Globe Life
Annual Report 2023

Plain-text annual report

2023 Annual Report 2023 in Focus $ in thou usands, e except per share aamo mounts $4,456,017 Tota al Premi mium Revenue iu $1,026,644 Net Operatin ng Inc come $970,755 Net Incoomeome $767,845 Total Net Sales (6% Increase) Financial Highlights 2023 20221 % CHANGE OPERATIONS Total Premium Revenue $4,456,017 $4,310,242 Net Operating Income2 $1,026,644 $961,027 Net Income $970,755 $894,386 Annualized Life Premium In Force $3,185,745 $3,061,520 Annualized Health Premium In Force $1,385,301 $1,327,854 Diluted Average Shares Outstanding 96,364 98,985 Net Operating Income as a Return on Equity (excluding AOCI)2 14.7% 14.8% Net Income as a Return on Equity 23.2% 29.2% 3.4 6.8 8.5 4.1 4.3 2.6 13% Increase Total Producing Exclusive Average Agent Count PER COMMON SHARE (on a diluted basis) Net Operating Income2 Net Income Shareholders’ Equity (excluding AOCI)2 $10.65 $10.07 $76.21 $9.71 $9.04 $68.35 9.7 11.4 11.5 1The results included throughout this document reflect the adoption of ASU 2018-12, Financial Services - Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts (LDTI). The Company implemented the standard on January 1, 2023 on a modified retrospective basis as of the transition date of January 1, 2021. For additional information, please refer to our 2023 Annual Report on Form 10-K. 2The following financial measures utilized by management and contained in the following Letter to Shareholders are considered non-GAAP: net operating income; net operating income as a return on equity, excluding AOCI; book value (shareholders’ equity) per share, excluding AOCI; underwriting income or margin (consolidated). 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. Reconciliations to GAAP financial data are presented on pages 16–17. 1 Letter to Shareholders* Looking back at our first full year of service as Co-CEOs we are pleased with the Company’s performance in 2023. From the outset, we stated our intentions of successfully executing our financial and operational strategies and capitalizing on opportunities for continued growth, both of which lead to enhanced long- term value for our shareholders. The results of that approach are discussed throughout this letter. We are often asked how we are different from our competitors and the answer lies within our business model, which is summarized at right and has led to strong results year after year. We value the market we are in and the unique position we have in the insurance industry, which provides us a distinct competitive advantage. We recognize that agent activity is the lifeblood of the Company and are very pleased to have had record-breaking agent recruiting results in 2023. Looking forward, we will continue to focus heavily on agency growth through technological enhancements and innovative business practices. While we can’t take credit for the Texas Rangers becoming World Champions in 2023 in a historic season at Globe Life Field, we appreciate what the increased exposure has done for the Globe Life brand. Overall, our performance remained positive during the year with strong results. Through the significant efforts of all our employees and independent agents, Globe Life reached a major milestone in 2023, surpassing one billion dollars in net operating income. Total net sales grew 6% to $768 million, and net operating income as a return on equity, excluding AOCI, was 14.7%, significantly greater than our cost of equity. 2 Market Products Our operations focus on the lower to middle income market niche, which is vastly underserved and provides significant opportunity for growth. The basic protection life and health insurance products we market to customers help provide financial security during a time of need. Distribution Margins Products are distributed to the individual and worksite markets primarily through diverse exclusive agency and direct to consumer marketing channels. Through these channels, we can effectively manage costs, which leads to consistent underwriting margins. Cash Flows Due to the size and strong persistency of our in-force business, we produce consistent excess cash flows year after year. More than 90% of Globe Life’s premium revenue is generated from policies sold in prior years. Globe Life has a history of controlling expenses, which contributes to strong underwriting margins. The vast majority of the Company’s pretax operating income comes from underwriting income. As such, the Company does not have to rely on investment income to produce operating income. Return of Excess Capital to Shareholders Returning excess capital to shareholders is a key component of our capital management strategy. Since 1986, Globe Life has returned approximately $11.9 billion of its net income to shareholders in the form of share repurchases and dividends. *Throughout this letter net operating income represents net operating income from continuing operations. Our Growth Globe Life continues to generate a strong return on equity (ROE). In 2023, net income as an ROE was 23.2%, and net operating income as an ROE, excluding accumulated other comprehensive income (AOCI), was 14.7%. At Globe Life, we believe successfully executing our business model is the best path to consistent growth opportunities for our agents and our employees, and providing an optimal return for our shareholders. Above all else, it helps ensure we can fulfill our promises to be there when our customers need us most. We continue our prudent use of innovation and technology to maximize revenue and operational efficiency. The charts below demonstrate our growth in earnings per share and book value per share. Net Income Per Share Net Operating Income Per Share 10-Year Compound Annual Growth Rate: 10.3% 10-Year Compound Annual Growth Rate: 11.3% $12.22 $9.99 $10.07 $10.65 $9.63 $6.83 $3.79 $4.16 $6.75 $4.13 $4.82 $3.65 2013 2015 20171 2019 20212 2023 2013 2015 20171 2019 20212 2023 Book Value Per Share Book Value Per Share (Excluding Net Unrealized Gains or Losses on Fixed Maturities (pre-2021) and AOCI (2021-2023)) 10-Year Compound Annual Growth Rate: 11.4% $76.21 $62.06 $48.26 $39.77 $30.09 $25.85 10-Year Compound Annual Growth Rate: 5.5% $66.02 $52.95 $32.71 $27.66 $47.10 $19.93 2013 2015 20171 2019 20212 2023 2013 2015 20171 2019 20212 2023 1 In 2017, tax legislation revised the corporate income tax rate from 35% to 21% effective January 1, 2018, among other modifications. 2 The results included throughout this document reflect the adoption of ASU 2018-12, Financial Services - Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts (LDTI). The Company implemented the standard on January 1, 2023 on a modified retrospective basis as of the transition date of January 1, 2021. For additional information, please refer to our 2023 Annual Report on Form 10-K. 3Components of Net Operating Income ($ in millions, except per share data) Underwriting Income Excess Investment Income Tax and Other Parent Expenses Stock Compensation Expense, Net of Tax PER SHARE $1,279 $13.27 130 (363) (19) 1.35 (3.77) (0.20) Net Operating Income $1,027 $10.65 Components of Underwriting Income ($ in millions) AS % OF PREMIUM Underwriting Margin – Life – Health – Other Total 38.0% 28.7% $1,193 378 8 $1,579 35.4% Admin. Expenses Net of Other Income (300) 6.7% Underwriting Income $1,279 28.7% 2023 Total Underwriting Margin American Income Division — 50% Direct to Consumer Division — 15% Liberty National Division — 14% Family Heritage Division — 9% Other — 8% UA Independent Agency — 4% Operations We measure the performance of our insurance operations by net operating income because we believe it provides the best view of the profitability and operating trends of our business. For 2023, net income was $971 million and net operating income surpassed $1 billion, as shown in the chart at right. Net operating income per share was up 10% to $10.65 due primarily to improved mortality. Underwriting Income Underwriting income, which is premium income less the funding of policy benefits, acquisition costs, and administrative expenses, increased by 5% year over year. The increase in underwriting income is primarily due to higher premiums and improved claims experience. The majority of our pretax operating income is produced from underwriting income. Company-wide, Globe Life issued almost 2.3 million new life and health policies in 2023 and had more than 17 million life and health policies in force as of the end of the year. That represents millions of families who are financially protected due to the efforts of our employees and the thousands of agents representing Globe Life. Globe Life uses multiple channels to distribute its products. American Income, Liberty National, and Family Heritage (our exclusive agency divisions) market to individuals and worksites through in-person and virtual platforms. The Direct to Consumer Division provides life insurance products to adult and juvenile customers through internet, direct mail, call center, and insert media channels. United American (UA) is our independent (non- exclusive) agency. This general agency division markets Medicare Supplement and limited benefit supplemental health plans to individuals and employer groups. We have been able to maintain healthy underwriting margins by effectively managing both acquisition and administrative expenses. The chart reflects the distribution of underwriting margin by channel. For more than seven decades, American Income has offered the same basic protection life insurance products to working families and it remains the most significant contributor of life premiums (51%) and life underwriting margin (60%) among all of Globe Life’s distribution channels. As a union company with a unionized sales force, American Income enjoys a niche position due to its relationship with organized labor. While the Division continues its long affiliation with labor unions, it has significantly diversified its marketing efforts. It has long been said that life insurance is sold – not bought. We believe the best way to sell the benefits of life insurance coverage is through an exclusive agency force. Over time, positive sales growth in this Division is fueled by growth in agent counts. Over the past five years, average agent count has grown at a compound annual growth rate of 8.7% while life net sales have grown 7.6%. Agent count growth trends are early indicators of sales trends. As such, the 12% growth in average agent count during 2023 bodes well for future sales growth. The strong agent count growth in 2023 is attributable to continued recruiting momentum and changes implemented at the end of 2022 designed to improve agent retention. We are proud to see this Division surpass 10,000 agents, another significant milestone for our Company. Opportunity Unlimited is a belief embodied by all who represent American Income Division. Our agencies recruit people from all backgrounds and walks of life searching for a better opportunity, and there will always be a large pool of such individuals. These agencies also understand the importance of leadership development and offering individuals the opportunity to lead a team and ultimately create their own small business. We will maintain a focus on helping our independent agencies grow their middle management and are confident that long-term growth opportunities to recruit new agents and grow sales will continue regardless of the macro-economic environment. American Income Division Average Agent Count 5-Year Compound Annual Growth Rate: 8.7% 10,579 9,971 9,444 8,738 6,971 7,360 2018 2019 2020 2021 2022 2023 American Income Division Life Net Sales 5-Year Compound Annual Growth Rate: 7.6% ($ in millions) $317 $291 $323 $253 $238 $224 2018 2019 2020 2021 2022 2023 5 Liberty National distributes basic life and supplemental health insurance products to both the individual and worksite markets. We are very pleased with the double-digit growth in total life net sales and average agent count produced by Liberty National in 2023. Life net sales at Liberty National grew 22% year over year. As shown in the charts, average agent count and total net sales have grown at a compound annual growth rate of 8.4% and 12.7%, respectively over the past five years. Additionally, life premiums grew 7% compared to 2022. We are excited about this growth in life premiums, as it reflects significant progress from the flat premium growth realized in 2016 and just 2% premium growth as recent as 2019. Liberty National’s positive momentum is primarily due to the increased average agent count, which grew 16% in 2023. New technology implemented within the agencies over the past several years provides more granular field activity feedback and allows agency owners to track sales activity and training progress. We will continue to explore the use of innovative technologies within the agencies and within our home office departments supporting the agencies to enhance business processes. The Division remains focused on sharing the Opportunity of a Lifetime with individuals seeking new agency career opportunities as well as maintaining an attractive career track for those seeking advancement. Liberty National Division restructured its Leadership Academy curriculum to help agency middle management receive more focused training on all aspects of their new roles as they progress along the career track. As a result, agency leadership positions grew, providing expansion and development of the agency leadership teams. We are pleased by the growth at Liberty National and expect continued expansion of its reach beyond small-town markets in the Southeast to more heavily populated areas across the United States. Liberty National Division Average Agent Count 5-Year Compound Annual Growth Rate: 8.4% 3,229 2,775 2,716 2,575 2,350 2,156 2018 2019 2020 2021 2022 2023 Liberty National Division Total Net Sales 5-Year Compound Annual Growth Rate: 12.7% ($ in millions) $129 $107 $98 $78 $78 $71 2018 2019 2020 2021 2022 2023 6 For more than three decades, Family Heritage has provided limited-benefit health insurance products to non-urban areas and smaller cities throughout the United States. Many of these products offer a return of premium feature, which refunds any excess of premiums received less claims paid to the policyholder at the end of a specified period. In 2023, Family Heritage experienced double-digit growth in average agent count and health net sales. This growth was a result of compensation changes the Division made in recent years and implementation of innovative tools to measure prospecting and recruiting activity in real time. Average agent count grew 10% and health net sales grew 16% during 2023. Over the past five years, average agent count and health net sales grew at a compound annual growth rate of 4.6% and 9.9%, respectively. Family Heritage will continue its focus on recruiting, with additional emphasis on growing agency middle management and improved technologies. We feel good about the progress we have seen at Family Heritage and are excited about the potential for future growth. Family Heritage Division Average Agent Count 5-Year Compound Annual Growth Rate: 4.6% 1,325 1,213 1,210 1,334 1,112 1,064 2018 2019 2020 2021 2022 2023 Family Heritage Division Health Net Sales 5-Year Compound Annual Growth Rate: 9.9% ($ in millions) $96 $83 $71 $73 $66 $60 2018 2019 2020 2021 2022 2023 7 Direct to Consumer is our second-largest division and offers adult and juvenile life insurance protection through internet, call center, direct mail, and insert media channels. Having a multi-pronged approach to reach consumers provides a significant competitive advantage since we can monetize leads more effectively than most other life insurers. Additionally, our vast experience and years of data in this market place us ahead of our peers in consumer targeting, advanced analytics, pricing, and production efficiency. In 2023, the Direct to Consumer channel realized an 8% decline in life net sales. The drop in life net sales is primarily a result of declines in customer inquiries as we have reduced marketing spend on certain campaigns that did not meet our profit objectives. We continue to focus on maximizing the underwriting margin dollars on new sales by managing the rising advertising and distribution costs associated with the acquisition of new business. Despite the decline in sales during the year, we continue to grow premium and life underwriting margin. Life underwriting margin grew 10% to $235 million primarily due to improved claims experience. The Direct to Consumer Division provides significant value across the Globe Life enterprise beyond generating new business at profitable margins. The high volume of mailings, inserts and internet activity creates brand impressions that benefit our agent recruiting efforts through improved name recognition. In addition, this Division helps the sales efforts of our exclusive agencies through generation of leads. We will continue to explore ways to optimize the ultimate conversion of leads generated by Direct to Consumer across all of our agencies. Direct to Consumer Division Life Net Sales 5-Year Compound Annual Growth Rate: -1.6% ($ in millions) $165 $149 $126 $126 $126 $116 2018 2019 2020 2021 2022 2023 Direct to Consumer Division Life Premium 5-Year Compound Annual Growth Rate: 3.6% ($ in millions) $985 $907 $968 $829 $856 $991 2018 2019 2020 20211 20221 2023 1The results included throughout this document reflect the adoption of ASU 2018-12, Financial Services - Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts (LDTI). The Company implemented the standard on January 1, 2023 on a modified retrospective basis as of the transition date of January 1, 2021. For additional information, please refer to our 2023 Annual Report on Form 10-K. Our United American Division has marketed Medicare Supplement insurance since Medicare began in 1966, and primarily sells individual and group Medicare Supplement products using an independent agency distribution model. The Medicare market is highly competitive and subject to regulatory scrutiny that can significantly impact product offerings, consumer demand, and pricing. This Division also markets worksite supplemental health benefits to employers through brokers. We believe this business has solid growth potential through its focus on partnerships with employers to provide innovative solutions to their employee benefit needs. Although our primary focus is life insurance at Globe Life, we like the stable profit margins generated by our Medicare Supplement business and we have the experience and infrastructure to administer this business efficiently. Health net sales increased 23% in 2023 due primarily to strong activity in the individual and group Medicare Supplement businesses and our supplemental health worksite business. We will continue our efforts to grow this Division while protecting our profit margins from market pressures. United American Division Health Net Sales 5-Year Compound Annual Growth Rate: 0.6% ($ in millions) $79 $70 $72 $64 $62 $59 2018 2019 2020 2021 2022 2023 United American Division Health Premium 5-Year Compound Annual Growth Rate: 7.5% ($ in millions) $540 $546 $481 $453 $417 $381 2018 2019 2020 20211 20221 2023 1T he results included throughout this document reflect the adoption of ASU 2018-12, Financial Services - Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts (LDTI). The Company implemented the standard on January 1, 2023 on a modified retrospective basis as of the transition date of January 1, 2021. For additional information, please refer to our 2023 Annual Report on Form 10-K. 9 Investment Operations Excess investment income is the metric we use to measure our investment performance. The components of excess investment income can be seen in the chart. Components of Net Operating Income ($ in millions, except per share data) Excess Investment Income ($ in millions) Underwriting Income Excess Investment Income Tax and Other Parent Expenses Stock Compensation Expense, Net of Tax PER SHARE $1,279 $13.27 Net Investment Income 130 (363) (19) 1.35 (3.77) (0.20) Required Interest on Net Policy Liabilities Excess Investment Income $1,057 (927) $130 Net Operating Income $1,027 $10.65 10 Investment Portfolio December 31, 2023 Invested Assets at Fair Value ($ in millions) Fixed Maturities Mortgage Loans Policy Loans Other Investments Total* AS % OF TOTAL 91% 1% 3% 5% $17,870 279 657 918 $19,724 100% *Total invested assets at amortized cost, net1: $20,738 Total Invested Assets at Amortized Cost, Net1 10-Year Compound Annual Growth Rate: 4.8% ($ in billions) $19.3 $20.7 $17.3 $15.8 $13.0 $13.8 2013 2015 2017 2019 2021 2023 1Presented net of the allowance for Current Expected Credit Losses (CECL). For additional information, please refer to our 2023 Annual Report on Form 10-K. Investment Portfolio Funding future obligations to our policyholders is the primary purpose of our investment activities. As such, we invest primarily in fixed-rate long-term fixed maturities that can survive multiple economic cycles because they best match our fixed policy liabilities. These assets have provided attractive risk-adjusted, capital- adjusted returns over the years due in large part to our ability to hold securities to maturity regardless of fluctuations in interest rates or equity markets. Due to our fixed liability products and the strength of our underwriting margins, we have a conservative investment strategy that prioritizes preservation of capital. We have little or no exposure to higher-risk assets such as derivatives, common equities, residential mortgages, CLOs, and other asset-backed securities held by our peers. Additionally, unlike many other insurance companies, we do not have any exposure to direct real estate equity investments or private equities. Below investment grade bonds are approximately 3% of our fixed maturity portfolio. This is the lowest this ratio has been in more than 20 years and reflects a significant drop from approximately 4% in 2021. Since 2020, we have invested approximately $1.1 billion in limited partnerships and commercial mortgage loans with debt- like characteristics. These investments were made to diversify our portfolio and generate additional yield while staying in line with our conservative investment philosophy. During 2023, we invested approximately $310 million in alternatives to fixed maturities at an average expected current yield of approximately 8.2%. Overall, we believe we are well positioned not only to withstand a market downturn but also to be opportunistic and purchase higher-yielding securities in such a scenario. 11 Fixed Maturity Portfolio Yield We have been pleased to see higher interest rates over the past few years. The resulting increase in portfolio yield has helped achieve growth of over 6% in net investment income over 2022, while not creating any downside since the majority of our products are not impacted by changes in interest rates. We are not concerned with the unrealized losses created by higher interest rates as we have the intent and more importantly, the ability, to hold our investments to maturity. While the yield earned on the fixed maturity portfolio during 2023 was approximately 5.2%, the total portfolio yield earned in 2023 was approximately 5.3% including the impact of the alternatives to fixed maturities mentioned on the previous page. Fixed Maturity Portfolio Yield (at end of year) 5.55% 5.41% 5.28% 5.17% 5.19% 5.23% 2018 2019 2020 2021 2022 2023 12121 Capital Management We believe an effective capital management program is essential to maximizing shareholder value. We have a large, stable block of in-force policies that consistently produces substantial excess cash flow year after year. Excess cash flow is generally defined as the cash available to the Parent Company from the dividends received from the insurance subsidiaries after paying interest on the debt. The key components of our capital management strategy are designed to ensure that we fully fund insurance operations, maintain appropriate levels of capital, and return excess capital to our shareholders. We continue to manage to a Company Action Level Risk-Based Capital (RBC) ratio target of 300% to 320%. We maintain a lower RBC ratio than that of similarly rated peers due to the lower risk profile of our business. This lower risk profile is a result of our consistent financial results, strong underwriting margins, policy obligations that are fixed and therefore not impacted by fluctuations in equity markets and interest rates, and our conservative investment strategy. The chart at right provides a ten-year history of excess cash flows. As can be seen by the charts, we have returned the majority of our excess cash flows to shareholders through dividends and share repurchases. We estimate for 2024, after payments of interest on debt, the holding company should have approximately $420 million to $460 million available to return to its shareholders in the form of dividends and share repurchases. We began our share repurchase program in 1986 and have spent $9 billion to repurchase 83% of the outstanding shares of the Company. Over this period, stock repurchases have been the most efficient use of excess capital. While we have consistently repurchased shares over the years, we have always employed a diligent, thoughtful approach. We continually evaluate and determine that the risk-adjusted return on share buybacks exceeds our cost of equity and any other alternative uses. Excess Cash Flow ($ in millions) $448 $450 $425 $425 $416 $398 2013 2015 2017 2019 2021 2023 Return of Excess Capital to Shareholders ($ in millions) SHAREHOLDER DIVIDENDS SHARE REPURCHASES $61 $360 67 69 74 80 84 359 325 350 455 380 TOTAL SPENT $421 426 394 424 535 464 2013 2015 2017 2019 2021 2023 13 Conclusion Throughout this letter, we highlighted the Company’s performance in 2023. We believe the strong financial results of 2023 are due to a culture of focusing on providing opportunities in all areas of our business. • For Globe Life customers, opportunity is presented in the ability to obtain affordable, easy-to-understand financial protection in a vastly underserved market that can be purchased in the security of their own homes, at their places of business, or with the convenience of virtual presentations. • Agents are provided opportunities for financial freedom, personal growth, leadership development, and the potential to create their own small businesses. • At our corporate offices, Globe Life offers employees an opportunity to work in an environment where integrity meets a service-first attitude within a vibrant, innovative environment that celebrates diversity and values inclusion. i f d i i t h l ili M k O Our purpose-driven mission is to help families Make i Tomorrow Better by working to protect their financial future. There will never be a shortage of people who want and need better opportunities, and Globe Life remains committed to providing them, whether they be our customers, agents, or employees. We believe these opportunities are key to our continued success at Globe Life. Our commitment to help Make Tomorrow Better continues through our charitable giving efforts. Globe Life, our agent offices, and employees collectively donated more than $4 million in 2023. We proudly partner with non-profit organizations that support youth, family, veterans, military, education, health, and seniors. Within these areas of focus, our non-profit partners offer support to underserved communities, individuals facing food insecurity, at-risk youth, and health advocacy. Globe Life has a long, positive track record of growth. The underlying internal and external conditions that have facilitated that growth are still in place and we are confident they will remain in place. There is every reason to believe that the vast pools of potential agent recruits and underserved families in the lower to middle income market will continue to grow and keep us well positioned for future success. l t With hard work and dedication, we believe further significant milestones are within reach. We think long- t term goals to surpass 30,000 exclusive agents and d 30 000 $1.5 billion of annual sales are achievable given the Company’s track record and position in the market. We are confident in our path forward and are grateful for your trust and continued investment in Globe Life. t l i J. Matthew Darden Co-Chairman and Chief Executive Officer Frank M. Svoboda Co-Chairman and Chief Executive Officer Note: Globe Life cautions you that this Letter to Shareholders may contain forward-looking statements within the meaning of the federal securities law. These prospective statements reflect management’s current expectations, but are not guarantees of future performance. Accordingly, please refer to our cautionary statement regarding forward-looking statements and the business environment in which the Company operates, contained in the Company’s Form 10-K for the period ended December 31, 2023, found on the following pages and 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. 14 PRINCIPAL EXECUTIVE OFFICE 3700 South Stonebridge Drive McKinney, Texas 75070 972-569-4000 ANNUAL MEETING OF SHAREHOLDERS 10:00 a.m. CDT, Thursday, April 25, 2024. Virtual meeting only, online via live audio webcast. Register to attend the meeting at register.proxypush.com/GL. The proceedings will be made available for replay on the Investors page of the Globe Life website. The Company’s Annual Meeting will be conducted in accordance with its Shareholders’ Rights Policy. A copy of this policy can be obtained on the Company’s website, or by contacting the Corporate Secretary at the Globe Life principal executive office address. INVESTOR RELATIONS Contact: Mike Majors Phone: 972-569-3239 Fax: 972-569-3282 Email: Investors@Globe.Life INDEPENDENT REGISTERED PUBLIC ACCOUNTANTS Deloitte & Touche LLP 2200 Ross Avenue Suite 1600 Dallas, Texas 75201 Globe Life Investors Website The Investors page contains a menu with links to many topics of interest to investors and other interested third parties: • Financial Reports and Other "#414+#18 74(3051,#34 • Annual Reports, 10-K and Proxy Statements • Calendar • News Releases • SEC Filings • Environmental, Social & Governance Report • Political Contributions and Public Advocacy Policy • About Globe Life Inc. • Executive Leadership • Contact Us • Supplier Diversity • GlobeLifeInsurance.com STOCK EXCHANGE LISTINGS New York Stock Exchange Symbol: GL INDENTURE TRUSTEE FOR 4.800%, 4.550%, AND 2.150% SENIOR NOTES AND 5.275% AND 4.250% ."+/*( &"’*(#/+)$!# #!’!+$"(!& Regions Bank Corporate Trust Services 3773 Richmond Ave., Suite 1100 Houston, TX 77046-3703 Phone: 713-244-8042 Website: www.regions.com/ commercial_ banking/corp_trust.rf The 4.250% debentures trade through Depository Trust Company under global certificates listed on the New York Stock Exchange (NYSE Symbol GL PRD). The 5.275% debentures trade through Depository Trust Company under global certificates listed on ,%) *#4’1230) *,3+! $&+%14’)- STOCK TRANSFER AGENT AND &0)(!0*,#!( )&&/&$)+%! EQ Shareowner Services PO Box 64854, St. Paul, MN 55164-0854 or 1110 Centre Pointe Curve, Suite 101 Mendota Heights, MN 55120-4100 Toll-Free Number: 866-557-8699 TDD: Hearing impaired can use a relay service Outside the U.S.: 651-450-4064 Website: www.shareowneronline.com STOCK INFORMATION • Stock Transfer Agent and Shareholder Assistance • Dividend Reinvestment • Automatic Deposit of Dividends CORPORATE GOVERNANCE • Corporate By-laws • Code of Business Conduct and Ethics • Code of Ethics for CEO and Senior "#414+#18 /((#+)0. • Corporate Governance Guidelines • Employee Complaint Procedures • Shareholders’ Rights Policy • Regulation FD Policy and Guidelines • Related Party Transaction Policy • Human Rights and Labor Policy • Third Party Code of Conduct • Anti-Bribery and Corruption Policy DIVIDEND REINVESTMENT Globe Life maintains a dividend reinvestment plan for all holders of its common stock. Under the plan, shareholders may reinvest all or part of their dividends in additional shares of common stock and may also make periodic additional cash payments of up to $3,000 toward the purchase of Globe Life stock. Participation is voluntary. More information on the plan may be obtained from the Stock Transfer Agent by calling toll-free 866-557-8699 or by writing: Globe Life Inc., c/o EQ Shareowner Services, PO Box 64874, St. Paul, MN 55164-0874 or 1110 Centre Pointe Curve, Suite 101, Mendota Heights, MN 55120-4100. AUTOMATIC DEPOSIT OF DIVIDENDS Automatic deposit of dividends is available to shareholders who wish to have their dividends directly deposited into the financial institution of their choice. Authorization forms may be obtained from the Stock Transfer Agent by calling toll-free 866-557-8699. BOARD OF DIRECTORS • Board of Directors • Board Committees • Audit Committee • Compensation Committee • Governance and Nominating Committee • Executive Sessions • Qualifications of Directors • Director Independence Criteria • Director Resignation Policy CALLS AND MEETINGS • Management Presentations • Annual Meeting of Shareholders • Conference Calls on the Web • Conference Call Replays and Transcripts 15 Operating Summary Unaudited and $ in thousands, except per share amounts Twelve months ended December 31, 2023 20221 % Increase or Decrease UNDERWRITING INCOME Life: Premium Net Policy obligations Nondeferred commissions and amortization Nondeferred acquisition expense Underwriting margin Health: Premium Net Policy obligations Nondeferred commissions and amortization Nondeferred acquisition expense Underwriting margin Annuity underwriting margin Total underwriting margin Other Income Insurance administration expenses Underwriting income EXCESS INVESTMENT INCOME Net investment income Required interest on: Net policy liabilities: Policy reserves Deposit funds FHLB funding agreement interest on reserves Total excess investment income Interest on debt Corporate expenses Pre-tax operating income Income tax Net operating income before stock compensation expense Stock compensation expense, net of tax NET OPERATING INCOME Operating EPS on a diluted basis Diluted average shares outstanding Reconciliation of Net Operating Income to Net Income: Net operating income Non operating items, net of tax: Realized gains (losses) – investments Non-operating expenses Legal proceedings $3,137,244 (1,278,088) (537,675) (128,509) 1,192,972 1,318,773 (669,846) (227,230) (43,760) 377,937 8,492 1,579,401 308 (301,161) 1,278,548 $ 3,027,824 (1,300,005) (500,733) (97,561) 1,129,525 1,282,417 (650,551) (218,023) (36,706) 377,137 10,511 1,517,173 1,246 (299,341) 1,219,078 1,056,884 991,800 (917,441) (4,525) (4,536) 130,382 (102,316) (10,866) ) ( 1,295,748 (249,546) 1,046,202 (19,558) $1,026,644 $10.65 96,364 (882,839) (4,301) (71) 104,589 (90,395) (11,156) ) ( 1,222,116 (238,177) 983,939 (22,912) $961,027 $9.71 98,985 $1,026,644 $961,027 3.6 5.6 2.8 0.2 0.6 4.9 6.6 24.7 6.0 6.8 9.7 (51,884) (3,294) (711) $970,755 (60,473) (4,196) (1,972) $894,386 NET INCOME EPS on a diluted basis Note: The Operating Summary has been prepared in the manner Globe Life management uses to evaluate the operating results of the Company. It differs from the Consolidated Statements of Operations found in the accompanying SEC Form 10-K. 1The results included throughout this document reflect the adoption of ASU 2018-12, Financial Services - Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts (LDTI). The Company implemented the standard on January 1, 2023 on a modified retrospective basis as of the transition date of January 1, 2021. For additional information, please refer to our 2023 Annual Report on Form 10-K. $10.07 $9.04 16 Condensed Balance Sheets Unaudited and $ in thousands, except per share amounts At December 31, 2023 20221 Assets: Fixed maturities at amortized cost* Cash and short-term investments Other investments Deferred acquisition costs Goodwill Other assets Total assets* Liabilities and shareholders’ equity: Policy liabilities* Current and deferred income taxes* Short-term debt Long-term debt Other liabilities* Shareholders’ equity, excluding AOCI* Total liabilities and shareholders’ equity* Actual shares outstanding: Basic Diluted Book value (shareholders’ equity, excluding AOCI) per diluted share Net operating income as a return on equity, excluding AOCI Average equity, excluding AOCI Debt to capital ratio, excluding AOCI $18,917,799 184,896 1,772,097 6,009,477 481,791 1,733,032 $29,099,092 $17,991,015 1,231,625 486,113 1,629,559 501,558 7,259,222 $29,099,092 93,791 95,254 $76.21 14.7% $6,966,740 22.6% Reconciliation of Globe Life management’s view of selected financial items to comparable GAAP measures*: Shareholders’ equity, excluding AOCI Effect of AOCI: (Increase) decrease fixed maturities Increase (decrease) policy liabilities Increase (decrease) current and deferred income taxes Increase (decrease) other liabilities+ Shareholders’ equity Other comparable GAAP measures: Fixed maturities at fair value Total assets Shareholders’ equity Policy liabilities Current and deferred income taxes Other liabilities Book value (shareholders’ equity) per diluted share Net income as a return on equity Average equity Debt to capital ratio $7,259,222 (1,047,593) (2,475,738) 736,986 13,926 $4,486,803 $17,870,206 28,051,499 4,486,803 20,466,753 494,639 487,632 47.10 23.2% $4,177,222 32.0% $18,301,692 206,680 1,590,882 5,535,697 481,791 1,668,382 $27,785,124 $17,241,678 1,176,397 449,103 1,627,952 550,104 6,739,890 $27,785,124 96,740 98,615 $68.35 14.8% $6,476,706 23.6% $6,739,890 (1,798,327) (1,741,615) 741,748 7,881 $3,949,577 $16,503,365 25,986,797 3,949,577 18,983,293 434,649 542,223 40.05 29.2% $3,065,586 34.5% *The Condensed Balance Sheets, excluding Accumulated Other Comprehensive Income (AOCI), have been prepared in the manner Globe Life management, industry analysts, rating agencies and financial institutions use to evaluate the financial position of the company. It differs from the Consolidated Balance Sheets found in the accompanying SEC Form 10-K +Effect of AOCI in other liabilities primarily relates to pension and foreign exchange adjustments 1The results included throughout this document reflect the adoption of ASU 2018-12, Financial Services - Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts (LDTI). The Company implemented the standard on January 1, 2023 on a modified retrospective basis as of the transition date of January 1, 2021. For additional information, please refer to our 2023 Annual Report on Form 10-K. 17 Directors LINDA L. ADDISON Of Counsel, Norton Rose Fulbright US LLP Houston, Texas MARILYN A. ALEXANDER Principal of Alexander and Friedman, LLC Laguna Beach, California CHERYL D. ALSTON Executive Director and Chief Investment Officer, Employees’ Retirement Fund of the City of Dallas Dallas, Texas MARK A. BLINN Former President and Chief Executive Officer, Flowserve Corporation Dallas, Texas Officers J. MATTHEW DARDEN Co-Chairman and Chief Executive Officer FRANK M. SVOBODA Co-Chairman and Chief Executive Officer JENNIFER A. HAWORTH Executive Vice President and Chief Marketing Officer ROBERT E. HENSLEY Executive Vice President and Chief Investment Officer THOMAS P. KALMBACH Executive Vice President and Chief Financial Officer MICHAEL C. MAJORS Executive Vice President, Policy Acquisition and Chief Strategy Officer JAMES P. BRANNEN Retired Chief Executive Officer, FBL Financial Group, Inc. Panora, Iowa JANE BUCHAN Chief Executive Officer, Martlet Asset Management LLC Newport Beach, California ALICE S. CHO Senior Advisor to the Boston Consulting Group Dallas, Texas J. MATTHEW DARDEN Co-Chairman and Chief Executive Officer, Globe Life Inc. STEVEN P. JOHNSON Retired Partner, Deloitte & Touche LLP Plano, Texas DAVID A. RODRIGUEZ Retired EVP and Global Chief Human Resources Officer of Marriott International, Inc. Potomac, Maryland FRANK M. SVOBODA Co-Chairman and Chief Executive Officer, Globe Life Inc. MARY E. THIGPEN Consultant for Digital Transformation Strategies, Technology and Cybersecurity Assessments, and Systemic Risk Mitigation Competencies Alpharetta, Georgia R. BRIAN MITCHELL Executive Vice President, General Counsel and Chief Risk Officer CHRISTOPHER T. MOORE Corporate Senior Vice President, Associate Counsel and Corporate Secretary DOLORES L. SKARJUNE Executive Vice President and Chief Administrative Officer CHRISTOPHER K. TYLER Executive Vice President and Chief Information Officer REBECCA E. ZORN Executive Vice President and Chief Talent Officer M. SHANE HENRIE Corporate Senior Vice President and Chief Accounting Officer JEFFREY S. MORRIS Corporate Senior Vice President and Chief Actuary PAMELA I. RAMIREZ Corporate Senior Vice President, Enterprise Transformation JOEL P. SCARBOROUGH Corporate Senior Vice President, Associate General Counsel and Chief Compliance Officer Distribution Officers AMERICAN INCOME DIVISION STEVEN K. GREER Chief Executive Officer DAVID S. ZOPHIN President FAMILY HERITAGE DIVISION KENNETH J. MATSON President and Chief Executive Officer DIRECT TO CONSUMER DIVISION JASON A. HARVEY President and Chief Executive Officer LIBERTY NATIONAL DIVISION STEVEN J. DICHIARO Chief Executive Officer UNITED AMERICAN INSURANCE COMPANY MICHAEL C. MAJORS President 18 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark one) [ ☒ ] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 or [ ☐ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 001-08052 GLOBE LIFE INC. (Exact name of registrant as specified in its charter) Delaware 63-0780404 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) 3700 South Stonebridge Drive, McKinney, TX (Address of principal executive offices) 75070 (Zip Code) 972-569-4000 (Registrant’s telephone number, including area code) Securities registered pursuant to Section 12(b) of the Act: Title of each class Trading Symbol(s) Name of each exchange on which registered Common Stock, $1.00 par value per share 4.250% Junior Subordinated Debentures GL GL PRD New York Stock Exchange New York Stock Exchange Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Securities registered pursuant to Section 12(g) of the Act: None Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities such shorter period that the registrant was required to file such Exchange Act of 1934 during the preceding 12 months (or forff the past 90 days. reports), and (2) has been subject to such filing requirements forf Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or forff such shorter period that the registrant was required to submit such files). Yes x No ¨ Yes x No ¨ Yes ¨ No x Yes x No ¨ GL 2023 FORM 10-K Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.: Large accelerated filer x Non-accelerated filer ¨ Accelerated filer Smaller reporting company Emerging growth company If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period forff complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨ ¨ ¨ ¨ Indicate by check mark whether the registrant has filed a report on and attestation to its management's assessment of the effeff ctiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) x by the registered public accounting firm that prepared or issued its audit report. If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. x Indicate by checkmark whether any of those error corrections are restatements that required a recovery analysis of incentive- based compensation received by any of the registrant's executive offiff cers during the relevant recovery period pursuant to §240.10D-1(b). ☐ Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No x As of June 30, 2023, the aggregate market value of the registrant’s common stock held by non-affiff liates of the registrant was $10.4 billion based on the closing sale price as reported on the New YorYY k Stock Exchange. Indicate the number of shares outstanding of each of the registrant’s classes of common stock, as of the latest practicable date. Class Common Stock, $1.00 par value per share Outstanding as of January 31, 2024 93,707,838 shares DOCUMENTS INCORPORATED BY REFERENCE Document Proxy Statement for the Annual Meeting of Stockholders to be held on April 25, 2024 (Proxy Statement) Parts Into Which Incorporated Part III GL 2023 FORM 10-K Globe Life Inc. Table of Contents Page PART I. PART II. Business.................................................................................................................................. Item 1. Item 1A. Risk Factors............................................................................................................................ omments ................................................................................................ Item 1B. Unresolved Staff Cff Item 1C. Cybersecurity.......................................................................................................................... Properties................................................................................................................................ Item 2. Legal Proceedings ................................................................................................................. Item 3. Mine Safety Disclosures ....................................................................................................... Item 4. Item 5. Item 7. Item 6. Market forff Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities............................................................................................ [Reserverr d]............................................................................................................................... Cautionary Statements.......................................................................................................... Management’s Discussion and Analysis of Financial Condition and Results of Operations............................................................................................................................... Item 7A. Quantitative and Qualitative Disclosures about Market Risk.......................................... Financial Statements and Supplementary Data................................................................ Item 8. Consolidated Balance Sheets.............................................................................................. Consolidated Statements of Operations ............................................................................ Consolidated Statements of Comprehensive Income...................................................... Consolidated Statements of Shareholders' Equity ........................................................... Consolidated Statements of Cash Flows ........................................................................... Notes to Consolidated Financial Statements .................................................................... Note 1—Significant Accounting Policies ....................................................................... Note 2—Statutory Accounting......................................................................................... Note 3—Supplemental Information about Changes to Accumulated Other Comprehensive Income................................................................................................... Note 4—Investments........................................................................................................ Note 5—Commitments and Contingencies................................................................... Note 6—Policy Liabilities ................................................................................................. Note 7—Deferred Acquisition Costs .............................................................................. Note 8—Liability forf Unpaid Claims ............................................................................... Note 9—Income Taxes..................................................................................................... Note 10—Postretirement Benefits.................................................................................. Note 11—Supplemental Disclosures of Cash Flow Information................................ Note 12—Debt................................................................................................................... Note 13—Shareholders' Equity ...................................................................................... Note 14—Stock-Based Compensation.......................................................................... Note 15—Business Segments........................................................................................ Note 16—Selected Quarterly Data (Unaudited)........................................................... Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure................................................................................................................................ Item 9A. Controls and Procedures...................................................................................................... Item 9B. Other Information ................................................................................................................... Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections .......................... Item 10. Directors, Executive Offiff cers, and Corporate Governance ............................................. Executive Compensation...................................................................................................... Item 11. Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters............................................................................................................... Item 13. Certain Relationships and Related Transactions and Director Independence ............ Item 14. Principal Accountant Fees and Servir ces............................................................................ Item 15. Exhibits and Financial Statement Schedules .................................................................... Signatures ............................................................................................................................... PART III. PART IV. 1 9 15 15 16 17 17 18 19 20 21 53 53 57 58 59 60 61 62 62 77 78 80 93 96 111 114 115 117 124 125 127 128 133 140 141 141 144 144 144 144 144 145 145 145 155 GL 2023 FORM 10-K Part I Item 1. Business Globe Life and the Company refer to Globe Life Inc., an insurance holding company incorporated in Delaware in 1979, and its subsidiaries and affiff liates. Its 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. Globe Life's website is: www.globelifeinsurance.com. Globe Life makes available free of charge through its website, its annual report on Form 10-K, its quarterly reports on Form 10-Q, current reports on Form 8-K, and amendments to those reports as soon as reasonably practicable after they have been electronically filed with or furnished to the Securities and Exchange Commission. Other information included in Globe Life's website is not incorporated into this filing. 1 GL 2023 FORM 10-K lowing table presents Globe Life's business by primary marketing distribution method. Additional information s sii and in Note 15—Busines The folff concerning industry segments may be found in Management’s Discussion and Analysi Segmentstt within the Notes to thett Consolidll ated Financ ial Statements.tt l ii ii Primaryrr Distribution Method Underwriting Company Products and Target Markets Distribution Direct to Consumer Division Globe Life And Accident Insurance Company McKinney, TexTT as Individual life and supplemental health limited-benefit insurance including juvenile and senior life coverage and Medicare Supplement to lower middle- income to middle- income Americans. Nationwide distribution through direct to consumer channels: including direct mail, electronic media, and insert media. American Income Life Division American Income Life Insurance Company Waco, TexTT as Individual life and supplemental health limited-benefit insurance marketed to working families. 10,579 average producing agents in the U.S., Canada, and New Zealand. Liberty National Division Liberty National Life Insurance Company McKinney, TexTT as Life and supplemental health limited-benefit insurance distributed through in-home and worksite channels. 3,229 average producing agents in the U.S. Family Heritage Division Family Heritage Life Insurance Company of America Cleveland, Ohio Supplemental limited- benefit health insurance to lower middle-income to middle-income families. 1,334 average producing agents in the U.S. United American Division United American Insurance Company McKinney, TexTT as Supplemental health Medicare coverage to beneficiaries and, to a lesser extent, supplemental limited- benefit coverage to people under age 65. 3,223 independent producing agents in the U.S. 2 GL 2023 FORM 10-K Life Insurance Insurance The distribution channels forff life insurance products include direct to consumer, exclusive agents, and independent agents. These methods are described in greater detail within the primary marketing distribution channel chart as shown above. The folff lowing table presents annualized premium in forff ce for the three years ended December 31, 2023 by distribution method: Annualized Premium in Force(1) (Dollar amounts in thousands) 2023 2022 2021 Direct to Consumer ....................................................................................................... $ 933,057 $ 936,507 $ 929,197 Exclusive agents: American Income ......................................................................................................... 1,654,197 1,553,003 1,458,408 Liberty National............................................................................................................. 390,693 360,963 341,332 Independent agents: United American ............................................................................................................. 6,958 Other................................................................................................................................. 200,840 7,609 203,438 8,426 205,822 $ 3,185,745 $ 3,061,520 $ 2,943,185 (1) See definition of annualized premium in forf ce under Results ott f OperO atrr iott ns in Management's Discussion & Analysi s.ii l Globe Life's insurance subsidiaries write a variety of nonparticipating ordinary life insurance products. These include interest-sensitive traditional whole life, term life, and other life insurance. The Company does not currently sell whole life products. The following tables present selected information about Globe Life's life insurance products. Annualized Premium in Force (Dollar amounts in thousands) 2023 2022 2021 Amount % of Total Amount % of Total Amount % of Total Whole life: Traditional ................................................................. $ 2,213,816 69 $ 2,106,878 69 $ 2,011,349 Interest-sensitive ..................................................... Term .............................................................................. Other ............................................................................. 29,929 753,261 188,739 1 24 6 31,838 756,471 166,333 1 25 5 33,912 750,005 147,919 68 1 26 5 $ 3,185,745 100 $ 3,061,520 100 $ 2,943,185 100 Policy Count and Average Face Amount Per Policy (Dollar amounts in thousands) 2023 2022 2021 Average Face Amount per Policy Policy Count Average Face Amount per Policy Policy Count Average Face Amount per Policy Policy Count Whole life: Traditional...................................... 9,050,091 $ Interest-sensitive.......................... 176,339 Term ................................................... 4,680,364 Other .................................................. 479,664 14,386,458 $ 16.0 20.4 15.1 17.3 15.8 9,011,227 $ 183,887 4,720,870 453,515 14,369,499 $ 15.7 20.4 15.3 16.1 15.6 8,963,774 $ 191,536 4,731,044 432,372 14,318,726 $ 15.3 20.4 15.3 15.3 15.3 3 GL 2023 FORM 10-K Health Insurance lowing table presents Globe Life's health insurance annualized premium in forff ce for the three years ended The folff December 31, 2023 by distribution channel. Annualized Premium in Force (Dollar amounts in thousands) 2023 2022 2021 Direct to Consumer ....................................................................................................... $ 70,249 $ 72,161 $ 74,627 Exclusive agents: Liberty National............................................................................................................... American Income ........................................................................................................... Family Heritage............................................................................................................... 200,160 116,962 418,693 196,336 113,087 387,897 196,783 111,102 363,226 Independent agents: United American ............................................................................................................. 579,237 558,373 540,340 $ 1,385,301 $ 1,327,854 $ 1,286,078 rs Medicare Supplement and limited-benefit supplemental health insurance products that include Globe Life offeff accident, cancer, critical illness, heart, and intensive care products. These products are designed to supplement health coverage that applicants already own. Medicare Supplements are offeff red to enrollees in the traditional fee- for-servirr ce Medicare program. Medicare Supplement plans are standardized by federal regulation and are designed to pay deductibles and co-payments not paid by Medicare. lowing table presents supplemental health annualized premium in forff ce information for the three years ended The folff December 31, 2023 by product category. Annualized Premium in Force (Dollar amounts in thousands) 2023 2022 2021 Limited-benefit plans..................................................... $ 782,424 Medicare Supplement................................................... 