00 15.50% Actual $99.35 15.28% Performance Measure - Performance Multiplier 179% 189% 2026 Co-CEO Compensation and Long-Term Incentive Mix For 2026, the Committee increased the Co-CEOs base salary to $950,000 and target annual incentive as a percent of base salary to 180%, resulting in a target cash compensation opportunity (i.e., the sum of base salary and target annual incentive) of $2,660,000.
Compensation Discussion and Analysis—2023–2025 performance achievement · Filed 19/03/2026
38 GL 2026 Proxy Statement What Changed How it Changed Rationale for Change Adopted market-aligned, double trigger Change in Control (CIC) severance policy for a group of executives ▲ Prior to 2025, none of the NEOs had CIC or formal severance agreements ▲ Aligns with competitive market practice - Globe Life was the only company in the peer group without CIC agreements Granted performance shares and restricted share units with dividend equivalents which accrue and pay out on vested awards ▲ Prior to 2025, unvested awards did not accrue dividend equivalents ▲ Aligns with competitive market practice and reflects the full shareholder experience during the vesting period What We Do ☑ Weight long-term incentives more than our peers in total compensation for executives ☑ Maintain robust Clawback Policy ☑ Grant stock options and performance-based awards to directly align executives with interests of shareholders ☑ Maintain robust stock ownership guidelines for directors and executive management ☑ Formally review risk in Incentive Plans ☑ Engage Independent Compensation Consultant What We Don’t Do ☒ No single trigger change in control vesting of cash severance or unvested equity ☒ No repricing of awards ☒ No tax gross-ups on benefits or in the event of a 280G excise tax liability triggered upon a Change in Control ☒ No hedging or pledging of Globe Life stock by officers or directors Assessment of 2025 Advisory Vote on Executive Compensation The Company conducted a non-binding, advisory shareholder vote on executive compensation (known as a “Say-on-Pay” vote), as disclosed in the 2025 Proxy Statement, at its Annual Meeting held on April 24, 2025.
Compensation Highlights—Adopted policies and existing safeguards · Filed 19/03/2026
Other Compensation Practices and Policies Stock Ownership/Retention Guidelines We have formal guidelines that require the following minimum stock ownership levels: Stock Ownership Requirements Chief Executive Officer(s) Executive Vice President Non-Management Director 6x 3x 5x Multiple of Annual Salary Multiple of Annual Salary Multiple of Annual Cash Retainer The directors, Co-CEOs and other officers who are subject to the above-described stock ownership guidelines have a seven-year period from their initial election as a director or initial inclusion in the above-described categories of positions to meet the stock ownership requirements.
Other Compensation Practices—Stock ownership guidelines · Filed 19/03/2026
Executive Sessions of the Board The Company’s independent directors meet in regularly scheduled executive sessions without any participation by Company officers or employee directors.
Corporate Governance—Independent director executive sessions · Filed 19/03/2026
In 2025, all of the directors attended at least 75% of the meetings of the Board and the committees on which they served.
Corporate Governance—Actual 2025 board attendance · Filed 19/03/2026
As a part of its general oversight responsibilities, the Board has determined that overall responsibility for overseeing enterprise risk management at the Company rests with the full Board of Directors as opposed to any specific Board-level committee.
Corporate Governance—Board responsibility for enterprise risk · Filed 19/03/2026
For 2025, our consolidated Company Action Level RBC ratio was 316%.
Financial Condition—2025 consolidated Company Action Level RBC ratio · Filed 05/08/2026
Globe Life targets a consolidated Company Action Level RBC ratio of 300% to 320% for our U.S.
Financial Condition—Target consolidated Company Action Level RBC ratio · Filed 05/08/2026
Our Bermuda subsidiaries' level of capitalization exceeded the required minimum solvency margins for the year ended 2025.
Financial Condition—Bermuda solvency compliance for 2025 · Filed 05/08/2026
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”).
Financial Condition—P-CAP contractual issuance right · Filed 05/08/2026
Our capacity under the agreement is based on the value of the Strips which was $493 million as of June 30, 2026.
Financial Condition—P-CAP capacity at June 30, 2026 · Filed 05/08/2026
insurance subsidiaries to the Parent Company available to be paid in 2026 are limited to the amount of $211 million without regulatory approval, such that $1.4 billion was considered restricted net assets of the subsidiaries.
Note 13—Restricted subsidiary assets and 2026 dividend availability · Filed 25/02/2026
June 30, 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% $ 84,531 $ 55,879 $ 282,207 $ 422,617 98 70% to 80% — — — — — 81% to 90% — — — — — Greater than 90% 7,662 — — 7,662 2 Total $ 92,193 $ 55,879 $ 282,207 430,279 100 Less allowance for credit losses (4,766) Total, net of allowance for credit losses $ 425,513 (1)Annual net operating income divided by annual mortgage debt service (principal and interest).
Note 4—Commercial mortgage loan credit metrics at June 30, 2026 · Filed 05/08/2026
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 $ 313,634 433,032 100 Less allowance for credit losses (4,515) Total, net of allowance for credit losses $ 428,517 (1)Annual net operating income divided by annual mortgage debt service (principal and interest).
Note 4—Commercial mortgage loan credit metrics at December 31, 2025 · Filed 05/08/2026
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.
Financial Condition—Investment of cash flows to match long-term obligations · Filed 05/08/2026
The impact of the adjustment to exclude AOCI is $(1.7) billion and $(2.0) billion for the six months ended June 30, 2026 and 2025, respectively.