602,877 Amount % of Total 56 44 Amount $ 735,858 591,996 % of Total 55 45 Amount $ 700,767 585,311 $ 1,385,301 100 $ 1,327,854 100 $ 1,286,078 % of Total 54 46 100 Annuities Annuity products include single-premium and flexible-premium deferred annuities. Annuities in each of the three years ended December 31, 2023, comprised less than 1% of premium. The Company does not currently market stand-alone fixed or deferred annuity products. Pricing Premium rates for life and health insurance products are established using assumptions as to future mortality, morbidity, persistency, investment income, expenses, and target profit margins. These assumptions are based on Company experience and projected investment earnings rates. Revenues for individual life and health insurance products are primarily derived from premium income, and, to a lesser extent, through policy charges to the policyholder account values on annuity products and certain individual life products. Profitability is affected by actual experience deviations from the established assumptions and to the extent investment income varies from that required forff policy reserverr s. Collections for annuity products and certain life products are not recognized as revenues, but are added to policyholder account values. Revenues from these products are derived from charges to the account balances for insurance risk and administrative costs. Profits are earned to the extent these revenues exceed actual costs. Profits are also earned from investment income in excess of the amounts required forff policy reserverr s. 4 GL 2023 FORM 10-K Underwriting rr The underwr iting standards of Globe Life's insurance subsidiaries are established by management. Each subsidiary uses information obtained from the application, and in some cases additional information such as, telephone interviews with applicants, inspection reports, pharmacy data, motor vehicle records, responses to both medical and non-medical questions, doctors’ statements and/or medical examinations. This inforff mation is used to determine rent rating, with a rider, with whether a policy should be issued in accordance with the application, with a diffeff reduced coverage, or rejected. Reservesrr The life insurance policy reserverr s reflected in Globe Life's consolidated financial statements as future policy benefits are calculated based on accounting principles generally accepted in the United States of America (GAAP). These reserves, with future premiums and the associated interest compounded at assumed rates, are expected to be sufficient to cover policy and contract obligations as they mature. Generally, the mortality and lapse assumptions used in the calculations of reserverr s are held on most of the health insurance policies written by Globe Life's insurance subsidiaries, since these policies generally are issued on a guaranteed-renewable basis. The assumptions used in the calculation of Globe Life's reserves are reported in Note 1—Signi ies. Reserves for annuity products and certain life products consist of the policyholders’ account values and are increased by policyholder deposits and interest credited and are decreased by policy charges and benefit payments. s are based on Company experience. Similar reserverr fiii cant Accountintt g Policll ii Reinsurance Globe Life has historically participated in very limited third-party reinsurance as a result of the low face amounts of the policies sold by the Company. See Schedule IV, Note 5—Commitments att nd Contintt gencies, Note 6—Policyc ii Liabi t orff Unpaid Claims for more inforff mation. iett s, and Note 8—Liabi litii y f litii ii Investments The nature, quality, and percentage mix of insurance company investments are regulated by state laws. The investments of Globe Life insurance subsidiaries consist predominantly of high-quality, investment-grade securities. Approximately 91% of our invested assets, at fair value, are fixed maturities at December 31, 2023 (see Note 4— sii ). Investmett ntstt and Management’s Discussion and Analysi l Competition Globe Life competes with other insurance carriers through policyholder service, price, product design, and sales effoff rts. While there are insurance companies competing with Globe Life, no individual company dominates any of Globe Life's life or health insurance markets. Globe Life's health insurance products compete with, in addition to the products of other health insurance carriers, health maintenance organizations, preferred provider organizations, and other health care-related institutions which provide medical benefits based on contractual agreements. The Company effeff ctively competes with other carriers, in part, due to its ability to operate at lower policy acquisition and administrative expense levels than peer companies. This allows Globe Life to have competitive rates while maintaining higher underwr iting margins. rr Regulation Insurance—Insurance companies are subject to regulation and supervirr sion in the states in which they do business. The laws of the various states establish agencies with broad administrative and supervirr sory powers which include, among other things, granting and revoking licenses to transact business, regulating trade practices, licensing agents, approving policy forff ms, approving certain premium rates, setting minimum reserverr and loss ratio requirements, determining the form and content of required financial statements, and prescribing the type and amount of investments permitted. Insurance companies are also required to file detailed annual reports with supervirr sory agencies, and records of their business are subject to examination at any time. Under the rules of the 5 GL 2023 FORM 10-K National Association of Insurance Commissioners (NAIC), insurance companies are examined periodically by one or more of the supervirr sory agencies. (( ii Based Capital (RBC) Risk- —The NAIC requires that a risk-based capital forff mula be applied to all life and health insurers. The risk-based capital forff mula is a threshold forff mula rather than a target capital forff mula. It is designed only to identify cff ompanies that require regulatory attention and is not to be used to rate or rank companies that are adequately capitalized. All Globe Life's insurance subsidiaries are more than adequately capitalized under the risk- based capital forff mula. See further discussion of RBC in Capital Resourcerr s. Holdindd g Company—Syy tates have enacted legislation requiring registration and periodic reporting by insurance companies domiciled within their respective jurisdictions that control or are controlled by other corporations so as to constitute a holding company system. Globe Life Inc. and its subsidiaries have registered as a holding company system pursuant to such legislation in Indiana, Nebraska, Ohio, and New YorYY k. Insurance holding company system statutes and regulations impose various limitations on investments in subsidiaries, and may require prior regulatory approval for material transactions between insurers and affiff liates and for the payment of certain dividends and other distributions. Environmental, Social, and Governance (ESG) Globe Life’s sustainable business practices are a driver of the success and longevity that our Company has experienced since its origin. We plan to advance our sustainable business practices by further developing the Company's ESG strategy and have aligned disclosures with the Sustainability Accounting Standards Board (SASB) standards and the TasTT k Force on Climate-related Financial Disclosures (TCFD) recommendations. Environmental responsibility and sustainability are key components of our overall corporate responsibility efforff ts. We strive to reduce our impact on the environment by implementing green building initiatives at our corporate rts to facilities, placing a company-wide emphasis on recycling and reducing waste generally, and focusing on effoff reduce the use of paper and water. With respect to social matters, our focus continues to be on supporting a culture that is inclusive and attractive for all of our employees and independent sales agents. We are committed to maintaining a diverse workforff ce that reflects the communities in which we work. In addition, to enable the Company the Company has in place an ESG to appropriately respond to ESG-related challenges and opportunities, Committee, and the Board and its committees regularly engage with senior management on relevant ESG-related issues. Human Capital Management Globe Life's talent base encompasses a broad range of experience that possesses the depth of critical skills to effiff ciently and effeff ctively accomplish our business purpose and mission, serve our policyholders, and protect our shareholders' interests. Maintaining superior human capital is a key driver to the success and longevity that our Company has experienced since its origins dating back to the early 1900s. As of December 31, 2023, the Company had 3,636 full time, part-time, and temporary employees, a 3% increase over the prior year. The increase in headcount in 2023 was primarily to support the increased growth in recent periods, as well as lower attrition levels than normal. The Company engages over 15,400 independently-contracted insurance agents. Refer to Management's Discussion & Analysis forff exclusive agent counts. People, Culture,rr and Community At Globe Life, we are united by our mission to—Make Tomorrow Better1 and this starts with our employees and agents. Beyond providing insurance protection for millions of individuals, serving our policyholders and generating financial results for our shareholders, we focus on cultivating a healthy, positive culture and a thriving community within and among our campuses that is inclusive of and attractive for all. Globe Life promotes a diverse work force, where diffeff rences are celebrated and inclusiveness is embraced, to better enable our employees to consistently achieve outstanding individual and collective results. Our commitment to diversity starts at the top; of the 10 independent Board members, 60% are women and 30% are racial/ethnic minorities as of December 31, 2023. 1Per the Globe Life Employee Handbook, the Globe Life mission statement is "We help families Make Tomorrow Better by working to protect their financial future." 6 GL 2023 FORM 10-K As of December 31, 2023 and 2022, the Globe Life employees, (excluding independently-contracted agents) identify aff lows: s folff Ethnicity/Race 2023 Gender Generations White...................................................................... 52 % Female .............. 68 % Baby Boomers (1946-1964) ............. 16 % Black or African American .................................. Hispanic or Latino................................................ Asian...................................................................... American Indian or Alaskan Native................... 24 13 9 1 Native Hawaiian or Pacific Islander .................. — Other or Not Specified ........................................ 1 Male................... 32 Gen X (1965-1977)............................ Millennials (1978-1995)..................... Gen Z (1996-2012) ............................ 29 45 10 Total 100 % 100 % 100 % Ethnicity/Race 2022 Gender Generations White...................................................................... 54 % Female .............. 68 % Baby Boomers (1946-1964) ............. 18 % Black or African American .................................. Hispanic or Latino................................................ Asian...................................................................... American Indian or Alaskan Native................... 22 13 9 1 Native Hawaiian or Pacific Islander .................. — Other or Not Specified ........................................ 1 Male................... 32 Gen X (1965-1977)............................ Millennials (1978-1995)..................... Gen Z (1996-2012) ............................ 30 43 9 Total 100 % 100 % 100 % y biennially to give our employees the opportunity to provide candid feedback about We conduct a confidential surverr their experiences at limited to, confidence in the Company and leadership, competitiveness of our compensation and benefit package, and departmental relationships. The results are shared with our employees, reviewed by senior leadership, and used to identify aff reas for improvement and create action plans based on the employee feedback received. including but not the Company, We strive to Make Tomorrow Better, in part by giving financial and service contributions to programs that provide hands-on assistance in the communities where we live, work, serverr , and visit. We focus our charitable giving on organizations that support children, families, veterans, and seniors, as well as those that work to ensure people are able to live full, healthy lives. These categories align with our mission to help families Make Tomorrow Better by working to protect their financial future. In 2023, we provided financial support of approximately $4.3 million to organizations within that focff us, including charities that support underserved communities, provide scholarships to youth, and advance equity and diversity effoff rts. Talent Development At Globe Life, we believe investing in our employees through training and development is paramount to their includes a multitude of professional development success. We have developed a learning ecosystem that opportunities, topics. An education red to facilitate growth in an area related to one's current position with the Company. assistance program is also offeff irected, and instructor-led courses on a variety of including online, self-dff Health, Safetff y,t and WelWW lnll ess We strive to provide a safe and healthy work environment for every employee. We furnish employees with numerous tools and trainings throughout the year to help ensure they have, at their fingertips, the best inforff mation to safely engage with co-workers, customers, and third parties. In furtherance of our commitment to our employees, r a comprehensive employee benefits package that includes competitive monetary benefits, retirement we offeff 7 GL 2023 FORM 10-K benefits through a Section 401(k) plan and a qualified pension to eligible employees, fitness center reimbursement, paid-time-off (based on years of servirr ce), health insurance, dental and vision insurance, employee resource program, health savings and flexible spending accounts, family leave, and tuition assistance. The Company remains committed to the well-being and safety of its employees, agents, customers, guests, vendors and shareholders in our resolve to maintain a stable and secure business environment. 8 GL 2023 FORM 10-K Item 1A. Risk Factors Risks Related to Our Business lowing is a summary of the material risks and uncertainties that could adversely affeff ct our business, financial The folff condition and results of operations. Business and Operational Risks The development and maintenance of our variorr us distii sales and profits.tt ii ritt but iott n channels are crr ritical to growrr t th in produc rr Our future success depends, in substantial part, on our ability to recruit, hire, and motivate highly-skilled insurance personnel. Further, the development and retention of producing agents are critical to supporting sales growth in our agency operations because our insurance sales are primarily made to individuals. A failure to effeff ctively develop new methods of reaching consumers, realize cost efficiencies or generate an attractive value proposition in our Direct to Consumer Division business could result in reduced sales and profits. In addition, if we do not provide an attractive career opportunity with competitive compensation as well as motivation for producing agents to increase sales of our products, our growth could be impeded. Doing so may be difficult due to many factors, including but not limited to, fluctuations in economic and industry conditions and the effectiveness of our compensation programs and competition among other companies. Our lifll e i ff nsii uranrr ce prodrr ucts are srr old in nii iche marketkk s.tt We are arr t risrr k should any of these marketk s dtt imdd inish. We have several life distribution channels that focus on distinct market niches, three of which are labor unions, affiff nity groups, and sales via Direct to Consumer solicitations. 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 affeff ct our life insurance business. Actual or allell ged misclassi adverserr ll legal, tax or finff ancialii consequences. ficatiott n of inde pee ndent contratt ctors arr ii t our insurance subsidiadd ries could resurr lt in A significant portion of our sales agents are independent contractors. Although we believe we have properly classified such individuals, a risk nevertheless exists that a court, the Internal Revenue Service or other authority will take the position that our sales agents are employees. From time-to-time, we are subject to civil litigation, including class and collective action litigation, alleging that we have improperly classified certain of our sales agents as independent contractors. A future adverse judgment in connection with such litigation could result in substantial damages. Future changes in rules, regulations or interpretations of existing rules and regulations 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. rdii The use of thitt -pdd artyrr operational risrr k of thott business, or damage the Company’s repue vendors t se third prr rr o supporpp tation. artirr es, whiww ch could lowerww revenues, increase perations makes the Company susceptibl costs,tt reduce profits, disdd ruptu ii e to thett rr t trr hett Company's o' The Company utilizes third-party vendors to provide certain business support servirr ces and functions, which exposes the Company to risks outside the control of the Company that may lead to business disruptions. The reliance on these third-party vendors creates a number of business risks, such as the risk that the Company may not maintain service quality, control or effective management of the outsourced business operations and that the Company cannot control the information systems, facilities or networks of such third-party vendors. Additionally, the Company is at risk of being unable to meet legal, regulatory, financial or customer obligations if the inforff mation systems, facilities or networks of a third-party vendor are disrupted, damaged or fail, whether due to physical disruptions, such as fire, natural disaster, pandemic or power outage, or due to cybersecurity incidents, ransomware or other impacts to vendors, including labor strikes, political unrest and terrorist attacks. The Company may be adversely affeff cted by a third-party vendor who operates in a poorly controlled manner or fails to deliver contracted services, which could lower revenues, increase costs, reduce profits, disrupt business, or damage the Company’s reputation. 9 GL 2023 FORM 10-K Financial and Strategic Risks estvv mett Our invii in our invii and unreal nts att esvv tment portforr izll ed investmett rr lio could potentialii nt losses. re subject to marketkk and credrr lyll ficant downgrww ii itdd risks. result in lower net investmett i Signi es,dd adrr nt income and incii delinquencies and defaults reased realizll ed Our invested assets are subject to the customary risks of defaults, downgrades, and changes in market values. Our investment portfolio consists predominately of fixed income investments, where we are exposed to the risk that individual issuers will not have the ability to make required interest or principal payments. A concentration of these investments in any particular issuer, industry, group of related industries or geographic areas could increase this risk. Factors that may affect both market and credit risks include interest rate levels (consisting of both treasury rate and credit spread), financial market perforr rmance, disruptions in credit markets, general economic conditions, legislative changes, particular circumstances affeff cting the businesses or industries of each issuer and other factors beyond our control. Additionally, as the majoa rity of our investments are long-term fixed maturities that we typically hold until maturity, a significant increase in interest rates and/or credit spreads could cause a material temporary decline in the fair value of our fixed investment portfolff rming assets. These declines could cause a material increase in unrealized losses in our investment portfolio. Significant unrealized losses could substantially reduce our capital position and shareholders’ equity. It is possible our investment in certain of these securities with unrealized losses could experience a credit event where an allowance forff credit loss is recorded, reducing net income. io, even with regard to perforr We cannot be assured that any particular issuer, regardless of industry, will be able to make required interest and principal payments on a timely basis or at all. Significant downgrades or defaults of issuers could negatively impact our risk-based capital ratios, the Company by rating agencies, potential reduction in future dividend capacity from our insurance subsidiaries, and/or higher financing costs at Globe Life Inc. (Parent Company) should additional statutory capital be required. leading to potential downgrades of Changes in i ii ntii ererr st rates could negativtt elvv y al ffecff t incii ome. Declines in interest rates expose insurance companies to the risk that they will fail to earn the level of interest on investments assumed in pricing products and in setting discount rates used to calculate policy liabilities, which could have a negative impact on income. Significant decreases in interest rates could result in calls by issuers of investments, where such features are available to issuers. Any such calls could result in a decline in our investment income, as reinvestment of the proceeds would likely be at lower interest rates. cash, An increase in interest rates could result in certain policyholders surrendering their life or annuity policies forff thereby potentially requiring our insurance subsidiaries to liquidate invested assets if other sources of liquidity are not available to meet their obligations. In such a case, realized losses could result from the sale of the invested assets and could adversely affeff ct our statutory income, required capital levels, and results of operations. Our abilitii y t subsidiadd ries. t o funff d operations is substantiatt lly depee ndent on availaii ble funds ff fromrr our insurance is the capital stock of our insurance As a holding company with no direct operations, our principal asset subsidiaries, which periodically declare and distribute dividends on their capital stock. Moreover, our liquidity, including our ability to pay our operating expenses and to make principal and interest payments on debt securities or other indebtedness owed by us, as well as our ability to pay dividends on our common stock or any preferred stock, depends significantly upon the surplus and earnings of our insurance subsidiaries and the ability of these subsidiaries to pay dividends or to advance or repay funds to us. The principal sources of our insurance subsidiaries’ liquidity are insurance premiums, as well as investment income, maturities, repayments and other cash flow from our investment portfolio. Our insurance subsidiaries are subject to various state statutory and regulatory restrictions applicable to insurance companies that limit the amount of cash dividends, including laws establishing minimum those subsidiaries may pay to us, solvency and liquidity thresholds. For example, in the states where our companies are domiciled, an insurance company generally may pay dividends only out of its unassigned surplus as reflected in its statutory financial statements filed in that state. Additionally, dividends paid by insurance subsidiaries are restricted based on loans, and advances that 10 GL 2023 FORM 10-K regulations by their states of domicile. Accordingly, impairments in assets or disruptions in our insurance subsidiaries’ operations that reduce their capital or cash flow could limit or disallow the payment of dividends, a principal source of our cash flow, to us. Other sources of liquidity include a variety of short-term and long-term instruments, including our credit facility, commercial paper, long-term debt, Federal Home Loan Bank (FHLB), intercompany financing and reinsurance. Changes in laws or regulations in the states in which our companies are domiciled could constrain the ability of our insurance subsidiaries to pay dividends or to advance or repay funds to us in sufficient amounts and at times necessary to pay our debt obligations, corporate expenses, or dividends on our capital stock. We are srr ubject to liquiditdd y r Home Loan Bank (“FHLFF B”).” t isrr ks associatii ed with stt ourcing a concentratrr iott n of our fundingii fromrr the FedFF erd alrr as a significant We use institutional funding agreements originating from FHLB, which from time to time serverr source of our liquidity. Additionally, we use agreements with the FHLB to meet near-term liquidity needs. If the FHLB were to change its definition of eligible collateral, we could be required to post additional amounts of collateral in the form of cash or other assets. Additionally, if our creditworthiness falls below the FHLB’s requirements or if legislative or other political actions cause changes to the FHLB’s mandate or to the eligibility of life insurance companies to be members of the FHLB system, we could be required to find other sources to replace this funding, which may prove difficult and increase our liquidity risk. Adverserr access capitaltt capitaltt and credrr itdd marketkk , all s welww l all s affecff conditions may significantly al .ll t our cost of capitaltt ffect our ability t t r o meet liquidity needs odd Should interest rates increase in the future, the higher interest expense on any newly issued debt may reduce net income. In addition, if the credit and capital markets were to experience significant disruption, uncertainty and instability, these conditions could adversely affeff ct our access to capital. Such market conditions could limit our ability to replace maturing debt obligations in a timely manner, or at all, and/or access the capital necessary to grow our business and maintain required capital levels and credit ratings. ur needs, we may have to seek additional financing or In the event that current sources of liquidity do not satisfy off raise capital. The availability and cost of additional financing or capital depend on a variety of factors such as market conditions, the general availability of credit or capital, the volume of trading activities, the overall availability of credit to the insurance industry and our credit ratings and credit capacity. Additionally, customers, lenders or investors could develop a negative perception of our financial prospects if we were to incur large investment losses or if the level of our business activity decreased due to a market downturn. Our access to funds may also be impaired if regulatory authorities or rating agencies take negative actions against us. If our internal sources of liquidity prove to be insuffiff cient, we may not be able to successfully obtain additional financing on favorable terms or at all. As such, we may be forced to delay raising capital, issue shorter term securities than we would prefer or bear an unattractive cost of capital which could decrease our profitability and significantly reduce our financial flexibility. If so, our results of operations, financial condition, consolidated RBC, and cash flows could be materially negatively affeff cted. Industry Rrr isks iott ns in actual-to-expee ected rates of mortarr lity, myy orbirr dity and policll yhc older behavior could materialii lyll Variatii negatively al ffect our resurr lts ott f operations and finff ancialii condition. We establish policy reserverr s do not represent an exact s to pay future policyholder benefits. These reserverr calculation of liability, but rather are actuarial estimates based on models and accounting requirements that include many assumptions and projections which are inherently uncertain. The reserve assumptions involve the exercise of significant judgment with respect to levels or trends of mortality, morbidity, lapses, and discount rates. Changes in assumptions could materially impact our financial condition and results of operations. Further, actual results may differ significantly from the levels assumed, which could result in increased policy obligations and expenses and thus negatively affect our profit margins and income. 11 GL 2023 FORM 10-K intt gs downgrww A ratrr e odd finaii ncial condition, and resrr ults of operations. r other negative actiott n by a ratingii adrr agency could materiarr lly affeff ct our business, Various rating agencies review the financial perforr including our insurance subsidiaries, and publish their financial strength ratings as indicators of an insurer’s ability to fulfill its contractual obligations. These ratings are important to maintaining public confidence in our insurance products. A downgrade or other negative action by a rating agency with respect to the financial strength ratings of our insurance subsidiaries could negatively affect us by limiting or restricting the ability of our insurance subsidiaries to pay dividends to us and reducing our sales by adversely affeff cting our ability to sell insurance products through independent insurance agencies. rmance and condition of insurers, Obtaining timtt is critrr ictt al.ll ely al nd apprpp opr iarr rr te premrr ium ratrr e incii reases for certarr in supplu emental health insurance policll ies A significant percentage of the supplemental health insurance premiums that our insurance subsidiaries earn is from Medicare Supplement insurance. Medicare Supplement insurance, including conditions under which the premiums for such policies may be increased, is highly regulated at both the state and federal level. As a result, Medicare Supplement business is characterized by lower profit margins than life insurance and requires strict administrative discipline and economies of scale for success. Since Medicare Supplement policies are coordinated with the federal Medicare program, which commonly experiences health care inflation every year, annual premium rate increases for the Medicare Supplement policies are typically necessary. Accordingly, the inability to obtain approval of appropriate premium rate increases for supplemental health insurance plans in a timely manner from state insurance regulatory authorities could adversely impact their profitability and thus our business, financial condition, and results of operations. Our business is subject to thett finaii ncial condition or operatrr iott ns. riskii of the occurrence of catast tt rott phic events that could advervv sel rr y al ffect our Our insurance policies are issued to and held by a large number of policyholders throughout the United States in relatively low-face amounts. Accordingly, it is unlikely that a large portion of our policyholder base would be affected by a single natural disaster. However, our insurance operations could be exposed to the risk of catastrophic mortality or morbidity caused by events such as a pandemic or other public health issues, hurricane, earthquake, or man-made catastrophes, including acts of terrorism or war, which may produce significant claims in larger areas, especially those that are heavily populated. Claims resulting from natural or man-made catastrophic events could cause substantial volatility in our financial results for any fiscal quarter or year and could materially reduce our profitability or harm our financial condition. In addition, government, business and consumer reactions to public health events could result in material negative impacts to our business and operations. Our life and health insurance products are particularly exposed to risks of catastrophic mortality, such as a pandemic or other events that result in a large number of deaths. In addition, the occurrence of such an event in a concentrated geographic area could have a severe disruptive effect on our workforce and business operations. The likelihood and severity of such events cannot be predicted and are diffiff cult to estimate. In such an event, the impact to our operations could have a material adverse impact on our ability to conduct business and on our results of operations and financial condition, particularly if those problems affect our producing agents or our employees rming operational tasks and supporting computer-based data processing, or impair or destroy our capability to perforr transmit, store, and retrieve valuable data. In addition, in the event that a significant number of our management were unavailable folff lowing a disaster, the achievement of our strategic objectives could be negatively impacted. We are err regulatll ory i or overvv rerr xpee osed to model risrr k, which is t rr mpii acts caused by model errorrr s orr liance upou n modeldd s.ll ii hett riskii itattt age or advervv serr of finaii ncial loss or reprr utattt iott ns, incii orrerr ct implementation of models, or misuse of iott nal damdd r limll Models are utilized by our businesses and corporate areas primarily to project future cash flows associated with pricing products, calculating reserves and valuing assets, as well as in evaluating risk and determining capital requirements, among other uses. These models may not operate properly and may rely on assumptions and projections that are inherently uncertain. As our businesses continue to grow and evolve, the number and complexity of models we utilize expands, increasing our exposure to error in the design, implementation or use of models, including the associated input data and assumptions. 12 GL 2023 FORM 10-K Our business is subject to the risrr k of dirdd ect rr or indireii ct effeff cts ott f climate change. Climate change may increase the frequency and severity of weather-related events and natural disasters, which may adversely impact our mortality and morbidity rates and disrupt our business operations. In addition, climate change and climate change regulation may affect the prospects of companies and other entities whose securities we hold, or our willingness to continue to hold their securities. Climate change may also influence investor sentiment with respect to the Company and investments in our portfolio. Legal, Regulatory,rr and Compliance Risks Our businesses are hrr eavilyii regulated and changes in r egrr ulatll iott n may reduce our profrr itff abtt ii ility at nd growrr th. Insurance companies, including our insurance subsidiaries, are subject to extensive supervirr sion and regulation in the states in which they conduct business. The primary purpose of this supervirr sion and regulation is the protection of policyholders, not investors. Regulatory agencies have broad administrative power over numerous aspects of our business, including premium rates for our life, Medicare Supplement and other supplement health products, as well as other terms and conditions included in the insurance policies offered by our insurance subsidiaries, marketing practices, advertising, agent reserves and permitted investments. Also, regulatory authorities have relatively broad discretion to grant, renew or revoke licenses or approvals. The insurance laws, regulations and policies currently affeff cting our companies may change at any time, possibly having an adverse effeff ct on our business. Should regulatory changes occur, we may be unable to maintain all required licenses and approvals, or fully comply with the wide variety of applicable laws and regulations or the relevant authority’s interpretation of such laws and regulations. If we do not have the requisite licenses and approvals or do not comply with applicable regulatory requirements, the insurance regulatory authorities could preclude or temporarily suspend some or all of our business activities and/or impose substantial fines. licensing, policy forff ms, capital adequacy, solvency, Changes in aii stattt ements, redrr uce our repoe ccountintt g standards idd rted profrr ssii ued by accountintt g standard-sdd ettingii itff of profrr itff abtt ility and change thett ii ngii timi bodies may affect our finaii ncial recognition. Our financial statements are subject to the application of GAAP and accounting practices as promulgated by the National Association of Insurance Commissioners’ statutory accounting practices (NAIC SAP), which principles are periodically revised and/or expanded. Accordingly, from time to time we are required to adopt new or revised accounting standards or guidance issued by recognized authoritative bodies. Future accounting standards that we are required to adopt could change the current accounting treatment that we apply to our consolidated financial statements. These changes, including underlying assumptions, projeo ctions, estimates or judgments/interpretations financial condition, and results of by management, could have a material adverse effeff ct on our business, etYY to operations. (Refer to Note 1—Signi be Adopted) ies under the caption Accountintt g Pronouncements Ytt fiii cant Accountintt g Policll i Non-compliance witww h l tt a faiff security, iyy ncii consumer information maintain its ctt business operations. awll luii ludingii r regrr ulatll iott ns related to customer and consumer privrr acyvv s oww re to ensure that our business associatii es with att lity, cyy tion ccess to sensitive customer and iott n and ffect our reput rr adversel ould materialii and infii orff marr onfidentiatt y al attt lyll e The collection, maintenance, use, disclosure, and disposal of personally identifiable inforff mation by our insurance subsidiaries are regulated at the international, federal, and state levels. Applicable laws and rules are subject to change by legislation or administrative or judicial to the privacy and security interpretation. We are subject provisions of federal laws including, but not limited to, the Gramm-Leach-Biley Act of 1999 (GLBA), the Health Information Technology for Economic and Clinical Health Act (HITECH), and the Health Insurance Portability and Accountability Act of 1996 (HIPAA)PP additionally requires that we impose privacy and security requirements on our business associates. Various state laws also address the use and disclosure of personally identifiable information, to the extent they are more restrictive than these and other federal laws. Further, approximately half of the states have adopted a forff m of the National Association of Insurance Commissioners’ data security model law, which imposes security requirements. Noncompliance with these laws, whether by us or by one of our business associates, could have a material adverse effeff ct on our business, reputation, and results of operations and could result in material fines and penalties, various forms of damages, consent orders regarding our privacy and security practices, adverse actions against our licenses to do business, and injunctive relief. . HIPAAPP 13 GL 2023 FORM 10-K General Risk Factors luii The faiff our finaii ncial condition and resrr ults of operations. re to maintain effeff ctivtt e avv nd effiff cient infii orff marr tion systems at thett Company could advervv sel rr y al ffect Our business is highly dependent upon the internet, third-party service providers, and information systems to the purpose of conducting marketing, operate in an efficient and resilient manner. We gather and maintain data forff actuarial analysis, sales, and policy administration functions. Malicious third parties, employee or agent errors or disasters affecting our information systems could impair our business operations, regulatory compliance, and financial condition. Employee or agent malfeasance or errors in the handling of our information systems may result in unauthorized access to customer or proprietary information, or an inability to use our inforff mation systems to efficiently support business operations. As a result of more frequent and sophisticated cyberattacks and the highly regulated nature of the insurance industry, we must continually implement new, and maintain existing, technology or adapt existing technology to protect against security and privacy incidents and to meet compliance requirements of new and proposed regulations. Our ability to modernize and maintain our information technology systems and infrastructure requires us to commit significant resources and effeff ctive planning and execution. Any incident affeff cting confidential inforff mation systems resulting from the above factors could damage our reputation in the marketplace, deter potential customers from purchasing our products, result in the loss of existing customers, subject us to significant civil and criminal liability, constrain cash flows, or require us to incur significant technical, legal, or other expenses. In addition, should we be unable to implement or maintain our technology effeff ctively, effiff ciently, or in a timely manner, it could result in poor customer experience, poor agent experience, additional expenses, reputational harm, legal and regulatory actions, and other adverse consequences. This could also result in the inability to effectively support business operations. Changes in Uii .S. fedff subsidiadd ries' capital. erdd alrr income tax lawll could incii rease our tax costs or negatively i l mpii act our insurance Changes to the Internal Revenue Code, administrative rulings, or court decisions affeff cting the insurance industry, including the products insurers offeff r, could increase our effeff ctive tax rate and lower our net income, adversely impact our insurance subsidiaries' capital, or limit the ability of our insurance subsidiaries to sell certain of their products. Damage to the brand and reprr utattt business. iott n of Globe Life or its stt ubsidiadd ries could affect our ability t t o conduct Negative publicity through traditional media, internet, social media and other public forums could damage our brand or reputation and adversely impact our agent recruiting effoff rts, the ability to market our products and the persistency of in-forff ce policies. We may faiff rr pract ictt es. ii o meet expexx l t ctattt iott ns relatingii to corporatrr e resprr onsibility at nd sustaitt naii bilitii y st tandards add nd Certain existing or potential investors, customers and regulators evaluate our business or other practices according to a variety of corporate responsibility and sustainability standards and expectations. Certain of our regulators have proposed or adopted, or may propose or adopt, certain corporate responsibility and sustainability rules or standards that would apply to our business. Our practices may be judged by these standards that are continually evolving and not always clear. Our decisions or priorities are made with the considerations of all stakeholders. Prevailing corporate responsibility and sustainability standards and expectations may also reflect contrasting or conflicting values or agendas. We may fail to meet our commitments or targets, and our policies and processes to evaluate and manage these standards in coordination with other business priorities may not prove completely effective or satisfy i ff nvestors, customers, regulators, or others. Additionally, we could fail to report accurately or achieve progress on our metrics on a timely basis, or at all, which in-turn could adversely affeff ct our reputation, business, financial rmance and growth. We may face adverse regulatory, investor, customer, media, or public scrutiny leading to perforr business, reputational, or legal challenges. 14 GL 2023 FORM 10-K As of December 31, 2023, Globe Life had no unresolved SEC staff cff omments. Item 1B. Unresolved Staff Cff omments Item 1C. Cybersecurity Risk Management and Strategy We have implemented a comprehensive Enterprise Risk Management (“ERM”) process to identify,ff assess and manage risks related to our overall organization, including material risks from cybersecurity threats. Our ERM process takes a holistic view of our specific risks and our strategy to anticipate and manage possible risks. Our Executive Vice President, General Counsel and Chief Risk Officer (“CRO”) oversees our ERM program and execution of our risk strategy, including as it relates to cyber risk. The Chief Information Security Offiff cer ("CISO"), who reports to the CRO, leads our cyber risk management and strategy and the Inforff mation Security Department. Our cyber risk management and information security strategy includes elements to identify t hreats, assess risks, implement protective controls, detect attempts from threat actors to compromise the confidentiality, integrity, and availability of inforff mation and information systems, respond to those events and ultimately recover from incidents. We use a threat-based approach to identify aff nd assess cyber risks. This approach includes membership in threat intelligence organizations such as the FS-ISAC (Financial Servir ces Inforff mation Sharing and Analysis Center) to identify s tandard and emerging cyber-threats to financial servirr ces organizations and specifically to insurance ff companies. We also monitor for threats through vendor alerts, manufacturer bulletins, and government advisories. ff Identified threats are analyzed using a recognized risk assessment model to consistently assess the likelihood and impact of these threats. We then map these threats to a well-established industry model called MITRE ATT&CK to identify aff reas of vulnerability. This analysis produces a likelihood score that is used in conjunction with an impact analysis to calculate the preliminary level of risk. The impact analysis includes factors such as disruption to issues, reputational harm, and regulatory compliance. business operations, employee and customer data, legal Based on the preliminary level of risk, we also analyze compensating controls and other factors to arrive at a residual risk level. If appropriate, additional mitigations may be planned based on this risk level. We manage identified cyber risks by designing and implementing inforff mation security policies and controls addressing a wide range of current cyber threats. These policies and associated standards are designed to comply with current applicable legal and regulatory requirements and align with recognized frameworks forff cybersecurity risk management. We review and update these policies and controls regularly in order to confirm ongoing alignment with the constantly changing threat landscape and evolving compliance requirements. regular We assess the effectiveness of our policies and controls internally as well as through the engagement of third parties to conduct information systems and reviews, penetration tests, and vulnerability scans of applications. Results from these assessments help inforff m updates to risk assessments, changes to security controls and processes, and updates to policies and standards as appropriate. We employ a variety of measures to detect, prevent, and reduce the frequency and severity of cybersecurity incidents, which may include, but are not limited to, intrusion prevention, endpoint security, password protection, multi-factor authentication, internal phishing testing and security awareness training, and vulnerability scanning and penetration testing. the use of encryption, In addition, we have implemented a third-party risk management program to assess our vendors’ ability to adequately protect information, which includes requiring agreements with our vendors that address cybersecurity. We periodically review and assess certain third parties’ adherence to these agreements and review for inforff mation security (including cybersecurity) incidents experienced by our third-party vendors. Due to the type and volume of information that we collect and store to provide insurance coverage to prospective and current policyholders, we are an attractive target for cyber threat actors seeking financial gain. Our failure to maintain the safety of our policyholder’s information could have a material adverse effeff ct on our reputation, financial condition and results of operations. To dTT ate, we have not experienced a cybersecurity incident that resulted in a material adverse effect on our business strategy, results of operations, or financial condition; however, there can be no guarantee that we will not experience such an incident in the future. Although we maintain cybersecurity insurance, the costs and expenses related to cybersecurity incidents may not be fully insured. We describe whether 15 GL 2023 FORM 10-K and how risks from identified cybersecurity threats, including as a result of previous cybersecurity incidents, have materially affeff cted or are reasonably likely to materially affeff ct us, including our business strategy, results of operations, or financial condition under Item 1A. Risk FacFF tors, General Risk Factors, "The failure to maintain effeff ctive and effiff cient information systems at the Company could adversely affeff ct our financial condition and results of operations." Governance Our Board of Directors considers inforff mation security to be an enterprise-wide risk management issue and oversees material cybersecurity risks through the Audit Committee. The Audit Committee is designated with the responsibility to monitor and periodically report to the full Board regarding management’s risk management and information security processes. The ERM Committee and the Operational Risk Committee (“ORC”) are the senior management-level entities designated with the responsibility to oversee the execution of our risk strategy, including as it relates to cyber risk. These Committees are composed of an enterprise-wide representative group of the Company’s Executive and Senior Vice Presidents, as well as other essential directors and personnel. The ERM Committee is chaired by our CRO, and the ORC is chaired by our Chief Security Officer (“CSO”). The Chief Information Offiff cer (“CIO”) and CISO serve on both Committees. Our CRO has over a decade of experience managing risks at the Company, including risks from cybersecurity threats. Our current CIO has over 15 years of experience managing risks, including risks from cybersecurity threats. Our current CSO has a Certified Information Systems Security Professional certification, a Certified Information Systems Auditor certification, a Certified in Risk and Information Systems Control certification, and over 20 years of experience in cybersecurity. The CISO serves on both Committees and leads cyber governance and strategy, as well as cyber risk and incident management. The current CISO holds a master's degree in cybersecurity, has a Certified Information Systems Security Professional certification, and has over a decade of experience in cybersecurity. The CISO assesses cyber risk and provides recommendations for management decision(s) by the ORC on a routine basis. The CISO briefs the Audit Committee on a quarterly basis. These updates include compliance with applicable regulations as well as current or planned changes to the regulations, an overview of the current cyber threats, risk management activities, and discussions of cyber incident investigations that warrant the attention of the Board. The CISO also provides an annual update to the entire Board of Directors on changes in cybersecurity, top threats facing the Company, key risks and mitigation efforff ts, and any potential material cybersecurity incidents. The Chair of the Audit Committee also provides a quarterly report to the Board on any information security topics presented to the Audit Committee by management. Incident Management The Company maintains and tests a cybersecurity incident response plan that outlines steps for the containment, investigation of, response to and recovery from cyber events. The plan also includes information pertaining to roles and responsibilities, escalation, third party support, documentation, reporting, and law enforff cement engagement. Escalation is designed to raise awareness of events that may require disclosure to help ensure assessments are rmed without unreasonable delay. In alignment with our plan, we maintain playbooks that outline processes forff perforr responding to certain incidents commonly observerr d in the insurance industry. In addition, we have implemented a formal crisis management process, which outlines an incident response communication plan with executive leadership as well as criteria for communication with the chair of the Audit Committee and the Lead Director of the Board. Item 2. Properties Globe Life Inc., through its subsidiaries, owns or leases buildings that are used in the normal course of business. Globe Life Inc. owns and occupies approximately 480,000 combined square feet in McKinney, TexTT as (headquarters) and at the Waco, Texas and Oklahoma City, Oklahoma campuses. Additionally, the Company leases other buildings across the U.S. 16 GL 2023 FORM 10-K Item 3. Legal Proceedings Discussion regarding litigation and unclaimed property audits is provided in Note 5—Commitments a Contintt gencies. tt nd Not Applicable. Item 4. Mine Safety Disclosures 17 GL 2023 FORM 10-K Part II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities Market Price of and Dividends on the Registrant’s Common Equity and Related Stockholder Matters The principal market in which Globe Life's common stock is traded is the New York Stock Exchange (NYSE: GL). There were 1,924 shareholders of record on December 31, 2023, excluding shareholder accounts held in nominee form. The line graph shown below compares Globe Life's cumulative total return on its common stock with the cumulative total returns of the Standard & Poor’s 500 Stock Index (S&P 500) and a Life Insurance Index. Globe Life's stock is included within the S&P 500 Index. COMPARISON OF 5 YEAR CUMULATIVE TOTAL RETURN* Among Globe Life Inc., the S&P 500 Index and the Life Insurance Index $250 $200 $150 $100 $50 $0 12/18 12/19 12/20 12/21 12/22 12/23 Globe Life Inc. S&P 500 S&P Life & Health Insurance *$100 invested on 12/31/2018 in stock or index, including reinvestment of dividends. Fiscal year ended December 31. Copyright© 2023 Standard & Poor's, a division of S&P Global. All rights reserverr d. 18 GL 2023 FORM 10-K Purchases of Certain Equity Securities by the Issuer and affiff liated purchasers for the Fourth Quarter 2023 (a) (b) (c) (d) Period Total Number of Shares Purchased Average Price Paid Per Share Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs Maximum Number of Shares (or Approximate Dollar Amount) that May Yet Be Purchased Under the Plans or Programs October 1-31, 2023 .................... 235,678 $ November 1-30, 2023................ December 1-31, 2023................ 437,158 541,892 109.75 118.25 122.96 235,678 437,158 541,892 — — — ] Item 6. [Reservedrr 19 GL 2023 FORM 10-K CAUTIONARY STATEMENTS We caution readers regarding certain forff warr rd-looking statements contained in the forff egoing 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 e be considered an opinion or projeo ction concerning the Company or its business, whether express or otherwisrr rd-looking statement. Such statements represent is meant as and should be considered a forff warr implied, 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 otherwisrr e. Forward-looking statements are based upon estimates and assumptions that are subject to significant business, economic and competitive uncertainties, many of which are beyond our control, including uncertainties related to the impact of the recent pandemic and associated direct and indirect effects on our business operations, financial results, and financial condition. If these estimates or assumptions prove to be incorrect, the actual results of Globe Life may differ materially from the forward-looking statements made on the basis of such estimates or assumptions. 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, 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; including the impact of 2. Regulatory developments, regulations (particularly those impacting taxes and changes to the Federal Medicare program that would affect Medicare Supplement); including changes in accounting standards or governmental 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; Interest rate changes that affect product sales, financing costs, and/or investment portfolio yield; 4. 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 comprise part of our investment portfolio) that may affeff ct 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 effiff ciencies that differ from our assumptions (including any reduction in effiff ciencies 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 diffeff r from the actual amounts ultimately realized; 12. Compromise by a malicious actor or other event that causes a loss of data from, or inaccessibility to, our computer and other information technology systems; 13. 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 a, nd demand for our products; and 14. Our ability to access the commercial paper and debt markets, particularly if such markets become unpredictable or unstable forff 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. 20 GL 2023 FORM 10-K GLOBE LIFE INC. Management's Discussion & Analysis Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations ii ial Servirr ces - Insurance (Topic 944): TarTT gerr lowing discussion should be read in conjunction with Globe Life's Consolidll ated Financ The folff ial Statementstt and Notes thereto appearing elsewhere in this report. The results included herein reflect the adoption of ASU 2018-12, Financ Long-Duration Contratt cts.tt Globe Life Inc. implemented the standard on January 1, 2023 using the modified retrospective transition method at adoption. As a result of this election, the prior year figures have been retrospectively adjusted as of January 1, 2021 with significant impacts to shareholders' equity, net income, underwr iting margins, and net operating income. While the impacts of the new accounting guidance are significant, we do not consider it a fundamental change to the overall business. ted Improvements t Accountintt g forff tt o thett rr ii Unless impacted by the adoption noted above, the folff lowing management discussion will only include comparison to prior year. For discussion regarding activity from 2021 for the items not impacted by the new standard, please refer to the prior filed Form 10-Ks at www.sec.gov. Additional information on the effects of the adoption has been included in Note 1—Signi i fii cant Accountintt g Policll ies. "Globe Life" and the "Company" refer to Globe Life Inc. and its subsidiaries and affiff liates. Results of Operations How Globe Life Views Iww ts Operatrr iott ns. Globe Life Inc. is the holding company for a group of insurance companies that market 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, supplemental health, and annuities, and the investment segment that supports the product lines. Segments are aligned based on their common characteristics, comparability of the profit margins, and management techniques used to operate each segment. rr Insurance ProPP duct Line Segments.tt The insurance product line segments involve the marketing, underwr iting, and administration of policies. Each product line is further segmented 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 underwr iting margin, as seen below: rr Premium revenue (Policy obligations) (Policy acquisition costs and commissions) ) q ( Underwriting margin y Investmett including investments and the management of investment segment is excess investment income, as seen below: nt Segment. The investment segment involves the management of our capital resources, the liquidity. Our measure of profitability forf Net investment income ) (Required interest on policy liabilities) p ( Excess investment income q y 21 GL 2023 FORM 10-K GLOBE LIFE INC. Management's Discussion & Analysis Current Highl igll hts.tt i • • • • • • Net income as a return on equity (ROE) forff operating income as an ROE, excluding accumulated other comprehensive income(1) was 14.7%. the year ended December 31, 2023 was 23.2% and net TotTT al premium increased 3% over the same period in the prior year. Life premium increased 4% for the period from $3.03 billion in 2022 to $3.14 billion in 2023. Net investment income increased 7% over the same period in the prior year. TotTT al net sales increased 6% over the same period in the prior year from $722 million in 2022 to $768 million in 2023. The average producing agent count across all of the exclusive agencies increased 13% over the prior year. Book value per share increased 18% over the same period in the prior year from $40.05 to $47.10. Book value per share, excluding accumulated other comprehensive income(1), increased 11% over the prior year from $68.35 in 2022 to $76.21 in 2023. or the year ended December 31, 2023, th Ce Com ypany repurchased 3.4 million shares fof GGlobe Liffe Inc. F common stock at a total cost fof $$380 million ffor an averagge share price fof $$112.84. The folff lowing graphs represent net income and net operating income forff the three years ended December 31, 2023. Net Income (Dollar amounts in thousands) Net Operating Income (Dollar amounts in thousands) $1,031,114 $894,386 $970,755 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $0 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $0 $993,652 $961,027 $1,026,644 2021 2022 2023 2021 2022 2023 (1) As shown in the charts above, net operating income is the consolidated total of segment profits after tax and as such is considered a non- rmance of the rs from net income primarily because it excludes certain non-operating items such as realized gains and losses and certain GAAPA Company. It diffeff significant and unusual items included in net income. Net income is the most directly comparable GAAP measure. measure. It has been used consistently by Globe Life's management for many years to evaluate the operating perforr Net operating income as an ROE, excluding accumulated other comprehensive income (AOCI), is considered a non-GAAPAA 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 $(2.77) billion and $(2.79) billion forff the year ended December 31, 2023 and 2022, respectively. Book value per share, excluding AOCI, is also considered a non-GAAPA 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 $(29.11) and $(28.30) for the year ended December 31, 2023 and 2022, respectively. Refer to Analysi l s oii f Profitabilitii y bt y Segment for non-GAAPA reconciliation to GAAPAA . 22 GL 2023 FORM 10-K GLOBE LIFE INC. Management's Discussion & Analysis iott ns. Net income increased 9% to $971 million in 2023, compared with $894 million in 2022. In Summary of Operatrr 2022, net income decreased 13% from $1.03 billion in 2021. On a diluted per common share basis, net income per common share forff 2023 increased from $9.04 to $10.07. In 2022, net income per common share, on a diluted per common share basis, decreased to $9.04 from $9.99. Net operating income increased 7% to $1.03 billion in 2023, compared with $961 million in 2022. In 2022, net operating income decreased 3% from $994 million in 2021. On a diluted per common share basis, net operating income per common share forff 2023 increased from $9.71 to $10.65, an increase of 10%. In 2022, net income per common share, on a diluted per common share basis, increased 1% from $9.63. Net operating income is the r tax and as such is considered a non-GAAPAA measure. Net income is the consolidated total of segment profits afteff 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 in 2023, 2022 and 2021 was affected by certain significant and unusual non-operating items. We do not view these items as components of core operating rmance or future prospects of the insurance operations. We results because they are not indicative of past perforr remove items such as these that relate to prior periods or are non-operating items when evaluating the results of current operations, and thereforff e exclude such items from our segment analysis forff current periods. future policy benefits is determined each reporting period based on the net level premium method. The liability forff Net level premiums reflect a recomputed net premium ratio using actual experience since the issue date, and iett s for additional expected future experience based on future cash-flow assumptions. See Note 6—Policy Lc information. The policy liability is accrued as premium revenue is recognized and adjusted forff differences between actual and expected experience in the form of remeasurement gains and losses during the period. iabilitii The Company continues to see positive signs in its core operations, including strong sales and premium growth, favorable persistency, and a strong ROE, excluding accumulated other comprehensive income. 23 GL 2023 FORM 10-K 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 perforr rmance 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) 2023 2022 2021 2023 Change Life insurance underwr rr Health insurance underwr iting margin............ $ 1,192,972 rr iting margin....... 377,937 Annuity underwr rr iting margin ....................... Excess investment income.......................... 8,492 130,382 Other insurance: $ 1,129,525 $ 1,161,638 $ 63,447 377,137 10,511 104,589 352,478 9,826 96,974 800 (2,019) 25,793 % 6 — (19) 25 2022 Change % $ (32,113) (3) 24,659 685 7,615 Other income ........................................... 308 1,246 1,216 (938) (75) 30 Administrative expense.......................... (301,161) (299,341) (271,631) Corporate and other ..................................... (143,918) (137,201) (123,311) (1,820) (6,717) Pre-tax total......................................... 1,265,012 1,186,466 1,227,190 78,546 Applicable taxes............................................ (238,368) (225,439) (233,538) (12,929) Net operating income ....................... 1,026,644 961,027 993,652 65,617 1 5 7 6 7 (27,710) (13,890) (40,724) 8,099 (32,625) Reconciling items, net of tax: 7 7 8 2 10 11 (3) (3) (3) Realized gain (loss)—investments....... (51,884) (60,473) 54,220 8,589 (114,693) Realized loss—redemption of debt ...... Administrative settlements..................... Non-operating expenses........................ Legal proceedings................................... — — (3,294) (711) — — (4,196) (1,972) (7,358) (1,047) (1,923) (6,430) — — 902 1,261 7,358 1,047 (2,273) 4,458 Net income ........................................ $ 970,755 $ 894,386 $ 1,031,114 $ 76,369 9 ) $ (136,728) ( ) ( (13) rr development The results for each of the years presented above are impacted, as previously noted, by the reserverr and assumption changes in the third quarter of 2023, 2022, and 2021. The life insurance segment is our primary segment and is the largest contributor to earnings in each year presented. In 2023, the life insurance segment underwr iting margin increased $63 million compared with 2022, primarily a result of increased premiums, favorable policy obligations as a percent of premium, and a lower remeasurement loss in 2023 resulting from the assumption updates. In 2022, the life insurance segment underwr iting margin decreased $32 million when compared with 2021, which was a result of a higher remeasurement loss resulting from assumption updates in 2022 than in 2021, offsff et by increased premiums. rr 24 GL 2023 FORM 10-K GLOBE LIFE INC. Management's Discussion & Analysis In 2023, the largest contributor of total underwr distribution channel was the American Income Life Division. The folff underwr rr rr iting margin was the life insurance segment and the primary lowing charts represent the breakdown of total iting margin by operating segment and distribution channel for the year ended December 31, 2023. 2023 Total Underwriting Margin by Segment 2023 Total Underwriting Margin by Distribution Channel 24% 1% 50% 14% 15% 9% 4% 8% 75% Life Health Annuity American Income Life Division Liberty National Division Direct to Consumer Division Family Heritage Division United American Division Other Total premium income rose 3% for the year ended December 31, 2023 to $4.46 billion. Total net sales increased 6% to $768 million, when compared with 2022. Total first-year collected premium (defined in the folff lowing section) increased 5% to $605 million forff 2023 compared to $577 million in 2022. Life insurance premium income increased 4% to $3.14 billion over the prior-year total of $3.03 billion. Life net sales the year ended 2023. First-year collected life premium increased 3% to $420 million. Life rose 3% to $544 million forff underwr iting margin increased to $1.19 billion in 2023, compared to $1.13 billion forff iting margin, as a percent of premium, increased to 38% in 2023 from 37%. Underwr the same period in 2022. rr rr Health insurance premium income increased 3% to $1.32 billion over the prior-year total of $1.28 billion. Health net the year ended 2023. First-year collected health premium rose 10% to $185 sales rose 17% to $224 million forff million. Health underwr iting rr margin decreased slightly to $378 million forff iting margin, as a percent of premium, was 29% in 2023 and 2022. Health underwr the year ended 2023, compared to the same period in 2022. rr Excess investment income, the measure of profitability of our investment segment, increased 25% during the year ended 2023 to $130.4 million from $104.6 million in the same period in 2022. Excess investment income per common share, reflecting the impact of our share repurchase program and increased net investment income, increased 27% to $1.35 from $1.06 when compared with the same period in 2022. Insurance administrative expenses increased 1% in 2023 when compared with the prior-year period. These expenses were 6.8% as a percent of premium during 2023 compared to 6.9% in 2022. For the year ended December 31, 2023, the Company repurchased 3.4 million Globe Life Inc. shares at a total cost of $380 million forff an average share price of $112.84. The discussions of our segments are presented in the manner we view our operations, as described in Note 15— ii Busines s Segmentstt . 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.” 25 GL 2023 FORM 10-K GLOBE LIFE INC. Management's Discussion & Analysis • • • Annualized premium in forff ce 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 forff ce throughout the twelve- month period. Net sales are 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 offeff r period has expired. Management considers net sales to be a better indicator of the rate of premium growth than annualized premium issued. First-year collected premium is defined as the premium collected during the reporting period forff 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. See further discussion of the distribution channels below for Lifei and Health. 26 GL 2023 FORM 10-K GLOBE LIFE INC. Management's Discussion & Analysis LIFE INSURANCE Life insurance is the Company's predominant segment. During 2023, premium and life underwr rr s forff supporting the reserverr investment segment. total iting margin. Additionally, investments life products produce the majoa rity of excess investment income attributable to the life premium represented 70% of rr iting margin represented 75% of the total underwr lowing table presents the summary of results of life insurance. Further discussion fof the results yby distribution The folff channel is included below. Life Insurance Summary of Results (Dollar amounts in thousands) Premium and policy charges ....................... $ 3,137,244 100 $ 3,027,824 100 $ 2,893,930 100 2023 2022 2021 Amount % of Premium Amount % of Premium Amount % of Premium Policy obligations........................................... 2,050,789 Required interest on reserver s ..................... (772,701) Net policy obligations................................. 1,278,088 Commissions, premium taxes, and non- deferred acquisition expenses .................... Amortization of acquisition costs ................ 338,758 327,426 Total expense.............................................. 1,944,272 Insurance underwriting margin .............. $ 1,192,972 65 (24) 41 11 10 62 38 2,035,693 (735,688) 1,300,005 299,453 298,841 1,898,299 $ 1,129,525 67 (24) 43 10 10 63 37 1,897,194 (710,301) 1,186,893 274,475 270,924 1,732,292 $ 1,161,638 66 (25) 41 10 9 60 40 Net policy obligations amounted to 41% of premiums for the year ended December 31, 2023, compared to 43% in the year-ago period and 41% for 2021. The table below summarizes life underwriting margin by distribution channel for the last three years. Life Insurance Underwriting Margin by Distribution Channel (Dollar amounts in thousands) 2023 2022 2021 Amount % of Premium Amount % of Premium Amount % of Premium American Income ............................................ $ 719,378 45 $ 692,107 46 $ 676,182 Direct to Consumer ......................................... Liberty National................................................ 234,893 114,646 Other.................................................................. 124,055 Total .............................................................. $ 1,192,972 24 33 60 213,748 101,202 122,468 22 31 58 248,254 105,490 131,712 38 $ 1,129,525 37 $ 1,161,638 48 26 34 62 40 27 GL 2023 FORM 10-K GLOBE LIFE INC. Management's Discussion & Analysis Life insurance products are marketed through several distribution channels. Premium income by distribution channel for each of the last three years is as follows: Life Insurance Premium by Distribution Channel (Dollar amounts in thousands) 2023 2022 2021 American Income........................................................ $ 1,588,702 Direct to Consumer .................................................... 991,406 Liberty National ........................................................... 349,736 Other............................................................................. 207,400 Total ......................................................................... $ 3,137,244 Amount % of Total Amount $ 1,505,034 985,488 327,469 209,833 % of Total 50 32 11 7 Amount $ 1,401,898 968,365 311,200 212,467 % of Total 48 34 11 7 51 31 11 7 100 $ 3,027,824 100 $ 2,893,930 100 Annualized life premium in force was $3.2 billion at December 31, 2023, an increase of 4% over $3.1 billion a year earlier. The folff lowing table presents net sales inforff mation for each of the last three years by distribution channel. Life Insurance Net Sales by Distribution Channel (Dollar amounts in thousands) 2023 2022 2021 Amount % of Total American Income........................................................ $ 322,658 Direct to Consumer .................................................... 116,454 Liberty National ........................................................... Other............................................................................. 95,459 9,701 59 21 18 2 Amount $ 316,715 125,979 78,390 9,844 % of Total 59 24 15 2 Amount $ 290,512 148,846 71,184 11,055 % of Total 56 28 14 2 Total ......................................................................... $ 544,272 100 $ 530,928 100 $ 521,597 100 The table below discloses first-year collected life premium by distribution channel. Life Insurance First-Year Collected Premium by Distribution Channel (Dollar amounts in thousands) 2023 2022 2021 Amount % of Total American Income........................................................ $ Direct to Consumer .................................................... Liberty National ........................................................... Other............................................................................. 266,429 77,570 67,618 8,542 63 19 16 2 Amount $ 257,584 86,854 56,085 8,988 % of Total 63 21 14 2 Amount $ 250,937 111,761 50,336 9,705 % of Total 59 27 12 2 Total ......................................................................... $ 420,159 100 $ 409,511 100 $ 422,739 100 A discussion of life operations by distribution channel follows. The American Income Life Division markets to members of labor unions and other affiff nity groups, and continues to diversify i ts lead sources by utilizing third-party internet vendor leads and obtaining referrals to facilitate sustainable growth. This division is Globe Life's largest contributor of life premium of any distribution channel at 51% of the Company's 2023 total life premium. Net sales were $323 million in 2023, up from $317 million in 2022. The ff 28 GL 2023 FORM 10-K GLOBE LIFE INC. Management's Discussion & Analysis rr underwr the prior year due to higher acquisition costs. iting margin, as a percent of premium, was 45% for the year ended December 31, 2023, down from 46% in Below is the average producing agent count at the end 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. The average producing agent count increased 12% over the year-ago period. The increase in average producing agent count was driven by an increase in new agent recruiting. Sales growth in this division, as well as within our other exclusive agencies, is generally dependent on growth in the size of the agency forff ce. American Income....................................................... 10,579 9,444 9,971 1,135 2023 2022 2021 2023 Change % 12 2022 Change % (527) (5) incentives and training opportunities, American Income Life continues to focus on growing and strengthening the agency forff ce, specifically through emphasis on agency middle-management growth and additional agency office openings. In addition to offeff ring financial the agency has made considerable investments in inforff mation technology, including a customer relationship management (CRM) tool for the agency forff ce. This tool is designed to drive productivity in lead distribution, conservarr tion of business, manager dashboards, and new agent recruiting. Additionally, this division has invested in and successfully implemented technology that allows the agency forff ce to engage in virtual recruiting, training, and sales activity. The agents have shifted to primarily a virtual experience with the customers and have generated a vast majoa rity of sales through virtual presentations. We find this flexibility to be attractive to new recruits as well as a driver of sustainability forff our agency forff ce. including direct mailings, insert media, and electronic media. The Direct to Consumer Division (DTC) offers adult and juvenile life insurance through a variety of marketing approaches, In recent years, production from electronic media, which is comprised of sales through both the internet and inbound phone calls to our call center, has grown faster than direct mail response as customer preferences have focff used marketing activity to internet and mobile technology. The proportion of sales from the internet and inbound phone calls continue to outpace the activity from the direct mailings, but all three channels continue to work in an omnichannel approach. The diffeff rent media channels support and complement one another in the division's efforff ts to reach the consumer. The DTC's long-term growth has been fueled by constant innovation and name recognition. We continually introduce new initiatives in this division in an attempt to increase response rates and create a seamless customer experience. The juvenile market is an important source of sales, it is also a vehicle to reach the parents and grandparents of life coverage on juvenile policyholders, who are more likely to respond favorably to a DTC solicitation forff themselves in comparison to the general adult population. Also, future offerings to juvenile policyholders and their parents are sources of lower acquisition-cost life insurance sales in the future. DTC net sales declined 8% to $116 million forff the year ended December 31, 2023 compared with $126 million in the prior year. This decline is due primarily to reductions in direct mail and mailing insert marketing activity resulting from the impact of inflation on postage and paper costs. While total sales have declined, the focff us has been on improving profitability and improving the underwr iting margin, as a percent of premium, was 24% for the year ended December 31, 2023 and 22% for the same period in 2022, and 2% below the 26% underwr iting margin percentage for 2021. iting margin. DTC’s underwr rr rr rr The Liberty National Division markets individual life insurance to middle-income household and worksite customers. Recent investments in new sales technologies as well as recent growth in middle management within the agency are expected to help continue this growth. The underwr iting margin as a percent of premium was 33%, up from 31% for the year ended 2022, but down slightly from 34% for 2021. The increase from the prior year is primarily attributable to increased premiums, and lower policyy obl gigations as a percent fof premium, during the year compared with the same period a year ago. The decrease in 2022 from 2021 is due primarily to higher acquisition costs. rr Net sales rose 22% in 2023 over the same period in 2022. With the division's ability to return to face-to-face customer interaction and the option of virtual sales, the Company continues to project total life net sales to increase in 2024 as compared to the prior year. 29 GL 2023 FORM 10-K GLOBE LIFE INC. Management's Discussion & Analysis Below is the average producing agent count at the end of the indicated periods for Liberty National Division. Liberty National .......................................................... 3,229 2,775 2,716 454 2023 2022 2021 2023 Change % 16 2022 Change 59 % 2 The Liberty National Division average producing agent count increased significantly compared with the prior year. We continue to execute our long-term plan to grow this agency through expansion from small-town markets in the Southeast to more densely populated areas with larger pools of potential agent recruits and customers. Continued expansion of this agency’s presence into more heavily populated, less-penetrated areas will help create long-term agency growth. In addition to the aforementioned geographic expansion, we have also started a campaign of market expansion to increase our agency presence in cities where we currently have offices, but not enough to properly serve the community, region, area and city. These tend to be larger geographic cities which will help create long-term sustainable agency growth. Additionally, the agency continues to help improve the ability of agents to develop new worksite marketing business. Systems that have been put in place, including the addition of a CRM platform and enhanced analytical capabilities, have helped the agents develop additional worksite marketing life market. As the division opportunities as well as improve the productivity of agents selling in the individual continues to gain momentum in its sales and recruiting initiatives, as well as advances its technology and CRM platform, the agency anticipates continued growth in recruiting activity and average producing agent count. The OOther Aggencies distribution channels primari yly include non-exclusive independent gagencies sellingg primari yly flife insurance. The other distribution channels contributed $$207 million off l fife premium income, or 7%% off GGlobe Liffe's total l fife premium income in 2023, and contri utb ed 2% of net sales forff the year. HEALTH INSURANCE Health insurance sold by the Company primarily includes Medicare Supplement insurance, accident coverage, and other limited-benefit supplemental health products including accident, cancer, critical illness, heart, and intensive care products. iting margin accounted for Health premium accounted for 30% of our total premium in 2023, while the health underwr 24% of total underwr iting margin increased slightly to $378 million compared to $377 million in the prior year. The Company continues to emphasize life insurance sales relative to health due to life’s superior long-term profitability and its greater contribution to excess investment income. iting margin. Health underwr rr rr rr The folff lowing table presents underwr rr iting margin data forff health insurance. Health Insurance Summary of Results (Dollar amounts in thousands) Premium ............................................................ $ 1,318,773 100 $ 1,282,417 100 $ 1,200,882 100 2023 2022 2021 Amount % of Premium Amount % of Premium Amount % of Premium Policy obligations ............................................. Required interest on reserverr s........................ 776,362 (106,516) Net policy obligations ................................... 669,846 Commissions, premium taxes, and non- deferred acquisition expenses ....................... Amortization of acquisition costs ................... 220,392 50,598 Total expense................................................. 940,836 Insurance underwriting margin ................ $ 377,937 59 (8) 51 16 4 71 29 752,866 (102,315) 650,551 206,544 48,185 905,280 $ 377,137 59 (8) 51 16 4 71 29 721,309 (98,477) 622,832 180,748 44,824 848,404 $ 352,478 60 (8) 52 15 4 71 29 30 GL 2023 FORM 10-K GLOBE LIFE INC. Management's Discussion & Analysis Health premium increased 3% in 2023 to $1.32 billion when compared to 2022. In 2022, health premium rose 7% to $1.28 billion when compared to 2021. Health underwr iting margin increased slightly from $377 million in 2022 to $378 million in 2023 and increased 7% from $352 million in 2021 to $377 million in 2022 primarily due to growth in premiums. rr The table below summarizes health underwr rr iting margin by distribution channel for the last three years. Health Insurance Underwriting Margin by Distribution Channel (Dollar amounts in thousands) 2023 2022 2021 Amount % of Premium Amount % of Premium Amount % of Premium United American .............................................. $ 57,344 11 $ 62,695 12 $ 54,171 Family Heritage................................................ Liberty National................................................ American Income ............................................ Direct to Consumer......................................... 135,691 105,317 74,668 4,917 34 56 62 7 124,936 107,662 74,551 7,293 34 57 64 10 107,156 107,612 73,894 9,645 Total .............................................................. $ 377,937 29 $ 377,137 29 $ 352,478 11 31 57 64 13 29 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 for each of the last three years. Health Insurance Premium by Distribution Channel (Dollar amounts in thousands) 2023 2022 2021 United American....................................................... $ 545,723 Family Heritage ........................................................ Liberty National ........................................................ American Income ..................................................... 396,209 187,934 120,332 Direct to Consumer.................................................. 68,575 Total ....................................................................... $ 1,318,773 Amount % of Total Amount $ 539,874 366,820 187,241 117,353 71,129 % of Total 42 29 15 9 5 Amount $ 480,656 343,839 187,669 114,742 73,976 % of Total 40 29 16 9 6 42 30 14 9 5 100 $ 1,282,417 100 $ 1,200,882 100 Premium related to limited-benefit supplemental health products comprise $743 million, or 56%, of the total health premiums for 2023 compared with $702 million, or 55%, in 2022 and $639 million, or 53%, in 2021. Premium from Medicare Supplement products comprises the remaining $576 million, or 44%, forff 2023 compared with $580 million, or 45%, in 2022 and $562 million, or 47%, in 2021. Annualized health premium in forff ce was $1.39 billion at December 31, 2023, an increase of 4% from $1.33 billion in 2022. 31 GL 2023 FORM 10-K GLOBE LIFE INC. Management's Discussion & Analysis Presented below is a table of health net sales by distribution channel for the last three years. Health Insurance Net Sales by Distribution Channel (Dollar amounts in thousands) 2023 2022 2021 United American........................................................................ $ Family Heritage......................................................................... Liberty National ......................................................................... American Income...................................................................... 72,208 96,093 33,155 18,124 Direct to Consumer .................................................................. 3,993 Total ....................................................................................... $ 223,573 Amount % of Total Amount $ 58,601 82,529 28,916 17,555 3,825 % of Total 31 43 15 9 2 Amount $ 63,551 72,600 26,512 18,230 3,465 % of Total 35 39 14 10 2 32 43 15 8 2 100 $ 191,426 100 $ 184,358 100 Health net sales related to supplemental health products comprise $161 million, or 72%, of the total health new sales forff 2023 compared with $137 million, or 71%, in 2022. Medicare Supplement sales make up the remaining $63 million, or 28%, forff 2023 compared with $54 million, or 29%, in 2022. The folff lowing table discloses first-year collected health premium by distribution channel. Health Insurance First-Year Collected Premium by Distribution Channel (Dollar amounts in thousands) 2023 2022 2021 United American ........................................................................ $ Family Heritage.......................................................................... Liberty National.......................................................................... American Income ...................................................................... 66,002 72,362 25,608 17,633 Direct to Consumer ................................................................... 3,683 Total ........................................................................................ $ 185,288 Amount % of Total Amount $ 64,410 60,699 22,415 17,294 3,115 % of Total 39 36 13 10 2 Amount $ 60,386 57,427 20,348 18,939 3,253 % of Total 37 36 13 12 2 36 39 14 9 2 100 $ 167,933 100 $ 160,353 100 First-year collected premium related to limited-benefit plans comprise $133 million, or 72% of collected premium forff Medicare Supplement policies make up the remaining $52 million, or 28%, forff 36%, in 2022. first-year 2023 compared with $108 million, or 64%, in 2022. First-year collected premium from 2023 compared with $60 million, or total A discussion of health operations by distribution channel follows. The United American Division consists of non-exclusive independent agencies who may also sell forff other companies. The United American Division was Globe Life's largest health agency in terms of health premium income, with sales up 23% from the same period in the prior year. This division includes three diffeff rent units: • UA General Agency, which primarily sells individual Medicare Supplement insurance through independent agents; • Special Markets, which markets retiree health insurance to employer and union groups through brokers; and • Globe Life Benefits, which offers group worksite supplemental health insurance through brokers. 32 GL 2023 FORM 10-K GLOBE LIFE INC. Management's Discussion & Analysis The majority of the premium revenue comes from Medicare Supplement and Retiree Health business. Underwr margin as a percent of premium forff the division was 11% in 2023, 12% in 2022, and 11% in 2021. rr iting The Family Heritage Division primarily markets limited-benefit supplemental health insurance in non-urban areas. Most of its policies include a cash-back feature, such as a return of premium, where any excess of premiums over claims paid is returned to the policyholder at the end of a specified period stated within the insurance policy. Underwr iting margin as a percent of premium was 34% in 2023, the same as in 2022, and 31% in 2021. rr The division experienced a 16% rise in health net sales in 2023 as compared with the 2022, primarily due to an increase in recruiting, as well as improved agent productivity and training. 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 at the end of the indicated periods for the Family Heritage Division. The average producing agent count was up 10% compared with the same period a year ago, driven by an increase in recruiting during 2023. Average producing agents ....................................... 1,334 1,210 1,213 124 2023 2022 2021 2023 Change % 10 2022 Change % (3) — The Liberty National Division represented 14% of all Globe Life health premium income at $188 million in 2023. The Liberty National Division markets limited-benefit supplemental health products, consisting primarily of cancer and critical illness insurance. Much of Liberty National’s health business is generated through worksite marketing targeting small businesses. In 2023, health premium income was flat. Liberty National's first-year collected premium 2023 increased by $4 increased 14% to $26 million in 2023 compared with $22 million in 2022. Health net sales forff million or 15% from 2022. The Company's other distribution channels, while primarily focused on selling life insurance, also market health products. The American Income Life Division primarily markets accident plans. The Direct to Consumer Division primarily markets Medicare Supplements to employer or union-sponsored groups. On a combined basis, these other channels accounted for 14% of health premium in 2023 and 2022. ANNUITIES Our fixed annuity balances at the end of 2023 and 2022 were $773.0 million and $954.3 million, respectively. Underwr iting margin was $8.5 million forff 2022, and $9.8 million forff 2023, $10.5 million forff 2021. rr We do not currently market stand-alone fixed or deferred annuity products, favoring instead protection-oriented life and supplemental health insurance products. Thereforff e, we do not expect that annuities will be a significant portion of our business or marketing strategy going forward. 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 perforr s Segmentstt . It is defined as net investment income less the required interest attributable to policy liabilities. rmance of the investment segment as described in Note 15—Busines ii Management also views excess investment income per diluted common share as an important and useful measure to evaluate the perforr rmance 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 income per diluted common share the Company. As excess investment consolidated earnings per share of 33 GL 2023 FORM 10-K GLOBE LIFE INC. Management's Discussion & Analysis incorporates all invested assets and insurance liabilities, we view excess investment income per diluted common share as a useful measure to evaluate the investment segment. Excess Investmett income, and excess investment income per diluted common share. nt Income. The folff lowing table summarizes Globe Life's investment income, excess investment Analysis of Excess Investment Income (Dollar amounts in thousands except per share data) Net investment income .................................................................................................. $ Interest on policy liabilities(1) ...................................................................................... 1,056,884 $ 991,800 $ 956,690 (926,502) (887,211) (859,716) Excess investment income .................................................................................. $ 130,382 $ 104,589 $ 96,974 2023 2022 2021 Excess investment income per diluted common share ............................... $ 1.35 $ 1.06 $ 0.94 Mean invested assets (at amortized cost).................................................................. $ 20,411,093 $ 19,714,027 $ 18,939,317 Average insurance policy liabilities .............................................................................. 16,772,861 16,060,240 15,412,514 (1) Interest on policy liabilities is a component of total policyholder benefits, a GAAP measure. The amounts presented for 2021 and 2022 have been retrospectively adjusted to exclude the interest on deferred acquisition costs due to the LDTI standard and the interest on debt. Excess investment income increased $26 million, or 25%, in 2023 when compared with 2022. In 2022, excess investment income increased $8 million, or 8%, when compared with 2021. Excess investment income per diluted common share was $1.35 during 2023, an increase of 27% over the prior-year period ended 2022. Excess investment income per diluted common share was $1.06 during 2022, an increase of 13% over the period ended 2021. Excess investment income per diluted common share generally increases at a faster pace than excess investment income because the number of diluted shares outstanding generally decreases from year to year as a result of our share repurchase program. Net investment income increased at a compound annual growth rate of 4% over the three years ending 2023 and mean invested assets increased at a compound annual growth rate of 4% during the same period. The effective annual yield rate earned on the fixed maturity portfolff io was 5.20% in 2023. Generally, investment income grows at a slower rate than the assets when the yield on new investments is lower than the yield on dispositions or the average portfolio yield. It also increases at a faster rate than the assets when new investment yields exceed the yield on dispositions or the average portfolio yield. Investment income grew in the current period due to the growth in invested assets and the increase in interest rates compared to the prior year. We currently expect that the average annual turnover rate of fixed maturity assets will be less than 1% per annum over the next five years and will not have a material impact on net investment income. In addition to fixed maturities, the Company has also invested in commercial mortgage loans and limited partnerships with debt-like characteristics that diversify r isk and enhance risk-adjusted, capital-adjusted returns on the portfolff io. The earned yield on the investment funds for the year ended December 31, 2023 was 6.95%. See additional information in Note 4—Investmett ntstt . The following chart presents the growth in net investment income and the growth in mean invested assets. ff Growth in net investment income ....................................................................... Growth in mean invested assets (at amortized cost) ...................................... 6.6 % 3.5 % 3.7 % 4.1 % 3.2 % 5.3 % 2023 2022 2021 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 forff sale debt securities included in accumulated other comprehensive income (loss) as of December 31, 2023, 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 considered by management necessary to “fund” required interest on insurance policy liabilities. 34 GL 2023 FORM 10-K GLOBE LIFE INC. Management's Discussion & Analysis As such, it is reclassified from the insurance segment to the investment segment. As discussed in Note 15— Busines s Segments,tt management regards this as a more meaningful analysis of the investment and insurance ii segments. Required interest is based on the original discount rate assumptions for our insurance policies in forff ce. The great majoa rity of our life and health insurance policies are fixed interest rate protection policies, not investment products, and are accounted for under current GAAPAA long-duration insurance products which mandate 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 forff is updated in insurance policies issued that year. The liability reported on the balance sheet subsequent periods using current discount rates as of the end of the relevant reporting period with a corresponding adjustment to Other Comprehensive Income. The rates are based on the methodology prescribed in ASU 2018-12. See Note 1—Signi ies for additional information. accounting guidance forff fii cant Accountintt g Policll all i The discount rate used for policies issued in the current year has no impact on the in-forff ce policies issued in prior years as the rates of all prior issue years are also locked in forff 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-forff ce business. Information about interest on policy liabilities is shown in the following table. Required Interest on Insurance Policy Liabilities (Dollar amounts in thousands) 2023 Life and Health......................................................................................................... $ Annuity ...................................................................................................................... FHLB Funding Agreement...................................................................................... Deposit Funds .......................................................................................................... Required Interest Average Net Insurance Policy Liabilities Average Discount Rate(1) 879,217 $ 15,739,423 5.6 % 38,224 4,536 4,525 861,676 79,036 92,726 Total............................................................................................................................ $ Increase in 2023...................................................................................................... 926,502 $ 16,772,861 4.4 % 4.4 % 2022 Life and Health......................................................................................................... $ Annuity ...................................................................................................................... FHLB Funding Agreement...................................................................................... Deposit Funds .......................................................................................................... 838,003 $ 14,957,728 5.6 % 44,836 71 4,301 1,007,008 2,692 92,812 Total............................................................................................................................ $ Increase in 2022...................................................................................................... 887,211 $ 16,060,240 3.2 % 4.2 % 2021 Life and Health......................................................................................................... $ Annuity ...................................................................................................................... Deposit Funds .......................................................................................................... 808,778 $ 14,268,916 5.7 % 46,695 4,243 1,052,171 91,427 Total............................................................................................................................ $ 859,716 $ 15,412,514 (1) Reflects the average discount rate applicable to the current period, which is used to accrue interest on the insurance policy liabilities forf of the years presented. each Realizll ed Gains and Losses. Our life and health insurance companies collect premium income from policyholders for the eventual payment of policyholder benefits, sometimes paid many years or even decades in the future. Since benefits are expected to be paid in future periods, premium receipts in excess of current expenses are invested to 35 GL 2023 FORM 10-K 4.4 5.7 4.9 5.5 4.5 2.6 4.6 5.5 4.4 4.6 5.6 GLOBE LIFE INC. Management's Discussion & Analysis provide forff insurance operations. This portfolff provide forff generally held forff account when setting insurance premium rates and product profitability expectations. these obligations. For this reason, we hold a significant investment portfolio as a part of our core io consists primarily of high-quality fixed maturities containing an adequate yield to the cost of carrying these long-term insurance product obligations. As a result, fixed maturities are long periods to support these obligations. Expected yields on these investments are taken into Despite our intent to hold fixed maturity investments forff 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 r, bondholders may consent to exchange their existing bonds for another class of debt securities. The Company offeff also has investments in certain limited partnerships, held under the fair value option, with fair value changes recognized in Realizll ed gainsii (losses) in the Consolidll ated Stattt ements ott f OperO atrr iott ns. 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 effeff cts of realized gains and losses when evaluating overall insurance operating results. lowing table summarizes our tax-effeff cted realized gains (losses) by component for each of the three years The folff ended December 31, 2023. Analysis of Realized Gains (Losses), Net of Tax (Dollar amounts in thousands, except for per share data) Year Ended December 31, 2023 2022 2021 Amount Per Share Amount Per Share Amount Per Share Fixed maturities: Sales ........................................................................................ $ (59,463) $ (0.62) $ (44,792) $ (0.45) $ (8,100) $ (0.08) Matured or other redemptions(1) .......................................... (1,604) 19,076 35,684 (0.02) 0.34 0.19 Provision forff credit losses..................................................... (5,621) (0.06) 306 Fair value option—change in fair value.................................. 11,931 0.12 (23,189) Mortgages ................................................................................... (4,427) (0.04) Other investments...................................................................... 1,415 0.02 (761) 3,699 — (0.23) (0.01) 0.04 2,337 18,105 1,413 (106) 0.02 0.18 0.02 — Total realized investment gains (losses)— investments ........................................................................ Loss on redemption of debt...................................................... Other gains (losses)(2) ............................................................... (57,769) (0.60) (45,661) (0.46) 49,333 0.48 — — — — (7,358) (0.07) 5,885 0.06 (14,812) (0.15) 4,887 Total realized gains (losses) ........................................ $ (51,884) $ (0.54) $ (60,473) $ (0.61) $ 46,862 $ ( ( ) ) ) ( ( ) 0.04 0.45 (1) During the three years ended December 31, 2023, 2022, and 2021, the Company recorded $50.9 million, $147.6 million, and $109.2 million, respectively, of exchanges of fixed maturity securities (noncash transactions) that resulted in $(1.5) million, $1.5 million, and $19.9 million, respectively, in realized gains (losses), net of tax. (2) Other realized gains (losses) are primarily a result of changes in the fair value for assets held in rabbi trust. In 2023, it was announced Signature Bank New York and First Republic Bank had entered receivership. The Company disposed of each of the holdings and incurred a $52 million after-tax realized loss during the year ended December 31, 2023. As investment yields increased throughout 2022 and 2023, the Company disposed of certain fixed maturity investments to improve the risk-adjusted, capital-adjusted returns on the portfolio and enhance the yield, credit quality, or diversification of the portfolio. nt Acquisiii Investmett tions. Globe Life's investment policy calls for investing primarily in investment grade fixed maturities that meet our quality and yield objectives. We generally invest in securities with longer-term maturities because they more closely match the long-term nature of our life and health policy liabilities. We believe this 36 GL 2023 FORM 10-K GLOBE LIFE INC. Management's Discussion & Analysis 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 folff lowing 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) Cost of acquisitions: Investment-grade corporate securities ............................................................... $ Investment-grade municipal securities ............................................................... Other investment-grade securities....................................................................... — Total fixed maturity acquisitions(1) ............................................................... $ 1,540,242 Year Ended December 31, 2023 2022 2021 967,588 $ 812,697 $ 566,400 572,654 599,946 7,577 434,482 10,465 $ 1,420,220 $ 1,011,347 Effeff ctive annual yield (one year compounded)(2) ................................................. Average life (in years, to next call) ......................................................................... Average life (in years, to maturity).......................................................................... Average rating............................................................................................................ 6.13% 18.0 24.8 A 5.18% 13.5 22.8 A 3.39% 21.7 31.7 A+ (1) Fixed maturity acquisitions included unsettled trades of $4 million in 2023, $0 in 2022 and $7 million in 2021. (2) TaxTT -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 2023 and 2022, acquisitions consisted primarily of corporate and municipal bonds with securities spanning a diversified range of issuers, industry sectors, and geographical regions. For the year ended December 31, 2023, we invested primarily in the municipal, financial, and industrial sectors. For the entire portfolio, the taxable equivalent effeff ctive yield earned was 5.20%, up approximately 3 basis points from the yield in 2022. Further, as previously noted in the discussion of net investment income, the increase in taxable equivalent effeff ctive yield was primarily due to new purchase yields exceeding the yield on dispositions and the average portfolio yield. In addition to the fixed maturity acquisitions, Globe Life invested $159 million and $77 million in commercial mortgage loans and $156 million and $213 million in other long-term investments in 2023 and 2022, respectively. Other long-term investments primarily consist of investment funds. See Note—4 Investmett for further discussion. ntstt New cash flow available for investment has been primarily provided through our insurance operations, cash received on existing investments, and proceeds from dispositions. Dispositions of fixed maturities were $853 million in 2023 and $852 million in 2022. Since fixed maturities represent such a significant portion of our investment portfolio, the discussion of portfolio composition will focus on fixed maturities. See a breakdown of the Company's Other long- term investments in Note 4—Investmett the remainder of ntstt . 37 GL 2023 FORM 10-K GLOBE LIFE INC. Management's Discussion & Analysis Selected information concerning the fixed maturity portfolff io is as follows: Fixed Maturity Portfolio Selected Information Average annual effeff ctive yield(1) ........................................................................................................ Average life, in years, to: Next call(2) ....................................................................................................................................... Maturity(2) ........................................................................................................................................ Effeff ctive duration to: Next call(2,3) ..................................................................................................................................... Maturity(2,3) ...................................................................................................................................... At December 31, 2023 5.23% 14.6 18.6 9.0 10.7 2022 5.19% 14.7 18.5 8.8 10.4 (1) TaxTT -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 forff (b) based on the maturity date of all bonds, whether callable or not. callable bonds and the maturity date forf noncallable bonds, and (3) Effective duration is a measure of the price sensitivity of a fixed-income security to a 1% change in interest rates. 38 GL 2023 FORM 10-K GLOBE LIFE INC. Management's Discussion & Analysis itdd Riskii Credrr security types held in our fixed maturity portfolio at December 31, 2023 and 2022. itvv yt .yy The folff Sensitivtt lowing tables summarize certain inforff mation about the major corporate sectors and Fixed Maturities by Sector December 31, 2023 (Dollar amounts in thousands) Below Investment Grade Total Fixed Maturities % of Total Fixed Maturities Amortized Cost, net Gross Unrealized Gains Gross Unrealized Losses Fair Value Amortized Cost, net Gross Unrealized Gains Gross Unrealized Losses Fair Value At Amortized Cost, net At Fair Value Corporates: Financial Insurance - life, health, P&C.................................. $ 107,010 $ — $ (12,472) $ 94,538 $ 2,413,685 $ 61,715 $ (163,455) $ 2,311,945 Banks............................... Other financial ................ 36,906 74,965 Total financial.............. 218,881 Industrial Energy ............................. 44,652 Basic materials............... Consumer, non-cyclical. Other industrials............. Communications ............ Transportation ................ Consumer. cyclical......... Technology...................... Total industrial............. Utilities — — 5,185 — 8,403 136,343 32,543 227,126 34,698 — — — — — — 110 — — — 625 735 722 (4,401) 32,505 1,327,272 (25,255) 49,710 1,287,194 25,019 25,634 (71,714) 1,280,577 (153,171) 1,159,657 (42,128) 176,753 5,028,151 112,368 (388,340) 4,752,179 (7,481) 37,171 1,446,480 — — 1,166,385 2,096,651 5,295 1,101,059 — — — — (415) 7,988 (25,059) 111,284 — 33,168 868,131 534,468 515,169 280,668 58,637 39,248 32,071 32,541 21,006 21,113 4,941 3,521 (62,324) 1,442,793 (64,501) 1,141,132 (160,828) 1,967,894 (78,817) 1,054,783 (73,323) 815,814 (24,649) 530,932 (57,735) 462,375 (44,670) 239,519 (32,955) 194,906 8,009,011 213,078 (566,847) 7,655,242 (1,523) 33,897 2,017,967 73,925 (94,130) 1,997,762 Total corporates .......... 480,705 1,457 (76,606) 405,556 15,055,129 399,371 (1,049,317) 14,405,183 States, municipalities, and political divisions: General obligations .......... Revenues........................... Total states, municipalities, and political divisions............... Other fixed maturities: Government (U.S. and foreign) ............................... Collateralized debt obligations ......................... Other asset-backed securities............................ — — — — — — — — 37,110 5,036 — — — — — 887,013 8,526 (135,003) 760,536 2,409,292 38,820 (268,326) 2,179,786 3,296,305 47,346 (403,329) 2,940,322 17 16 442,903 8 (42,654) 400,257 42,146 37,110 5,036 — 42,146 Total fixed maturities . $ 529,511 $ 6,493 $ ( (77,015) $ 458,989 ) $ 18,917,799 $ 451,764 $(1,499,357) $17,870,206 ) ( 11,696 — (409) 11,287 86,352 3 (4,057) 82,298 13 7 7 27 8 6 11 6 4 3 3 1 42 11 80 4 13 13 7 7 27 8 6 11 6 5 3 3 1 43 11 81 4 12 2 — 1 2 — 1 100 100 — — — — — 39 GL 2023 FORM 10-K GLOBE LIFE INC. Management's Discussion & Analysis Fixed Maturities by Sector December 31, 2022 (Dollar amounts in thousands) Below Investment Grade Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Amortized Cost Total Fixed Maturities Gross Unrealized Gains Gross Unrealized Losses Fair Value % of Total Fixed Maturities At Amortized Cost, net At Fair Value Corporates: Financial Insurance - life, health, P&C ................................... $ 107,355 $ 22 $ (13,966) $ 93,411 $ 2,375,633 $ 44,578 $ (216,938) $ 2,203,273 Banks................................. Other financial.................. 26,944 74,963 84 1 (192) 26,836 1,336,868 14,035 (100,038) 1,250,865 (22,026) 52,938 1,195,293 4,513 (187,513) 1,012,293 Total financial................ 209,262 107 (36,184) 173,185 4,907,794 63,126 (504,489) 4,466,431 Industrial Energy ............................... 44,723 Basic materials................. Consumer, non-cyclical.. Other industrials Communications.............. Transportation .................. — — 25,461 28,499 — Consumer. cyclical .......... 149,465 Technology ....................... Total industrial............... Utilities — 248,148 35,496 Total corporates ............ 492,906 States, municipalities, and political divisions: General obligations ............ Revenues............................. Total states, municipalities, and political divisions.......... Other fixed maturities: Government (U.S., municipal, and foreign)...... Collateralized debt obligations ........................... Other asset-backed securities ............................. — — — — — — — — — — — — — 433 540 — — — — (10,168) 34,555 1,436,598 22,637 (101,923) 1,357,312 — — — — 1,090,309 2,146,003 14,913 (95,958) 1,009,264 20,427 (232,196) 1,934,234 (522) 24,939 1,212,674 19,107 (121,540) 1,110,241 (2,253) 26,246 — — (27,822) 121,643 — — 857,375 520,029 592,657 247,996 7,779 (110,132) 755,022 11,684 (34,269) 497,444 4,903 (85,005) 512,555 90 (59,672) 188,414 (40,765) 207,383 8,103,641 101,540 (840,695) 7,364,486 (3,173) 32,756 1,924,190 36,670 (125,713) 1,835,147 (80,122) 413,324 14,935,625 201,336 (1,470,897) 13,666,064 — — — — — — — — 915,725 5,041 (167,393) 753,373 1,875,305 19,287 (338,054) 1,556,538 2,791,030 24,328 (505,447) 2,309,911 15 14 449,603 33 (51,674) 397,962 37,098 13,266 — 50,364 37,098 13,266 — 50,364 12,493 — (1,618) 10,875 88,336 4 (9,276) 79,064 Total fixed maturities ... $ 542,497 $ 13,806 $ ( (81,740) $474,563 ) $ 18,301,692 $ 238,967 $(2,037,294) $16,503,365 ) ( 13 7 7 27 8 6 12 6 5 3 3 1 44 11 82 5 10 13 8 6 27 8 6 12 7 5 3 3 1 45 11 83 5 9 2 — 1 2 — 1 100 100 40 GL 2023 FORM 10-K 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 portfolff io as of December 31, 2023, representing 80% of amortized cost, net, and 81% of fair value. The remainder of io is invested primarily in securities issued by the U.S. government and U.S. the portfolff municipalities. The Company holds insignificant amounts in forff eign government bonds, collateralized debt obligations, asset-backed securities, and mortgage-backed securities. Corporate securities are diversified over a variety of industry sectors and issuers. At December 31, 2023, the total fixed maturity portfolio consisted of 980 issuers. Fixed maturities had a fair value of $17.9 billion at December 31, 2023, compared with $16.5 billion at December io decreased from $1.8 billion at December 31, 31, 2022. The net unrealized loss position in the fixed-maturity portfolff 2022 to $1.0 billion at December 31, 2023 due to a decrease in market rates during the period. For more inforff mation about our fixed maturity portfolio by component at December 31, 2023 and December 31, credit losses, an analysis of unrealized investment losses and a 2022, including a discussion of allowance forff schedule of maturities, see Note 4—Investmett ntstt . ff An analysis of the fixed maturity portfolio by composite quality rating at December 31, 2023 and December 31, 2022, is shown in the following tables. The composite rating for each security, other than private-placement securities managed by third parties, is the average of the security’s available ratings as assigned by Moody’s Investor Service, Standard & Poor’s, Fitch Ratings, and Dominion Bond Rating Service, LTD. The ratings assigned by these four nationally recognized statistical rating organizations are evenly weighted when calculating the average. The composite quality rating is created utilizing a methodology developed by Globe Life using ratings from the various rating agencies noted above. The composite quality rating is not a Standard & Poor's credit rating. Standard & Poor's does not sponsor, endorse, or promote the composite quality rating and shall not be liable forff any lowing chart are private placement fixed maturity holdings of use of the composite quality rating. Included in the folff $439 million at amortized cost, net of allowance forff credit losses ($402 million at fair value) for which the ratings were assigned by the third-party managers. Fixed Maturities by Rating At December 31, 2023 (Dollar amounts in thousands) Amortized Cost, net % of Total Fair Value % of Total Average Composite Quality Rating on Amortized Cost, net Investment grade: AAA................................................................. $ AA ................................................................... A ...................................................................... BBB+ .............................................................. BBB................................................................. BBB-................................................................ 952,822 3,179,618 5,118,085 3,615,102 4,278,786 1,243,875 Total investment grade .......................... 18,388,288 Below investment grade: BB ................................................................... B ...................................................................... Below B .......................................................... Total below investment grade .............. 450,503 37,896 41,112 529,511 5 $ 880,729 17 27 19 23 6 97 3 — — 3 2,789,626 4,976,280 3,495,898 4,056,833 1,211,851 17,411,217 376,912 35,929 46,148 458,989 5 15 28 19 23 7 97 3 — — 3 $ 18,917,799 100 $ 17,870,206 100 Weighted average composite quality rating ...................................................................................... A- BB A- 41 GL 2023 FORM 10-K GLOBE LIFE INC. Management's Discussion & Analysis Fixed Maturities by Rating At December 31, 2022 (Dollar amounts in thousands) Amortized Cost, net % of Total Fair Value % of Total Average Composite Quality Rating on Amortized Cost Investment grade: AAA................................................................. $ AA ................................................................... A ...................................................................... BBB+ .............................................................. BBB................................................................. BBB-................................................................ 828,315 2,779,587 4,752,633 3,934,053 4,254,730 1,209,877 Total investment grade .......................... 17,759,195 Below investment grade: BB ................................................................... B ...................................................................... Below B .......................................................... Total below investment grade .............. 462,356 43,044 37,097 542,497 5 $ 733,524 15 26 21 23 7 97 3 — — 3 2,260,257 4,438,913 3,639,118 3,844,182 1,112,808 16,028,802 389,132 35,067 50,364 474,563 4 14 27 22 23 7 97 3 — — 3 $ 18,301,692 100 $ 16,503,365 100 Weighted average composite quality rating ...................................................................................... A- BB- A- The overall quality rating of the portfolio is A-, the same as of year-end 2022. Fixed maturities rated BBB are 48% of the total portfolio at December 31, 2023, down from 51% at December 31, 2022. While this ratio is high relative to our peers, it is at its lowest level in over 10 years 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-ff balance sheet investments as of December 31, 2023. 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. An analysis of changes in our portfolio of below-investment grade fixed maturities at amortized cost, net of allowance forff credit losses is as folff lows: Below-Investment Grade Fixed Maturities (Dollar amounts in thousands) Balance at beginning of period ....................................................................................................... $ Downgrades by rating agencies........................................................................................................ Upgrades by rating agencies............................................................................................................. Dispositions .......................................................................................................................................... Provision forf credit losses .................................................................................................................. Amortization and other........................................................................................................................ Year Ended December 31, 2023 2022 542,497 $ 117,731 (32,540) (95,060) (6,811) 3,694 701,546 50,147 (97,462) (116,791) (31) 5,088 Balance at end of period ................................................................................................................... $ 529,511 $ 542,497 Our investment policy calls for investing primarily in fixed maturities that are investment grade and meet our quality and yield objectives. Thus, any increases in below-investment grade issues are typically a result of ratings 42 GL 2023 FORM 10-K GLOBE LIFE INC. Management's Discussion & Analysis credit downgrades of existing holdings. Below-investment grade bonds at amortized cost, net of allowance forff losses, were 7% of our shareholders’ equity excluding accumulated other comprehensive income as of December 31, 2023. Globe Life invests long term and as such, one of our key criterion in our investment process is to select issuers that have the ability to weather multiple financial cycles. OPERATING EXPENSES Operating expenses are included in the "Corporate and Other" segment and are classified into two categories: insurance administrative expenses and expenses of the Parent Company. Insurance administrative expenses generally include expenses incurred afteff 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 underwr r a policy has been issued. As these expenses relate to premium forff iting margin. rr The folff lowing table is an analysis of operating expenses for the three years ended December 31, 2023. Operating Expenses Selected Information (Dollar amounts in thousands) 2023 % of 2022 % of 2021 % of Premium Amount Insurance administrative expenses: Salaries ............................................................................ $ 119,699 Other employee costs.................................................... 35,905 Information technology costs........................................ Legal costs ...................................................................... Other administrative costs ............................................ 64,998 15,335 65,224 Total insurance administrative expenses.................. 301,161 Premium Amount Premium Amount 2.7 0.8 1.5 0.3 1.5 6.8 $ 129,711 42,319 55,526 12,056 59,729 299,341 3.0 1.0 1.3 0.2 1.4 6.9 $ 115,852 41,841 47,923 15,494 50,521 271,631 Parent company expense ................................................ Stock compensation expense ......................................... Legal proceedings............................................................. Non-operating expenses.................................................. 10,866 30,736 900 4,170 Total operating expenses, per Consolidll atdd ed Stattt ements of Operatrr iott ns ....................................... $ 347,833 11,156 35,650 2,496 5,311 9,553 30,272 8,139 2,434 $ 353,954 $ 322,029 2023 2022 2021 Amount % Amount % Amount % Total insurance administrative expenses increase (decrease) over prior year................................................ $ Total operating expenses increase (decrease) over prior year............................................................................. 1,820 0.6 $ 27,710 10.2 $ 20,684 (6,121) (1.7) 31,925 9.9 20,991 Total operating expenses for December 31, 2023 decreased in comparison with the prior year primarily due to decreases in stock compensation expense and other non-operating costs. Insurance administrative expenses increased $1.8 million primarily due to higher information technology costs, information security costs, and other administrative costs offsff et by a decline in pension-related employee benefit costs. Insurance administrative expenses as a percent of premium were 6.8% for the year ended December 31, 2023 compared to 6.9% for the same period in 2022. 43 GL 2023 FORM 10-K 2.8 1.0 1.2 0.4 1.2 6.6 8.2 7.0 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 by management quarterly, and continues indefinitely unless and until the Board terminate or modify the program. With no specified authorization amount, of Directors decides to suspend, management determines the amount of repurchases based on the amount of the excess cash flows after the payment of dividends to the Parent Company shareholders, general market conditions, and other alternative uses. Since implementing our share repurchase program in 1986, we have used $9.4 billion of excess cash flow at the Parent Company to repurchase Globe Life Inc. common shares afteff r determining that the repurchases provide a greater risk-adjusted after-tax return than other investment alternatives. 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. The majority of our share r the payment of shareholder dividends. Additionally, when stock repurchases are made from excess cash flow afteff options are exercised, proceeds from these exercises and the resulting tax benefit are used to repurchase additional shares on the open market to minimize dilution as a result of the option exercises. The folff lowing table summarizes share repurchases for each of the last three years. Analysis of Share Purchases (Amounts in thousands) Purchases with: Shares Amount Shares Amount Shares Amount Excess cash flow at the Parent Company(1) .... 3,369 $ 380,103 3,322 $ 335,145 4,784 $ 455,030 Option exercise proceeds................................... 1,080 127,155 1,103 119,493 858 86,405 Total ..................................................................... 4,449 $ 507,258 4,425 $ 454,638 5,642 $ 541,435 2023 2022 2021 (1) Excludes excise tax on the repurchase of treasury stock of $4 million in 2023, $0 in 2022, and $0 in 2021. Throughout the remainder of this discussion, share repurchases will only refer to those made from excess cash flow at the Parent Company. FINANCIAL CONDITION Liquidity.yy 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, a revolving credit facility, commercial paper, and the Federal Home Loan Bank. Insurance Subsidiadd ry 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 the excess cash inflows in the current year will provide forff 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. Excess cash available from the insurance subsidiaries’ operations is generally distributed as a dividend to the Parent Company, subject to regulatory restrictions. The dividends are generally paid in amounts equal to the subsidiaries’ prior year statutory net income excluding realized capital gains. While the leading source of the excess cash is investment income, a significant portion of the excess cash also comes from underwr iting margins and effeff ctive expense control. While the insurance subsidiaries annually generate more operating cash inflows than cash outflows, the companies -sale fixed maturity investment portfolio available to create additional cash flows if also have the entire available-forff required. iting income due to our high underwr rr rr 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 44 GL 2023 FORM 10-K GLOBE LIFE INC. Management's Discussion & Analysis source of liquidity, the FHLB could provide the insurance subsidiaries with an additional source of liquidity, if needed. Refer to Note 12—Debt for further details. Parent Company Liquidity.yy An important source of Parent Company liquidity is the dividends from its insurance subsidiaries. These dividends are received throughout the year and are used by the Parent Company to pay dividends on common and preferred stock, interest and principal repayment requirements on Parent Company debt, and operating expenses of the Parent Company. Year Ended December 31, (Amounts in Thousands) Projected 2024 2023 2022 2021 Liquidity Sources: Dividends from Subsidiaries............................................................. $ 466,000 $ 459,535 $ 407,042 $ 478,535 Excess Cash Flows(1) ........................................................................ 450,000 416,081 358,981 450,164 (1) Excess cash flows are reported gross of shareholder dividends. For the year ended December 31, 2023, 2022, and 2021, shareholder dividends were $84 million, $81 million, and $80 million, respectively. For more inforff mation on the restrictions on the payment of dividends by subsidiaries, see the Restritt ctiott ns section of Note 13—Sharehol ders'rr Equity.yy Although these restrictions exist, dividend availability from subsidiaries historically has been more than sufficient for the cash flow needs of the Parent Company. rr Dividends from subsidiaries and excess cash flows are projected to be higher in 2024 than in 2023 primarily due to lower life obligations and the growth in our underwr iting margins, both of which resulted in higher statutory earnings generated by the affiliates. Additional sources of intercompany receivables, intercompany borrowings, public debt markets, term loans, and a revolving credit facility. See Schedule II for more inforff mation. The credit facility is discussed below. liquidity for the Parent Company are cash, rr orrorr wingii Short-Trr s. An additional source of Parent Company liquidity is a credit facility with a group of erTT m Brr unsecured borrowings and stand-by letters of credit up to $750 million, which could be extended lenders allowing forff up to $1 billion. While the Parent Company may request the extension, it is not guaranteed. Up to $250 million in letters of credit can be issued against the facility. The facility serverr 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. As of December 31, 2023, we had available $316 million of additional borrowing capacity under this facility, compared with $340 million a year earlier. Interest charged on the commercial paper program resembles variable rate debt due to its short term nature. Globe Life has consistently been able to issue commercial paper as needed during the three years ended December 31, 2023. As discussed in Note 12—Debt, on September 30, 2021, Globe Life amended the credit agreement dated August 24, 2020. The five-year credit agreement will mature on September 30, 2026. As of December 31, 2023, the Parent Company was in full compliance with all covenants related to the aforementioned debt. s as a back-up line of credit forff As a part of the credit facility, Globe Life has stand-by letters of credit. These letters are issued among our subsidiaries, one of which is an offshff ore captive reinsurer, and have no impact on company obligations as a whole. Any future regulatory changes that restrict the use of off-ff shore captive reinsurers might require Globe Life to obtain third-party financing, which could cause an insignificant increase in financing costs. On March 29, 2023, the letters of credit were amended to reduce the amount outstanding from $125 million to $115 million. The outstanding letters of credit remained at $115 million at December 31, 2023. The Parent Company expects to have readily available funds for 2024 and the forff eseeable future to conduct its operations and to maintain target capital ratios in the insurance subsidiaries through internally generated cash flow and the credit facility. In the unlikely event that more liquidity is needed, the Company could generate additional funds through multiple sources including, but not limited to, the issuance of debt, an additional short-term credit facility, and intercompany borrowing. Refer to Note 5—Commitments att nd Contintt gencies and the discussion surrounding the Company's obligations over the next five years. 45 GL 2023 FORM 10-K GLOBE LIFE INC. Management's Discussion & Analysis As noted above, the Parent Company had access to $48 million of liquid assets available as of December 31, 2023. This liquidity is available to the Company in the event additional funds are needed to support the targeted capital levels within our insurance subsidiaries. Consolidll atdd ed Liquiditdd y.t Consolidated net cash inflows provided from operations were $1.48 billion in 2023, compared with $1.42 billion in 2022. The increase is primarily attributable to fluctuations in the settlement of certain amounts included in other liabilities. In addition to cash inflows from operations, our companies received proceeds from dispositions of fixed maturities available forff sale, mortgage loans, and other long-term investments in the amount of $1.05 billion in 2023. As noted under the caption Credi ote 12, the Parent Company has in place a revolving credit facility. The insurance subsidiaries have no additional outstanding credit facilities. t FacFF ility i t n Nii rr Cash and short-term investments were $185 million at the end of 2023 compared with $207 million at the end of 2022. In addition to these liquid assets, $17.9 billion (fair value at December 31, 2023) of fixed income securities are sale in the event of an unexpected need. Approximately $1.3 billion, at fair value, are pledged for available forff outstanding FHLB advances and reinsurance. Further, approximately 97% of our fixed income securities are publicly traded, freely tradable under SEC Rule 144, or qualified forff resale under SEC Rule 144A. While our fixed income securities are classified as available forff sale, we have the ability and general intent to hold any securities to recovery or maturity. Our strong cash flows from operations, ongoing investment maturities, and available liquidity under credit facility make any need to sell securities forff liquidity highly unlikely. Capital Resources. facility and current maturities of long-term debt), long-term debt, and shareholders’ equity. The Parent Company's capital structure consists of short-term debt (the commercial paper rr Debt: The carrying value of the long-term debt was $1.6 billion at December 31, 2023, and 2022. A complete analysis and description of long-term debt issues outstanding is presented in Note 12—Debt. Financing costs for the corporate and other segment consist primarily of interest on our various debt instruments. The table below presents the components of financing costs and reconciles interest expense per the Consolidll ated Stattt ements ott f OperO atrr iott ns. Analysis of Financing Costs (Dollar amounts in thousands) Interest on debt.................................................................................................................. $ Interest on term loan......................................................................................................... Interest on short-term debt .............................................................................................. Other.................................................................................................................................... 2023 2022 2021 72,641 $ 80,481 $ 78,183 7,684 21,958 33 — 9,875 39 — 5,270 33 Financing costs ........................................................................................................ $ 102,316 $ 90,395 $ 83,486 In 2023, financing costs increased 13% compared with prior year primarily due to higher short-term interest rates. More information on our debt transactions is disclosed in the Financ ial Condition section of this report and in Note 12—Debt. ii p determining threshold risk-based capital levels forff : The National Association of Insurance Commissioners (NAIC) has established a risk-based Subsidiadd ry Capital y factor approach forff all insurance companies. This approach was designed to assist the regulatory bodies in identifyiff ng companies that may require regulatory attention. A Risk- Based Capital (RBC) ratio is typically determined by dividing adjusted total statutory capital by the amount of risk- based capital 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. For 2024, Globe Life has targeted a consolidated Company Action Level RBC ratio of 300% to 320%. The Company has concluded that this capital level is more than adequate and sufficient to support its current ratings, 46 GL 2023 FORM 10-K GLOBE LIFE INC. Management's Discussion & Analysis given the nature of its business and its risk profile. For 2023, our consolidated Company Action Level RBC ratio was 314%. 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. Sharehol rr ongoing share repurchase program. der's Equityq y:yy As noted under the caption Analysi s oii l f Share Prr urchrr ases within this report, we have an Globe Life has continually increased the quarterly dividend on its common shares over the past three years. Quarterly dividend by annual year ..................................................... $ 0.2400 $ 0.2250 $ 0.2075 $ 0.1975 Year Ended December 31, Projected 2024 2023 2022 2021 In 2023, new guidance became effective that impacted the accounting forff effeff cts to shareholders' equity. Please see Note 1—Signi fiii cant Accountintt g Policll our long duration contracts with significant ies for additional information. i Shareholders’ equity was $4.5 billion at December 31, 2023. This compares to $3.9 billion at December 31, 2022, as adjusted, an increase of $537 million or 14%. Shareholders' equity increased $1.9 billion, or 97%, during 2022 from $2.0 billion in 2021. At December 31, 2022, shareholders' equity was $3.9 billion. During 2023, shareholders’ equity increased as a result of net income of $971 million, but was offseff t by share repurchases of $380 million and an additional $127 million in share repurchases to offsff et the dilution from stock option exercises. Additionally, the balance of AOCI increased $18 million primarily due to increased interest rates and discount rates over the period. At December 31, 2021, shareholders' equity was $2.0 billion. During 2022, shareholders' equity increased as a result of net income of $894 million, but was offseff t by share repurchases of $335 million and an additional $120 million in share repurchases to offsff et the dilution from stock option exercises. Additionally, the balance of AOCI increased $1.4 billion due to increased interest rates and discount rates over the period. We plan to use excess cash available at the Parent Company as effiff ciently as possible in the future. Excess cash flow, as we define it, results primarily from the dividends received by the Parent Company from its subsidiaries less the interest paid on debt. The cash received by the Parent Company from our insurance subsidiaries is afteff r 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, investments in securities, or repayment of short-term debt. We will determine the best use of excess cash afteff r 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. i rr fii cant Accountintt g Policll tt o thett ed Improvrr emvv As discussed in Note 1—Signi ial Servirr ces– TI)I on January 1, Insurance (Topic 944): TarTT get 2023. The liability forff future policy benefits under ASU 2018-12 is required to be computed using current discount rates with the impact of changes in discount rates included in accumulated other comprehensive income. Additionally, the guidance requires the liability forff future policy benefits to be 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 Lc iett s, 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. ies, the Company adopted ASU 2018-12, Financ Accountintt g forff Long-Duration Contratt cts ( ii LD(( ents t iabilitii tt We maintain a significant available-for-sale fixed maturity portfolio to support our insurance policy liabilities. Current accounting guidance requires that we revalue our portfolio to fair market value at the end of each accounting period. The period-to-period changes in fair value, net of their associated impact on income tax, are reflected directly in shareholders’ equity. Changes in the fair value of the portfolff io 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 47 GL 2023 FORM 10-K GLOBE LIFE INC. Management's Discussion & Analysis impact on the reported value of shareholders’ equity. exists in measurement, which may have a material 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 effeff ct of this accounting rule when analyzing our balance sheet, capital structure, and financial ratios. atintt gs. The financial strength of our majoa r insurance subsidiaries is rated by Standard & Finaii ncial Strenrr gth Rtt Poor’s and A. M. Best. The following table presents these ratings for our five largest insurance subsidiaries at December 31, 2023. Liberty National Life Insurance Company............................................................................ Globe Life And Accident Insurance Company..................................................................... United American Insurance Company.................................................................................. American Income Life Insurance Company......................................................................... Family Heritage Life Insurance Company of America........................................................ Standard & Poor’s AA- AA- AA- AA- NR A.M. Best A A A A A A.M. Best states that it assigns an A (Excellent) rating to insurance companies that have, in its opinion, an excellent ability to meet their ongoing insurance obligations. The AA fAA inancial strength rating category is assigned by Standard & Poor’s Corporation (S&P) to those insurers which have very strong capacity to meet its financial commitments which differs from the highest-rated insurers only to a small degree. An insurer rated A has strong capacity to meet its financial commitments but it is somewhat more susceptible to the adverse effeff cts of changes in circumstances and economic conditions than insurers in higher- rated categories. The plus sign (+) or minus sign (-) shows the relative standing within the majoa r rating category. OTHER ITEMS Litigai tion. For more inforff mation concerning litigation, please refer to Note 5—Commitments att nd Contintt gencies. CRITICAL ACCOUNTING POLICIES Application of Critical Accounting Estimates. The preparation of financial statements in conforff mity with GAAP requires the application of accounting policies that ofteff n involve a significant degree of judgment. Management reviews these key estimates and assumptions used in the preparation of financial statements on a timely basis. If management determines that modifications are necessary due to current facts and circumstances, the Company’s results of operations and financial position as reported in the consolidated financial statements could possibly change significantly. Additional information on our accounting policies is disclosed in Note 1—Signi fiii cant Accountintt g Policies. ii olicll y Bc Future Prr related to the valuation of our liability forff Policies and Note 6—Policy Lc iabilitii iett s. enefitff s.tt Considerable inforff mation concerning the policies, procedures, and other relevant data fiii cant Accountintt g future policy benefits is presented in Note 1—Signi ii future policy benefits for traditional and limited-payment long duration life and health products The liability forff comprises the vast majoa rity of the total liability forff the Company. The liability is determined each reporting period based on the net level premium method. This method requires the liability forff future policy benefits to be calculated as the present value of estimated future policyholder benefits and the related termination expenses, less the present value of estimated future net premiums to be collected from policyholders. future policy benefits forff 48 GL 2023 FORM 10-K GLOBE LIFE INC. Management's Discussion & Analysis The Company reviews, and updates as necessary, its cash flow assumptions (mortality, morbidity, and lapses) used to calculate the change in the liability forff future policy benefits at least annually. These cash flow assumptions are reviewed at the same time every year, or more frequently, if suggested by experience. If cash flow assumptions are changed, the net premium ratio is recalculated from the original issue date, or the Transition Date, using actual future policy experience and projected future cash flows. As cash flow assumptions are changed, the liability forff benefits is adjusted with changes recognized in policyholder benefits on the Consolidll ated Stattt ements o f Operatrr iott ns. tt lowing table illustrates the sensitivity of our liability forff The folff future policy benefits, including the corresponding pre- tax impact on OCI, and net income, as of December 31, 2023, to changes in cash flow assumptions. This information is useful in understanding the potential financial impact on our financial statements from changes in these items and the expected impact to our liability forff future policy benefits. We could experience impacts that are more or less significant than noted in the folff lowing analysis; however the sensitivities provide insight regarding the direction and magnitude of those potential impacts. At December 31, 2023 (Dollar amounts in thousands) Assumptions Sensitivity Future policy benefits OCI Net Income Mortality Morbidity Lapses 1% increase $ 1% decrease 29,373 $ (29,221) 1,462 $ (1,474) 5% increase 5% decrease 10% increase 10% decrease 49,014 (38,006) (99,618) 110,271 4,650 (4,671) 35,233 (43,196) (30,835) 30,695 (53,664) 42,677 64,385 (67,075) The liability forff future policy benefits is discounted using a current upper-medium grade fixed-income instrument yield that reflects the duration characteristics of the liability forff future policy benefits. Accordingly, the discount rate assumption is key in determining the change in the value of the liability forff long duration life and health contracts. Since the liability forff traditional and limited-payment long duration life and future policy benefits, it is subject to interest health products comprises approximately 92% of the total liability forff rate risk. A decrease in discount rates will cause an increase in the obligation with a corresponding change in AOCI. future policy benefits forff future benefits forff lowing table illustrates the interest rate sensitivity of our liability forff The folff future policy benefits as of December 31, 2023. This table measures the effeff ct of a parallel shift in discount rates on the liability. The data measures the change in reported value arising from an immediate change in rates in increments of 50 and 100 basis points, which would be recorded as a component of OCI. Value of Liability for Future Policy Benefits (Dollar amounts in thousands) At December 31, 2023 28,524,314 23,364,282 21,346,814 19,460,353 18,114,882 16,810,309 14,662,284 Change in Discount Rates(1) (200) $ (100) (50) 0 50 100 200 (1) In basis points. 49 GL 2023 FORM 10-K GLOBE LIFE INC. Management's Discussion & Analysis tion Costs.tt Certain costs of acquiring new insurance business are deferred and recorded as an Deferred Acquisiii asset. These costs are capitalized on a grouped contract basis and amortized over the expected term of the related contracts, and are essential forff the acquisition of new insurance business. Deferred Acquisition Costs (DAC) are amortized on a constant-level basis over the expected term of the grouped contracts, with the related expense included in amortization of deferred acquisition costs on the Consolidll ated Stattt ements ott iott ns. The in-forff ce metric used to compute the DAC amortization rate is annualized premium in force. The assumptions used to amortize acquisition costs include mortality, morbidity, and lapses, and are consistent with those used in calculating the liability forff future policy benefits. f OperO atrr Value of business acquired (VOBA) is amortized on a basis that is consistent with DAC, as described above, and is subject to periodic recoverability and loss recognition testing to determine if there is a premium deficiency. These tests evaluate whether the present value of future contract-related cash flows will support the capitalized VOBA asset. These cash flows consist primarily of premium income, less benefits and expenses. The present value of these cash flows, less the reserve liability, is then compared with the unamortized balance. In the event the estimated present value of net cash flows is less, the deficiency would be recognized by a charge to earnings and either a reduction of unamortized acquisition costs or an increase in the liability forff future benefits. ayabyy r Benefitff s Ptt laims and Othett Policy Cc le. This liability consists of known benefits currently payable and an estimate of claims that have been incurred but not yet reported to us. The estimate of unreported claims is based on prior experience and is made after careful evaluation of all information available to us. However, the factors upon which these estimates are based can be subject to change from historical patterns. Factors involved include the litigation environment, regulatory mandates, and the introduction of policy types for which claim patterns are not well established, and medical trend rates and medical cost inflation as they affeff ct our health claims. Changes in these estimates, if any, are reflected in the earnings of the period in which the adjustment is made. The Company concludes that the estimates used to produce the liability forff claims and other benefits, including the estimate of unsubmitted claims, are the most appropriate under the circumstances. However, there is no certainty that the resulting stated liability will be our ultimate obligation. At this time, we do not expect any change in this estimate to have a material impact on earnings or financial position consistent with our historical experience. There were no significant changes in the claims process in the current year. Valuatiott n of FixFF ed Maturities. We hold a substantial investment in high-quality fixed maturities to provide forff the funding of our future policy contractual obligations over long periods of time. While these securities are generally sale and are sold from time to time to maximize expected to be held to maturity, they are classified as available forff io at fair value. Fair value is the price that we would risk-adjusted, capital-adjusted returns. We report this portfolff expect to receive upon sale of the asset in an orderly transaction. The fair value of the fixed maturity portfolio is primarily affeff cted by changes in interest rates in financial markets. Because of the size of our fixed maturity portfolio and the long average life, small changes in rates can have a significant effeff ct on the portfolio and the reported financial position of the Company. This impact is disclosed in 100 basis point increments under the caption Marketkk Risk Sensitivtt ial Condition in this report, the Company regards these unrealized fluctuations in value as having no meaningful impact on our actual financial condition and, as such, we remove them from consideration when viewing our financial position and financial ratios. in this report. However, as discussed under the caption Financ itvv yt ii At times, the values of our fixed maturities can also be affeff cted by illiquidity in the financial markets. Illiquidity would contribute to a spread widening, and accordingly to unrealized losses, on many securities that we would expect to be fully recoverable. Even though our fixed maturity portfolff sale, we have the ability and general intent to hold the securities until maturity as a result of our strong and stable cash flows generated from our insurance products. Considerable inforff mation concerning the policies, procedures, classification levels, and other relevant data concerning the valuation of our fixed maturity investments is presented in Note 1—Signi ificff ant Accountintt g Policll in both notes. There were no significant changes in the valuation process in the current year. ntstt under the captions Fair Value Measuremrr ies and in Note 4—Investmett io is available forff entstt Sensitivtt Marketkk Riskii itvv y.t Globe Life's investment securities are exposed to interest rate risk, meaning the effect of changes in financial market interest rates on the current fair value of the Company’s investment portfolio. Since 91% of the carrying value of our investments is attributable to fixed maturity investments and these investments are io is highly subject to market risk. Declines in market interest rates predominately fixed-rate investments, the portfolff 50 GL 2023 FORM 10-K GLOBE LIFE INC. Management's Discussion & Analysis io rising, and increases in interest rates cause the fair value generally result in the fair value of the investment portfolff to decline. Under normal market conditions, we are not concerned about unrealized losses that are interest rate driven since we would not expect to realize them. Globe Life does not generally intend to sell the securities prior to maturity and, likely, will not be required to sell the securities prior to recovery of amortized cost. The long-term nature of our insurance policy liabilities and strong operating cash-flow substantially mitigate any future need to liquidate portions of the portfolff io. lowing table illustrates the interest rate sensitivity of our fixed maturity portfolio at December 31, 2023. This The folff table measures the effect of a parallel shift in interest rates (as represented by the U.S. Treasury curverr ) on the fair value of the fixed maturity portfolio. The data measures the change in fair value arising from an immediate and sustained change in interest rates in increments of 100 basis points. Market Value of Fixed Maturity Portfolio (Dollar amounts in thousands) Change in Interest Rates(1) (200) $ (100) 0 100 200 (1) In basis points. At December 31, 2023 21,818,000 19,731,000 17,870,000 16,210,000 14,729,000 nts:tt Alloll wance forff Credrr itdd Losses. We continually monitor our investment portfolff io for investments where Investmett fair value has declined below carrying value to determine if a credit loss event has occurred. When a credit event does occur, an allowance forff loss is recorded and the corresponding provision is recognized in the iott ns in Realized Gains or Losses. Non-credit related fluctuations in the fair value Consolidll ated Stattt ements ott are recorded in Other ncome. The policies and procedures that we use to evaluate and account for ies and the discussions under the allowance forff t is made to make the best captions Investmett ntstt and Realizll ed Gains and Losses in this report. While every efforff estimate of status and value with the information available regarding an allowance forff credit loss, it is difficult to predict the future prospects of a distressed or impaired security. credit losses are disclosed in Note 1—Signi f OperO atrr Comprehensive Ivv fiii cant Accountintt g Policll credit tt i Defineii d benefitff pension plans. We maintain funded defined benefit plans covering most full-time employees. We also have an unfunded nonqualified defined benefit plan covering a limited number of offiff cers. Our obligations under these plans are determined actuarially based on specified actuarial assumptions. In accordance with GAAP, aP n expense is recorded each year as these pension obligations grow due to the increase in the service period of employees and the interest cost associated with the passage of time. These obligations are offseff t, at least in part, by the growth in value of the assets in the funded plans. At December 31, 2023, our gross liability under these plans was $628 million, but was offseff t by assets of $571 million. The actuarial assumptions used in determining our obligations/expenses for pensions include: employee mortality and turnover, retirement age, the expected return on plan assets, projeo cted salary increases, and the discount rate at which future obligations could be settled. Additionally, a corridor approach is used to amortize any unrecognized gains or losses outside the corridor (the standard 10% of the greater of plan PBO and fair value assets) and have an amortization service period of approximately nine years. These assumptions have an important effeff ct on the pension obligation. A decrease in the discount rate will cause an increase in the pension obligation. A decrease in projected salary increases will cause a decrease in this obligation. Small changes in assumptions may cause significant differences in reported results forff these plans. For example, a sensitivity analysis is presented below for the impact of change in the discount rate and the long-term rate of return on assets assumed on our defined benefit pension plans expense forff the year 2023 and projected benefit obligation as of December 31, 2023. 51 GL 2023 FORM 10-K GLOBE LIFE INC. Management's Discussion & Analysis Pension Assumptions (Dollar amounts in thousands) Discount Rate(2): Assumption Change(1) Impact on Expense Impact on Projected Benefit Obligation Increase............................................................................................................. 25 $ (786) $ Decrease ........................................................................................................... Expected Return(3): Increase............................................................................................................. Decrease ........................................................................................................... (25) 25 (25) 820 (1,483) 1,483 (20,567) 21,708 — — (1) In basis points. (2) The discount rate for determining the net periodic benefit cost was 5.71% for 2023. The discount rate used for determining the projeo cted benefit obligation as of December 31, 2023 was 5.40%. (3) The expected long-term return rate assumed was 6.98% at December 31, 2023, and 6.98% in the prior year. Management considers both historical and future yields to determine the expected return. The Company determines mortality assumptions through the use of published mortality tables that reflect broad- based studies of mortality and published longevity improvement scales. The criteria used to determine the primary assumptions are discussed in Note 10—Postrett tireii ment Benefitff s.tt While rts to determine the most reliable assumptions, given the inforff mation available from we have used our best effoff Company experience, economic data, independent consultants and other sources, we cannot be certain that actual results will be the same as expected. The assumptions are reviewed annually and revised, if necessary, based on more current information available to us. Note 10—Postrett tireii ment Benefitff stt also contains information about pension plan assets, investment policies, and other related data. There were no significant changes in the assumptions in the current year. 52 GL 2023 FORM 10-K Item 7A. Quantitative and Qualitative Disclosures About Market Risk Information required by this item is fouff nd under the heading Marketkk Risk Sensitivtt itvv yt in Item 7 of this report. ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA Consolidated Financial Statements Index Report of Independent Registered Public Accounting Firm (PCAOB No. 34)............................................ Consolidated Financial Statements: ................................................................................................................. Consolidated Balance Sheets at December 31, 2023, and 2022 .......................................................... Consolidated Statements of Operations for each of the three years in the period ended December 31, 2023 ........................................................................................................................................ Consolidated Statements of Comprehensive Income (Loss) for each of the three years in the period ended December 31, 2023................................................................................................................ Consolidated Statements of Shareholders’ Equity for each of the three years in the period ended December 31, 2023 ........................................................................................................................................ Consolidated Statements of Cash Flows for each of the three years in the period ended December 31, 2023 ........................................................................................................................................ Notes to Consolidated Financial Statements.............................................................................................. Page 54 57 58 59 60 61 62 53 GL 2023 FORM 10-K REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Shareholders and the Board of Directors of Globe Life Inc. Opinion on the Financial Statements We have audited the accompanying consolidated balance sheets of Globe Life Inc. and subsidiaries (the "Company") as of December 31, 2023 and 2022, the related consolidated statements of operations, comprehensive income (loss), shareholders’ equity, and cash flows, for each of the three years in the period ended December 31, 2023, and the related notes and the schedules listed in the Index at Item 15 (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2023 and 2022, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2023, in conforff mity with accounting principles generally accepted in the United States of America. We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of December 31, 2023, based on issued by the Committee of Sponsoring criteria established in Internal Contrott Organizations of the Treadway Commission and our report dated February 28, 2024, expressed an unqualified opinion on the Company’s internal control over financial reporting. l — Integratrr ed Framrr (( eworww k ( 2013) rr Change in Accounting Principle As discussed in Note 1 to the financial statements, the Company changed its method of accounting, measurement, and disclosure of long-duration contracts effeff ctive January 1, 2023, using the modified retrospective method applied as of the transition date of January 1, 2021, due to adoption of ASU 2018-12, Financ ial Servirr ces - Insurance (Topic (“ASU 2018-12”). The adoption is also 944): TarTT get communicated as a critical audit matter below. Long-Duration Contratt ctstt Accountintt g forff ed Improvrr emvv tt o thett ents t rr ii Basis for Opinion These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan rm the audit to obtain reasonable assurance about whether the financial statements are free of material and perforr rming procedures to assess the risks of misstatement, whether due to error or fraud. Our audits included perforr material misstatement of the financial statements, whether due to error or fraud, and perforr rming procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and the financial significant estimates made by management, as well as evaluating the overall presentation of statements. We believe that our audits provide a reasonable basis for our opinion. Critical Audit Matters The critical audit matters communicated below are matters arising from the current-period audit of the financial statements that were communicated or required to be communicated to the audit committee and that (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate. 54 GL 2023 FORM 10-K Adoptiott n of Accountingii Contratt cts - explanatory paragraprr h above)vv tt Pronrr ouncements - TarTT gerr ted ImpII Refer to Note 1 to thett Finaii ncial Statements ( rovements to the Accountintt g forff tt see Change in Accountintt g PriPP ncii Long-Duration iple al(( soll Critrr ictt al Audit Matter Descriprr tion The Company adopted ASU 2018-12 on January 1, 2023 using the modified retrospective application as of the transition date of January 1, 2021. and disclosure of long-duration The adoption of ASU 2018-12 significantly modified the Company’s accounting forff life and health insurance contracts. We identified the adoption of ASU 2018-12 as a critical audit matter because of the need to involve actuarial specialists to evaluate assumptions and valuation models, the extent of audit efforff t required, and the inherent complexity involved in the selection and application of new accounting policies. How thett Critrr ictt al Audit Matter WasWW Addresrr sed in t ii hett Audit Our audit procedures related to the adoption of ASU 2018-12 included the folff lowing, among others: • We tested the effeff ctiveness of controls over the application of new accounting policies and disclosure of the impact of adoption discussed in Note 1 to the financial statements, including controls over the valuation models and assumptions used to estimate the liability forff future policy benefits and amortization of deferred acquisition costs. • We evaluated the appropriateness of the Company’s selection and application of accounting policies in connection with the adoption of the ASU 2018-12. • With the assistance of our actuarial specialists, we evaluated the reasonableness of the valuation models future policy benefits and amortization of deferred and assumptions used to estimate the liability forff acquisition costs. Future Prr Underlyil ngii olicll y Bc enefitff s att t Currerr nt Discii ount Rates and Amortirr zaii Assumptions forff Certaitt n Pii roPP ducts – Referff tion Costs —tt to Notes 1, 6 and 7 to the FinFF ancialii Stattt ements tion of Deferred Acquisiii Certaitt nii Critrr ictt al Audit Matter Descriprr tion The Company estimates the liability forff future policy benefits based on the net level premium method, which requires a calculation of the present value of estimated future policyholder benefits and the related claim adjustment expenses, less the present value of estimated future net premiums to be collected from policyholders. The Company estimates the amortization of deferred acquisition costs on a constant-level basis over the expected term of the grouped contracts. future policy benefits and amortization of deferred The most significant assumptions used to estimate the liability forff acquisition costs forff certain products are mortality, morbidity and lapse. The Company regularly reviews these assumptions, which are updated as necessary in the third quarter of every year, or more frequently if suggested by experience. The mortality, morbidity, and lapse assumptions are determined based upon Company experience and industry data. Given the inherent uncertainty and extent of specialized skill required in assessing the mortality, morbidity and lapse assumptions, auditing the development of these assumptions for certain products involved especially subjective judgment. How thett Critrr ictt al Audit Matter WasWW Addresrr sed in t ii hett Audit Our audit procedures related to management’s judgments regarding the mortality, morbidity, and lapse assumptions used in the development of future policy benefits and the amortization of deferred acquisition costs forff certain insurance products, included the following, among others: 55 GL 2023 FORM 10-K • We tested the effeff ctiveness of controls over the development of these assumptions used in the valuation of certain insurance products, future policy benefits and the amortization of deferred acquisition costs forff including the effectiveness of the controls over the underlying data. • We tested the underlying data used in the development of these assumptions as well as in the valuation of future policy benefits and the amortization of deferred acquisition costs forff certain insurance products. • With the assistance of our actuarial specialists, we: ◦ ◦ evaluated management’s methods, calculations and judgments regarding the development of these assumptions used in the valuation of future policy benefits and the amortization of deferred acquisition costs forff certain insurance products. evaluated on a sample basis, amortization of deferred acquisition costs, calculations, properly applied. future policy benefits and the mathematical accuracy of management’s the appropriateness of valuation models, and whether these assumptions were through independent calculation of /s/ Deloitte & Touche LLP Dallas, Texas February 28, 2024 We have serverr d as the Company’s auditor since 1999. 56 GL 2023 FORM 10-K Globe Life Inc. Consolidated Balance Sheets (Dollar amounts in thousands, except per share data) December 31, 2023 2022 Assets: Investments: Fixed maturities—available forf 2022—$18,301,692, allowance forff sale, at fair value (amortized cost: 2023—$18,924,914; credit losses: 2023— $7,115; 2022— $0)......................... $ 17,870,206 $ 16,503,365 Mortgage loans.................................................................................................................................... Policy loans.......................................................................................................................................... Other long-term investments (includes: 2023—$795,583; 2022—$768,689 under the fair value option) ........................................................................................................................................ Short-term investments...................................................................................................................... 279,199 657,020 835,878 81,740 181,305 614,866 794,711 114,121 Total investments........................................................................................................................... 19,724,043 18,208,368 Cash........................................................................................................................................................ Accrued investment income ................................................................................................................ Other receivables.................................................................................................................................. 103,156 270,396 630,223 92,559 259,581 589,171 Deferred acquisition costs ................................................................................................................... 6,009,477 5,535,697 Goodwill.................................................................................................................................................. Other assets........................................................................................................................................... 481,791 832,413 481,791 819,630 Total assets .................................................................................................................................... $ 28,051,499 $ 25,986,797 Liabilities: Future policy benefits at current discount rates: (at original rates: 2023—$16,984,615; 2022 —$16,355,726)...................................................................................................................................... $ 19,460,353 $ 18,097,341 Unearned and advance premium....................................................................................................... Policy claims and other benefits payable.......................................................................................... Other policyholders' funds ................................................................................................................... 254,567 514,875 236,958 253,360 509,356 123,236 Total policy liabilities......................................................................................................................... 20,466,753 18,983,293 Current and deferred income taxes ................................................................................................... Short-term debt ..................................................................................................................................... 494,639 486,113 Long-term debt (estimated fair value: 2023—$1,491,229; 2022—$1,440,277).......................... 1,629,559 Other liabilities....................................................................................................................................... 487,632 434,649 449,103 1,627,952 542,223 Total liabilities................................................................................................................................. 23,564,696 22,037,220 Commitments and Contingencies (Note 5) Shareholders' equity: Preferred stock, par value $1 per share—5,000,000 shares authorized; outstanding: 0 in 2023 and 2022 ...................................................................................................................................... Common stock, par value $1 per share—320,000,000 shares authorized; outstanding: (2023—102,218,183 issued; 2022—105,218,183 issued)............................................................. Additional paid-in-capital...................................................................................................................... — — 102,218 532,474 105,218 529,661 Accumulated other comprehensive income (loss)........................................................................... (2,772,419) (2,790,313) Retained earnings................................................................................................................................. 7,478,813 6,894,535 Treasury stock, at cost: (2023—8,426,854 shares; 2022—8,478,288 shares)........................... (854,283) (789,524) Total shareholders' equity ............................................................................................................ 4,486,803 3,949,577 Total liabilities and shareholders' equity.................................................................................... $ 28,051,499 $ 25,986,797 Prior period amounts have been adjusted forf the adoption of ASU 2018-12 on January 1, 2023. See accompanying Notes to Consolidated Financial Statements. 57 GL 2023 FORM 10-K Globe Life Inc. Consolidated Statements of Operations (Dollar amounts in thousands, except per share data) Year Ended December 31, 2023 2022 2021 Revenue: Life premium................................................................................................................ $ 3,137,244 $ 3,027,824 $ 2,893,930 Health premium........................................................................................................... 1,318,773 1,282,417 1,200,882 Other premium ............................................................................................................ Total premium........................................................................................................ Net investment income .............................................................................................. — 4,456,017 1,056,884 Realized gains (losses).............................................................................................. (65,676) Other income ............................................................................................................... 308 1 1 4,310,242 4,094,813 991,800 (76,548) 1,246 956,690 59,319 1,216 Total revenue ......................................................................................................... 5,447,533 5,226,740 5,112,038 Benefits and expenses: Life policyholder benefits(1) ....................................................................................... Health policyholder benefits(2).................................................................................. Other policyholder benefits ....................................................................................... 2,050,789 2,035,693 1,898,519 776,362 37,100 752,866 36,875 721,309 39,218 Total policyholder benefits ................................................................................... 2,864,251 2,825,434 2,659,046 Amortization of deferred acquisition costs.............................................................. Commissions, premium taxes, and non-deferred acquisition costs ................... Other operating expense ........................................................................................... Interest expense ......................................................................................................... 379,700 559,167 347,833 102,316 348,824 506,022 353,954 90,395 317,616 455,250 322,029 83,486 Total benefits and expenses ............................................................................... 4,253,267 4,124,629 3,837,427 Income beforff e income taxes.......................................................................................... 1,194,266 1,102,111 1,274,611 Income tax benefit (expense) ........................................................................................ (223,511) (207,725) (243,497) Net income ............................................................................................................ $ 970,755 $ 894,386 $ 1,031,114 Basic net income per common share .................................................................... $ 10.21 $ 9.13 $ 10.10 Diluted net income per common share ................................................................. $ 10.07 $ 9.04 $ 9.99 (1) Net of the total remeasurement, including both the impact of assumption changes and the effect of actual adjustments, resulting in gains (losses) of $29.4 million, $(47.4) million and $(11.1) million forf 2021, respectively. to expected experience the year ended December 31, 2023, 2022 and (2) Net of the total remeasurement, including both the impact of assumption changes and the effect of actual adjustments, resulting in gains (losses) of $11.8 million, $15.6 million and $(1.2) million forf 2021, respectively. to expected experience the year ended December 31, 2023, 2022 and Prior period amounts have been adjusted forf the adoption of ASU 2018-12 on January 1, 2023. See accompanying Notes to Consolidated Financial Statements. 58 GL 2023 FORM 10-K Globe Life Inc. Consolidated Statements of Comprehensive Income (Loss) (Dollar amounts in thousands) Net income ....................................................................................................................... $ 970,755 $ 894,386 $ 1,031,114 Year Ended December 31, 2023 2022 2021 Other comprehensive income (loss): Investments: Unrealized gains (losses) on fixed maturities: Unrealized holding gains (losses) arising during period...................................... 671,211 (5,332,818) (492,267) Other reclassification adjustments included in net income................................. Foreign exchange adjustment on fixed maturities recorded at fair value......... 80,238 (715) 32,377 1,749 (31,710) 4,632 Total unrealized investment gains (losses) ........................................................... 750,734 (5,298,692) (519,345) Less applicable tax (expense) benefit ................................................................. (157,658) 1,112,730 109,063 Unrealized gains (losses) on investments, net of tax ............................................. 593,076 (4,185,962) (410,282) Future Policy benefits: Change in discount rate on future policy benefits................................................... (731,883) 7,021,147 1,156,763 Less applicable tax (expense) benefit ................................................................. 153,696 (1,474,441) (242,920) Future policy benefit adjustments, net of tax ........................................................... (578,187) 5,546,706 913,843 Foreign exchange translation: Foreign exchange translation adjustments, other than securities ........................ Less applicable tax (expense) benefit................................................................. Foreign exchange translation adjustments, other than securities, net of tax...... Pension: Amortization of pension costs..................................................................................... Plan amendments......................................................................................................... Experience gain (loss) ................................................................................................. Pension adjustments ................................................................................................... Less applicable tax (expense) benefit.................................................................. Pension adjustments, net of tax ................................................................................. 8,102 (1,702) 6,400 (390) — (3,907) (4,297) 902 (3,395) (26,494) 5,565 (20,929) 13,754 — 119,055 132,809 (27,889) 104,920 (5,131) 1,077 (4,054) 20,797 (4,565) 61,299 77,531 (16,281) 61,250 Other comprehensive income (loss)............................................................................... 17,894 1,444,735 560,757 Comprehensive income (loss) ......................................................................... $ 988,649 $ 2,339,121 $ 1,591,871 Prior period amounts have been adjusted forf the adoption of ASU 2018-12 on January 1, 2023. See accompanying Notes to Consolidated Financial Statements. 59 GL 2023 FORM 10-K Globe Life Inc. Consolidated Statements of Shareholders' Equity (Dollar amounts in thousands, except per share data) Preferred Stock Common Stock Additional Paid-In Capital Accumulated Other Comprehensive Income (Loss) Retained Earnings Treasury Stock Total Shareholders' Equity Year Ended December 31, 2021 , Balance at December 31, 2020.......... $ — $ 113,218 $ 527,435 $ 3,029,244 $ 5,874,109 $ (772,914) $ 8,771,092 Adoption of ASU 2018-12.................... Balance at January 1, 2021 ............. Comprehensive income (loss)............ Common dividends declared ($0.79 per share) .................................. Acquisition of treasury stock ............... Stock-based compensation................. Exercise of stock options..................... Retirement of treasury stock............... Balance at December 31, 2021 .... Year Ended December 31, 2022 , Balance at January 1, 2022 ............. Comprehensive income (loss)............ Common dividends declared ($0.83 per share) .................................. Acquisition of treasury stock ............... Stock-based compensation................. Exercise of stock options..................... Retirement of treasury stock............... Balance at December 31, 2022 .... Year Ended December 31, 2023 , Balance at January 1, 2023 ............. Comprehensive income (loss)............ Common dividends declared ($0.90 per share) .................................. Acquisition of treasury stock ............... Stock-based compensation................. Exercise of stock options..................... Retirement of treasury stock............... — — — — — — — — — — — — — — — — — — — — — — — — — — (7,825,049) (12,522) — (7,837,571) 113,218 527,435 (4,795,805) 5,861,587 (772,914) 933,521 — — — — — — — — 12,103 — (4,000) (18,974) 560,757 1,031,114 (80,247) — — (29,398) — — 1,591,871 (80,247) (541,435) (541,435) 18,169 99,224 30,272 69,826 — (327,323) 350,297 109,218 520,564 (4,235,048) 6,455,733 (846,659) 2,003,808 109,218 520,564 (4,235,048) 6,455,733 (846,659) 2,003,808 — — — — — — — — 29,119 — (4,000) (20,022) 1,444,735 894,386 (80,956) — — 2,339,121 (80,956) — (454,638) (454,638) (345) 6,876 (29,838) 136,430 (344,445) 368,467 35,650 106,592 — 105,218 529,661 (2,790,313) 6,894,535 (789,524) 3,949,577 105,218 529,661 (2,790,313) 6,894,535 (789,524) 3,949,577 — — — — — — — — 18,466 — (3,000) (15,653) 17,894 970,755 — — 988,649 (85,139) (511,100) (511,100) (85,139) — — 12,270 (19,395) 133,475 (281,943) 300,596 30,736 114,080 — 4,486,803 — — — — — — — — — — — — — — — Balance at December 31, 2023 .... $ — $ 102,218 $ 532,474 $ (2,772,419) $ 7,478,813 ( ) $ (854,283) $ ) ( Prior period amounts have been adjusted forf the adoption of ASU 2018-12 on January 1, 2023. See accompanying Notes to Consolidated Financial Statements. 60 GL 2023 FORM 10-K Globe Life Inc. Consolidated Statements of Cash Flows (Dollar amounts in thousands) Net income ........................................................................................................................ $ Adjustments to reconcile net income to cash provided from operations: Increase (decrease) in future policy benefits......................................................... Increase (decrease) in other policy benefits .......................................................... Deferral of policy acquisition costs .......................................................................... Amortization of deferred policy acquisition costs .................................................. Change in current and deferred income taxes ...................................................... Realized (gains) losses ............................................................................................. Other, net..................................................................................................................... Cash provided from (used for) operating activities ............................................... Cash provided from (used for) investing activities: Investments sold or matured: sale—sold................................................................. Fixed maturities available forf Fixed maturities available forf sale—matured or other redemptions ................... Mortgage loans............................................................................................................ Other long-term investments..................................................................................... Total investments sold or matured...................................................................... Acquisition of investments: Fixed maturities—available forf sale......................................................................... Mortgage loans............................................................................................................ Other long-term investments..................................................................................... Total investments acquired................................................................................... Net (increase) decrease in policy loans.................................................................. Net (increase) decrease in short-term investments.............................................. Additions to property and equipment ...................................................................... Other investing activities ........................................................................................... Investments in low-income housing interests ........................................................ Cash provided from (used for) investing activities ................................................ Cash provided from (used for) financing activities: Issuance of common stock............................................................................................. Cash dividends paid to shareholders ........................................................................... Repayment of debt .......................................................................................................... Proceeds from issuance of debt.................................................................................... Payment for debt issuance costs .................................................................................. Net borrowing (repayment) of commercial paper....................................................... Acquisition of treasury stock .......................................................................................... Net receipts (payments) from deposit-type products................................................. Cash provided from (used for) financing activities ............................................... Year Ended December 31, 2022 894,386 2023 970,755 $ 2021 $ 1,031,114 834,366 5,448 (850,169) 379,700 101,448 65,676 (24,799) 1,482,425 759,426 35,638 (828,943) 348,824 91,835 76,548 44,480 1,422,194 645,897 31,533 (782,488) 317,616 147,990 (59,319) 105,337 1,437,680 602,556 250,652 44,004 151,262 1,048,474 (1,536,409) (158,823) (155,700) (1,850,932) (42,154) 32,381 (49,553) — (64,365) (926,149) 114,080 (84,116) (165,612) 170,000 (757) 32,961 (511,100) (96,943) (541,487) 390,392 462,002 32,870 50,281 935,545 (1,420,220) (77,275) (213,207) (1,710,702) (25,232) (44,976) (27,929) — (69,721) (943,015) 106,592 (80,547) (150,000) 250,492 (5,272) (46,289) (454,638) (112,791) (492,453) 116,656 310,991 31,423 4,923 463,993 (1,004,384) (10,421) (247,875) (1,262,680) (5,255) 38,637 (38,244) (56,700) (53,121) (913,370) 69,826 (80,043) (300,000) 325,000 (7,687) 74,974 (541,435) (64,238) (523,603) (3,391) (2,684) 94,847 92,163 Effeff ct of foreign exchange rate changes on cash ......................................................... Net increase (decrease) in cash ...................................................................................... Cash at beginning of year................................................................................................. Cash at end of year............................................................................................................ $ (4,192) 10,597 92,559 103,156 $ 13,670 396 92,163 92,559 $ Prior period amounts have been adjusted forf the adoption of ASU 2018-12 on January 1, 2023. See accompanying Notes to Consolidated Financial Statements. 61 GL 2023 FORM 10-K Globe Life Inc. Notes to Consolidated Financial Statements (Dollar amounts in thousands, except per share data) Note 1—Significant Accounting Policies Busines s: (Globe Life), (the Company), refers to Globe Life Inc., an insurance holding company incorporated in ii Delaware in 1979, and Globe Life Inc. subsidiaries and affiff liates. 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 underwr iting companies are owned by their ultimate corporate parent, Globe Life Inc. (Parent Company). rr Globe Life provides a variety of life and supplemental health insurance products and annuities to a broad base of reportable segments: life insurance, supplemental health insurance, customers. The Company is organized into four annuities, and investments. ff 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). f Presentattt Basis oii iott n: The accompanying consolidated financial statements of Globe Life have been prepared in conforff mity with accounting principles generally accepted in the United States of America (GAAP), under guidance issued by the Financial Accounting Standards Board (FASB). The preparation of consolidated financial statements the reported in conforff mity with GAAPAA amounts of assets and liabilities and disclosure of contingent liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. to make estimates and assumptions that affeff ct requires management Use of EstEE imtt ates: The preparation of consolidated financial statements in conforff mity with GAAP requires management to make estimates and assumptions that affeff ct the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could diffeff r from those estimates. See further documentation in the significant accounting policies or the accompanying notes. : The consolidated financial statements include the results of Globe Life Inc. and its Princii p iples of Consolidll atiott n wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. When Globe Life acquires a subsidiary or a block of business, the assets acquired and the liabilities assumed are measured at fair value at the acquisition date. Any excess of acquisition cost over the fair value of net assets is recorded as goodwill. Expenses incurred to effeff ct the acquisition are charged to earnings as of the acquisition date. Upon acquisition, the accounts and results of operations are consolidated as of and subsequent to the acquisition date. forff $59.2 million. In conjunction with this agreement, Acquisi : On August 1, 2021, the Company acquired Beazley Benefits, an operating unit of Beazley Insurance q tion ii Company, Inc. the Company also executed a 100% coinsurance agreement assuming the remaining inforce business produced by the unit. The acquisition was accounted for under the acquisition method of accounting as required by GAAP. This guidance requires the assets acquired and liabilities assumed be based on their fair values at the acquisition date. The goodwill related to the purchase is due to expected synergies as a result of combining operations with other factors. The results of operations since the acquisition date have been consolidated. The cash flows associated with the purchase are recorded in the Consolidll ated Stattt ement of Cash FloFF ws in "Other investing activities." ntstt : Globe Life classifies all of its fixed maturity investments as available forff Investmett available forff accumulated other comprehensive income (AOCI). income" on the Consolidll ated Stattt ements o sale. Investments classified as sale are carried at fair value with unrealized gains and losses, net of taxes, reflected directly in Income from investments is recorded in "Net investment iott ns. Gains and losses from sales, maturities, or other f OperO atrr tt 62 GL 2023 FORM 10-K Globe Life Inc. Notes to Consolidated Financial Statements (Dollar amounts in thousands, except per share data) investments are determined on a specific identification basis. redemptions of investments are recorded in "Realized gains (losses)". Gains and losses realized on the disposition of fees are recognized when earned. Premiums and discounts are amortized using the effective yield method. When amortized cost of a callable debt security exceeds the first call price, the premium is amortized to the earliest call date. Otherwisrr e, the period of amortization or accretion generally extends from the purchase date to the maturity date. income and prepayment Interest "Policy loans", which represent loans provided to policyholders using cash values as collateral, are carried at unpaid principal balances. "Mortgage loans" or commercial mortgage loans, are a type of investment where the mortgage loan is shared among investors, are accounted for as financing receivables. The commercial mortgage loans are managed by a third party. The Company purchased the legal rights to interests in commercial mortgage loans which are secured by properties such as hotels, retail, multiple family, or offiff ces. The commercial mortgage loans typically have a term of 3 years with the option to extend up to 2 years. The commercial mortgage loans are recorded at unpaid principal balance, net of unamortized origination fees and net of allowance forff loan losses. Interest income, net of the amortization of origination fees, is recorded in "Net investment income" under the effective yield method. Our unfunded commitment balance to the commercial loan borrowers was $25 million as of December 31, 2023. "Other long-term investments" include investment funds, equity securities, and real estate. Investments in equity securities are reported at fair value with changes in fair value, net of taxes, reflected directly in "Realized gains (losses)" in the Consolidll ated Stattt ements ott iott ns. Investments in real estate are reported at cost less accumulated depreciation. Depreciation is recorded on a straight-line basis over the estimated useful life. f OperO atrr The investment funds consist of limited partnerships whereby the Company has a pro-rata share of ownership ranging from less than 1% to 20%. For each investment, the Company has elected the fair value option, but would have been otherwisrr each individual investment and concluded at the inception of the investment. e accounted for as an equity method investment. The fair value option is assessed forff ff orff Each limited partnership investment is evaluated under applicable GAAP to determine if it is a variable interest entity (VIE) and would qualify f consolidation. Only primary beneficiaries are required or allowed to consolidate VIEs. The investments are not consolidated because the Company has no power to control the activities that most significantly affeff ct the economic perforff mance of these entities and thereforff e the Company is not the primary beneficiary of any of these interests. Globe Life's involvement is limited to its limited partnership interest in the entities. The Company has not provided any other financial support to the entities beyond its commitments to fund its limited partnership interests, and there are no arrangements or agreements with any of the interests to provide other financial support. The maximum loss exposure relative to these interests is limited to their carrying value and future commitments. The Company has approximately 2% of total assets in low-income housing tax credits and certain limited partnerships (investment funds) that qualify aff s unconsolidated VIEs. The limited partnership investments are reported at the Company's pro-rata share of the investment fund's net asset value or its equivalent (NAV), as a practical expedient for fair value. Changes in the NAV are recorded in net income and increase the carrying value on the balance sheet. The amount of change in NAV aAA ttributable to the net operating results of the fund is recorded in "Net investment income" with the remaining balance of the change reflected in "Realized gains (losses)." Distributions received from the funds reduce the carrying value. Our maximum exposure to loss is equal to the outstanding carrying value and future funding commitments. The Company had $154 million of capital called during the year from existing investment funds, reducing our unfunded commitments. Our unfunded commitments were $744 million as of December 31, 2023. "Short-term investments" include investments in interest-bearing assets with original maturities of twelve months or less. 63 GL 2023 FORM 10-K Globe Life Inc. Notes to Consolidated Financial Statements (Dollar amounts in thousands, except per share data) Fair Value Measuremrr : Globe Life measures the fair value of its "fixed maturities" based on a hierarchy consisting of three levels which indicate the quality of the fair value measurements as described below: Investmett ecuritrr iett s , ents,tt tt nts i n Sii • • • Levelvv 1—fair values are based on quoted prices in active markets forff that the Company has the ability to access as of the measurement date. identical assets or liabilities 2—fair values are based on inputs other than quoted prices included in Level 1 that are Levelvv observarr ble forff the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observarr ble forff the asset or liability, or inputs that can otherwisrr e be corroborated by observarr ble market data. 3—33 fair values are based on inputs that are considered unobservarr ble where there is little, if Levelvv the asset or liability as of the measurement date. In this circumstance, the any, market activity forff Company has to rely on values derived by independent brokers or internally-developed assumptions. Unobservarr ble inputs are developed based on the best inforff mation available to the Company which may include the Company’s own data or bid and ask prices in the dealer market. Certain investments, such as investment funds, that are measured at fair value using the net asset value per share or its equivalent, as a practical expedient, have not been classified in the fair value hierarchy. The net asset value is provided by general partners or managers. The great majoa rity of Globe Life's "fixed maturities" are not actively traded and direct quotes are not generally available. Management thereforff e determines the fair values of these securities after consideration of data provided by third-party pricing servirr ces, the Company's investments in fixed maturities were primarily composed of the folff lowing significant security types: corporate securities, state and municipal securities, U.S. government direct, guaranteed, and government- sponsored enterprises securities. The remaining security types represented approximately 1% of the total in the aggregate. independent broker/drr ealers, and other resources. At December 31, 2023, Approximately 97% of the fair value of "fixed maturities" reported at December 31, 2023 was determined using data provided by third-party pricing services. Prices provided by these servirr ces are not binding offeff rs, but are estimated exit values. Third-party pricing servirr ces use proprietary pricing models to determine security values by discounting cash flows using a market-adjusted spread to a benchmark yield. For all asset classes within Globe Life's significant security types, third-party pricing servirr ces use a common these valuation technique to model the price of the investments using observarr ble market data. The foundat models consists of developing yield spreads based on multiple observarr ble market inputs, including but not limited to: benchmark yield curves, actual trading activity, new issue yields, broker-dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, sector-specific data, economic data, and other inputs that are corroborated in the market. Pricing vendors monitor and review their pricing data continuously with current market and economic data feeds, augmented by ongoing communication within the dealer community. ion forff ff Using the observarr ble market inputs described above, spreads to an appropriate benchmark yield are further developed by the vendors forff each security based on security-specific and/or sector-specific risk factors, such as a security’s terms and conditions (coupon, maturity, and call features), credit rating, sector, liquidity, collateral or other cash flow options, and other factors that could impact the risk of the security. Embedded repayment options, such as call and redemption features, are also taken into account in the pricing models. When the spread is determined, it is added to the security’s benchmark yield. The security's expected cash flows are discounted using this spread- adjusted yield, and the resulting present value of the discounted cash flows is the evaluated price. When third-party vendor prices are not available, the Company attempts to obtain valuations from other sources, including but not limited to broker/drr ealers, broker quotes, and prices on comparable securities. 64 GL 2023 FORM 10-K Globe Life Inc. Notes to Consolidated Financial Statements (Dollar amounts in thousands, except per share data) When valuations have been obtained for all securities in the portfolio, management reviews and analyzes the prices to ensure their reasonableness, taking into account available and observarr ble inforff mation. When two or more valuations are available forff a security and the variance between the prices is 10% or less, the close correlation suggests similar observarr ble inputs were used in deriving the price, and the mean of the prices is used. Securities valued in this manner are classified as Level 2. When the variance between two or more valuations for a security exceeds 10%, additional analysis is perforr that security, using resources such as broker quotes, prices on comparable securities, recent trades, and any other observarr ble market data. Further review is perforff med on the available valuations to determine if they can be corroborated within reasonable tolerance to any other observarr ble evidence. If one of the valuations or the mean of the available valuations for a security can be corroborated with other observarr ble evidence, then the corroborated value is used and reported as Level 2. The Company uses information and analytical techniques deemed appropriate for determining the point within the range of reasonable fair value estimates that is most representative of fair value under current market conditions. ValVV uations that cannot be corroborated within a reasonable tolerance are classified as Level 3. rmed to determine the most appropriate value forff Globe Life invests in a portfolff io of private placement fixed maturities. Private placement fixed maturities are generally not an active market. This portfolio is managed by third parties. The portfolio managers provide valuations for the bonds based on a pricing matrix utilizing observarr ble inputs, such as the benchmark treasury rate and published sector indices, and unobservarr ble inputs such as an internally-developed credit rating. If observarr ble inputs ntstt under the caption cannot be corroborated, the fair values are classified as Level 3. Refer to Note 4—Investmett Quantittt attt tion about Levelvv 3 FaiFF r Vii alVV ue Measuremrr ivtt e Ivv nforff marr entstt . The fair values for each class of security and by valuation hierarchy level are indicated in Note 4—Investmett under the caption Fair value measurements,tt Assets. ntstt tireii ment Benefitff stt under the caption Pension and Note 10—Postrett ents Fair Value Measurements,tt Other Finaii ncial Instrumrr : Fair values for cash and cash equivalents, short-term , investments, short-term debt, receivables, and payables approximate carrying value. Cash and cash equivalents are classified as Level 1. Fair values of commercial mortgage loans are determined based upon expected cash flows discounted at an appropriate risk-adjusted rate and are classified as Level 3. The fair value of investments in limited partnerships that provide low-income housing tax credits is based on discounted projected cash flows and are classified as Level 3. Policy loans are an integral part of Globe Life's subsidiaries’ life insurance policies in forff ce and their fair values cannot be valued separately from the insurance contracts. Investment funds are based on net asset value and are excluded from the fair value hierarchy. The fair values of Globe Life's long and short-term debt issues are based on the same methodology as investments these debt securities and as such in fixed maturities. At December 31, 2023, observarr ble inputs were available forff were classified as Level 2 in the valuation hierarchy. The fair value for each debt instrument as of December 31, 2023 is disclosed in Note 12—Debt. As described in Note 10—Postrett tireii ment Benefitff stt , Globe Life maintains a nonqualified supplemental retirement plan. Accordingly, the assets that support the liability forff this plan are considered general assets of the Company. These assets consist of the cash value of corporate-owned life insurance policies (COLI) and exchange traded funds (ETFs). The fair value of the insurance cash values approximates carrying value. Fair values for the ETFs are derived from direct quotes and are considered Level 1 in the fair value hierarchy. p xx ted Credit Loss Reserverr Current Expec ): At the onset of the evaluation, the Company individually assesses each fixed maturity, on a quarterly basis, to determine whether it intends to sell, or it is more likely than not that it will be required to sell the security before recovery of its amortized cost basis. If either of the criteria are met, the Company will write down the fixed maturity's amortized cost basis to fair value through "Realized gains (losses)". ( (fixff ed maturities)s If neither of the aforementioned criteria are met, the Company will evaluate whether the decline in fair value has resulted from a credit event. The Company will evaluate many factors, as further described below, to determine the 65 GL 2023 FORM 10-K Globe Life Inc. Notes to Consolidated Financial Statements (Dollar amounts in thousands, except per share data) present value of the expected cash flows. A credit loss occurs when the present value of the expected cash flows is less than the amortized cost basis. This will result in the recording of an allowance forff credit losses as a contra asset account to the amortized cost basis with an offseff credit losses in "Realized gains (losses)" iott ns. Additionally, the current expected credit loss (CECL) methodology on the Consolidll ated Stattt ements ott includes a fair value floor where the allowance forff rence between credit loss forff fair value and amortized cost. When it is determined that there is not a credit loss, the decline in fair value is recognized in Other a security cannot exceed the diffeff Comprehensive Ivv ncome. tting provision forff f OperO atrr tt All changes in the allowance for credit losses are recorded as provision forff (or reversal of) credit loss expense. Losses recorded to the allowance for credit losses are management's best estimate of the uncollectibility of principal and interest of a fixed maturity. The evaluation of Globe Life's securities for credit losses is a process that is undertaken at least quarterly and is overseen by a team of investment and accounting professionals. The process for making this determination is highly subjective and involves the careful consideration of many factors. The factors considered include, but are not limited to: • • • • • The Company’s lack of intent to sell the debt security beforff e recovery; Whether it is more likely than not the Company will be required to sell prior to maturity; The reason(s) for the credit related losses; The financial condition of the issuer and the prospects for recovery in fair value of the security; Expected future cash flows. The relative weight given to each of these factors can change over time as facts and circumstances change. In many cases, management believes it is appropriate to give more consideration to prospective factors than to retrospective factors. Prospective factors that are given more weight include prospects for recovery, the Company’s ability and general intent to hold the security until anticipated recovery, and expected future cash flows. Among the facts and information considered in the process are: • • • • • • • • • Financial statements of the issuer Changes in credit ratings of the issuer The value of underlying collateral News and information included in press releases issued by the issuer News and information reported in the media concerning the issuer News and information published by or otherwisrr analysts e provided by securities, economic, or research The nature and amount of recent and expected future sources and uses of cash Default on a required payment Issuer bankruptcy filings The expected cash flows are determined using judgment and the best inforff mation available to the Company. Inputs used to derive expected cash flows generally include expected default rates, current levels of subordination, and estimated recovery rate. The discount rate utilized in the discounted cash flows is the effeff ctive interest rate, which is the rate of return implicit in the asset at acquisition. 66 GL 2023 FORM 10-K Globe Life Inc. Notes to Consolidated Financial Statements (Dollar amounts in thousands, except per share data) xx p loans)s g g t ( (mortgage ted Credit Loss Reserverr ): The Company evaluates the perforr Current Expec rmance and credit quality of the commercial mortgage loan portfolio at least on a quarterly basis, or as needed, by utilizing common metrics such as loan-to-value or debt-servirr ce ratios as well as covenants, local market conditions, borrower quality, and underlying collateral. The fair value of the underlying collateral is based on a third-party appraisal of the property at origination of the loan. The fair value is assessed on an annual basis or more frequently when a loan is rming, 30 days delinquent, or in technical default. The Company determines the probability of materially underperforr the commercial mortgage loan portfolio on a pool basis each quarter and records an allowance. estimated losses forff The allowance forff credit losses is based on estimates, historical experience, probability of loss, value of the underlying collateral, and macro factors that affect the collectability of the loan. If management determines that foreclosure of a particular property is probable, the Company may elect the practical expedient for an individual mortgage loan to estimate the expected credit losses, which are based on the fair value of the property less amortized cost, adjusted for selling and other associated costs. See Note 4 for current activity. Cash: "Ca"" sh" consists of balances on hand and on deposit in banks and financial institutions. investmett Accruedrr nt income: "Accrued investment income" consists of interest income or dividends earned on the investment portfolio, but which are yet to be received as of the balance sheet date. The Company will write off accrued investment income that is deemed to be uncollectible related to the fixed maturities. "Accrued investment income" also consists of interest income earned on the commercial mortgage loan portfolff io, but which is yet to be received as of the balance sheet date. Accrued investment income will be placed in non- accrual status at the time the loan is 90 days delinquent or otherwisrr e deemed to be uncollectible by management. Any currently accrued investment income will subsequently be written off. As of December 31, 2023, the accrued interest receivable forff commercial mortgage loans was $1.7 million. Mortgage loans generally pay interest monthly, thereforff e accrued interest is typically for a period of less than 30 days. As a practical expedient, the Company excludes the accrued investment income from the amortized cost basis of the investment and separately reports it in another financial statement line item, "Accrued investment income." Accordingly, the amount will be excluded from disclosures within Note 4—Investmett ntstt . vv Other Receivabl es: Agent debit balances primarily represent commissions advanced to insurance agents, a common industry practice. These balances are repaid to the Company over time, generally one year, as the premiums associated with the advanced commissions are collected by the Company and a portion of the agents' commissions on such premiums are retained in order to repay the balances. The balances were $501 million at December 31, 2023 and $460 million at December 31, 2022. When an agent sells a policy, commissions are advanced to the agent, and the collection of the advance is made as long as the policy stays in force. While there is a susceptibility to loss should an agent terminate or excessive policy lapses occur, the ability of the Company to continue to collect an agent's commission streams over time from prior sales of policies reduces the Company's exposure to loss. The Company has a very low inherent risk with regard to the collection of agent debit balances and views these balances as recoverable since they are, in aggregate, less than the estimated present value of future commissions discounted at a conservarr tive rate which includes assumptions for lapses and mortality. The Company’s security, or collateral, is in the forff m of future commission streams collected over the life of the policies sold by the respective agents, which ultimately revert to the Company in the event an agent is terminated. The Company evaluated the agent debit balances on a pool basis to determine the allowance forff credit losses, as the loans have similar characteristics. A provision for credit losses will be recorded in "Realized gains (losses)" on the Consolidll ated Stattt ements ott credit losses ("Other receivables"). Based on factors considered by management, there were no additional credit losses recorded during the year ended December 31, 2023. As of December 31, 2023, the allowance forff credit losses was $1.2 million. f OpeO rations and the asset balance will be reflected in agent debit balances, net of allowance forff 67 GL 2023 FORM 10-K Globe Life Inc. Notes to Consolidated Financial Statements (Dollar amounts in thousands, except per share data) ii q tion Coststt Deferred Acquisi : Certain costs of acquiring new insurance business are deferred and recorded as an asset. These costs are capitalized on a grouped contract basis and amortized over the expected term of the related contracts, and are essential forff the acquisition of new insurance business. Deferred acquisition costs (DAC) are directly related to the successful issuance of an insurance contract, and primarily include sales commissions, policy issue costs, direct to consumer advertising costs, and underwr iting costs. Additionally, DAC includes the value of business acquired (VOBA), which are the costs of acquiring blocks of insurance from other companies or through the acquisition of other companies. These costs represent the diffeff rence between the fair value of the contractual insurance insurance assets acquired and liabilities assumed, compared against contracts that the company issues or holds measured in accordance with GAAP. the assets and liabilities forff rr DAC is amortized on a constant-level basis over the expected term of the grouped contracts, with the related iott ns. The expense included in amortization of deferred acquisition costs on the Consolidll ated Stattt ements ott in-forff ce metric used to compute the DAC amortization rate is annualized premium in forff ce. The assumptions used to amortize acquisition costs include mortality, morbidity, and lapses. These assumptions are reviewed at least annually and revised in conjunction with any change in the future policy benefit assumptions. The effeff ct of changes in the assumptions are recognized over the remaining expected contract term as a revision of future amortization amounts. f OperO atrr is consistent with DAC, as described above, and is subject VOBA is amortized on a basis that to periodic recoverability and loss recognition testing to determine if there is a premium deficiency. These tests evaluate whether the present value of future contract-related cash flows will support the capitalized VOBA asset. These cash flows consist primarily of premium income, less benefits and expenses. The present value of these cash flows, less liability, is then compared with the unamortized balance. In the event the estimated present value of net the reserverr the deficiency would be recognized by a charge to earnings and either a reduction of cash flows is less, unamortized acquisition costs or an increase in the liability forff future benefits. Refer to Note 7—DAC. g ing Costs : Costs related to advertising are generally charged to expense as incurred. However, certain Advertistt Direct to Consumer advertising costs are capitalized when there is a reliable and demonstrated relationship between total costs and future benefits that is a direct result of incurring these costs. Direct to Consumer advertising costs consist primarily of internet advertising costs and the production and distribution costs of direct mail advertising materials, and when capitalized are included as a component of DAC. Additionally, they are amortized in the same manner as other DAC. Direct to Consumer advertising costs charged to earnings and included in commissions, premium taxes, and non-deferred acquisition costs were $19.2 million, $9.4 million, and $10.0 million in 2023, 2022, and 2021, respectively. Unamortized capitalized advertising costs included within DAC were $1.6 billion at December 31, 2023 and $1.5 billion at December 31, 2022. Goodwillww : The excess cost of a business acquired over the fair value of net assets acquired is reported as goodwill. In accordance with the guidance, goodwill is subject to impairment testing on an annual basis, or whenever potential impairment triggers occur. Impairment testing involves the perforr rmance of a qualitative analysis, which involves assessing current events and circumstances to determine if it is more likely than not that the fair value of a reporting unit is less than its carrying amount. In the event the fair value is less than the carrying value, further testing is required to determine the amount of impairment, if any. If there is an impairment in the goodwill of any reporting unit, it is written down and charged to earnings in the period of the test. Globe Life tests its goodwill annually as of June 30th forff each of the years 2021 through 2023. The Company's goodwill was not impaired in any of those periods. ts Tax Credit Interesrr : Globe Life invests in limited partnerships that provide low-income g Low-Iww ncome Housingii housing tax credits and other related federal income tax benefits to the Company. Globe Life holds passive interests in limited partnerships that provide investment returns through the provision of tax benefits (principally from the transfer of federal or state tax credits related to federal low-income housing). These investments are considered to consolidation. The carrying value of the Company's investment in these entities was be VIEs and do not qualify f $267 million and $315 million at December 31, 2023 and 2022, respectively, and was included in "Other assets" on the Consolidll ated Balance Sheets.tt As of December 31, 2023, Globe Life was obligated under future commitments of $72 million, which are recorded in "Other liabilities". For guaranteed investments acquired prior to January 1, 2015, the Company utilizes the effective-yield method of amortization, while the proportional method of amortization is ff orff 68 GL 2023 FORM 10-K Globe Life Inc. Notes to Consolidated Financial Statements (Dollar amounts in thousands, except per share data) utilized for all non-guaranteed and guaranteed investments acquired on or after January 1, 2015. All net amortization expense and income tax benefits are recorded in "Income tax benefit (expense)" on the Consolidll ated Stattt ements ott f OperO atrr iott ns. rr y q p tyrr and Equipment equipment and software, and fifteen to forty years forff Proper : Property and equipment, included in “Other assets,” is reported at cost less accumulated p depreciation. Depreciation is recorded primarily on the straight line method over the estimated useful lives of these assets which range from three to fifteff en years forff buildings and improvements. Ordinary maintenance and repairs are charged to income as incurred. Impairments, if any, are recorded when certain events and circumstances become evident that the fair value of the asset is less than its carrying amount. Original cost of property and equipment was $455 million at December 31, 2023 and $406 million at December 31, 2022. Accumulated depreciation was $215 million at the end of 2023 and $194 million at the end of 2022. Depreciation expense was $21 million in 2023, $21 million in 2022, and $20 million in 2021. Internally generated software costs are expensed as incurred in the preliminary projeo ct phase and post-implementation phase, and are capitalized during the application development stage. Additionally, implementation costs incurred in a hosting arrangement that is a servir ce contract are capitalized. See below for a breakout of the net balance by asset class for the year-ended December 31, 2023 and 2022: Property and equipment, net of depreciation: Company occupied real estate................................................................................................ $ 32,566 $ Data processing equipment..................................................................................................... Transportation equipment ........................................................................................................ Furniture and equipment.......................................................................................................... 198,150 7,405 1,776 32,456 177,173 12 2,090 $ 239,897 $ 211,731 Year Ended December 31, 2023 2022 y enefitff stt : The liability forff Future Policy Bc future policy benefits forff traditional and limited-payment long duration life and future policy benefits. The liability is the total health products comprises approximately 92% of liability forff determined each reporting period based on the net level premium method. This method requires the liability forff future policy benefits 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. Net level premiums reflect a recomputed net premium ratio using actual experience since the issue date or the Transition Date1, and expected future experience. The liability is accrued as premium revenue is recognized and adjusted forff differences between actual and expected experience. Long-duration insurance contracts issued by the Company are grouped into cohorts based on the contract issue year, distribution channel, legal entity, and product type. Both the present value of expected future benefit payments and the present value of expected future net premiums are based primarily on assumptions of discount rates, mortality, morbidity, and lapses. Each quarter, the Company remeasures its liability forff future policy benefits using current discount rates with the effeff ct of the change recognized in Other Comprehensive Income, a component of shareholders’ equity. In addition, the Company recognizes a liability remeasurement gain or loss within the Consolidll ated Stattt ements ott iott ns using original discount rates, and relating to actual experience under the net premium calculation, as compared to the prior reporting period assumptions. f OperO atrr The Company regularly reviews its cash flow assumptions (mortality, morbidity, and lapses) used to calculate the change in the liability forff future policy benefits. These cash flow assumptions are updated as necessary in the third quarter of every year, or more frequently if suggested by experience. If cash flow assumptions are changed, the net issue date, or the Transition Date, using actual experience and premium ratio is recalculated from the original projected future cash flows. When the expected future net premiums exceed the expected future gross premiums 1 On January 1, 2023, the Company adopted ASU 2018-12, Financ Accountintt g forff 2021. For additional information, refer to the 'Accounting Pronouncements Adopted in the Current Year' section below. ents to the (ASU 2018-12) on a modified retrospective basis as the transition date (Transition Date) of January 1, ial Servirr ces - Insurance (Topic 944): TarTT get iott n Contratt ctstt ed Improvrr emvv Long-Duratrr rr ii 69 GL 2023 FORM 10-K Globe Life Inc. Notes to Consolidated Financial Statements (Dollar amounts in thousands, except per share data) (capping), or the present value of future policyholder benefits exceeds the present value of expected future gross premiums (flooring), the liability forff future policy benefits is adjusted with changes recognized in policyholder benefits on the Consolidll ated Stattt ements ott iott ns. The cash flow assumptions do not include an adjustment for adverse deviation. Mortality tables used forff individual life insurance include various industry tables and reflect modifications based on Company experience. Morbidity assumptions for individual health are based on Company experience and industry data. Lapse assumptions are based on Company experience. f OperO atrr future policy benefits is discounted as noted above, using a current upper-medium grade fixed- The liability forff income instrument yield that reflects the duration characteristics of the liability forff future policy benefits. The methodology for determining current discount rates consists of constructing a discount rate curve intended to be reflective of the currency and tenor of the insurance liability cash flows. The methodology is designed to prioritize observarr ble inputs based on market data available in the local debt markets denominated in the same currency as the policies. For the discount rates applicable to tenors forff which the single-A debt market is not liquid or there is little or no observarr ble market data, the Company will use estimation techniques consistent with the fair value guidance in ASC 820. We further accrete interest as a component of policyholder benefits using the original discount rate that is locked-in during the year of contract issuance. The original discount rates (or the locked-in discount rates) are used forff interest accretion purposes and for the determination of net premiums, whereas the current discount rates are used for purposes of valuing the liability. future policy benefits for annuity and interest sensitive life-type products is represented by policy The liability forff account value. For limited-payment contracts, a deferred profit liability is also recorded, with changes recognized in income over the life of the contract in proportion to the amount of insurance in forff ce. Refer to Note 6—Policy ii Liabi iett s. litii Reinsurance: In the normal course of business, Globe Life insurance subsidiaries will enter into reinsurance agreements to limit their exposure to the risk of loss as well as enhance their capital position. To qualify f orff reinsurance accounting in accordance with applicable guidance, the assuming company (reinsurer) must have the “reasonable possibility” that it may realize a “significant loss.” In instances where the ceding company does not transfer significant insurance risk to the reinsurer, deposit accounting is utilized. Any risk charges payable related to reinsurance agreements where deposit accounting is applicable are recorded as an Other Liability. Any balances due to the Company under the terms of the reinsurance agreement are recorded as a reinsurance recoverable within Other Assets on the Consolidll ated Balance Sheets.tt ff Unearnedrr and recognized in accordance with applicable GAAP. Refer to Recognition of Premrr and Advanced Premrr ium: Premium collected from both life and health policies that have not been earned vv ium Revenue below. tt y y ayabyy Benefitff s Ptt laims and Other known policy benefits payable and Policy Cc an estimate of claims that have been incurred but not yet reported to the Company. Globe Life makes an estimate of unreported claims after careful evaluation of all information available to the Company. This estimate is based on prior experience and is reviewed quarterly. However, there is no certainty the stated liability forff claims and other benefits, including the estimate of unsubmitted claims, will be Globe Life's ultimate obligation. For more inforff mation, see Note 8—Liabi : Globe Life establishes a liability forff t orff Unpaid Claims. litii y f le ii Current and Deferred Income TaxTT es: Current and deferred income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized forff the future tax consequences attributable to differences between the consolidated financial statement book values and tax bases of assets and liabilities. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. 70 GL 2023 FORM 10-K Globe Life Inc. Notes to Consolidated Financial Statements (Dollar amounts in thousands, except per share data) tireii ment Benefitff stt : Globe Life accounts forff its postretirement defined benefit plans by recognizing the funded Postrett status of those plans on its Consolidll ated Balance Sheetstt in accordance with accounting guidance. Periodic gains and losses attributable to changes in plan assets and liabilities that are not recognized as components of net periodic benefit costs are recognized as components of other comprehensive income, net of tax. The supplemental executive retirement plan is accounted for consistent with the qualified noncontributory pension plan. The assets are included in a Rabbi Trust and recorded in Other Assets on the Consolidll ated Balance Sheets.tt More information tireii ment Benefitff s.tt concerning the accounting and disclosures for postretirement benefits is found in Note 10—Postrett ff rr tock y ury Sr : Globe Life accounts forff Treas is accounted for using the weighted-average cost method. More information is found in Note 13—Sharehol Equity.yy purchases of treasury stock on the cost method. Issuance of treasury stock ders'rr rr vv g p ium Revenue : Premium income forff and Related ExpEE enses Recognition of Premrr long-duration life and health insurance products is recognized evenly over the contract period and when due from the policyholder. Premiums for short-duration health contracts are recognized as revenue over the contract period in proportion to the life-type and annuity contracts are added to the policy insurance protection provided. Premiums for universal account value, and revenues for such products are recognized as charges to the policy account value forff mortality, administration, and surrenders (retrospective deposit method). Life premium includes policy charges of $12.9 million, $13.5 million, and $14.2 million forff the years ended December 31, 2023, 2022, and 2021, respectively. Other premium consists of annuity policy charges in each year. For most insurance products, the related benefits and expenses are matched with revenues by means of the provision of future policy benefits and the amortization of DAC in a manner which recognizes profits as they are earned over the revenue recognition period. For limited- payment life insurance products, the profits are recognized over the contract period. traditional p Stock-Based Compensatiott n stock-based compensation by recognizing an expense in the consolidated financial statements based on the “fair value method.” The fair value method requires that a fair value be assigned to a stock option or other stock grant on its grant date and that this value be amortized over the grantees’ servirr ce period. : Globe Life accounts forff The fair value method requires the use of an option valuation model to value employee stock options. Globe Life has elected to use the Black-Scholes valuation model for option expensing. A summary of assumptions for options granted in each of the three years 2021 through 2023 is as follows: Volatility factor .......................................................................................................................... 23.0 % 22.3 % 21.8 % Dividend yield ........................................................................................................................... Expected term (in years)......................................................................................................... Risk-free rate ............................................................................................................................ 0.7 % 5.10 4.1 % 0.8 % 5.12 1.9 % 0.8 % 5.11 0.6 % 2023 2022 2021 The expected term is generally derived from Company experience. However, expected terms are determined based on the simplified method as permitted under the ASC 718, Stock Compensatiott n, topic when Company experience is insufficient. On April 26, 2018, the shareholders approved the Globe Life Inc. 2018 Incentive Plan, formerly the Torchmark Corporation 2018 Incentive Plan (the "2018 Incentive Plan"). The 2018 Incentive Plan replaced all previous plans. The 2018 Incentive Plan allows forff employees with a seven-year contractual term which vest over three years in addition to ten-year grants which vest over five years as permitted by the previous plans. Director grants vest over six months. VolVV atility and risk-free interest rates are assumed over a period of time consistent with the expected term of the option. Volatility is measured on a historical basis. Monthly data points are utilized to derive volatility forff periods three years and longer. Expected dividend yield is based on current dividend yield held constant over the expected term. Once the fair value of an option has been determined, it is amortized on a straight-line basis over the employee’s servirr ce period forff that grant (from the grant date to the date the grant is fully vested). Expenses for restricted stock and restricted stock units are based on the grant date fair value allocated on a straight-line basis over the servir ce period. Perforff mance share expense is recognized based on management’s estimate of the probability of meeting the metrics identified in the perforr rmance share award agreement, assigned to each servirr ce period as these estimates develop. option grants forff 71 GL 2023 FORM 10-K Globe Life Inc. Notes to Consolidated Financial Statements (Dollar amounts in thousands, except per share data) Stock-based compensation expense is included in “Other operating expense” in the Consolidll ated Stattt ements ott f Operatrr iott ns. Globe Life management views all stock-based compensation expense as a Corporate and Other expense and, thereforff e, presents it as such in its segment analysis. More information concerning the Company's segments is provided in Note 15—Busines s Segmentstt . ii g p : Globe Life presents basic and diluted earnings per common share (EPS) on the face of the Earnings per Sharerr Consolidll ated Stattt ements ott iott ns for income from operations. Basic EPS is computed by dividing income available to common shareholders by the weighted average common shares outstanding for the period. Diluted EPS is calculated by adding to shares outstanding the additional net effeff ct of potentially dilutive securities or contracts, such as stock options, which could be exercised or converted into common shares. For more information on earnings per share, see Note 13—Sharehol ders'rr Equity.yy f OperO atrr rr y ii Correctiott n of Previously Issued Financ Immaterial : The Company previously accounted for certain ial Statementstt group Medicare supplement policies with termination clauses as long-duration contracts. The termination clause precludes the insurance policies from being guaranteed renewable contracts and accordingly should be accounted for as short-duration contracts. In connection with the adoption of ASU 2018-12, the Company changed this accounting, with corresponding adjustments to DAC, future policy benefits, and retained earnings, resulting in an increase of $26.5 million, net of tax, to the opening retained earnings balance as of January 1, 2021. ii ff th quarter of 2023, the Company corrected its presentation forff The Company also previously presented reinsurance recoverable on a net basis as a component of policy liabilities. In the four reinsurance recoverable to a gross basis as a component of other assets, which resulted in the reclassification of $59.7 million, $82.4 million, and $49.9 million of reinsurance recoverable from liabilities to assets as of December 31, 2022, 2021, and 2020, respectively. The balance sheet and related fooff tnotes for all periods presented have been adjusted to reflect such changes. p g dopted in the Currerr nt Year : On January 1, 2023, the Company adopted ASU Accountintt g Pronouncements Att 2018-12 (also referred to as Long Duration Targeted Improvements or LDTI) on a modified retrospective basis as of the transition date (Transition Date) of January 1, 2021. The amended guidance is a significant change to the accounting and disclosure of long-duration life and health insurance contracts. The modified retrospective transition method requires the updated standard be applied to all long-duration life and health contracts, which has resulted in the adjustment of the 2021 and 2022 consolidated financial statements. lowing tables summarize the balance of and changes to the liability forff The folff and health long-duration contracts on the Transition Date due to the adoption of ASU 2018-12: future policy benefits forff traditional life Net Liability for Future Policy Benefits - Long Duration Life American Income DTC Liberty National Other Total Balance at original discount rates as of December 31, 2020(2) ..................................................................................................... $ 3,541,426 $ 2,492,226 $ 2,150,829 $ 2,758,558 $ 10,943,039 Effeff ct of changes in discount rate assumptions ............................ 3,334,600 2,195,430 1,229,610 2,325,536 9,085,176 Effeff ct of capping and flooring(1) ........................................................ — 16,899 2,433 2 19,334 Balance at current discount rates as of January 1, 2021 ........ $ 6,876,026 $ 4,704,555 $ 3,382,872 $ 5,084,096 $ 20,047,549 Reinsurance recoverable .................................................................. $ (109) $ — $ (10,758) $ (49,455) $ (60,322) Balance, net of reinsurance, at current discount rates as of January 1, 2021 ................................................................................... $ 6,875,917 $ 4,704,555 $ 3,372,114 $ 5,034,641 $ 19,987,227 72 GL 2023 FORM 10-K Globe Life Inc. Notes to Consolidated Financial Statements (Dollar amounts in thousands, except per share data) Net liability for Future Policy Benefits - Long Duration Health United American Family Heritage Liberty National American Income DTC Total Balance at original discount rates as of December 31, 2020(2) .............................................................................. $ 88,505 $ 1,390,944 $ 502,952 $ 101,998 $ (2,913) $ 2,081,486 Effeff ct of changes in discount rate assumptions ........... 123,906 501,748 220,313 60,366 Effeff ct of capping and flooring(1) ....................................... 6,506 — 19,324 — 318 4,193 906,651 30,023 Balance at current discount rates as of January 1, 2021 ....................................................................................... 218,917 1,892,692 742,589 162,364 1,598 3,018,160 Reinsurance recoverable.................................................. (5,254) (12,314) (1,961) — — (19,529) Balance, net of reinsurance, at current discount rates as of January 1, 2021 ............................................. $ 213,663 $ 1,880,378 $ 740,628 $ 162,364 $ 1,598 $ 2,998,631 (1) When the present value of expected future net premiums exceeds the present value of expected future gross premiums for a given cohort (capping), or the present value of future policy benefits and related termination expenses exceeds the present value of expected future net premiums (flooring), an adjustment is made to the liability forf future policy benefits. (2) The amounts presented herein have been updated to reflect the immaterial correction of an error, as noted above. The folff lowing table presents total policy liabilities, both beforff e and afteff r the Transition Date: January 1, December 31, 2021(3) 2020(3) Future policy benefits: Net liability forf future policy benefits—long duration life.................................................................. $ 20,047,549 $ 10,943,039 Net liability forf future policy benefits—long duration health............................................................ Additional insurance liabilities(1),(2)....................................................................................................... 3,018,160 2,008,399 2,081,486 2,218,116 Total future policy benefits ............................................................................................................... 25,074,108 15,242,641 Unearned and advance premium(1) ....................................................................................................... Policy claims and other benefits payable(1) .......................................................................................... Other policyholders' funds(1) ................................................................................................................... 