MD&A—AOCI amounts excluded from operating ROE · Filed 05/08/2026
•Net income as a return on equity (ROE) for the six months ended June 30, 2026 was 18.4% and net operating income as an ROE, excluding accumulated other comprehensive income(1), was 14.3%.
MD&A—GAAP and non-GAAP returns on equity · Filed 05/08/2026
CONDENSED FINANCIAL INFORMATION OF REGISTRANT (continued) Condensed Statement of Operations (Dollar amounts in thousands) Year Ended December 31, 2025 2024 2023 Net investment income $ 32,889 $ 38,341 $ 36,237 Realized gains (losses) 5,793 4,158 5,924 Total revenue 38,682 42,499 42,161 General operating expenses 94,021 75,387 59,051 Reimbursements from affiliates (75,504) (53,136) (59,796) Interest expense 147,673 125,023 107,180 Total expenses 166,190 147,274 106,435 Operating income (loss) before income taxes and equity in earnings of affiliates (127,508) (104,775) (64,274) Income tax benefit 16,005 19,832 10,706 Net operating loss before equity in earnings of affiliates (111,503) (84,943) (53,568) Equity in earnings of affiliates, net of tax 1,272,741 1,155,705 1,024,323 Net income 1,161,238 1,070,762 970,755 Other comprehensive income (loss): Attributable to Parent Company 10,539 21,326 1,113 Attributable to affiliates 247,737 721,373 16,781 Comprehensive income (loss) $ 1,419,514 $ 1,813,461 $ 988,649 See Notes to Consolidated Financial Statements and accompanying Report of Independent Registered Public Accounting Firm.
Schedule II—Parent net income including equity in affiliate earnings · Filed 25/02/2026
Common Stock Issued Treasury Stock 2023: Balance at January 1, 2023 105,218,183 (8,478,288) Grants of restricted stock — 7,110 Vesting of performance shares — 84,298 Issuance of common stock due to exercise of stock options — 1,375,313 Treasury stock acquired — (4,415,287) Retirement of treasury stock (3,000,000) 3,000,000 Balance at December 31, 2023 102,218,183 (8,426,854) 2024: Grants of restricted stock — 7,375 Vesting of performance shares — 143,211 Issuance of common stock due to exercise of stock options — 584,993 Treasury stock acquired — (10,549,341) Retirement of treasury stock (5,000,000) 5,000,000 Balance at December 31, 2024 97,218,183 (13,240,616) 2025: Grants of restricted stock — 6,530 Vesting of performance shares — 152,680 Issuance of common stock due to exercise of stock options — 1,842,860 Treasury stock acquired — (6,886,536) Retirement of treasury stock (5,000,000) 5,000,000 Balance at December 31, 2025 92,218,183 (13,125,082) There was no activity related to the preferred stock in years 2023 through 2025.
Notes—Issued and treasury share rollforward · Filed 25/02/2026
CONDENSED FINANCIAL INFORMATION OF REGISTRANT (continued) Notes to Condensed Financial Statements (Dollar amounts in thousands) Note A—Dividends from Subsidiaries Cash dividends paid to Globe Life from the subsidiaries were as follows: Year Ended December 31, 2025 2024 2023 Dividends from subsidiaries $ 815,741 $ 692,690 $ 459,535 Note B—Supplemental Disclosures of Cash Flow Information The following table summarizes non-cash transactions, which are not reflected on the Consolidated Statements of Cash Flows: Year Ended December 31, 2025 2024 2023 Stock-based compensation not involving cash $ 53,355 $ 40,118 $ 30,736 Investment in subsidiaries 640,065 — — Dividends from subsidiaries 640,065 — — The following table summarizes certain amounts paid (received) during the period: Year Ended December 31, 2025 2024 2023 Interest paid $ 150,019 $ 114,459 $ 104,493 Income taxes paid (received) (21,033) (13,126) (10,408) Note C—Preferred Stock As of December 31, 2025, Globe Life had 351 thousand shares of Cumulative Preferred Stock, Series A, issued and outstanding, of which 280 thousand shares were 6.50% Cumulative Preferred Stock, Series A, and 71 thousand shares were 7.15% Cumulative Preferred Stock, Series A (collectively, the “Series A Preferred Stock”).
Schedule II—Stock compensation, subsidiary transactions and interest paid · Filed 25/02/2026
Excess investment income decreased $26 million in 2025 compared with 2024, resulting from lower average invested asset growth and lower average earned yields on our short-term, direct commercial mortgage loan and limited partnership investments.
MD&A—Decline in excess investment income · Filed 25/02/2026
As a result of the transaction, the Company received net proceeds of $39 million, which are reflected as operating cash flows on the Consolidated Statement of Cash Flows.
Note 1—Reinsurance recapture cash proceeds · Filed 25/02/2026
The Company also recognized a gain of approximately $14 million in policyholder benefits on the Consolidated Statement of Operations.
Note 1—Reinsurance recapture gain · Filed 25/02/2026
Competition—Globe Life competes with other life and health insurance carriers through policyholder service, price, product design, and sales efforts.
Business—Generic competitive dimensions · Filed 25/02/2026
It essentially represents gross profit margin on insurance products before insurance administrative expenses and consists primarily of premium less net policy benefits, acquisition expenses, and commissions.
Segment reporting—Scope of underwriting margin · Filed 25/02/2026