243,612 476,710 98,459 61,971 402,693 97,968 Total policy liabilities ...................................................................................................................... $ 25,892,889 $ 15,805,273 (1) In addition to the discount rate related adjustments to future policy benefits, the Company reclassified certain balances within total policy liabilities on the Consolidll ated Balance Sheetstt as a result of adopting ASU 2018-12. The reclassifications had an immaterial impact on Shareholders' Equity. See table summarizing the transition adjustments to Shareholders' Equity below. (2) The Company's additional insurance liabilities consist primarily of: 1) deferred profit liability on limited-payment contracts; and 2) reserves on deferred annuity and interest sensitive life blocks of business. See Note 6—Policy Lc iabilitii iett s for additional information. (3) The amounts presented herein have been updated to reflect the immaterial correction of an error, as noted above. 73 GL 2023 FORM 10-K Globe Life Inc. Notes to Consolidated Financial Statements (Dollar amounts in thousands, except per share data) The folff lowing table presents the Company's deferred policy acquisition costs beforff e and afteff r the Transition Date: January 1, December 31, 2021 2020(1) Life: American Income.................................................................................................................................... $ 1,647,761 $ 1,647,761 Direct to Consumer ................................................................................................................................ 1,498,970 1,498,435 Liberty National....................................................................................................................................... Other......................................................................................................................................................... 531,504 304,786 531,504 304,459 Total life.............................................................................................................................................. 3,983,021 3,982,159 Health: United American ..................................................................................................................................... Family Heritage....................................................................................................................................... Liberty National....................................................................................................................................... American Income.................................................................................................................................... Direct to Consumer ................................................................................................................................ Total health ........................................................................................................................................ Annuity ....................................................................................................................................................... 65,020 364,751 124,754 39,477 2,215 596,217 8,309 60,580 364,751 124,888 39,477 6,520 596,216 3,216 Total DAC ........................................................................................................................................... $ 4,587,547 $ 4,581,591 (1) The amounts presented herein have been updated to reflect the immaterial correction of an error, as noted above. In accordance with ASU 2018-12, the Company has adjusted its DAC balance to remove the impact of unrealized gains and losses that were previously recorded in Accumulated Other Comprehensive Income (AOCI) on the Consolidated Statements of Shareholders' Equity. Under prior guidance, the Company included these amounts within its calculation of amortization. lowing table presents the effeff ct of The folff shareholders' equity: transition adjustments due to the adoption of ASU 2018-12 on Retained Earnings Accumulated Other Comprehensive Income (Loss) Other(1) Total Shareholders’ Equity, as of December 31, 2020 ...... $ 5,874,109 $ 3,029,244 $ (132,261) $ 8,771,092 Effeff ct of changes in discount rate assumptions .......... — (7,829,753) Effeff ct of capping and flooring ......................................... Effeff ct of removal of unrealized gain (loss) on DAC .... Other adjustments(2) ......................................................... (38,992) — 26,470 — 4,704 — — — — — (7,829,753) (38,992) 4,704 26,470 Shareholders’ Equity, as of January 1, 2021 ............ $ 5,861,587 $ ( (4,795,805) $ ) ( (132,261) $ ) 933,521 (1) Other represents common stock, additional paid-in capital, and treasury stock, combining balances that were unaffeff cted by the new standard. (2) Other adjustments relates to an immaterial correction of an error, as noted above. As of the Transition Date, the primary effeff cts of the changes required by the standard were to AOCI and retained earnings. As seen in the table above, the transition adjustments impacting AOCI consist of the effeff ct of changes in discount rate assumptions and the effect of the removal of unrealized gains (losses) on DAC. The effect of changes in discount rate assumptions is the impact, net of tax, of the Company re-measuring its liability forff future policy benefits using current discount rates. As of the Transition Date, we experienced a lower level of current discount rates than the original discount rates used in valuing our future policy benefits under the prior guidance, thus reducing Shareholders' Equity. For the effect of removing unrealized gains (losses) on DAC, this adjustment relates 74 GL 2023 FORM 10-K Globe Life Inc. Notes to Consolidated Financial Statements (Dollar amounts in thousands, except per share data) to the requirement to remove unrealized gains (losses) that were included within the amortization calculation, as noted previously. Regarding the impact on retained earnings, when the present value of net premiums exceeds the present value of gross premiums forff a given cohort (capping), or the present value of future benefits and related termination expenses exceeds the present value of future gross premiums (flooring), an adjustment is recognized to the liability for future policy benefits. Any blocks of business that require increases in future policy benefits to minimum levels, or that have a net premium ratio greater than 100%, required an adjustment to the opening balance of retained earnings (decrease). g etYY to be Adopted c 820): FaiFF rii Accountintt g Pronouncements Ytt ent of Equity Securities Subject to Contratt ctual Sale Restritt ctiott ns, adds disclosure requirements Value Measuremrr specific to equity securities subject the contractual sale as well as the duration of the restriction and the circumstances that could cause a lapse in the restriction. to contractual sale restrictions. The disclosures clarify t : ASU No. 2022-03, Fair Value Measuremrr he nature of ent (TopiTT p ff This standard is effective for the Company on January 1, 2024, and will be implemented on a prospective basis. The Company does not expect the standard will have a material impact on the Consolidated Financial Statements. ASU No. 2023-07, Segment Reportirr ngii , adds o Reportarr ble Segment Disclosuresrr disclosure requirements to segment expenses, improving the financial reporting of the entity’s overall perforr rmance and assessment of future cash flows. The disclosures will require more detailed inforff mation related to the entity’s reportable segments. c 280): Improvements t (TopiTT tt This standard is effective for the Company for annual periods beginning on January 1, 2024 and January 1, 2025 for interim periods, and will be implemented on a retrospective basis. The Company does not expect the standard will have a material impact on the Consolidated Financial Statements. , adds disclosure ASU No. 2023-09, requirements to disaggregated information related to the effeff ctive tax rate reconciliation and information on income taxes paid. The disclosures will enhance the assessment of the entity’s operations and related tax risks. Income Taxes (Topic 740): Improvements t o Income TaxTT Disclosuresrr tt This standard is effective for the Company for the annual period beginning on January 1, 2025, and will be implemented on a prospective basis. The Company does not expect the standard will have a material impact on the Consolidated Financial Statements. 75 GL 2023 FORM 10-K Globe Life Inc. Notes to Consolidated Financial Statements (Dollar amounts in thousands, except per share data) Effeff ct of New Accountintt g Standards odd y 2018-12 on the Company's previously reported results included in these financial statements are as follows: n Previously Reported Resultstt : The impacts from the adoption of ASU p g Consolidated Balance Sheets As Previously Reported December 31, 2022 Adoption Impact(1) As Adjusted Assets: Other receivables.................................................................................................... $ 484,887 $ 104,284 $ 589,171 Deferred acquisition costs ..................................................................................... 5,249,907 285,790 5,535,697 Liabilities: Future policy benefits ............................................................................................. 16,721,846 1,375,495 18,097,341 Unearned and advance premium......................................................................... Policy claims and other benefits payable............................................................ Current and deferred income taxes ..................................................................... 60,742 430,027 686,172 192,618 79,329 (251,523) 253,360 509,356 434,649 Shareholders' equity: Accumulated other comprehensive income (loss) ............................................ (1,415,714) (1,374,599) (2,790,313) Retained earnings .................................................................................................. 6,466,220 428,315 6,894,535 (1) In addition to the impact of the adoption, this also includes the immaterial error corrections noted above. Consolidated Statements of Operations Year Ended December 31, 2022 Year Ended December 31, 2021 As Previously Reported Adoption Impact(1) As Adjusted As Previously Reported Adoption Impact(1) As Adjusted Revenue: Life premium..................................................... $ 3,023,296 $ 4,528 $ 3,027,824 $ 2,898,210 $ (4,280) $ 2,893,930 Health premium................................................ 1,279,412 Net investment income ................................... 987,499 3,005 4,301 1,282,417 1,201,676 (794) 1,200,882 991,800 952,447 4,243 956,690 Benefits and expenses: Life policyholder benefits ............................... 2,045,730 (10,037) 2,035,693 2,071,810 (173,291) 1,898,519 Health policyholder benefits .......................... 791,809 (38,943) 752,866 758,745 (37,436) 721,309 Other policyholder benefits ............................ 27,917 8,958 36,875 29,061 10,157 39,218 Amortization of deferred acquisition costs... 624,407 (275,583) 348,824 603,838 (286,222) 317,616 Commissions, premium taxes, and non- deferred acquisition costs............................... 374,383 131,639 506,022 331,510 123,740 455,250 Income beforf e income taxes............................. 906,311 195,800 1,102,111 912,390 362,221 1,274,611 Income tax benefit (expense) ........................... (166,607) (41,118) (207,725) (167,431) (76,066) (243,497) Net income ............................................. $ 739,704 $ 154,682 $ 894,386 $ 744,959 $ 286,155 $ 1,031,114 Basic net income per common share ....... $ 7.55 $ 1.58 $ 9.13 $ 7.30 $ 2.80 $ 10.10 Diluted net income per common share .... $ 7.47 $ 1.57 $ 9.04 $ 7.22 $ 2.77 $ 9.99 (1) In addition to the impact of adoption, this also includes the immaterial error corrections noted above. See Note 1—Signi i on the adoption. fiii cant Accountintt g Policll ies, Note 6—Policy Lc iabilitii iett s, and Note 7—DAC for additional information 76 GL 2023 FORM 10-K Globe Life Inc. Notes to Consolidated Financial Statements (Dollar amounts in thousands, except per share data) Note 2—Statutory Arr ccounting Life insurance subsidiaries of Globe Life are required to file statutory financial statements with state insurance regulatory authorities. Accounting principles used to prepare these statutory financial statements diffeff r from GAAP. Consolidated net income and shareholders’ equity (capital and surplus) on a statutory basis for the insurance subsidiaries were as follows: Life insurance subsidiaries .......................... $ 434,952 $ 444,294 $ 373,703 $ 1,660,104 $ 1,632,018 Net Income Year Ended December 31, Shareholders’ Equity At December 31, 2023 2022 2021 2023 2022 The excess, if any, of shareholders' equity of the insurance subsidiaries on a GAAP basis over that determined on a distribution by the insurance subsidiaries to the Parent Company without statutory basis is not available forff regulatory approval. egulatory requirements in the aggregate was $607 million at December 31, 2023. More inforff mation on the restrictions on the payment of dividends can be found in Note 13—S33 Insurance subsidiaries’ statutory capital and surplus necessary to satisfy r ders'rr Equity.yy rr harehol ff The Company's statutory financial statements are presented on the basis of accounting practices prescribed by the insurance department of the state of domicile of each insurance subsidiary. While all states have adopted the National Association of Insurance Commissioners’ (NAIC) statutory accounting practices (NAIC SAP) as the basis for statutory accounting, certain states have retained prescribed practices of their respective insurance code or administrative code which can diffeff r from NAIC SAP. For Globe Life's life insurance companies, there are no significant differences between NAIC SAP and the accounting practices prescribed by the states of domicile. 77 GL 2023 FORM 10-K Globe Life Inc. Notes to Consolidated Financial Statements (Dollar amounts in thousands, except per share data) Note 3—Supplemental Information about Changes to Accumulated Other Comprehensive Income p Components ott Accumulated Other Comprehensive Income is as folff f Accumulated Other Comprehensive Ivv p ncome : An analysis of the change in balance by component of lows for each of the years 2021 through 2023: Available for Sale Assets Future Policy Benefits Foreign Exchange Pension Adjustments Total For the year ended December 31, 2021: Balance at January 1, 2021 .................................. $ 3,175,572 $ (7,829,753) $ 23,302 $ (164,926) $ (4,795,805) Other comprehensive income (loss) beforf e reclassifications, net of tax.................................... (385,231) 913,843 (4,054) Reclassifications, net of tax .................................. (25,051) — Other comprehensive income (loss).................... (410,282) 913,843 Balance at December 31, 2021 .............................. 2,765,290 (6,915,910) — (4,054) 19,248 44,819 16,431 61,250 569,377 (8,620) 560,757 (103,676) (4,235,048) For the year ended December 31, 2022: Other comprehensive income (loss) beforf e reclassifications, net of tax.................................... (4,211,540) 5,546,706 (20,929) Reclassifications, net of tax .................................. 25,578 — Other comprehensive income (loss).................... (4,185,962) 5,546,706 Balance at December 31, 2022 .............................. (1,420,672) (1,369,204) — (20,929) (1,681) 94,055 10,865 1,408,292 36,443 104,920 1,444,735 1,244 (2,790,313) For the year ended December 31, 2023: Other comprehensive income (loss) beforf e reclassifications, net of tax.................................... Reclassifications, net of tax .................................. Other comprehensive income (loss).................... Balance at December 31, 2023 .............................. $ 529,688 63,388 593,076 (578,187) — (578,187) 6,400 — 6,400 (3,087) (308) (3,395) (45,186) 63,080 17,894 ( ( (827,596) $ (1,947,391) $ ) ) 4,719 $ ) ( ( (2,151) $ (2,772,419) ) 78 GL 2023 FORM 10-K Globe Life Inc. Notes to Consolidated Financial Statements (Dollar amounts in thousands, except per share data) Reclassifiii cation adjustmentstt presented below for the three years ended December 31, 2023. j : Reclassification adjustments out of Accumulated Other Comprehensive Income are Component Line Item Unrealized investment (gains) losses on available for sale assets: Year Ended December 31, 2022 2023 2021 Affeff cted line items in the Statement of Operations Realized (gains) losses.............................................. $ 84,416 $ 32,165 $ (37,874) Realized (gains) losses Amortization of (discount) premium ......................... (4,178) 212 6,164 Net investment income Total beforff e tax.......................................................... 80,238 32,377 (31,710) Tax............................................................................... (16,850) (6,799) 6,659 Income taxes Total after-tax.......................................................... 63,388 25,578 (25,051) Pension adjustments: Amortization of prior servir ce cost ............................. Amortization of actuarial (gain) loss......................... Total beforff e tax.......................................................... 1,075 (1,465) (390) 1,077 12,677 13,754 631 Other operating expense 20,166 Other operating expense 20,797 Tax............................................................................... 82 (2,889) (4,366) Income taxes Total after-tax.......................................................... (308) r-tax) .............................. $ 63,080 10,865 16,431 $ 36,443 ) $ (8,620) ( Total reclassification (afteff 79 GL 2023 FORM 10-K Globe Life Inc. Notes to Consolidated Financial Statements (Dollar amounts in thousands, except per share data) Note 4—Investments p : Summaries of fixed maturities available forff Portfolio Compositiott n sale by amortized cost, fair value, and allowance for credit losses at December 31, 2023 and 2022, and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income (loss) are as folff lows. Redeemable preferred stock is included within "Corporates, by sector." At December 31, 2023 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 ............................................. $ States, municipalities, and political subdivisions ........................................... Foreign governments ........................... Corporates, by sector: Financial............................................ Utilities ............................................... Energy ............................................... Other corporate sectors.................. 3,296,305 44,453 5,028,151 2,017,967 1,446,480 6,569,646 Total corporates ............................ 15,062,244 Collateralized debt obligations............ Other asset-backed securities............ 37,110 86,352 398,450 $ — $ 7 $ (32,306) $ 366,151 — — — — — (7,115) (7,115) — — 47,346 (403,329) 2,940,322 1 (10,348) 34,106 112,368 (388,340) 4,752,179 73,925 58,637 (94,130) 1,997,762 (62,324) 1,442,793 154,441 (504,523) 6,212,449 399,371 (1,049,317) 14,405,183 5,036 3 — (4,057) 42,146 82,298 Total fixed maturities ................... $18,924,914 $ ( (7,115) $ ) 451,764 (1) Amount reported in the balance sheet. (2) At fair value. $ (1,499,357) $ 17,870,206 ( ) At December 31, 2022 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 .............................................. $ States, municipalities, and political subdivisions ............................................ Foreign governments ............................ Corporates, by sector: Financial............................................. Utilities ................................................ Energy ................................................ Other corporate sectors................... 2,791,030 55,164 4,907,794 1,924,190 1,436,598 6,667,043 Total corporates ............................. 14,935,625 Collateralized debt obligations............. Other asset-backed securities............. 37,098 88,336 394,439 $ — $ 27 $ (38,968) $ 355,498 — — — — — — — — — 24,328 (505,447) 2,309,911 6 (12,706) 42,464 63,126 36,670 22,637 78,903 (504,489) 4,466,431 (125,713) 1,835,147 (101,923) 1,357,312 (738,772) 6,007,174 201,336 (1,470,897) 13,666,064 13,266 — 4 (9,276) 50,364 79,064 2 16 — 27 11 8 35 81 — 1 100 2 14 — 27 11 8 37 83 — 1 Total fixed maturities .................... $18,301,692 $ — $ 238,967 ) $(2,037,294) $16,503,365 ( 100 (1) Amount reported in the balance sheet. (2) At fair value. 80 GL 2023 FORM 10-K Globe Life Inc. Notes to Consolidated Financial Statements (Dollar amounts in thousands, except per share data) The Company has exposure to banks within our fixed maturity portfolio, with an average credit rating of A- . The Company’s bank securities had a fair value of $1.3 billion (7% of the total fixed maturity portfolio) and $1.3 billion (8% of the total fixed maturity portfolff io) at December 31, 2023 and December 31, 2022, respectively. Additionally, the Company has exposure to real estate investment trusts with an average rating of BBB+, which had a fair value of $425 million (2% of the total fixed maturity portfolff io) at December 31, 2023 and December 31, 2022, respectively. io) and $428 million (3% of the total fixed maturity portfolff A schedule of fixed maturities available forff sale by contractual maturity date at December 31, 2023, is shown below on an amortized cost basis, net of allowance for credit losses, and on a fair value basis. Actual disposition dates could diffeff r from contractual maturities due to call or prepayment provisions. At December 31, 2023 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................................................................................. 110,352 $ 109,817 850,072 1,988,461 8,376,525 7,468,886 123,503 858,859 2,011,887 8,164,465 6,600,692 124,486 $ 18,917,799 $ 17,870,206 Analysi y l f invii esvv s oii summarized as folff p tment operatrr lows: iott ns: "Net investment income" forff the three years ended December 31, 2023, is Year Ended December 31, 2023 2022 2021 Fixed maturities available forff sale............................................................................ $ 944,628 $ 910,284 $ 892,421 Policy loans.................................................................................................................. Mortgage loans ........................................................................................................... Other long-term investments(1) ................................................................................. Short-term investments.............................................................................................. 49,011 19,541 54,655 6,322 46,586 9,719 40,837 2,156 1,074,157 1,009,582 Less investment expense.......................................................................................... (17,273) (17,782) 45,318 8,831 27,007 24 973,601 (16,911) Net investment income ....................................................................................... $ 1,056,884 $ 991,800 $ 956,690 (1) For the years ended 2023, 2022 and 2021, the investment funds, accounted forff $40.3 million, and $26.7 million, respectively, in net investment income. Refer to Other Long-TerTT m I on the investment funds. rr under the fair value option method, recorded $52.3 million, tmentstt below for further discussion nvesvv 81 GL 2023 FORM 10-K Globe Life Inc. Notes to Consolidated Financial Statements (Dollar amounts in thousands, except per share data) An analysis of "realized gains (losses)" is as folff lows: Realized investment gains (losses): Fixed maturities available forf sale: Year Ended December 31, 2023 2022 2021 Sales and other(1)................................................................................................... $ (77,301) $ (32,552) $ Provision forf credit losses .................................................................................... Fair value option—change in fair value................................................................ Mortgage loans ........................................................................................................ Other investments ................................................................................................... Realized gains (losses) from investments .................................................. Realized loss on redemption of debt ............................................................... Other gains (losses) ............................................................................................. Applicable tax........................................................................................................... (7,115) 15,102 (5,603) 1,792 (73,125) — 7,449 (65,676) 13,792 387 (29,353) (963) 4,681 (57,800) — (18,748) (76,548) 16,075 34,916 2,959 22,918 1,788 (135) 62,446 (9,314) 6,187 59,319 (12,457) Realized gains (losses), net of tax ................................................................. $ (51,884) $ ( ) (60,473) $ ( ) 46,862 (1) For the years ended 2023, 2022 and 2021, the Company recorded $50.9 million, $147.6 million, and $109.2 million of issuer-initiated exchanges of fixed maturities (noncash transactions) that resulted in $(1.9) million, $1.9 million, and $25.2 million, respectively, in realized gains (losses). During the year ended December 31, 2023, the Company sold $66 million in securities relating to holdings in Signature Bank New YorYY k and First Republic Bank, which entered receivership during the first half of the year. An analysis of the net change in unrealized investment gains (losses) is as follows: Change in unrealized investment gains (losses) on: Fixed maturities available forf sale......................................................................... $ 750,734 $ (5,298,692) $ (519,345) Year Ended December 31, 2023 2022 2021 82 GL 2023 FORM 10-K Globe Life Inc. Notes to Consolidated Financial Statements (Dollar amounts in thousands, except per share data) Selected information about sales of fixed maturities available forff sale is as follows: Fixed maturities available for sale: Proceeds from sales(1) ............................................................................................ $ 602,556 $ 390,392 $ 116,656 Gross realized gains ............................................................................................... Gross realized losses.............................................................................................. 5,554 (80,823) 1,296 (57,996) 1,848 (12,101) (1) There were no unsettled sales in the periods ended December 31, 2023, 2022 and 2021. Year Ended December 31, 2023 2022 2021 Fair value measuremrr basis at December 31, 2023 and 2022: ents:tt The folff lowing tables represent the fair value of fixed maturities measured on a recurring Fair Value Measurement at December 31, 2023: Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observabrr Inputs (Level 2) le Significant Unobservabrr le Inputs (Level 3) Total Fair Value Fixed maturities available for sale U.S. Government direct, guaranteed, and government-sponsored enterprises...................... $ States, municipalities, and political subdivisions Foreign governments .............................................. Corporates, by sector: Financial.................................................................. Utilities ..................................................................... Energy ..................................................................... Other corporate sectors........................................ Total corporates .................................................. Collateralized debt obligations............................... Other asset-backed securities............................... Total fixed maturities ......................................... $ — — — — — — — — — — — $ 366,151 $ 2,940,322 34,106 4,621,160 1,888,797 1,432,884 6,007,609 13,950,450 — 82,298 — — — $ 366,151 2,940,322 34,106 131,019 108,965 9,909 204,840 454,733 42,146 — 4,752,179 1,997,762 1,442,793 6,212,449 14,405,183 42,146 82,298 $ 17,373,327 $ 496,879 $ 17,870,206 Percentage of total .................................................. — % 97 % 3 % 100 % 83 GL 2023 FORM 10-K Globe Life Inc. Notes to Consolidated Financial Statements (Dollar amounts in thousands, except per share data) Fair Value Measurement at December 31, 2022: Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observabrr Inputs (Level 2) le Significant Unobservabrr le Inputs (Level 3) Total Fair Value Fixed maturities available for sale U.S. Government direct, guaranteed, and government-sponsored enterprises........................ $ States, municipalities, and political subdivisions .. Foreign governments ................................................ Corporates, by sector: Financial.................................................................... Utilities ....................................................................... Energy ....................................................................... Other corporate sectors.......................................... Total corporates .................................................... Collateralized debt obligations................................. Other asset-backed securities................................. Total fixed maturities ........................................... $ — — — — — — — — — — — $ 355,498 $ 2,309,911 42,464 4,332,495 1,723,832 1,346,212 5,785,442 13,187,981 — 79,064 — — — $ 355,498 2,309,911 42,464 133,936 111,315 11,100 221,732 478,083 50,364 — 4,466,431 1,835,147 1,357,312 6,007,174 13,666,064 50,364 79,064 $ 15,974,918 $ 528,447 $ 16,503,365 Percentage of total ....................................................... — % 97 % 3 % 100 % 84 GL 2023 FORM 10-K Globe Life Inc. Notes to Consolidated Financial Statements (Dollar amounts in thousands, except per share data) lowing tables represent changes in fixed maturities measured at fair value on a recurring basis using The folff significant unobservarr ble inputs (Level 3): Balance at January 1, 2021 ............................................ $ 12,870 $ 71,598 $ 714,505 $ 798,973 Analysis of Changes in Fair Value Measurements Using Significant Unobservabrr le Inputs (Level 3) Asset- backed Securities Collateralized Debt Obligations Corporates Total Included in realized gains / losses ................................. Included in other comprehensive income ..................... Acquisitions(1) .................................................................... (82) 63 — Sales................................................................................... (12,851) Amortization....................................................................... Other(2)................................................................................ Transfers into Level 3(3) ................................................... Transfers out of Level 3(3)................................................ Balance at December 31, 2021 ..................................... Included in realized gains / losses ................................. Included in other comprehensive income ..................... Acquisitions(1) .................................................................... Sales................................................................................... Amortization....................................................................... Other(2)................................................................................ Transfers into Level 3(3) ................................................... Transfers out of Level 3(3)................................................ Balance at December 31, 2022 ..................................... Included in realized gains / losses ................................. Included in other comprehensive income ..................... Acquisitions(1) .................................................................... Sales................................................................................... Amortization....................................................................... Other(2)................................................................................ Transfers into Level 3(3) ................................................... Transfers out of Level 3(3)................................................ — — — — — — — — — — — — — — — — — — — — — — (6,787) 12,447 — (13,213) 4,505 (5,045) — — 63,505 — (13,771) — — 4,519 (3,889) — — 50,364 — (8,230) — — 4,569 (4,557) — — 3,275 (20,818) 25,000 — 9 (80,283) — — (3,594) (8,308) 25,000 (26,064) 4,514 (85,328) — — 641,688 705,193 — — (91,385) (105,156) — — 7 (72,227) — — — — 4,526 (76,116) — — 478,083 528,447 — 4,541 — — 155 (28,046) — — — (3,689) — — 4,724 (32,603) — — Balance at December 31, 2023 ..................................... $ — $ 42,146 $ 454,733 $ 496,879 Change in unrealized gains or losses forff comprehensive income forff assets held at the end of the reporting period: level 3 securities during the period included in accumulated other Asset- backed Securities Collateralized Debt Obligations Corporates Total 2021 ................................................................................ $ 2022 ................................................................................ 2023 ................................................................................ 63 — — $ 12,447 $ (20,818) $ (13,771) (8,230) (91,385) 4,541 (8,308) (105,156) (3,689) (1) Acquisitions of Level 3 investments in each of the years 2021 through 2023 are comprised of private placement fixed maturities and equities. (2) Includes capitalized interest, forf eign exchange adjustments, and principal repayments. (3) Considered to be transferred at the end of the period. Transfers into Level 3 occur when observarr ble inputs are no longer available. Transfers out of Level 3 occur when observarr ble inputs become available. 85 GL 2023 FORM 10-K Globe Life Inc. Notes to Consolidated Financial Statements (Dollar amounts in thousands, except per share data) Transfers between levels within the hierarchy occur when there are changes in the observarr bility of the inputs and market data. Transfers into Level 3 occur when there is little unobservarr ble market activity forff 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 becomes available forff identical assets/ liabilities or the ability to corroborate by observarr ble market data. The folff lowing table represents quantitative inforff mation about Level 3 fair value measurements: Quantitative Information about Level 3 Fair Value Measurements As of December 31, 2023 Fair Value Private placement fixed maturities............... $ 454,733 Collateralized debt obligations ..................... 42,146 $ 496,879 Valuation Techniques Determination of credit spread Discounted Cash Flows Significant Unobservabrr Input le Range Weighted- Average(1) Credit rating A+ to CCC+ BBB Discount rate 11.65% 11.65% (1) Unobservarr ble inputs were weighted by the relative fair value of the instruments. The private placement fixed maturities reported as Level 3, are managed by third-party investment managers. These securities are valued based on the contractual cash flows discounted by a yield determined as a treasury benchmark adjusted forff similar public corresponding credit ratings. However, the fixed maturities and unobservarr ble indices for private fixed maturities forff credit ratings for the securities are considered unobservarr ble inputs, as they are assigned by the third-party investment manager based on a quantitative and qualitative assessment of the credit underwr itten. A higher (lower) credit rating would result in a higher (lower) valuation. a credit spread. The credit spread is developed from observarr ble indices forff rr The collateral underlying collateralized debt obligations consists primarily of trust preferred securities issued by banks and insurance companies. Collateralized debt obligations are valued at the present value of expected future cash flows using an unobservable discount rate. Expected cash flows are determined by scheduling the projected repayment of the collateral assuming no future defaults, deferrals, or recoveries. The discount rate is risk-adjusted to take these items into account. A significant increase (decrease) in the discount rate will produce a significant decrease (increase) in fair value. Additionally, a significant increase (decrease) in the cash flow expectations would result in a significant increase (decrease) in fair value. For more inforff mation regarding valuation procedures, please refer to Note 1—Signi nii Securities. ies under the caption Fair Value Measuremrr fii cant Accountintt g Policll Investmett ents,tt tt nts i ii Unrealizll ed Loss Analysiyy siiy unrealized loss position. : The folff lowing table discloses information about fixed maturities available forff sale in an Less than Twelve Months Twelve Months or Longer Total Number of issues (CUSIPs) held: As of December 31, 2023....................................................................................... As of December 31, 2022....................................................................................... 151 1,819 1,614 157 1,765 1,976 Globe Life's entire fixed maturity portfolff io consisted of 2,473 issues by 980 different issuers at December 31, 2023 and 2,328 issues by 979 different issuers at December 31, 2022. The increase in the number of securities in an unrealized loss position during the years ended December 31, 2023 and 2022 is due to the increase in interest rates. The weighted-average quality rating of all unrealized loss positions at amortized cost was A- as of December 31, 2023 and December 31, 2022. 86 GL 2023 FORM 10-K Globe Life Inc. Notes to Consolidated Financial Statements (Dollar amounts in thousands, except per share data) lowing tables disclose unrealized investment losses by class and majoa r sector of fixed maturities available forff The folff sale at December 31, 2023 and December 31, 2022. Analysis of Gross Unrealized Investment Losses At December 31, 2023 Less than Twelve Months Twelve Months or Longer Total Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Fixed maturities available for sale: Investment grade securities: U.S. Government direct, guaranteed, and government-sponsored enterprises .............................................. $ States, municipalities, and political subdivisions ............................................ — $ — $ 364,006 $ (32,306) $ 364,006 $ (32,306) 252,800 (3,520) 1,610,163 (399,809) 1,862,963 (403,329) Foreign governments ............................ — — 32,591 (10,348) 32,591 (10,348) Corporates, by sector: Financial............................................... 242,099 (6,584) 2,341,424 (339,628) 2,583,523 (346,212) Utilities .................................................. Energy .................................................. Other corporate sectors..................... Total corporates ............................... Collateralized debt obligations............. Other asset-backed securities............. 81,194 18,301 173,272 514,866 — — (648) (445) 686,043 516,387 (91,959) (54,398) 767,237 534,688 (3,436) 3,801,440 (475,613) 3,974,712 (11,113) 7,345,294 (961,598) 7,860,160 (92,607) (54,843) (479,049) (972,711) — — — — — — 70,956 (3,648) 70,956 (3,648) Total investment grade securities.......... 767,666 (14,633) 9,423,010 (1,407,709) 10,190,676 (1,422,342) Below investment grade securities: Corporates, by sector: Financial............................................... 25,563 (2,602) 151,190 (39,526) 176,753 (42,128) Utilities .................................................. Energy .................................................. Other corporate sectors..................... Total corporates ............................... Collateralized debt obligations............. Other asset-backed securities............. Total below investment grade securities................................................... — — 10,745 36,308 — — — — (199) (2,801) — — 19,654 37,171 108,526 316,541 — 11,288 (1,523) (7,481) (25,275) (73,805) — (409) 19,654 37,171 119,271 352,849 — 11,288 (1,523) (7,481) (25,474) (76,606) — (409) 36,308 (2,801) 327,829 (74,214) 364,137 (77,015) Total fixed maturities .............................. $ 803,974 $ ( (17,434) $ 9,750,839 ) $(1,481,923) $10,554,813 ) ( ) $ (1,499,357) ( Gross unrealized losses may fluctuate quarter over quarter due to adverse factors in the market that affeff ct our 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 from time to time, 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. 87 GL 2023 FORM 10-K Globe Life Inc. Notes to Consolidated Financial Statements (Dollar amounts in thousands, except per share data) Analysis of Gross Unrealized Investment Losses At December 31, 2022 Less than Twelve Months Twelve Months or Longer Total Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Fixed maturities available for sale: Investment grade securities: U.S. Government direct, guaranteed, and government-sponsored enterprises $ States, municipalities, and political subdivisions................................................ 349,887 $ (38,218) $ 3,424 $ (750) $ 353,311 $ (38,968) 1,767,624 (453,149) 95,124 25,134 (52,298) 1,862,748 (505,447) (12,505) 31,431 (12,706) Foreign governments................................ 6,297 (201) Corporates, by sector: Financial................................................... 2,837,918 (426,132) 109,784 (42,173) 2,947,702 (468,305) Utilities...................................................... 1,088,219 (116,272) 21,636 (6,268) 1,109,855 (122,540) Energy...................................................... 855,853 (91,755) — — 855,853 (91,755) Other corporate sectors......................... 4,155,986 (665,831) 94,299 (42,344) 4,250,285 (708,175) Total corporates ................................... 8,937,976 (1,299,990) 225,719 (90,785) 9,163,695 (1,390,775) Collateralized debt obligations ................ — — Other asset-backed securities................. 60,157 (5,223) — 7,960 — — — (2,435) 68,117 (7,658) Total investment grade securities ............. 11,121,941 (1,796,781) 357,361 (158,773) 11,479,302 (1,955,554) Below investment grade securities: Corporates, by sector: Financial................................................... 120,377 (18,901) 38,348 (17,283) 158,725 Utilities...................................................... Energy...................................................... Other corporate sectors......................... Total corporates ................................... Collateralized debt obligations ................ Other asset-backed securities................. 27,722 14,480 166,159 328,738 — — (3,173) (2,182) (25,962) (50,218) — — Total below investment grade securities.. 328,738 (50,218) — 20,075 6,670 65,093 — 10,874 75,967 — (7,986) (4,635) (29,904) — 27,722 34,555 172,829 393,831 — (1,618) 10,874 (31,522) 404,705 (36,184) (3,173) (10,168) (30,597) (80,122) — (1,618) (81,740) Total fixed maturities ................................. $11,450,679 $(1,846,999) $ 433,328 ( ) ) $ (190,295) $11,884,007 $(2,037,294) ( ) ( Gross unrealized losses decreased from $2.04 billion at December 31, 2022 to $1.50 billion at December 31, 2023, a decrease of $538 million. The decrease in the gross unrealized losses from the prior year was primarily attributable to the decrease in market interest rates. 88 GL 2023 FORM 10-K Globe Life Inc. Notes to Consolidated Financial Statements (Dollar amounts in thousands, except per share data) Fixeii d Maturitrr iett s, Alloll wance forff Credi follows. Refer to Note 1 for factors considered in the recording of the allowance forff : A summary of the activity in the allowance forff credit losses. t Losses rr , credit losses is as Year Ended December 31, 2023 2022 Allowance for credit losses beginning balance ........................................................................... $ — $ Additions to allowance forff which credit losses were not previously recorded................................ Additions (reductions) to allowance forff fixed maturities that previously had an allowance ......... Reduction of allowance forf which the Company intends to sell or more likely than not will be required to sell or sold during the period.............................................................................................. 72,508 (65,393) — Allowance for credit losses ending balance ................................................................................. $ 7,115 $ 387 — — (387) — As of December 31, 2023 and December 31, 2022, the Company did not have any fixed maturities in non-accrual status. During the year ended December 31, 2023, the Company sold $66 million in securities forff which there was a credit losses relating to holdings in Signature Bank New YorYY k and First Republic Bank, which entered provision forff receivership during the first half of the year. Concentratt any given issuer. At December 31, 2023, the investment portfolff tions of Credi t Risk: Globe Life maintains a diversified investment portfolff rr io, at fair value, consisted of the following: io with limited concentration in Investment grade fixed maturities: Corporates ............................................................................................................................................................................................. 71 % States, municipalities, and political subdivisions ............................................................................................................................. 15 U.S. Government direct, guaranteed, and government-sponsored enterprises......................................................................... Other....................................................................................................................................................................................................... Below investment grade fixed maturities: Corporates ............................................................................................................................................................................................. Other Policy loans, which are secured by the underlying insurance policy values............................................................................... Other investments ................................................................................................................................................................................ 2 1 2 91 3 6 100 % As of December 31, 2023, state and municipal governments represented 15% of invested assets at fair value. Such investments are made throughout the U.S. At December 31, 2023, the state and municipal bond portfolff io at fair value was invested in securities issued within the following states: Texas (19%), Califorff nia (9%), New YorYY k (7%), Florida (5%), and Pennsylvania (4%). Otherwisrr e, there was no concentration within any given state greater than 4%. 89 GL 2023 FORM 10-K Globe Life Inc. Notes to Consolidated Financial Statements (Dollar amounts in thousands, except per share data) Corporate fixed maturities represent 73% of Globe Life's invested assets. These investments are spread across a wide range of industries. Below are the ten largest industry concentrations held in the portfolff io of corporate fixed maturities at December 31, 2023, based on fair value: Insurance..................................................................................................................................................................................................... 16 % Electric utilities............................................................................................................................................................................................ 10 Banks ........................................................................................................................................................................................................... Oil and natural gas pipelines.................................................................................................................................................................... Chemicals.................................................................................................................................................................................................... Transportation............................................................................................................................................................................................. Telecommunications.................................................................................................................................................................................. Food ............................................................................................................................................................................................................. Diversified financial servirr ces.................................................................................................................................................................... Real estate investment trusts................................................................................................................................................................... 9 6 5 4 4 3 3 3 At December 31, 2023, 2% of invested assets at fair value were represented by fixed maturities rated below investment grade. Par value of these investments was $646 million, amortized cost was $530 million, and fair value was $459 million. While these investments could be subject to additional credit risk, such risk should generally be reflected in their fair value. Securities, cash, and short-term investments held on deposit with various state and federal regulatory authorities had an amortized cost and fair value, respectively, of $1.0 billion and $983 million at December 31, 2023 and $975 million and $889 million at December 31, 2022. Mortgage g g t geographical location at December 31, 2023 and 2022 are as folff Loans (commercial mortgrr age loans):s g g ( ) Summaries of commercial mortgage loans by property type and lows: 2023 2022 Carrying Value % of Total Carrying Value % of Total Property type: Multi-family ................................................................................. $ 116,299 Industrial..................................................................................... Hospitality................................................................................... Mixed use................................................................................... Retail........................................................................................... Offiff ce........................................................................................... Total recorded investment ..................................................... Less allowance forf credit losses............................................. 57,267 43,897 34,749 23,925 6,734 282,871 (3,672) $ 42 20 16 12 9 2 101 (1) 42,232 27,248 27,796 62,375 15,342 8,101 183,094 (1,789) Carrying value, net of allowance for credit losses ..... $ 279,199 100 $ 181,305 23 15 15 34 9 5 101 (1) 100 90 GL 2023 FORM 10-K Globe Life Inc. Notes to Consolidated Financial Statements (Dollar amounts in thousands, except per share data) 2023 2022 Carrying Value % of Total Carrying Value % of Total Geographic location: Califorff nia .................................................................................... $ Florida......................................................................................... Texas........................................................................................... New Jersey ................................................................................ New YorYY k .................................................................................... Massachusetts........................................................................... Other ........................................................................................... Total recorded investment ..................................................... Less allowance forf credit losses............................................. 54,721 48,233 45,111 44,574 20,284 14,979 54,969 282,871 (3,672) $ 20 17 16 16 7 5 20 101 (1) 64,477 33,182 22,905 — 19,167 — 43,363 183,094 (1,789) Carrying value, net of allowance for credit losses ..... $ 279,199 100 $ 181,305 36 18 13 — 11 — 23 101 (1) 100 lowing tables are reflective of the key factors, debt service coverage ratios, and loan-to-value ratios (LTVLL s) The folff rmance of the portfolios. The Company only makes new that are utilized by management to monitor the perforr investments in commercial mortgage loans that have a LTV ratio less than 80%. Generally, a higher LTV ratio and a lower debt service coverage ratio can potentially equate to higher risk of loss. December 31, 2023 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% ......................................................... $ 27,091 $ 180,761 $ 58,364 $ 266,216 70% to 80% .............................................................. 81% to 90% .............................................................. Greater than 90% .................................................... — 8,468 7,034 — — — — 1,153 — Total......................................................................... $ 42,593 $ 180,761 $ 59,517 Less allowance forff credit losses................................................................................................................. — 9,621 7,034 282,871 (3,672) Total, net of allowance for credit losses ........................................................................................ $ 279,199 94 — 3 3 100 (1) Annual net operating income divided by annual mortgage debt service (principal and interest). (2) Loan balance divided by appraised value at origination, including planned renovations and stabilized occupancy, at origination. Updated rming. internal valuations are used when a loan is materially underperforr 91 GL 2023 FORM 10-K Globe Life Inc. Notes to Consolidated Financial Statements (Dollar amounts in thousands, except per share data) December 31, 2022 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% ......................................................... $ 24,221 $ 108,156 $ 12,018 $ 144,395 70% to 80% .............................................................. 81% to 90% .............................................................. Greater than 90% .................................................... — 8,307 7,034 22,120 1,238 — — — — Total ........................................................................ $ 39,562 $ 130,276 $ 13,256 Less allowance forff credit losses................................................................................................................. 23,358 8,307 7,034 183,094 (1,789) Total, net of allowance for credit losses ........................................................................................ $ 181,305 79 13 4 4 100 (1) Annual net operating income divided by annual mortgage debt service (principal and interest). (2) Loan balance divided by appraised value at origination, including planned renovations and stabilized occupancy, at origination. Updated rming. internal valuations are used when a loan is materially underperforr io on a pool basis to As of December 31, 2023, the Company evaluated the commercial mortgage loan portfolff io. For determine the allowance forff the year ended December 31, 2023, the allowance forff credit losses increased by $1.9 million to $3.7 million. Additionally, there was one foreclosure that resulted in a $2.9 million after tax realized loss during the period. The provision forff credit losses is included in "Realized gains (losses)" in the Consolidll ated Stattt ements ott credit losses. At the end of the period, the Company had 28 loans in the portfolff f OpeO rations. Year Ended December 31, 2023 2022 Allowance for credit losses beginning balance ........................................................................... $ 1,789 $ Provision (reversal) forff credit losses..................................................................................................... 1,883 827 962 Allowance for credit losses ending balance ................................................................................. $ 3,672 $ 1,789 There were no delinquent commercial mortgage loans as of December 31, 2023 and December 31, 2022. As of December 31, 2023 and December 31, 2022, the Company had no commercial mortgage loans in non-accrual status. The Company's unfunded commitment balance to commercial loan borrowers was $25 million as of December 31, 2023. Other Long-Term Investmett g ntstt : Other long-term investments consist of the following assets: December 31, 2023 2022 Investment funds ..................................................................................................................................... $ 795,583 $ 768,689 Other.......................................................................................................................................................... 40,295 26,022 Total ...................................................................................................................................................... $ 835,878 $ 794,711 92 GL 2023 FORM 10-K Globe Life Inc. Notes to Consolidated Financial Statements (Dollar amounts in thousands, except per share data) lowing table presents additional information about the Company's investment funds as of December 31, 2023 The folff and December 31, 2022 at fair value: Fair Value Unfunded Commitments Investment Category rr Commercial mortgage loans............................... $ Opportunistic and private credit ................. 2 023 2022 2023 411,315 $ 431,405 $ 540,972 181,410 158,524 129,253 Redemption Term/Notice(1) Fully redeemable and non-redeemable with varying terms. Fully redeemable and non-redeemable with varying terms. Fully redeemable and non-redeemable with varying terms. Infrastructure................. Other .............................. 165,887 36,971 159,534 19,226 16,800 57,343 Non-redeemable with varying terms Total investment funds ........................ $ 795,583 $ 768,689 $ 744,368 (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. The Company had $154 million of capital called during the year from existing investment funds, as compared to $201 million in 2022. Note 5—Commitments and Contingencies Reinsurance: Insurance affiliates of Globe Life reinsure a portion of insurance risk that is in excess of their retention limits. Current retention limits forff new business written on ordinary life insurance range up to $500 thousand per life. Life insurance ceded represented 0.3% of total life insurance in force at December 31, 2023 and 2022. Insurance 2023 and 2022. The ceded on life and accident and health products represented 0.2% of premium income forff insurance affiliates of Globe Life would be liable forff the reinsured risks ceded to other companies to the extent that such reinsuring companies are unable to meet their obligations. Insurance affiliates also assume insurance risks of other external companies. Life reinsurance assumed life insurance in forff ce at December 31, 2023 and 2022, respectively, and represented 0.9% and 1.0% of reinsurance assumed on life and accident and health products represented 1.3% and 1.5% of premium income forff 2023 and 2022, respectively. Leases: Globe Life primarily leases offiff ce space, aviation equipment, and other equipment under a variety of operating lease arrangements. Rental expense forff the three years ended December 31, 2023 is as follows: Year Ended December 31, 2023 2022 2021 Rental expense ............................................................................................................................... $ 3,519 $ 4,239 $ 4,674 Future minimum rental commitments required under operating leases having remaining noncancelable lease terms in excess of one year at December 31, 2023 were as follows: Operating lease commitments ......................... $ 3,390 $ 1,840 $ 1,606 $ 1,140 $ 760 $ 4,652 2024 2025 2026 2027 2028 r Thereafteff Year Ended December 31, 93 GL 2023 FORM 10-K Globe Life Inc. Notes to Consolidated Financial Statements (Dollar amounts in thousands, except per share data) Purchase Commitmentstt : Globe Life has various long-term noncancelable purchase commitments as well as commitments to provide capital forff low-income housing tax credit interests. See further discussion related to tax credits in Note 1—Signi fii cant Accountintt g Policll ies. ii Purchase commitments ..................................... $ 61,399 $ 21,752 $ 14,055 $ 16,380 $ 13,089 $ 210,508 2024 2025 2026 2027 2028 r Thereafteff Year Ended December 31, Investmett See Note 4—Investmett ntstt for unfunded commitment table. ntstt : Globe Life is committed to invest under certain contracts related to investments in limited partnerships. Guarant ees: At December 31, 2023, Globe Life had in place three guarantee agreements which were either Parent rr Company guarantees of subsidiary obligations to a third party or Parent Company guarantees of obligations between wholly-owned subsidiaries. As of December 31, 2023, Globe Life had no liability with respect to these guarantees. Letters of Credit: Globe Life has guaranteed letters of credit in connection with its credit facility with a group of banks as disclosed in Note 12—Debt. The letters of credit were issued by TMK Re, Ltd., a wholly-owned claims on certain policies reinsured by TMK Re, Ltd. that subsidiary, to secure TMK Re, Ltd.’s obligation forff were sold by other Globe Life insurance companies. These letters of credit facilitate TMK Re, Ltd.’s ability to reinsure the business of Globe Life's insurance carriers. The aggreement was amended on September 30, 2021 and now expires in 2026 T. he maximum amount of letters of credit available is $250 million. The Parent Company would be liable to the extent that TMK Re, Ltd. does not pay the reinsured party. On March 29, 2023, the letters of credit were amended to reduce the current amount outstanding to $115 million from $125 million outstanding. Equipment leases: Globe Life has guaranteed perforr rmance of certain of its subsidiaries as lessees under two aviation leasing arrangements. At December 31, 2023, total remaining undiscounted payments under the leases were approximately $1 million. The Parent Company would be responsible for any subsidiary obligation in the event the subsidiary did not make payments or otherwisrr rm under the terms of the lease. e perforr y p d Propertyrr Audits Unclaimeii : Globe Life subsidiaries are currently the subject of audits regarding the identification, reporting and escheatment of unclaimed property arising from life insurance policies and a limited number of annuity contracts. These audits are being conducted by private entities that have contracted with forff ty-seven states through their respective Departments of Revenue, and have not resulted in any financial assessment from any state nor indicated any liability. The audits are wide-ranging and seek large amounts of data regarding claims handling, procedures, and payments of contract benefits arising from unreported death claims. No estimate of range can be made at this time for loss contingencies related to possible administrative penalties or amounts that could be payable to the states for the escheatment of abandoned property. iott n Litigat : Globe Life Inc. and its subsidiaries, in common with the insurance industry in general, are subject to g ii 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 the Parent Company'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 Parent Company and its subsidiaries, management does not believe that it is reasonably possible that such litigation will have a material adverse effeff ct on Globe Life'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. 94 GL 2023 FORM 10-K Globe Life Inc. Notes to Consolidated Financial Statements (Dollar amounts in thousands, except per share data) ) (Goppert,rr et al. v. Nvv Income Life Insurance Company On April 4, 2023, putative class action litigation was filed against National (“National Income”) in New York Supreme Court by plaintiffs Mff elissa K. Goppert, Sarah ValVV ente, James O’Neill, Jennifer Abe, and Emily Herendeen (“Plaintiffs”ff Insurance Company, Index No. 153096/2023). Plaintiffs aff re former National Income independent sales agents who allege they should have been classified as employees and assert claims under New YorYY k state law on behalf of a putative class of former independent sales agents and individuals who trained to become independent sale agents since March 2017. Plaintiffsff make claims under New YorYY k’s Minimum Wage Law (NYLL § 633 and 12 NYCRR § 142-2.1); Overtime Compensation Law (NYLL § 633 and 12 NYCRR § 142-2.2); and “Spread of Hours” Law (12 NYCRR § 142-2.4) for the alleged failure to pay minimum wages and overtime pay, including for time spent in training, and attorney’s fees and costs. National Income filed a motion to compel arbitration of each Plaintiff’s claims on an individual basis, which the Court granted in full on January 11, 2024, and on February 7, 2024, Plaintiffsff filed a notice of appeal of the Court’s order. atiott nal Income Lifeii On September 1, 2023, plaintiff Miné Caglar Cost (“Plaintiff") filed a complaint against American Income Life Insurance Company (“American Income”) in the Superior Court of the State of Califorff nia forff the County of Los A”) (Cost v. Americrr an Angeles, asserting a single claim for violation of the Private Attorneys General Act (“PAGPP Income Lifeii Insurance Company, et al., Case No. 23SMCV04113). ff s a former Califorff nia independent insurance sales agent who alleges one cause of action forff civil penalties Plaintiff i the Califorff nia Labor Code under PAGA arising out of alleged violations of stemming from American Income’s alleged misclassification of Plaintiff aff nd other Califorff nia-based sales agents as independent contractors. American Income filed a motion to compel arbitration on an individual basis and stay the representative component of Plaintiff’ff s claims, to which Plaintiff stipulated. On December 12, 2023, the Court approved the parties’ stipulation to compel the matter to individual arbitration and stayed the case pending the completion of the individual arbitration. the wage-and-hour provisions of 95 GL 2023 FORM 10-K Globe Life Inc. Notes to Consolidated Financial Statements (Dollar amounts in thousands, except per share data) Note 6—Policy Liabilities The liability forff 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. lowing tables summarize balances and changes in the net The folff reinsurance, for traditional life long-duration contracts forff liability forff the three years ended December 31, 2023. future policy benefits, beforff e Life Present value of expected future net premiums American Income DTC Liberty National Other Total Balance at January 1, 2021 .................................................. $ 4,498,278 $ 7,028,713 $ 1,327,203 $ 571,165 $ 13,425,359 Beginning balance at original discount rates ........................ 3,263,663 4,963,806 967,173 393,287 9,587,929 Effeff ct of changes in assumptions on future cash flows ... Effeff ct of actual variances from expected experience....... 5,854 43,249 18,076 7,439 5,104 61,583 2,499 (1,592) 31,533 110,679 Adjusted balance at January 1, 2021 ................................ 3,312,766 4,989,321 1,033,860 394,194 9,730,141 Issuances(1) ............................................................................. Interest accrual(2) .................................................................... 866,716 169,543 860,279 267,314 77,272 51,274 43,978 20,806 1,848,245 508,937 Net premiums collected(3)...................................................... (443,095) (583,173) (122,164) (42,837) (1,191,269) Effeff ct of changes in the forff eign exchange rate ................. 168 — — — 168 Ending balance at original discount rates.............................. 3,906,098 5,533,741 1,040,242 416,141 10,896,222 Effeff ct of change from original to current discount rates... 1,019,094 1,731,164 292,227 143,831 3,186,316 Balance at December 31, 2021 ........................................... $ 4,925,192 $ 7,264,905 $ 1,332,469 $ 559,972 $ 14,082,538 Balance at January 1, 2022 .................................................. $ 4,925,192 $ 7,264,905 $ 1,332,469 $ 559,972 $ 14,082,538 Beginning balance at original discount rates ........................ 3,906,098 5,533,741 1,040,242 416,141 10,896,222 Effeff ct of changes in assumptions on future cash flows ... 34,266 79,571 Effeff ct of actual variances from expected experience....... (121,230) (264,286) 17,719 (20,027) 35,214 166,770 (10,929) (416,472) Adjusted balance at January 1, 2022 ................................ 3,819,134 5,349,026 1,037,934 440,426 10,646,520 Issuances(1) ............................................................................. Interest accrual(2) .................................................................... 760,857 176,102 663,790 273,494 104,982 51,326 31,815 21,150 1,561,444 522,072 Net premiums collected(3)...................................................... (491,168) (605,446) (128,119) (44,182) (1,268,915) Effeff ct of changes in the forff eign exchange rate ................. (18,202) — — — (18,202) Ending balance at original discount rates.............................. 4,246,723 5,680,864 1,066,123 449,209 11,442,919 Effeff ct of change from original to current discount rates... 26,433 229,360 28,284 21,532 305,609 Balance at December 31, 2022 ........................................... $ 4,273,156 $ 5,910,224 $ 1,094,407 $ 470,741 $ 11,748,528 96 GL 2023 FORM 10-K Globe Life Inc. Notes to Consolidated Financial Statements (Dollar amounts in thousands, except per share data) Life Present value of expected future net premiums American Income DTC Liberty National Other Total Balance at January 1, 2023 .................................................. $ 4,273,156 $ 5,910,224 $ 1,094,407 $ 470,741 $ 11,748,528 Beginning balance at original discount rates ........................ 4,246,723 5,680,864 1,066,123 449,209 11,442,919 Effeff ct of changes in assumptions on future cash flows ... 14,265 36,170 5,178 8,419 64,032 Effeff ct of actual variances from expected experience....... (155,293) (306,004) (40,961) (18,441) (520,699) Adjusted balance at January 1, 2023 ................................ 4,105,695 5,411,030 1,030,340 439,187 10,986,252 Issuances(1) ............................................................................. Interest accrual(2) .................................................................... 733,702 200,363 579,363 287,615 127,048 54,147 27,959 22,804 1,468,072 564,929 Net premiums collected(3)...................................................... (521,521) (613,749) (133,704) (46,001) (1,314,975) Effeff ct of changes in the forff eign exchange rate ................. 5,090 — — — 5,090 Ending balance at original discount rates.............................. 4,523,329 5,664,259 1,077,831 443,949 11,709,368 Effeff ct of change from original to current discount rates... 158,559 388,392 51,885 34,103 632,939 Balance at December 31, 2023 ........................................... $ 4,681,888 $ 6,052,651 $ 1,129,716 $ 478,052 $ 12,342,307 (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 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. Life Present value of expected future policy benefits American Income DTC Liberty National Other Total Balance at January 1, 2021 .................................................. $ 11,374,299 $ 11,733,268 $ 4,710,075 $ 5,655,261 $ 33,472,903 Beginning balance at original discount rates ........................ 6,805,088 7,472,930 3,120,435 3,151,846 20,550,299 Effeff ct of changes in assumptions on future cash flows ... Effeff ct of actual variances from expected experience....... 6,584 45,921 20,319 13,675 5,837 62,981 2,850 (3,040) 35,590 119,537 Adjusted balance at January 1, 2021 ................................ 6,857,593 7,506,924 3,189,253 3,151,656 20,705,426 Issuances(1) ............................................................................. Interest accrual(2) .................................................................... 866,707 389,384 860,279 421,762 77,272 168,794 43,978 1,848,236 189,778 1,169,718 Benefit payments(3) ................................................................ (370,275) (631,706) (229,155) (118,106) (1,349,242) Effeff ct of changes in the forff eign exchange rate ................. 792 — — — 792 Ending balance at original discount rates.............................. 7,744,201 8,157,259 3,206,164 3,267,306 22,374,930 Effeff ct of change from original to current discount rates... 4,029,318 3,702,149 1,336,533 2,221,378 11,289,378 Balance at December 31, 2021 ........................................... $ 11,773,519 $ 11,859,408 $ 4,542,697 $ 5,488,684 $ 33,664,308 97 GL 2023 FORM 10-K Globe Life Inc. Notes to Consolidated Financial Statements (Dollar amounts in thousands, except per share data) Life Present value of expected future policy benefits American Income DTC Liberty National Other Total Balance at January 1, 2022 .................................................. $ 11,773,519 $ 11,859,408 $ 4,542,697 $ 5,488,684 $ 33,664,308 Beginning balance at original discount rates ........................ 7,744,201 8,157,259 3,206,164 3,267,306 22,374,930 Effeff ct of changes in assumptions on future cash flows ... 48,534 104,910 Effeff ct of actual variances from expected experience....... (127,626) (259,285) 33,457 (18,535) 39,725 226,626 (12,787) (418,233) Adjusted balance at January 1, 2022 ................................ 7,665,109 8,002,884 3,221,086 3,294,244 22,183,323 Issuances(1) ............................................................................. Interest accrual(2) .................................................................... 760,856 410,201 663,786 433,611 105,006 169,578 31,815 1,561,463 195,792 1,209,182 Benefit payments(3) ................................................................ (382,142) (622,389) (222,690) (118,147) (1,345,368) Effeff ct of changes in the forff eign exchange rate ................. (44,263) — — — (44,263) Ending balance at original discount rates.............................. 8,409,761 8,477,892 3,272,980 3,403,704 23,564,337 Effeff ct of change from original to current discount rates... 709,343 747,559 156,276 572,446 2,185,624 Balance at December 31, 2022 ........................................... $ 9,119,104 Balance at January 1, 2023 .................................................. $ 9,119,104 $ $ 9,225,451 9,225,451 $ $ 3,429,256 3,429,256 $ $ 3,976,150 $ 25,749,961 3,976,150 $ 25,749,961 Beginning balance at original discount rates ........................ 8,409,761 8,477,892 3,272,980 3,403,704 23,564,337 Effeff ct of changes in assumptions on future cash flows ... 13,344 34,407 6,156 11,661 65,568 Effeff ct of actual variances from expected experience....... (164,900) (318,687) (46,341) (24,195) (554,123) Adjusted balance at January 1, 2023 ................................ 8,258,205 8,193,612 3,232,795 3,391,170 23,075,782 Issuances(1) ............................................................................. Interest accrual(2) .................................................................... 733,700 452,640 579,365 458,587 127,062 174,995 27,959 1,468,086 204,083 1,290,305 Benefit payments(3) ................................................................ (396,031) (574,812) (196,600) (116,353) (1,283,796) Effeff ct of changes in the forff eign exchange rate ................. 13,319 — — — 13,319 Ending balance at original discount rates.............................. 9,061,833 8,656,752 3,338,252 3,506,859 24,563,696 Effeff ct of change from original to current discount rates... 1,101,794 1,057,764 267,140 732,764 3,159,462 Balance at December 31, 2023 ........................................... $ 10,163,627 $ 9,714,516 $ 3,605,392 $ 4,239,623 $ 27,723,158 (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, lapse, and maturity benefit payments based on the revised expected assumptions. 98 GL 2023 FORM 10-K Globe Life Inc. Notes to Consolidated Financial Statements (Dollar amounts in thousands, except per share data) Life Net liability for future policy benefits as of December 31, 2021 American Income DTC Liberty National Other Total Net liability for future policy benefits at original discount rates ........................................................................ $ 3,838,103 $ 2,623,518 $ 2,165,922 $ 2,851,165 $ 11,478,708 Effeff ct of changes in discount rate assumptions............... 3,010,224 1,970,985 1,044,306 2,077,547 8,103,062 Other Adjustments(1) ............................................................. 156 2,511 674 72 3,413 Net liability for future policy benefits, afteff adjustments, at current discount rates ........................... r other 6,848,483 4,597,014 3,210,902 4,928,784 19,585,183 Reinsurance recoverable ..................................................... (105) — (11,131) (49,899) (61,135) Net liability for future policy benefits, afteff r reinsurance recoverable, at current discount rates .... $ 6,848,378 $ 4,597,014 $ 3,199,771 $ 4,878,885 $ 19,524,048 (1) Other adjustments include the effects of capping and flooring the liability. Life Net liability for future policy benefits as of December 31, 2022 American Income DTC Liberty National Other Total Net liability for future policy benefits at original discount rates ........................................................................ $ 4,163,038 $ 2,797,028 $ 2,206,857 $ 2,954,495 $ 12,121,418 Effeff ct of changes in discount rate assumptions............... 682,910 518,199 127,992 550,914 1,880,015 Other Adjustments(1) ............................................................. 115 4,913 7,638 48 12,714 Net liability for future policy benefits, afteff adjustments, at current discount rates ........................... r other 4,846,063 3,320,140 2,342,487 3,505,457 14,014,147 Reinsurance recoverable ..................................................... (123) — (7,477) (34,830) (42,430) r Net liability for future policy benefits, afteff reinsurance recoverable, at current discount rates .... $ 4,845,940 $ 3,320,140 $ 2,335,010 $ 3,470,627 $ 13,971,717 (1) Other adjustments include the effects of capping and flooring the liability. Life Net liability for future policy benefits as of December 31, 2023 American Income DTC Liberty National Other Total Net liability for future policy benefits at original discount rates ........................................................................ $ 4,538,504 $ 2,992,493 $ 2,260,421 $ 3,062,910 $ 12,854,328 Effeff ct of changes in discount rate assumptions............... 943,235 669,372 215,255 698,661 2,526,523 Other Adjustments(1) ............................................................. 297 3,315 5,764 62 9,438 Net liability for future policy benefits, afteff adjustments, at current discount rates ........................... r other 5,482,036 3,665,180 2,481,440 3,761,633 15,390,289 Reinsurance recoverable ..................................................... (141) — (7,719) (37,848) (45,708) Net liability for future policy benefits, afteff r reinsurance recoverable, at current discount rates .... $ 5,481,895 $ 3,665,180 $ 2,473,721 $ 3,723,785 $ 15,344,581 (1) Other adjustments include the effects of capping and flooring the liability. 99 GL 2023 FORM 10-K Globe Life Inc. Notes to Consolidated Financial Statements (Dollar amounts in thousands, except per share data) The folff health contracts forff lowing tables summarize balances and changes in the net liability forff the three years ended December 31, 2023: future policy benefits forff long-duration Health Present value of expected future net premiums United American Family Heritage Liberty National American Income DTC Total Balance at January 1, 2021 ................................................ $ 3,432,493 $ 1,889,970 $ 578,518 $ 205,601 $ 133,832 $ 6,240,414 Beginning balance at original discount rates ....................... 2,573,470 1,537,512 430,962 150,095 100,380 4,792,419 Effeff ct of changes in assumptions on future cash flows .. — — — — — — Effeff ct of actual variances from expected experience...... 86,186 (26,975) (34,535) (4,314) (1,695) 18,667 Adjusted balance at January 1, 2021 ............................... 2,659,656 1,510,537 396,427 145,781 98,685 4,811,086 Issuances(1) ............................................................................ 413,289 282,898 Interest accrual(2)................................................................... 117,151 59,554 47,043 20,736 45,612 7,416 3,859 4,966 792,701 209,823 Net premiums collected(3) .................................................... (240,245) (164,399) (49,797) (19,931) (10,734) (485,106) Effeff ct of changes in the forff eign exchange rate................ — — — (77) — (77) Ending balance at original discount rates ............................ 2,949,851 1,688,590 414,409 178,801 96,776 5,328,427 Effeff ct of change from original to current discount rates.. 661,808 256,124 102,959 43,752 24,948 1,089,591 Balance at December 31, 2021 .......................................... $ 3,611,659 $ 1,944,714 $ 517,368 $ 222,553 $ 121,724 $ 6,418,018 Balance at January 1, 2022 ................................................ $ 3,611,659 $ 1,944,714 $ 517,368 $ 222,553 $ 121,724 $ 6,418,018 Beginning balance at original discount rates ....................... 2,949,851 1,688,590 414,409 178,801 96,776 5,328,427 Effeff ct of changes in assumptions on future cash flows .. (195,560) (20,931) 19,846 (17,911) (9,035) (223,591) Effeff ct of actual variances from expected experience...... (37,437) (67,419) (39,029) 7,911 (2,301) (138,275) Adjusted balance at January 1, 2022 ............................... 2,716,854 1,600,240 395,226 168,801 85,440 4,966,561 Issuances(1) ............................................................................ 360,942 241,052 Interest accrual(2)................................................................... 122,064 60,303 51,827 19,141 39,003 7,399 8,224 4,554 701,048 213,461 Net premiums collected(3) .................................................... (258,598) (172,376) (50,752) (21,085) (10,467) (513,278) Effeff ct of changes in the forff eign exchange rate................ — — — (1,487) — (1,487) Ending balance at original discount rates ............................ 2,941,262 1,729,219 415,442 192,631 87,751 5,366,305 Effeff ct of change from original to current discount rates.. (32,761) (134,227) 8,048 (2,335) 2,392 (158,883) Balance at December 31, 2022 .......................................... $ 2,908,501 $ 1,594,992 $ 423,490 $ 190,296 Balance at January 1, 2023 ................................................ $ 2,908,501 $ 1,594,992 $ 423,490 $ 190,296 $ $ 90,143 $ 5,207,422 90,143 $ 5,207,422 Beginning balance at original discount rates ....................... 2,941,262 1,729,219 415,442 192,631 87,751 5,366,305 Effeff ct of changes in assumptions on future cash flows .. 466,883 (30,255) (56,964) (6,061) 16,553 390,156 Effeff ct of actual variances from expected experience...... (27,178) (69,878) (36,850) (11,152) (2,850) (147,908) Adjusted balance at January 1, 2023 ............................... Issuances(1) ............................................................................ Interest accrual(2)................................................................... 3,380,967 1,629,086 321,628 175,418 101,454 5,608,553 377,097 139,824 266,375 67,743 59,768 18,255 39,825 8,528 14,467 4,616 757,532 238,966 Net premiums collected(3) .................................................... (272,085) (180,031) (51,081) (22,325) (10,657) (536,179) Effeff ct of changes in the forff eign exchange rate................ — — — 423 — 423 Ending balance at original discount rates ............................ 3,625,803 1,783,173 348,570 201,869 109,880 6,069,295 Effeff ct of change from original to current discount rates.. 71,968 (71,432) 9,902 4,512 5,483 20,433 Balance at December 31, 2023 .......................................... $ 3,697,771 $ 1,711,741 $ 358,472 $ 206,381 $ 115,363 $ 6,089,728 (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. 100 GL 2023 FORM 10-K Globe Life Inc. Notes to Consolidated Financial Statements (Dollar amounts in thousands, except per share data) Health Present value of expected future policy benefits United American Family Heritage Liberty National American Income DTC Total Balance at January 1, 2021 ................................................ $ 3,651,359 $ 3,782,662 $ 1,320,597 $ 367,965 $ 134,967 $ 9,257,550 Beginning balance at original discount rates ....................... 2,715,869 2,928,457 953,238 252,092 101,632 6,951,288 Effeff ct of changes in assumptions on future cash flows .. — — — — — — Effeff ct of actual variances from expected experience...... 88,696 (27,704) (34,859) (4,570) (1,614) 19,949 Adjusted balance at January 1, 2021 ............................... 2,804,565 2,900,753 918,379 247,522 100,018 6,971,237 Issuances(1) ............................................................................ 413,289 282,898 Interest accrual(2)................................................................... 125,346 114,543 47,453 50,415 45,612 13,679 3,859 4,991 793,111 308,974 Benefit payments(3) ............................................................... (252,299) (104,852) (94,639) (21,147) (13,240) (486,177) Effeff ct of changes in the forff eign exchange rate................ — — — (62) — (62) Ending balance at original discount rates ............................ 3,090,901 3,193,342 921,608 285,604 95,628 7,587,083 Effeff ct of change from original to current discount rates.. 719,658 646,980 279,709 95,311 24,260 1,765,918 Balance at December 31, 2021 .......................................... $ 3,810,559 $ 3,840,322 $ 1,201,317 $ 380,915 $ 119,888 $ 9,353,001 Balance at January 1, 2022 ................................................ $ 3,810,559 $ 3,840,322 $ 1,201,317 $ 380,915 $ 119,888 $ 9,353,001 Beginning balance at original discount rates ....................... 3,090,901 3,193,342 921,608 285,604 95,628 7,587,083 Effeff ct of changes in assumptions on future cash flows .. (194,936) (27,211) 18,065 (21,559) (8,270) (233,911) Effeff ct of actual variances from expected experience...... (40,316) (70,690) (40,597) 10,402 (2,621) (143,822) Adjusted balance at January 1, 2022 ............................... 2,855,649 3,095,441 899,076 274,447 84,737 7,209,350 Issuances(1) ............................................................................ 360,642 241,052 Interest accrual(2)................................................................... 129,842 120,700 52,257 47,719 39,006 13,806 8,202 4,553 701,159 316,620 Benefit payments(3) ............................................................... (265,500) (120,849) (94,187) (20,413) (12,280) (513,229) Effeff ct of changes in the forff eign exchange rate................ — — — (3,133) — (3,133) Ending balance at original discount rates ............................ 3,080,633 3,336,344 904,865 303,713 85,212 7,710,767 Effeff ct of change from original to current discount rates.. (33,804) (330,680) 36,709 9,037 2,320 (316,418) Balance at December 31, 2022 .......................................... $ 3,046,829 $ 3,005,664 $ 941,574 $ 312,750 $ 87,532 $ 7,394,349 Balance at January 1, 2023 ................................................ $ 3,046,829 $ 3,005,664 $ 941,574 $ 312,750 $ 87,532 $ 7,394,349 Beginning balance at original discount rates ....................... 3,080,633 3,336,344 904,865 303,713 85,212 7,710,767 Effeff ct of changes in assumptions on future cash flows .. 464,652 (32,428) (60,437) (6,407) 15,930 381,310 Effeff ct of actual variances from expected experience...... (26,718) (74,797) (36,910) (12,661) (3,325) (154,411) Adjusted balance at January 1, 2023 ............................... 3,518,567 3,229,119 807,518 284,645 97,817 7,937,666 Issuances(1) ............................................................................ 376,573 266,375 Interest accrual(2)................................................................... 147,082 134,107 59,158 45,614 39,825 15,070 14,446 756,377 4,616 346,489 Benefit payments(3) ............................................................... (300,692) (122,912) (95,471) (24,987) (12,378) (556,440) Effeff ct of changes in the forff eign exchange rate................ — — — 878 — 878 Ending balance at original discount rates ............................ 3,741,530 3,506,689 816,819 315,431 104,501 8,484,970 Effeff ct of change from original to current discount rates.. 72,798 (190,809) 48,989 20,073 4,981 (43,968) Balance at December 31, 2023 .......................................... $ 3,814,328 $ 3,315,880 $ 865,808 $ 335,504 $ 109,482 $ 8,441,002 (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, lapse, and maturity benefit payments based on the revised expected assumptions. 101 GL 2023 FORM 10-K Globe Life Inc. Notes to Consolidated Financial Statements (Dollar amounts in thousands, except per share data) Health Net liability for future policy benefits as of December 31, 2021 United American Family Heritage Liberty National American Income Direct to Consumer Total Net liability for future policy benefits at original discount rates ....................................................................... $ 141,050 $ 1,504,752 $ 507,199 $ 106,803 $ (1,148) $ 2,258,656 Effeff ct of changes in discount rate assumptions.............. 57,850 390,856 176,750 51,559 (688) 676,327 Other Adjustments(1) ............................................................ 1,683 43 2,752 27 3,175 7,680 Net liability for future policy benefits, afteff adjustments, at current discount rates .......................... r other 200,583 1,895,651 686,701 158,389 1,339 2,942,663 Reinsurance recoverable.................................................... (4,173) (12,442) (1,715) — — (18,330) Net liability for future policy benefits, afteff r reinsurance recoverable, at current discount rates ... $ 196,410 $ 1,883,209 $ 684,986 $ 158,389 $ 1,339 $ 2,924,333 (1) Other adjustments include the effects of capping and flooring the liability. Health Net liability for future policy benefits as of December 31, 2022 United American Family Heritage Liberty National American Income Direct to Consumer Total Net liability for future policy benefits at original discount rates ....................................................................... $ 139,371 $ 1,607,125 $ 489,423 $ 111,082 $ (2,539) $ 2,344,462 Effeff ct of changes in discount rate assumptions.............. (1,043) (196,453) 28,661 11,372 (72) (157,535) Other Adjustments(1) ............................................................ 4,055 3,172 5,953 48 3,634 16,862 Net liability for future policy benefits, afteff adjustments, at current discount rates .......................... r other 142,383 1,413,844 524,037 122,502 1,023 2,203,789 Reinsurance recoverable.................................................... (3,820) (9,027) (1,498) — — (14,345) r Net liability for future policy benefits, afteff reinsurance recoverable, at current discount rates ... $ 138,563 $ 1,404,817 $ 522,539 $ 122,502 $ 1,023 $ 2,189,444 (1) Other adjustments include the effects of capping and flooring the liability. Health Net liability for future policy benefits as of December 31, 2023 United American Family Heritage Liberty National American Income Direct to Consumer Total Net liability for future policy benefits at original discount rates ....................................................................... 115,727 1,723,516 468,249 113,562 (5,379) 2,415,675 Effeff ct of changes in discount rate assumptions.............. 830 (119,377) 39,087 15,561 (502) (64,401) Other Adjustments(1) ............................................................ 10,980 84 9,567 857 6,653 28,141 Net liability for future policy benefits, afteff adjustments, at current discount rates .......................... r other 127,537 1,604,223 516,903 129,980 Reinsurance recoverable.................................................... (3,287) (10,718) (1,317) — 772 — 2,379,415 (15,322) Net liability for future policy benefits, afteff r reinsurance recoverable, at current discount rates ... $ 124,250 $ 1,593,505 $ 515,586 $ 129,980 $ 772 $ 2,364,093 (1) Other adjustments include the effects of capping and flooring the liability. 102 GL 2023 FORM 10-K Globe Life Inc. Notes to Consolidated Financial Statements (Dollar amounts in thousands, except per share data) In accordance with the accounting guidance, the Company reviews, and updates as necessary, its assumptions utilized in the calculation of the liability forff future benefits annually in the third quarter and recalculates the net premium ratio. The revised net premium ratio is used to update the liability forff future policy benefits as of the beginning of the current reporting period, and is compared to the liability using the prior cash flow assumptions. The the current period, along with the difference is recorded as a component of the remeasurement gain or loss forff effeff ct of the diffeff the period. The total remeasurement gain or loss is included in the Consolidll ated Stattt ements ott rence between actual and expected experience forff f OperO atrr iott ns. lowing tables include the total remeasurement gain or loss, bifurcated between the gain or loss due to each of the The folff differences between actual and expected experience and the amount due to assumption updates, forff three years-ended December 31, 2023. 2023 2022 2021 Life Remeasurement Gain (Loss)—Experience American Income Direct to Consumer Liberty National Other Life Remeasurement Gain (Loss)—Assumption Unlocking American Income Direct to Consumer Liberty National Other 9,430 12,201 5,013 4,760 31,404 308 1,763 (1,248) (2,836) (2,013) 1,965 (2,243) (1,348) 1,354 (272) (8,707) (25,334) (7,872) (5,241) (47,154) (2,008) (4,782) (865) 664 (6,991) (750) (2,242) (733) (350) (4,075) Total Life Remeasurement Gain (Loss) , 29,391 ) (47,426) , ( ) (11,066) , ( Health Remeasurement Gain (Loss)—Experience United American Family Heritage Liberty National American Income Direct to Consumer Health Remeasurement Gain (Loss)—Assumption Unlocking United American Family Heritage Liberty National American Income Direct to Consumer (134) 4,638 628 1,461 23 6,616 762 2,173 2,171 119 8 5,233 3,502 2,395 1,406 (2,545) 148 4,906 (626) 6,283 1,463 3,615 (80) 10,655 (2,343) 594 304 199 16 (1,230) — — — — — — Total Health Remeasurement Gain (Loss) 11,849 , , 15,561 ) (1,230) ( , rmed its annual assumptions review and updated both its life and health assumptions of lapses, The Company perforr mortality, and morbidity, resulting in a net remeasurement gain, due to assumption changes only, of $3.2 million forff the period ended December 31, 2023, as compared to a net remeasurement loss of $36.5 million forff the period ended December 31, 2022 and a net remeasurement loss of $4.1 million forff the period ended December 31, 2021. For the life segment, the updates to our assumptions of lapses and mortality resulted in a remeasurement loss of $2.0 million, $47.2 million, and $4.1 million forff the year-ended December 31, 2023, 2022, and 2021, respectively. For the health segment, the updates to our assumptions of lapses and morbidity resulted in a remeasurement gain of $5.2 million, $10.7 million, and $0 for the year-ended December 31, 2023, 2022, and 2021, respectively. The Company did not adjust its assumptions for the health segment in 2021 due to the uncertainty of expected experience during the pandemic. 103 GL 2023 FORM 10-K Globe Life Inc. Notes to Consolidated Financial Statements (Dollar amounts in thousands, except per share data) Excluding the impact of assumption changes, during the year ended December 31, 2023 and 2022, the Company's results forff actual variances from expected experience produced net remeasurement gains of $38.0 million and $4.6 million, respectively, and a net remeasurement loss of $8.2 million forff the year ended December 31, 2021. The variance of actual experience from expected experience during the year ended 2023 was primarily due to favorable variances from our assumptions as compared to actual experience in our life insurance segment (a $31.4 million gain), and favorable variances from our assumptions as compared to actual experience in our health insurance segment (a $6.6 million gain). The variance of actual experience from expected experience during the year ended 2022 was primarily due to unfavorable variances from our assumptions of life experience as compared to actual experience in our life insurance segment (a $272 thousand loss), and favorable variances from our assumptions of health experience as compared to actual experience in our health insurance segment (a $4.9 million gain). The variance of actual experience from expected experience during the year ended 2021 was primarily due to unfavorable variances from our assumptions of life experience as compared to actual experience in our life insurance segment (a $7.0 million loss), as well as unfavorable variances from our assumptions of health experience as compared to actual experience in our health insurance segment (a $1.2 million loss). lowing table reconciles the liability forff The folff December 31, 2023, 2022, and 2021: future policy benefits to the Consolidll ated Balance Sheetstt as of At Original Discount Rates At Current Discount Rates As of December 31, As of December 31, 2023 2022 2021 2023 2022 2021 Life(1): American Income ................................ $ 4,538,775 $ 4,163,111 $ 3,838,212 $ 5,482,036 $ 4,846,063 $ 6,848,483 Direct to Consumer............................. 2,992,493 2,797,031 2,623,521 3,665,180 3,320,140 4,597,014 Liberty National.................................... 2,260,421 2,206,857 2,165,922 2,481,440 2,342,487 3,210,902 Other ..................................................... 3,062,966 2,954,522 2,851,189 3,761,633 3,505,457 4,928,784 Net liability forf benefits—long duration life........... future policy Health(1): 12,854,655 12,121,521 11,478,844 15,390,289 14,014,147 19,585,183 United American .................................. 124,021 141,362 142,189 127,537 142,383 200,583 Family Heritage ................................... 1,723,581 1,607,169 1,504,797 1,604,223 1,413,844 1,895,651 Liberty National.................................... American Income ................................ Direct to Consumer............................. Net liability forf benefits—long duration health..... future policy Deferred profit liability ........................... Deferred annuity .................................... Interest sensitive life.............................. Other ........................................................ 476,559 114,407 737 494,155 111,128 979 509,714 106,848 1,111 516,903 129,980 772 524,037 122,502 1,023 686,701 158,389 1,339 2,439,305 2,354,793 2,264,659 2,379,415 2,203,789 2,942,663 174,717 773,039 732,948 9,951 175,883 184,743 954,318 1,033,525 739,105 10,106 745,335 8,193 174,717 773,039 732,948 9,945 175,883 184,743 954,318 1,033,525 739,105 10,099 745,335 8,191 Total future policy benefits ........ $16,984,615 $16,355,726 $15,715,299 $19,460,353 $18,097,341 $24,499,640 (1) Balances are presented net of the effects of capping and flooring the liability. 104 GL 2023 FORM 10-K Globe Life Inc. Notes to Consolidated Financial Statements (Dollar amounts in thousands, except per share data) The folff lowing tables provide the weighted-average original and current discount rates forff benefits and the additional insurance liabilities as of December 31, 2023, 2022, and 2021: the liability forff future policy As of December 31, 2023 2022 2021 Original discount rate Current discount rate Original discount rate Current discount rate Original discount rate Current discount rate Life American Income....... Direct to Consumer.... Liberty National .......... Other ............................ Health United American......... Family Heritage .......... Liberty National .......... American Income....... Direct to Consumer.... 5.7 % 6.0 % 5.6 % 6.2 % 5.1 % 4.3 % 5.8 % 5.8 % 5.1 % 4.9 % 5.0 % 5.0 % 5.0 % 4.8 % 4.9 % 4.9 % 4.8 % 4.8 % 5.8 % 6.0 % 5.6 % 6.2 % 5.2 % 4.3 % 5.8 % 5.9 % 5.2 % 5.2 % 5.2 % 5.2 % 5.2 % 5.1 % 5.2 % 5.2 % 5.1 % 5.1 % 5.9 % 6.0 % 5.6 % 6.2 % 5.1 % 4.3 % 5.8 % 6.0 % 5.1 % 3.3 % 3.4 % 3.1 % 3.2 % 2.7 % 2.9 % 2.7 % 3.0 % 2.7 % lowing table provides the weighted-average durations of the liability forff The folff additional insurance liabilities as of December 31, 2023, 2022, and 2021: future policy benefits and the As of December 31, 2023 2022 2021 At original discount rates At current discount rates At original discount rates At current discount rates At original discount rates At current discount rates Life American Income ....... Direct to Consumer.... Liberty National........... Other ............................ Health United American ......... Family Heritage .......... Liberty National........... American Income ....... Direct to Consumer.... 23.01 19.58 15.13 16.26 11.46 14.99 9.17 12.21 11.46 23.45 21.21 15.81 17.92 10.89 14.54 9.49 12.84 10.89 22.86 20.27 14.86 16.59 11.37 14.87 9.26 12.12 11.37 23.28 21.80 15.39 18.15 10.65 14.22 9.47 12.56 10.65 22.56 20.70 15.01 16.81 14.11 16.39 9.01 12.37 14.11 23.76 22.98 17.27 20.09 13.70 16.54 10.53 14.43 13.70 105 GL 2023 FORM 10-K Globe Life Inc. Notes to Consolidated Financial Statements (Dollar amounts in thousands, except per share data) lowing tables summarize the amount of gross premiums and interest related to long duration life and health The folff contracts that are recognized in the Consolidll ated Stattt ements ott f OperO atrr iott ns: Life Year Ended December 31, 2023 Year Ended December 31, 2022 Year Ended December 31, 2021 Gross Premiums Interest expense Gross Premiums Interest expense Gross Premiums Interest expense American Income........................... $ 1,587,304 $ 252,277 $ 1,503,537 $ 234,098 $ 1,400,501 $ 219,842 Direct to Consumer....................... Liberty National .............................. Other ................................................ 979,739 345,196 205,998 170,745 120,083 179,513 973,429 322,497 208,390 159,945 117,681 172,967 955,754 306,054 210,908 154,376 116,981 167,378 Total............................................... $ 3,118,237 $ 722,618 $ 3,007,853 $ 684,691 $ 2,873,217 $ 658,577 Health Year Ended December 31, 2023 Year Ended December 31, 2022 Year Ended December 31, 2021 Gross Premiums Interest expense Gross Premiums Interest expense Gross Premiums Interest expense United American............................. $ 401,834 $ 7,002 $ 380,710 $ 7,532 $ 356,580 $ Family Heritage .............................. Liberty National .............................. American Income........................... Direct to Consumer....................... 396,211 187,095 113,605 14,283 65,892 27,248 6,542 — 366,803 186,268 111,623 14,290 59,983 28,477 6,408 — 343,839 186,520 108,740 14,844 7,948 54,634 29,586 6,262 25 Total............................................... $ 1,113,028 $ 106,684 $ 1,059,694 $ 102,400 $ 1,010,523 $ 98,455 Gross premiums are included within life and health premium on the Consolidll ated Stattt ements ott the related interest expense is included in life and health policyholder benefits. f OperO atrr iott ns, while 106 GL 2023 FORM 10-K Globe Life Inc. Notes to Consolidated Financial Statements (Dollar amounts in thousands, except per share data) The folff lowing 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: As of December 31, 2023 As of December 31, 2022 As of December 31, 2021 Not discounted At original discount rates At current discount rates Not discounted At original discount rates At current discount rates Not discounted At original discount rates At current discount rates Life American Income PV of expected future gross premiums........... $ 24,265,464 $13,695,495 $14,264,077 $ 22,662,540 $12,832,811 $13,006,579 $ 21,317,703 $12,034,708 $15,278,295 PV of expected future net premiums............... PV of expected future policy benefits.............. 8,001,107 4,523,329 4,681,888 7,480,182 4,246,723 4,273,156 6,896,793 3,906,098 4,925,192 30,623,947 9,061,833 10,163,627 28,318,683 8,409,761 9,119,104 26,284,945 7,744,201 11,773,519 DTC PV of expected future gross premiums........... $ 17,506,091 $ 9,150,049 $ 9,761,706 $ 17,346,469 $ 9,086,945 $ 9,432,882 $ 17,247,115 $ 9,023,170 $11,852,808 PV of expected future net premiums............... PV of expected future policy benefits.............. 10,774,655 5,664,259 6,052,651 10,769,174 5,680,864 5,910,224 10,500,169 5,533,741 7,264,905 25,723,752 8,656,752 9,714,516 25,356,573 8,477,892 9,225,451 24,612,198 8,157,259 11,859,408 Liberty National PV of expected future gross premiums........... $ 4,660,783 $ 2,720,264 $ 2,784,916 $ 4,396,685 $ 2,561,304 $ 2,562,342 $ 4,239,223 $ 2,468,402 $ 3,076,801 PV of expected future net premiums............... PV of expected future policy benefits.............. 1,897,696 1,077,831 1,129,716 1,885,533 1,066,123 1,094,407 1,850,891 1,040,242 1,332,469 8,905,815 3,338,252 3,605,392 8,613,975 3,272,980 3,429,256 8,499,589 3,206,164 4,542,697 Other PV of expected future gross premiums........... $ 3,726,111 $ 1,889,930 $ 2,088,668 $ 3,814,915 $ 1,925,650 $ 2,075,874 $ 3,922,419 $ 1,956,472 $ 2,692,682 PV of expected future net premiums............... PV of expected future policy benefits.............. 910,786 443,949 478,052 922,500 449,209 470,741 863,126 416,141 559,972 12,431,963 3,506,859 4,239,623 12,371,696 3,403,704 3,976,150 12,248,389 3,267,306 5,488,684 Total PV of expected future gross premiums........... $ 50,158,449 $27,455,738 $28,899,367 $ 48,220,609 $26,406,710 $27,077,677 $ 46,726,460 $25,482,752 $32,900,586 PV of expected future net premiums............... PV of expected future policy benefits.............. 21,584,244 11,709,368 12,342,307 21,057,389 11,442,919 11,748,528 20,110,979 10,896,222 14,082,538 77,685,477 24,563,696 27,723,158 74,660,927 23,564,337 25,749,961 71,645,121 22,374,930 33,664,308 As of December 31, 2023 for the life segment using current discount rates, the Company anticipates $28.9 billion of expected future gross premiums and $12.3 billion of expected future net premiums. As of December 31, 2022 and December 31, 2021 using current discount rates, the Company anticipated $27.1 billion and $32.9 billion of expected future gross premiums and $11.7 billion and $14.1 billion in expected future net premiums, respectively. For each respective period, only expected future net premiums are included in the determination of the liability forff rence between the expected future gross premiums and future policy benefits on the balance sheet, while the diffeff the expected future net premiums is not. 107 GL 2023 FORM 10-K Globe Life Inc. Notes to Consolidated Financial Statements (Dollar amounts in thousands, except per share data) As of December 31, 2023 As of December 31, 2022 As of December 31, 2021 Not discounted At original discount rates At current discount rates Not discounted At original discount rates At current discount rates Not discounted At original discount rates At current discount rates Health United American PV of expected future gross premiums........... $ 8,682,707 $ 5,295,148 $ 5,396,402 $ 6,801,987 $ 4,285,863 $ 4,233,647 $ 6,694,635 $ 4,198,446 $ 5,136,704 PV of expected future net premiums............... PV of expected future policy benefits.............. 5,955,294 3,625,803 3,697,771 4,680,560 2,941,262 2,908,501 4,719,914 2,949,851 3,611,659 6,148,565 3,741,530 3,814,328 4,915,174 3,080,633 3,046,829 5,015,967 3,090,901 3,810,559 Family Heritage PV of expected future gross premiums........... $ 6,739,913 $ 3,982,571 $ 3,844,287 $ 6,329,183 $ 3,787,020 $ 3,518,288 $ 5,816,502 $ 3,531,178 $ 4,100,733 PV of expected future net premiums............... PV of expected future policy benefits.............. 2,997,954 1,783,173 1,711,741 2,865,334 1,729,219 1,594,992 2,757,983 1,688,590 1,944,714 6,655,694 3,506,689 3,315,880 6,245,843 3,336,344 3,005,664 5,916,149 3,193,342 3,840,322 Liberty National PV of expected future gross premiums........... $ 2,089,005 $ 1,325,869 $ 1,390,066 $ 2,271,423 $ 1,418,333 $ 1,458,880 $ 2,209,171 $ 1,378,848 $ 1,732,660 PV of expected future net premiums............... PV of expected future policy benefits.............. 518,008 348,570 358,472 652,858 415,442 423,490 661,269 414,409 517,368 1,413,211 816,819 865,808 1,600,943 904,865 941,574 1,620,379 921,608 1,201,317 American Income PV of expected future gross premiums........... $ 1,768,231 $ 991,448 $ 1,047,348 $ 1,750,393 $ 977,846 $ 1,004,239 $ 1,698,676 $ 946,772 $ 1,218,899 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.............. 359,248 201,869 206,381 342,659 192,631 190,296 316,084 178,801 222,553 640,326 315,431 335,504 617,973 303,713 312,750 586,799 285,604 380,915 236,776 $ 149,119 $ 156,612 $ 177,131 $ 116,212 $ 119,457 $ 206,986 $ 131,858 $ 165,674 174,738 109,880 115,363 133,995 87,751 90,143 152,336 96,776 121,724 163,087 104,501 109,482 127,911 85,212 87,532 148,843 95,628 119,888 Total PV of expected future gross premiums........... $ 19,516,632 $11,744,155 $11,834,715 $ 17,330,117 $10,585,274 $10,334,511 $16,625,970 $10,187,102 $12,354,670 PV of expected future net premiums............... PV of expected future policy benefits.............. 10,005,242 6,069,295 6,089,728 8,675,406 5,366,305 5,207,422 8,607,586 5,328,427 6,418,018 15,020,883 8,484,970 8,441,002 13,507,844 7,710,767 7,394,349 13,288,137 7,587,083 9,353,001 As of December 31, 2023 for the health segment using current discount rates, the Company anticipates $11.8 billion of expected future gross premiums and $6.1 billion of expected future net premiums. As of December 31, 2022 and December 31, 2021 using current discount rates, the Company anticipated $10.3 billion and $12.4 billion of expected future gross premiums and $5.2 billion and $6.4 billion in expected future net premiums, respectively. For each respective period, only expected future net premiums are included in the determination of the liability forff future 108 GL 2023 FORM 10-K Globe Life Inc. Notes to Consolidated Financial Statements (Dollar amounts in thousands, except per share data) policy benefits on the balance sheet, while the diffeff expected future net premiums is not. rence between the expected future gross premiums and the lowing table summarizes the balances of, and changes in, policyholders’ account balances as of December The folff 31, 2023 and 2022: Policyholders' Account Balances 2023 2022 2021 Interest Sensitive Life Deferred Annuity Other Policy- holders' Funds Interest Sensitive Life Deferred Annuity Other Policy- holders' Funds Interest Sensitive Life Deferred Annuity Other Policy- holders' Funds Balance at January 1, ........ $739,105 $ 954,318 $ 123,236 $745,335 $1,033,525 $ 99,468 $750,892 $1,062,999 $ 98,460 Issuances.............................. — 896 — — 1,528 — — 1,738 — Premiums received.............. 22,036 13,209 122,136 23,439 22,873 30,591 25,038 28,126 7,784 Policy charges...................... (12,926) — — (13,573) — — (14,261) — — Surrenders and withdrawals........................... (21,215) (165,584) (13,042) (21,994) (92,235) (11,615) (21,029) (48,641) (11,452) Benefit payments................. (29,909) (57,937) — (32,889) (44,456) — (36,661) (45,967) Interest credited ................... 28,320 28,150 9,314 28,579 32,779 4,589 28,941 33,866 Other...................................... 7,537 (13) (4,686) 10,208 304 203 12,415 1,404 — 4,503 173 Balance at December 31, .. $732,948 $ 773,039 $ 236,958 $739,105 $ 954,318 $ 123,236 $745,335 $1,033,525 $ 99,468 Weighted-average credit rate.... 3.85 % 3.26 % 5.17 % 3.85 % 3.30 % 4.12 % 3.87 % 3.23 % 4.55 % Net amount at risk....................... 1,766,170 // N/A N /A 1,873,315 / N/A N /A 1,980,518 // N/A N /A Cash surrender value ................. 671,596 773,039 236,958 689,546 954,309 123,234 693,845 1,033,491 99,470 lowing tables present the policyholders' account balances by range of guaranteed minimum crediting rates rence, if any, in basis points between rates being credited to policy holders and the The folff and the related range of diffeff respective guaranteed minimums: Range of guaranteed minimum crediting rates At guaranteed minimum At December 31, 2023 Interest Sensitive Life Deferred Annuity Other Policyholders' Funds Less than 3.00%......................................................................................... $ — $ 1,945 $ 138,684 3.00%-3.99%............................................................................................... 4.00%-4.99%............................................................................................... Greater than 5.00%.................................................................................... Total ......................................................................................................... 29,086 613,704 90,158 732,948 51-150 basis points above Less than 3.00%......................................................................................... 3.00%-3.99%............................................................................................... 4.00%-4.99%............................................................................................... Greater than 5.00%.................................................................................... Total ........................................................................................................... — — — — — 574,939 195,390 765 773,039 — — — — — Grand Total ....................................................................................... $ 732,948 $ 773,039 $ 3,790 6,861 37,556 186,891 — — 50,067 — 50,067 236,958 109 GL 2023 FORM 10-K Globe Life Inc. Notes to Consolidated Financial Statements (Dollar amounts in thousands, except per share data) Range of guaranteed minimum crediting rates At guaranteed minimum At December 31, 2022 Interest Sensitive Life Deferred Annuity Other Policyholders' Funds Less than 3.00%......................................................................................... $ — $ 2,040 $ 3.00%-3.99%............................................................................................... 4.00%-4.99%............................................................................................... Greater than 5.00%.................................................................................... 28,867 620,594 89,644 743,299 208,979 — 23,042 4,074 58,251 37,869 Total ......................................................................................................... $ 739,105 $ 954,318 $ 123,236 51-150 basis points above Less than 3.00%......................................................................................... $ — $ — $ 3.00%-3.99%............................................................................................... 4.00%-4.99%............................................................................................... Greater than 5.00%.................................................................................... Total ......................................................................................................... — — — — — — — — — — — — — Grand Total ....................................................................................... $ 739,105 $ 954,318 $ 123,236 Range of guaranteed minimum crediting rates At guaranteed minimum At December 31, 2021 Interest Sensitive Life Deferred Annuity Other Policyholders' Funds Less than 3.00%......................................................................................... $ — $ 2,182 $ 3.00%-3.99%............................................................................................... 4.00%-4.99%............................................................................................... Greater than 5.00%.................................................................................... 28,562 627,486 89,287 816,031 215,312 — Total ......................................................................................................... $ 745,335 $ 1,033,525 $ 51-150 basis points above Less than 3.00%......................................................................................... $ — $ — $ 3.00%-3.99%............................................................................................... 4.00%-4.99%............................................................................................... Greater than 5.00%.................................................................................... Total ......................................................................................................... — — — — — — — — — 2,893 58,660 37,915 99,468 — — — — — Grand Total ....................................................................................... $ 745,335 $ 1,033,525 $ 99,468 110 GL 2023 FORM 10-K Globe Life Inc. Notes to Consolidated Financial Statements (Dollar amounts in thousands, except per share data) Note 7—Deferred Acquisition Costs The folff lowing tables roll forff warr rd the deferred policy acquisition costs forff the three years ended December 31, 2023: American Income DTC Life Liberty National Other Total Balance at January 1, 2021 ................................. $ 1,647,760 $ 1,498,971 $ 531,504 $ 304,786 $ 3,983,021 Capitalizations ......................................................... 435,154 174,524 77,540 13,977 701,195 Amortization expense............................................. (121,387) (89,800) (42,625) (17,116) (270,928) Foreign exchange adjustment............................... (1,273) — — — (1,273) Balance at December 31, 2021 ........................... $ 1,960,254 $ 1,583,695 $ 566,419 $ 301,647 $ 4,412,015 Balance at January 1, 2022 ................................. $ 1,960,254 $ 1,583,695 $ 566,419 $ 301,647 $ 4,412,015 Capitalizations ......................................................... 450,600 188,083 90,385 13,504 742,572 Amortization expense............................................. (141,108) (94,847) (46,081) (16,805) (298,841) Foreign exchange adjustment............................... (11,455) — — — (11,455) Balance at December 31, 2022 ........................... $ 2,258,291 $ 1,676,931 $ 610,723 $ 298,346 $ 4,844,291 Balance at January 1, 2023 ................................. $ 2,258,291 $ 1,676,931 $ 610,723 $ 298,346 $ 4,844,291 Capitalizations ......................................................... 471,771 159,650 107,230 13,053 751,704 Amortization expense............................................. (159,898) (99,464) (51,534) (16,530) (327,426) Foreign exchange adjustment............................... 3,206 — — — 3,206 Balance at December 31, 2023 ........................... $ 2,573,370 $ 1,737,117 $ 666,419 $ 294,869 $ 5,271,775 111 GL 2023 FORM 10-K Globe Life Inc. Notes to Consolidated Financial Statements (Dollar amounts in thousands, except per share data) United American Family Heritage Liberty National American Income DTC Total Health Balance at January 1, 2021 ........................... $ 81,520 $ 364,751 $ 124,754 $ 39,477 $ 2,216 $ 612,718 Capitalizations ................................................... 4,427 48,051 15,822 12,992 2 81,294 Amortization expense....................................... (4,807) (23,835) (13,039) (2,957) (186) (44,824) Foreign exchange adjustment......................... — — — (106) — (106) Balance at December 31, 2021 ..................... $ 81,140 $ 388,967 $ 127,537 $ 49,406 $ 2,032 $ 649,082 Balance at January 1, 2022 ........................... $ 81,140 $ 388,967 $ 127,537 $ 49,406 $ 2,032 $ 649,082 Capitalizations ................................................... 2,135 53,117 18,737 12,378 4 86,371 Amortization expense....................................... (5,881) (25,476) (13,178) (3,467) (182) (48,184) Foreign exchange adjustment......................... — — — (506) — (506) Balance at December 31, 2022 ..................... $ 77,394 $ 416,608 $ 133,096 $ 57,811 $ 1,854 $ 686,763 Balance at January 1, 2023 ........................... $ 77,394 $ 416,608 $ 133,096 $ 57,811 $ 1,854 $ 686,763 Capitalizations ................................................... 1,941 63,366 20,309 12,849 — 98,465 Amortization expense....................................... (5,846) (27,131) (13,464) (3,982) (175) (50,598) Foreign exchange adjustment......................... — — — 105 — 105 Balance at December 31, 2023 ..................... $ 73,489 $ 452,843 $ 139,941 $ 66,783 $ 1,679 $ 734,735 112 GL 2023 FORM 10-K Globe Life Inc. Notes to Consolidated Financial Statements (Dollar amounts in thousands, except per share data) lowing table presents a reconciliation of deferred policy acquisition costs to the Consolidll ated Balance Sheetstt The folff as of December 31, 2023: December 31, 2023 2022 2021 Life American Income............................................................. $ 2,573,370 $ 2,258,291 $ Direct to Consumer ......................................................... Liberty National ................................................................ Other.................................................................................. Total DAC - Life .................................................................. Health United American ............................................................. Family Heritage................................................................ Liberty National ................................................................ American Income............................................................. Direct to Consumer ......................................................... Total DAC - Health ............................................................. 1,737,117 666,419 294,869 5,271,775 73,489 452,843 139,941 66,783 1,679 734,735 1,676,931 610,723 298,346 4,844,291 77,394 416,608 133,096 57,811 1,854 686,763 1,960,254 1,583,695 566,419 301,647 4,412,015 81,140 388,967 127,537 49,406 2,032 649,082 Annuity ................................................................................. 2,967 4,643 6,442 Total ............................................................................... $ 6,009,477 $ 5,535,697 $ 5,067,539 113 GL 2023 FORM 10-K Globe Life Inc. Notes to Consolidated Financial Statements (Dollar amounts in thousands, except per share data) Note 8—Liability for Unpaid Claims Activity in the liability forff unpaid health claims is summarized as follows: Year Ended December 31, 2023 2022 2021 Balance at beginning of period .......................................................................... $ 184,286 $ 173,737 $ 168,582 Less reinsurance recoverables ......................................................................... Net balance at January 1rr , .................................................................................... Incurred related to: Current year .......................................................................................................... Prior years ............................................................................................................. Total incurred...................................................................................................... Paid related to: Current year .......................................................................................................... Prior years ............................................................................................................. Total paid ............................................................................................................ Net balance at December 31, .............................................................................. Plus reinsurance recoverables .......................................................................... (2,084) 182,202 697,521 (4,853) 692,668 535,971 146,247 682,218 192,652 2,157 (2,628) 171,109 676,189 (15,631) 660,558 517,855 131,610 649,465 182,202 2,084 (3,124) 165,458 638,134 (22,477) 615,657 487,096 122,910 610,006 171,109 2,628 Balance at end of period ...................................................................................... $ 194,809 $ 184,286 $ 173,737 At the end of each period, the liability forff unpaid health claims includes an estimate of claims incurred but not yet reported to the Company. Such estimates are updated regularly based upon the Company’s most recent claims data with recognition of emerging experience trends. Due to the nature of the Company’s health business, the payment lags are relatively short and most claims are fully paid within a year from the time incurred. Fluctuations in claims experience can lead to either over or under estimation of the liability forff any given year. The difference between the estimate made at the end of the prior period and the actual experience during the period is reflected above under the caption "Incurred related to: Prior years." Below is the reconciliation of the liability of "Policy claims and other benefits payable" in the Consolidll ated Balance Sheetstt . Policy claims and other benefits payable: Life insurance .................................................................................................................................... $ 320,066 $ Health insurance ............................................................................................................................... 194,809 Total............................................................................................................................................... $ 514,875 $ 325,070 184,286 509,356 December 31, 2023 2022 114 GL 2023 FORM 10-K Globe Life Inc. Notes to Consolidated Financial Statements (Dollar amounts in thousands, except per share data) Note 9—Income Taxes The folff lowing table discloses significant components of income taxes for each year presented: Year Ended December 31, 2023 2022 2021 Income tax expense (benefit) from operations: Current income tax expense (benefit) ................................................................ $ 145,880 $ 138,968 $ 143,995 Deferred income tax expense (benefit).............................................................. 77,631 223,511 68,757 207,725 Shareholders’ equity: Other comprehensive income (loss)................................................................... 4,762 384,035 $ 228,273 $ 591,760 $ 99,502 243,497 149,061 392,558 In each of the years 2021 through 2023, deferred income tax expense (benefit) was incurred because of certain differences between net income beforff e income tax expense (benefit) as reported on the Consolidll ated Stattt ements ott f Operatrr fiii cant iott ns and taxable income as reported on Globe Life's income tax returns. As explained in Note 1—Signi Accountintt g Policll rences caused the consolidated financial statement book values of some assets and liabilities to be diffeff rent from their respective tax bases. ies, these diffeff i The effective income tax rate diffeff red from the expected U.S. federal statutory rate of 21% as shown below: Expected federal income tax expense (benefit) .......... $ 250,796 21.0 $ 231,443 21.0 $ 267,668 21.0 Year Ended December 31, 2023 % 2022 % 2021 % Increase (reduction) in income taxes resulting from: Low income housing investments........................................ (14,291) Share-based awards.............................................................. Tax-exempt investment income............................................ Other......................................................................................... (4,724) (9,644) 1,374 (1.2) (0.4) (0.8) 0.1 (11,443) (5,251) (8,961) 1,937 (1.1) (0.5) (0.8) 0.2 (12,115) (5,597) (6,977) 518 Income tax expense (benefit) ........................................... $ 223,511 18.7 $ 207,725 18.8 $ 243,497 (1.0) (0.4) (0.5) — 19.1 The tax effeff cts of temporary diffeff tax liabilities are presented below: rences that gave rise to significant portions of the deferred tax assets and deferred December 31, 2023 2022 Deferred tax assets: Unrealized losses................................................................................................................................. $ 732,750 $ 738,555 Carryover of tax losses........................................................................................................................ Total gross deferred tax assets .................................................................................................... Deferred tax liabilities: Employee and agent compensation.................................................................................................. Deferred acquisition costs................................................................................................................... Future policy benefits, unearned and advance premiums, and policy claims ............................ Other liabilities ...................................................................................................................................... 4,227 736,977 100,689 892,149 267,564 17,466 2,470 741,025 86,063 826,254 267,802 18,362 Total gross deferred tax liabilities................................................................................................. 1,277,868 1,198,481 Net deferred tax liability ....................................................................................................................... $ 540,891 $ 457,456 115 GL 2023 FORM 10-K Globe Life Inc. Notes to Consolidated Financial Statements (Dollar amounts in thousands, except per share data) Bermuda Corporate Income Tax Act, The Bermuda Corporate Income TaxTT December 27, 2023, and included a new corporate income tax (CIT). The Act and CIT go into effect forff beginning afteff consolidated financial statements; however, the Company does not expect the Act to have a material impact. Act (the Act) was enacted on years r January 1, 2025. The Company is in the process of evaluating the impact the Act will have on the Inflation Reduction Act, The Inflation Reduction Act (the Act) was enacted on August 16, 2022, and included a r tax years beginning afteff new corporate alternative minimum tax (CAMT). The Act and the CAMT go into effect forff 2022. Globe Life Inc., as parent of a tax-controlled group, has determined that it does not reasonably expect to be an applicable corporation on a group basis for the taxable year ended December 31, 2023. Thereforff e, the Company did not calculate or recognize a payable forff CAMT in its 2023 financial statements. Income Tax Returnrr : Globe Life Inc. and its subsidiaries file a life-nonlife consolidated federal income tax return. The statutes of limitations for the Internal Revenue Service's examination and assessment of additional tax are closed for all tax years prior to 2017 with respect to Globe Life's consolidated federal income tax returns. Management concludes that adequate provision has been made in the consolidated financial statements forff any potential assessments that may result from current or future tax examinations and other tax-related matters for all open years. Valuatiott ns: Globe Life has a $20.1 million net operating loss (NOL) carryforward at December 31, 2023, of which $7.2 million was created prior to 2017 and will begin to expire in 2032 if not otherwisrr t future taxable income. The remaining NOL carryforward of $12.9 million may be carried forward indefinitely. A valuation allowance is to be recorded when it is more likely than not that deferred tax assets will not be realized by the Company. No valuation allowance has been recorded relating to Globe Life's deferred tax assets as management has determined that Globe Life will more likely than not have suffiff cient taxable income in future periods to fully realize its existing deferred tax assets. e used to offseff Globe Life's tax liability is adjusted to include a provision for uncertain tax positions taken or expected to be taken in a tax return. However, during the years 2021 through 2023, Globe Life did not have any uncertain tax positions which resulted in unrecognized tax benefits. 116 GL 2023 FORM 10-K Globe Life Inc. Notes to Consolidated Financial Statements (Dollar amounts in thousands, except per share data) Note 10—Postretirement Benefits Globe Life has qualified noncontributory defined benefit pension plans (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 offiff cers. The tables included herein will focus on the Pension Plans and SERP. The total cost of these retirement plans charged to operations was as folff lows: Plan Type: Defined Contribution Plans(1).................................................................................. $ Defined Benefit Pension Plans(2) ........................................................................... 6,390 $ 5,824 $ 15,225 37,040 5,188 41,778 Year Ended December 31, 2023 2022 2021 (1) 401K plans. (2) Qualified pension plans and SERP. Globe Life accrues expense forff the employees’ contributions. The plans are funded by the employee contributions and a Globe Life contribution equal to the amount of accrued expense. Plan contributions are both mandatory and discretionary, depending on the terms of the plan. the defined contribution plans based on a percentage of Pension PlaPP ns: Cost for the Pension Plans has been calculated on the projeo cted unit credit actuarial cost method. the pension plans are as of December 31 of the respective year. The pension plans All plan measurements forff covering the majority of employees are qualified and funded. Contributions are made to funded pension plans subject to minimums required by regulation and maximums allowed forff tax purposes. Globe Life's SERP provides an additional supplemental defined pension benefit to a limited number of offiff cers. The supplemental benefit is based on the participant’s qualified plan benefit without consideration to the regulatory limits on compensation and benefit payments applicable to qualified plans, except that eligible compensation is capped at $1 million. The SERP is nonqualified and unfunded. However, a Rabbi Trust has been established to support the liability forff this plan. The Rabbi Trust consists of life insurance policies on the lives of plan participants with an unaffiff liated insurance carrier as well as an investment account. Since this plan is nonqualified, the investments and the policyholder value of the insurance policies in the Rabbi Trust are not included as defined benefit plan assets, but rather assets of the Company. They are included in “Other Assets” in the Consolidll ated Balance Sheetstt . Defined benefit and SERP plan contributions were $24.4 million in 2023, $29.8 million in 2022, and $17.9 million in 2021. In 2024, the Company does not expect to increase contributions to the plans from what was contributed in 2023. 117 GL 2023 FORM 10-K Globe Life Inc. Notes to Consolidated Financial Statements (Dollar amounts in thousands, except per share data) Pension Assets: Plan assets in the funded plans consist primarily of investments in marketable fixed maturities and equity securities that are valued at fair value. Globe Life measures the fair value of its financial assets, including the assets in its benefit plans, in accordance with accounting guidance which establishes a hierarchy for asset values and provides a methodology for the measurement of value. Please refer to Note 1—Signi ies under the caption Fair Value Measurementstt , Investmett ecuritrr iett s for a complete discussion of valuation tt nts i procedures. The following table presents the assets of the Company's Pension Plans at December 31, 2023 and 2022. fiii cant Accountintt g Policll n Sii i Pension Assets by Component at December 31, 2023 Fair Value Determined by: Quoted Prices in Active Markets for Identical Assets (Level 1) Significant le Observabrr Inputs (Level 2) Significant Unobservabrr le Inputs (Level 3) Total Amount % of Total Exchange traded fund(4)........................... $ Equity exchange traded fund(1)............... 18,715 $ 315,886 — $ — U.S. Government and Agency................ Other bonds............................................... Guaranteed annuity contract(2) ............... Short-term investments............................ Other........................................................... — — — 6,506 463 167,450 5 43,428 — — — $ 18,715 — — — — — — 315,886 167,450 5 43,428 6,506 463 552,453 18,314 3 55 30 — 8 1 — 97 3 — Other long-term investments(3)............................................................................................................................. 210,883 341,570 $ $ $ Total pension assets .................................................................................................................................. $ 570,767 100 (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)AA per share, or its equivalent, as a practical expedient for fair value. As of December 31, 2023, 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. 118 GL 2023 FORM 10-K Globe Life Inc. Notes to Consolidated Financial Statements (Dollar amounts in thousands, except per share data) Pension Assets by Component at December 31, 2022 Fair Value Determined by: Quoted Prices in Active Markets for Identical Assets (Level 1) Significant le Observabrr Inputs (Level 2) Significant Unobservabrr le Inputs (Level 3) Total Amount % of Total Corporate bonds: Financial.................................................. $ — $ 35,649 $ — $ 35,649 Utilities ..................................................... Energy ..................................................... Other corporates.................................... Total corporate bonds ........................... Exchange traded fund(1) .......................... U.S. Government and Agency................ Other bonds............................................... Guaranteed annuity contract(2)............... Short-term investments ........................... Other........................................................... — — — — 258,297 — — — 4,467 6,547 23,436 12,776 56,786 128,647 — 44,213 200 43,116 — — — — — — — — — — — — — Other long-term investments(3) ............................................................................................................................ 216,176 269,311 $ $ $ 23,436 12,776 56,786 128,647 258,297 44,213 200 43,116 4,467 6,547 485,487 14,288 Total pension assets .................................................................................................................................... $ 499,775 7 5 3 11 26 52 9 — 8 1 1 97 3 100 (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) Included in other long-term investments is an investment fund that reports the Globe Life Inc. Pension Plan's pro-rata share of the limited partnership's net asset value per share or its equivalent (NAV), as a practical expedient for fair value. The Globe Life Inc. Pension Plan owns approximately 1% of the investment fund. As of December 31, 2022, the expected term of the investment fund was approximately 2 years and the commitment of the investment is fully funded. The investment is non-redeemable. its plan assets include generating strong risk-adjusted returns, Globe Life's investment objectives and goals forff maintaining diversification, investing in accordance with the liabilities of the plan, and satisfyiff ng the liquidity needs of the plan. Globe Life seeks to accomplish these objectives by investing in public and private markets and diversifyiff ng across asset classes, industries, sectors and entities. Globe Life intends to maintain an asset mix that when combined with future plan contributions will produce adequate long-term risk adjusted returns relative to expected changes in the liability as a result of changes to interest rates or earned benefits. The majority of the securities in the portfolio are highly marketable so that there will be adequate liquidity to meet projected payments. There are no specific policies calling forff asset durations to match those of benefit obligations. Allowed investments include equity, fixed income, real assets and short term investments. Equity securities include common stocks or equivalents, preferred stocks, and/or funds investing primarily in private or public equity investments. Fixed income securities include loans of corporations or commercial real estate as well as marketable debt securities issued by either the U.S. Government, Agencies of the U.S. Government, state, local and municipal governments, domestic and foreign corporations, Special Purpose VehiVV cles secured by pools of financial assets, and other U.S. in core or non-core real estate or infrastructure with U.S. or non-U.S. exposure. Short-term investments consist of fixed income securities maturing in one year or less. institutions. Real Assets include equity interest financial The assets are to be invested in a mix of allowed investments that best serverr the objectives of the pension plan. Factors to be considered in determining the asset mix include funded status, annual pension expense, annual liability. The investment portfolio is well diversified to avoid undue pension contributions, and balance sheet 119 GL 2023 FORM 10-K Globe Life Inc. Notes to Consolidated Financial Statements (Dollar amounts in thousands, except per share data) exposure to an asset class, sector, industry, business, or security. The Company does not employ any other special risk management techniques, such as derivatives, in managing the pension investment portfolio. Globe Life's public equity within the pension plan assets consists of an exchange traded fund that mirrors the S&P 500 index which better aligns with a passive approach rather than an actively managed portfolio. At December 31, 2023, there were no restricted investments contained in the portfolio. Plan contributions have been invested primarily in fixed maturity and equity securities during the three years ended December 31, 2023. lowing table presents additional information about the Company's investment funds included in pension plan The folff assets as of December 31, 2023 and December 31, 2022 at fair value: Fair Value Unfunded Commitments Investment Category rr 2 023 2022 2023 Redemption Term/Notice(1) Multi-asset class Private equity $ 14,714 $ 14,288 $ 7,203 Non-redeemable 3,600 — 56,472 Non-redeemable Total ........................................... $ 18,314 $ 14,288 $ 63,675 (1) Non-redeemable funds generally have an expected life of 7 to 10 years from fund closing with extension options of 2 to 4 years. Redemptions are paid out throughout the life of the funds at the General Partner's discretion. SERP: The folff ended December 31, 2023 and investments of the Rabbi Trust forff lowing tables include premiums paid forff the company owned life insurance (COLI) forff the three years the two years ended December 31, 2023. Year Ended December 31, 2023 2022 2021 Premiums paid forf insurance coverage.................................................................. $ 443 $ 443 $ 2,193 Total investments: COLI ...................................................................................................................................................... $ 55,185 $ Exchange traded funds ...................................................................................................................... 86,156 54,681 71,258 $ 141,341 $ 125,939 At December 31, 2023 2022 Pension PlaPP ns and SERP Liabilitii accumulated benefit obligation (ABO) forff iett s: The folff lowing table presents projeo cted benefit obligation (PBO) and the Pension Plans and SERP at December 31, 2023 and 2022. December 31, 2023 2022 PBO ABO PBO ABO Pension plans.............................................................................. $ 554,957 $ 493,040 $ 492,103 $ 458,510 SERP............................................................................................ 72,603 69,332 70,464 67,776 Benefit obligation ................................................................. $ 627,560 $ 562,372 $ 562,567 $ 526,286 120 GL 2023 FORM 10-K Globe Life Inc. Notes to Consolidated Financial Statements (Dollar amounts in thousands, except per share data) For the year ended December 31, 2023, the Pension Plans have plan assets with fair values in excess of projected benefit obligations. The projected benefit obligations and the fair value of plan assets were as follows: Funded benefit pension plans PBO........................................................................................................ $ 554,957 $ Funded benefit pension plans fair value of plan assets...................................................................... 570,767 492,103 499,775 For the year ended December 31, 2023, the funded benefit pension plans have plan assets with fair value in excess of the accumulated benefit obligations. The accumulated benefit obligations and the fair value of plan assets were as follows: At December 31, 2023 2022 At December 31, 2023 2022 Funded benefit pension plans ABO........................................................................................................ $ 493,040 $ Funded benefit pension plans fair value of plan assets...................................................................... 570,767 458,510 499,775 lowing table discloses the assumptions used to determine Globe Life's pension liabilities and costs forff The folff the appropriate periods. The discount and compensation increase rates are used to determine current year projected benefit obligations and subsequent year pension expense. The long-term rate of return is used to determine current year expense. Differences between assumptions and actual experience are included in actuarial gain or loss. Weighted Average Pension Plan Assumptions For Benefit Obligll atiott ns at December 31: Discount rate ......................................................................................................................................... Rate of compensation increase.......................................................................................................... 2023 2022 5.40 % 4.40 5.71 % 4.40 For Periodic Benefitff Cost for thett Year:rr 2023 2022 2021 Discount rate ............................................................................................................ 5.71 % 3.19 % 2.92 % Expected long-term returns.................................................................................... Rate of compensation increase............................................................................. 6.98 4.40 6.98 4.43 6.67 3.97 The discount rate is determined based on the expected duration of plan liabilities. A yield is then derived based on the current market yield of a hypothetical portfolio of high quality corporate bonds that match the liability's average life. The rate of compensation increase is projeo cted based on Company experience, modified as appropriate for future expectations. The expected long-term rate of return on plan assets is management’s best estimate of the average rate of earnings expected to be received on the assets invested in the plan over the benefit period. In determining this assumption, consideration is given to the historical rate of return earned on the assets, the projected returns over future periods, and the discount rate used to compute benefit obligations. 121 GL 2023 FORM 10-K Globe Life Inc. Notes to Consolidated Financial Statements (Dollar amounts in thousands, except per share data) Net Periorr dic Benefitff Cost: Net periodic benefit cost for the defined benefit plans by expense component was as follows: Year Ended December 31, 2023 2022 2021 Service cost—benefits earned during the period .................................................. $ Interest cost on projected benefit obligation........................................................... Expected return on assets ........................................................................................ Amortization of prior servirr ce cost (credit) ............................................................... Recognition of actuarial gain (loss).......................................................................... 21,568 $ 34,624 $ 31,367 (38,625) 1,075 (160) 24,445 (35,539) 1,077 12,433 Net periodic benefit cost .................................................................................... $ 15,225 $ 37,040 $ 31,672 21,957 (32,331) 631 19,849 41,778 An analysis of the impact on other comprehensive income (loss) concerning pensions and other postretirement benefits is as folff lows: Year Ended December 31, 2023 2022 2021 Balance at January 1 .............................................................................................. $ 1,570 $ (131,239) $ (208,770) Amortization of: Prior servirr ce cost (credit)...................................................................................... Net actuarial (gain) loss(1)..................................................................................... Total amortization................................................................................................ Plan amendments.................................................................................................... Experience gain (loss)(2) ......................................................................................... 1,075 (1,465) (390) — 1,077 12,677 13,754 — (3,907) 119,055 631 20,166 20,797 (4,565) 61,299 Balance at December 31 ........................................................................................ $ ( (2,727) $ ) 1,570 $ ) ( (131,239) (1) Includes amortization of postretirement benefits other than pensions of $(732) thousand in 2023, $289 thousand in 2022, and $228 thousand in 2021. (2) The increase in the experience gain (loss) is related to an increase discount rate. 122 GL 2023 FORM 10-K Globe Life Inc. Notes to Consolidated Financial Statements (Dollar amounts in thousands, except per share data) The folff lowing table presents a reconciliation from the beginning to the end of the year of the PBO for the Pension Plans and SERP, and the plan assets for the Pension Plans. This table also presents the amounts previously recognized as a component of accumulated other comprehensive income. Pension Benefits Year Ended December 31, 2023 2022 Changes in PBO: PBO at beginning of year...................................................................................................................... $ 562,567 $ 778,934 Service cost........................................................................................................................................... Interest cost........................................................................................................................................... Actuarial loss (gain) ............................................................................................................................. Benefits paid ......................................................................................................................................... PBO at end of year................................................................................................................................. Changes in plan assets: Fair value at beginning of year............................................................................................................. Return on assets .................................................................................................................................. Contributions......................................................................................................................................... Benefits paid ......................................................................................................................................... Fair value at end of year ....................................................................................................................... 21,568 31,367 40,569 (28,511) 627,560 499,775 75,062 24,441 (28,511) 570,767 34,624 24,445 (241,995) (33,441) 562,567 597,547 (94,175) 29,844 (33,441) 499,775 Funded status at year end ................................................................................................................... $ ( (56,793) $ ) ) ( (62,792) Changes in the PBO related to actuarial losses (gains) are primarily attributed to changes in the discount rate. Amounts recognized in accumulated other comprehensive income consist of: 2023 2022 Net loss (gain)......................................................................................................................................... $ (227) $ (4,497) Prior servirr ce cost.................................................................................................................................... 6,494 Net amounts recognized at year end .................................................................................................. $ 6,267 $ 7,569 3,072 Year Ended December 31, Globe Life has estimated its expected pension benefits to be paid over the next ten years as of December 31, 2023. These estimates use the same assumptions that measure the benefit obligation at December 31, 2023, taking estimated future employee servirr ce into account. Those estimated benefits are as follows: For the year(s): 2024............................................................................................................................................................................................. $ 28,870 2025............................................................................................................................................................................................. 2026............................................................................................................................................................................................. 2027............................................................................................................................................................................................. 2028............................................................................................................................................................................................. 29,865 32,606 34,828 37,363 2029-2033.................................................................................................................................................................................. 220,202 123 GL 2023 FORM 10-K Globe Life Inc. Notes to Consolidated Financial Statements (Dollar amounts in thousands, except per share data) Note 11—Supplemental Disclosures of Cash Flow Information lowing table summarizes Globe Life's noncash transactions, which are not reflected on the Consolidll ated The folff Stattt ements ott f Cash FloFF ws: Year Ended December 31, 2023 2022 2021 Stock-based compensation not involving cash...................................................... $ 30,736 $ 35,650 $ Commitments forff low-income housing interests.................................................... Exchanges of fixed maturity investments ............................................................... Net unsettled security trades .................................................................................... Noncash tax credits.................................................................................................... — 50,936 3,833 1,083 136,882 147,612 — 1,000 30,272 177,010 109,226 6,963 1,883 The folff lowing table summarizes certain amounts paid during the period: Interest paid................................................................................................................. $ 99,545 $ 88,814 $ Income taxes paid ...................................................................................................... 121,034 114,888 83,072 96,218 Year Ended December 31, 2023 2022 2021 124 GL 2023 FORM 10-K Globe Life Inc. Notes to Consolidated Financial Statements (Dollar amounts in thousands, except per share data) Note 12—Debt On May 11, 2023, Globe Life issued a $170 million term loan with an 18-month term and a variable interest rate. The proceeds from the term loan were used to retire the $166 million 7.875% Senior Notes, which matured on May 15, 2023, as well as for other corporate purposes. The following table presents inforff mation about the terms and outstanding balances of Globe Life's debt. Selected Information about Debt Issues Maturity Date Coupon Rate Par Value As of December 31, 2023 Unamortized Discount & Issuance Costs Book Value Fair Value 2022 Book Value 05/15/2023 7.875% $ — $ — $ — $ — $ 165,500 Instrument Issue Date Senior notes(3) ... 05/27/1993 Senior notes....... 09/27/2018 09/15/2028 4.550% Senior notes....... 08/21/2020 Senior notes(1) ... 05/19/2022 08/15/2030 2.150% 06/15/2032 4.800% 550,000 400,000 250,000 (3,717) (3,330) (4,127) 546,283 396,670 245,873 545,495 335,096 242,704 545,601 396,219 245,493 Junior subordinated debentures ......... 11/17/2017 Junior subordinated debentures ......... 06/14/2021 11/17/2057 5.275% 125,000 (1,573) 123,427 120,674 123,410 06/15/2061 4.250% 325,000 (7,694) 317,306 247,260 317,229 1,650,000 (20,441) 1,629,559 1,491,229 1,793,452 Less current maturity of long-term debt............................ — — — — 165,500 Total long-term debt .................................................... 1,650,000 (20,441) 1,629,559 1,491,229 1,627,952 Current maturity of long-term debt..................................... Term loan(2) ........ 05/11/2023 11/11/2024 6.740% Commercial paper ................................................................ Total short-term debt .................................................. — 170,000 319,000 489,000 — (451) (2,436) (2,887) — 169,549 316,564 486,113 — 165,500 169,549 316,564 486,113 — 283,603 449,103 Total debt ................................................................. $ 2,139,000 $ (23,328) $ 2,115,672 ( ) $ 1,977,342 $ 2,077,055 (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. (3) The $166 million of 7.875% Senior notes matured on May 15, 2023. The commercial paper has the highest priority of all unsecured debt, lowed by senior notes then junior subordinated debentures. The senior notes are callable under a make-whole provision, and the junior subordinated debentures are subject Interest on the 4.25% junior subordinated debentures is payable quarterly while all other long-term debt is payable semi-annually. to an optional redemption five years from issuance. folff Contratt ctual Debt Obligai contractual debt obligations: g tions : The folff lowing table presents expected scheduled principal payments under our Debt obligations......................................... $ 489,000 $ — $ — $ — $ 550,000 $ 1,100,000 2024 2025 2026 2027 2028 Thereafteff r Year Ended December 31, 125 GL 2023 FORM 10-K Globe Life Inc. Notes to Consolidated Financial Statements (Dollar amounts in thousands, except per share data) Credi t FacFF ilityty:yy On September 30, 2021, Globe Life amended the credit agreement dated August 24, 2020, which rr provides for a $750 million revolving credit facility that may be increased to $1 billion upon approval of the participating banks. The amended credit facility matures September 30, 2026, 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 forff 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 $750 million, 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. As of December 31, 2023, the Company was in full compliance with these covenants. Commercial paper outstanding and any long-term debt due within one year are reported as short-term debt on the Consolidll ated Balance Sheetstt . A table presenting selected inforff mation concerning Globe Life's commercial paper borrowings is presented below. Credit Facility—Commercial Paper At December 31, Balance commercial paper at end of period (at par value)................................................................. $ 319,000 Annualized interest rate............................................................................................................................ 5.71 % Letters of credit outstanding .................................................................................................................... $ 115,000 Remaining amount available under credit line...................................................................................... 316,000 2023 $ $ 2022 285,000 4.78 % 125,000 340,000 Average balance of commercial paper outstanding during period (par value)... $ 290,024 Daily-weighted average interest rate (annualized) ................................................. 5.40 % Maximum daily amount outstanding during period (par value)............................. $ 477,700 2023 2022 322,531 1.89 % 500,529 $ $ 2021 311,049 0.23 % 465,033 $ $ Commercial paper issued during period (par value) .............................................. 2,029,000 2,269,444 1,964,313 Commercial paper matured during period (par value) ........................................... (1,995,000) (2,314,477) (1,889,280) Net commercial paper issued (matured) during period (par value) ..................... 34,000 (45,033) 75,033 Year Ended December 31, The Company increased the commercial paper borrowings by $34 million from the prior year. We had no difficulties in accessing the commercial paper market under this facility during the year ended December 31, 2023 and 2022. Federalrr Home Loan Bank (FHLFF B) ): FHLB membership provides our insurance subsidiaries with access to various low-cost collateralized borrowings and funding agreements. The membership requires ownership of FHLB common to approximately 4.1% of outstanding stock, as well as the purchase of activity-based common stock equal borrowings. ( Globe Life owned $22.3 million in FHLB common stock as of December 31, 2023 and $14.3 million as of December 31, 2022. The FHLB stock is restricted 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 investments" in the Consolidll ated Balance Sheets.tt Borrowings with the FHLB are subject to the availability of pledged assets at Globe Life. As of December 31, 2023, Globe Life's maximum borrowing capacity under the FHLB facility was approximately $1.0 billion, net of outstanding funding agreements and short-term borrowings, on pledged assets with a fair value of $1.3 billion. As of December 31, 2023, $138 million in funding agreements were outstanding with the FHLB, compared to $23 million as of December 31, 2022. This amount is included in "Other policyholders' funds" in the Consolidll ated Balance Sheetstt . 126 GL 2023 FORM 10-K Globe Life Inc. Notes to Consolidated Financial Statements (Dollar amounts in thousands, except per share data) Note 13—Shareholders' Equity Share Drr ata:tt A summary of common share activity is presented in the folff lowing chart. Common Stock Issued Treasury Stock 2021: Balance at January 1, 2021.................................................................................................................. 113,218,183 (9,420,699) Grants of restricted stock ...................................................................................................................... Vesting of perforr rmance shares ............................................................................................................ Issuance of common stock due to exercise of stock options .......................................................... Treasury stock acquired ........................................................................................................................ — — — — 10,031 210,155 1,191,704 (5,642,036) Retirement of treasury stock................................................................................................................. (4,000,000) 4,000,000 Balance at December 31, 2021 ...................................................................................................... 109,218,183 (9,650,845) 2022: Grants of restricted stock ...................................................................................................................... Vesting of perforr rmance shares ............................................................................................................ Issuance of common stock due to exercise of stock options .......................................................... Treasury stock acquired ........................................................................................................................ — — — — 10,746 66,751 1,519,728 (4,424,668) Retirement of treasury stock................................................................................................................. (4,000,000) 4,000,000 Balance at December 31, 2022 ...................................................................................................... 105,218,183 (8,478,288) 2023: Grants of restricted stock ...................................................................................................................... Vesting of perforr rmance shares ............................................................................................................ Issuance of common stock due to exercise of stock options .......................................................... Treasury stock acquired ........................................................................................................................ — — — — 7,110 84,298 1,375,313 (4,415,287) Retirement of treasury stock................................................................................................................. (3,000,000) 3,000,000 Balance at December 31, 2023 ...................................................................................................... 102,218,183 ) ( (8,426,854) There was no activity related to the preferred stock in years 2021 through 2023. ii tion of Common Sharesrr : Globe Life shares are acquired through open market purchases under the Globe q Acquisi Life stock repurchase program when it is determined to be the best use of Globe Life's excess cash flows. This yields a return that is better than available alternatives and exceeds our cost of equity. When stock options are exercised, proceeds from the exercises are generally used to repurchase approximately the number of shares available with those funds in order to reduce dilution. See the following summary below: Globe Life Share Repurchase Program Share Repurchase for Dilution Purposes Shares Acquired (in thousands) Total Cost Average Price Shares Acquired (in thousands) Total Cost Average Price 2023 ................................................ 3,369 $ 380,103 $ 112.84 1,080 $ 127,155 $ 117.72 2022 ................................................ 2021 ................................................ 3,322 4,784 335,145 100.90 455,030 95.11 1,103 858 119,493 108.33 86,405 100.75 127 GL 2023 FORM 10-K Globe Life Inc. Notes to Consolidated Financial Statements (Dollar amounts in thousands, except per share data) Restritt ctiott ns: Restrictions exist on the flow of funds to Globe Life Inc. from its insurance subsidiaries. Statutory regulations require life insurance subsidiaries to maintain certain minimum amounts of capital and surplus. Dividends from insurance subsidiaries of Globe Life Inc. are restricted based on regulations by their states of domicile. Additionally, insurance company distributions are generally not permitted in excess of statutory surplus. Subsidiaries are also subjeb ct to certain minimum capital requirements. Subsidiaries of Globe Life paid cash dividends to the Parent Company in the amount of $460 million in 2023, $407 million in 2022, and $479 million in 2021. As of December 31, 2023, dividends from insurance subsidiaries to the Parent Company available to be paid in 2024 are limited to the amount of $466 million without regulatory approval, such that $1.2 billion was considered restricted net assets of the subsidiaries. Dividends exceeding these limitations may be available during the year pending regulatory approval. While there are no legal restrictions on the payment of dividends to shareholders from Globe Life's retained earnings, retained earnings as of December 31, 2023 were restricted by lenders’ covenants which require the Company to maintain and not distribute $4.3 billion from its total consolidated retained earnings of $7.5 billion. g p Earnings per Sharerr computation of basic and diluted earnings per share is as folff lows: : A reconciliation of basic and diluted weighted-average shares outstanding used in the Year Ended December 31, 2023 2022 2021 Basic weighted average shares outstanding ........................................................ 95,098,474 97,927,770 102,069,781 Weighted average dilutive options outstanding.................................................... 1,265,367 1,056,874 1,100,351 Diluted weighted average shares outstanding...................................................... 96,363,841 98,984,644 103,170,132 Antidilutive shares ..................................................................................................... 422,739 31,269 2,412,884 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. Note 14—Stock-Based Compensation Globe Life's stock-based compensation consists of stock options, restricted stock, restricted stock units, and perforr rmance shares. Certain employees and members of the board of directors (directors) have been granted fixed equity options to buy shares of Globe Life stock at the market value of the stock on the date of grant, under the provisions of the Globe Life stock option plans. The options are exercisable during the period commencing from the date they vest until expiring according to the terms of the grant. Options generally expire the earlier of employee termination or option contract term, which are either seven-year or ten-year terms. However, depending on the circumstances of termination, options may be exercised for a period of time folff lowing termination of employment or upon death or disability. Options generally vest in accordance with the following schedule: Contract Period 6 Months Year 1 Year 2 Year 3 Year 4 Year 5 Shares vested by period Directors ........................................ 7 years 100% Employees ..................................... 7 years Employees ..................................... 10 years —% —% —% —% —% —% 50% 25% —% 50% 25% —% —% 25% —% —% 25% All employee options vest immediately upon retirement on or afteff r the attainment of age 65, upon death, or disability. Globe Life generally issues shares for the exercise of stock options from treasury stock. The Company generally uses the proceeds from option exercises to buy shares of Globe Life common stock in the open market to reduce the dilution from option exercises. 128 GL 2023 FORM 10-K Globe Life Inc. Notes to Consolidated Financial Statements (Dollar amounts in thousands, except per share data) An analysis of shares available forff grant is as follows: Balance at January 1, .................................................................................................... Options expired and forfeited during year(1) ............................................................ Perforf mance shares expired and forfeited during year(2) ...................................... Restricted stock units expired and forfeited during the year(2) ............................. Options granted during year(1) ................................................................................... rmance shares granted(2) ..... Restricted stock, restricted stock units, and perforr Available for Grant 2023 2022 2021 3,177,886 4,727,088 5,984,418 122,962 39,060 12,513 13,405 23,250 — 5,304 34,255 — (422,501) (1,105,180) (1,091,495) (598,604) (480,677) (205,394) Balance at December 31, ............................................................................................. 2,331,316 3,177,886 4,727,088 (1) Plan allows for grant of options such that each grant reduces shares available forf (2) Plan allows for grant of restricted stock, restricted stock units and perforr grant in a range from 0.85 share to 1.0 share. rmance shares such that each stock grant reduces shares available for grant in a range from 3.10 shares to 3.88 shares. A summary of stock compensation activity forff below: each of the three years ended December 31, 2023 is presented Stock-based compensation expense recognized(1) ..................................................... $ 30,736 $ 35,650 $ Tax benefit recognized...................................................................................................... 11,178 12,738 30,272 11,954 2023 2022 2021 (1) No stock-based compensation expense was capitalized in any period in accordance with applicable GAAP. Additional stock compensation inforff mation is as follows at December 31: Unrecognized compensation(1) .................................................................................................................... $ Weighted average period of expected recognition (in years)(1) .............................................................. 36,599 $ 33,977 0.53 0.56 2023 2022 (1) Includes stock options, restricted stock units and perforr rmance shares. No equity awards were cash settled during the three years ended December 31, 2023. Options: p The folff lowing table summarizes inforff mation about stock options outstanding at December 31, 2023. Range of Exercise Prices $50.64 - $82.56 87.60 - 98.32 100.74 103.23 - 120.49 $50.64 - $120.49 Options Outstanding Options Exercisable Weighted- Average Remaining Contractual Life (Years) Weighted- Average Exercise Price 2.25 $ 3.33 3.09 5.35 3.68 $ 78.28 93.98 100.74 108.04 96.19 Number Exercisable 1,210,102 $ 1,435,140 1,039,117 318,669 4,003,028 $ Weighted- Average Exercise Price 78.28 92.55 100.74 103.46 91.23 Number Outstanding 1,210,102 1,908,002 1,039,117 1,783,099 5,940,320 129 GL 2023 FORM 10-K Globe Life Inc. Notes to Consolidated Financial Statements (Dollar amounts in thousands, except per share data) An analysis of option activity forff each of the three years ended December 31, 2023, is as follows: 2023 2022 2021 Weighted- Average Exercise Price Options Weighted- Average Exercise Price Options Weighted- Average Exercise Price Options Outstanding—beginning of year .............. 6,962,374 $ 91.73 7,197,662 $ 85.11 7,111,231 $ 78.28 Granted: 7-year term................................................ 497,060 120.49 1,300,211 103.20 1,284,112 Exercised........................................................ (1,375,313) Expired and forfeited .................................... (143,801) Outstanding—end of year .......................... 5,940,320 Exercisable at end of year .......................... 4,003,028 82.95 90.92 96.19 (1,519,728) (15,771) 6,962,374 91.23 3,666,871 $ $ $ $ 70.14 96.54 91.73 (1,191,704) (5,977) 7,197,662 84.00 3,659,755 98.28 58.59 74.15 85.11 75.55 $ $ Additional information about Globe Life's stock option activity as of December 31, 2023 and 2022 is as follows: Outstanding options: Weighted-average remaining contractual term (in years)................................................................ 3.68 4.08 Aggregate intrinsic value....................................................................................................................... $ 151,685 $ 200,681 2023 2022 Exercisable options: Weighted-average remaining contractual term (in years)................................................................ 3.01 3.01 Aggregate intrinsic value....................................................................................................................... $ 122,052 $ 134,033 Selected stock option activity forff the three years ended December 31, 2023, is presented below: Weighted-average grant-date fair value of options granted (per share) ................................................................................................................... $ Intrinsic value of options exercised.......................................................................... Cash received from options exercised.................................................................... Actual tax benefit received........................................................................................ 32.25 $ 22.03 $ 49,163 114,080 9,379 58,201 106,592 11,907 18.01 50,641 69,826 10,545 2023 2022 2021 Additional information concerning Globe Life's unvested options is as follows at December 31: Number of shares outstanding................................................................................................................ 1,937,292 3,295,503 Weighted-average exercise price (per share)....................................................................................... $ 106.42 $ 100.33 Weighted-average remaining contractual term (in years)................................................................... 5.05 5.26 Aggregate intrinsic value.......................................................................................................................... $ 29,634 $ 66,647 2023 2022 Globe Life expects that substantially all unvested options will vest. Restritt cted Stock: Restricted stock grants consist of time-vested grants, restricted stock units, and perforr rmance shares. Time-vested restricted stock is available to directors and vests over six months. The directors' restricted stock units vest over six months and are converted to shares upon their retirement from the Board. Employees' restricted stock units vest and become non-forfeitable on the vesting date (generally three years from the grant date) or upon meeting certain retirement criteria, or in the event of death or disability. Director restricted stock and rmance shares are restricted stock units ar ge general yly ggranted on the ffirst business d yay fof the calendar yyear P. erforr 130 GL 2023 FORM 10-K Globe Life Inc. Notes to Consolidated Financial Statements (Dollar amounts in thousands, except per share data) granted to a limited number of senior executives. Perforff mance shares have a three-year perforr are not settled in shares until the certification of the three-year perforr stated target number of shares, achievement of certain perforr executive restricted stock and perforr rmance period and rmance period. While the grant specifies a in shares will be based on the rmance period. Certain rmance share grants contain terms related to age that could accelerate vesting. rmance objectives of Globe Life over the three-year perforr the actual settlement the determination of Following are the restricted stock units outstanding for each of the three years ended December 31, 2023. 2021........................................................................................................................................................................... 2022........................................................................................................................................................................... 2023........................................................................................................................................................................... Year of grants Outstanding as of year end 84,426 93,381 163,108 Below is the final determination of the perforr rmance share grants in 2019 to 2021: Year of grants Final settlement of shares Final settlement date 2019............................................................................................................................. 2020............................................................................................................................. 66,751 84,298 February 23, 2022 February 22, 2023 2021............................................................................................................................. 143,211 February 28, 2024 For the 2022 and 2023 perforr thousand for the 2022 grants and 0 to 122 thousand shares for the 2023 grants. rmance share grants, actual shares that could be distributed range from 0 to 220 A summary of restricted stock grants forff presented in the table below. each of the years in the three-year period ended December 31, 2023, is 2023 2022 2021 Directors restricted stock: Shares............................................................................................................................ 7,110 Price per share ............................................................................................................. $ 119.59 Aggregate value ........................................................................................................... $ Percent vested.............................................................................................................. 850 100% Directors restricted stock units (including dividend equivalents): Shares............................................................................................................................ 9,479 Price per share ............................................................................................................. $ 117.73 Aggregate value ........................................................................................................... $ 1,116 Percent vested.............................................................................................................. 100% Employees restricted stock units: Shares............................................................................................................................ 96,975 Price per share ............................................................................................................. $ 120.18 Aggregate value ........................................................................................................... $ 11,654 Percent vested.............................................................................................................. —% Performance shares: Target shares................................................................................................................ 81,300 Target price per share ................................................................................................. $ 120.49 Aggregate value ........................................................................................................... $ 9,796 10,746 94.94 1,020 100% 8,956 95.62 856 100% — — — —% 146,500 103.23 15,123 $ $ $ $ $ $ $ $ 10,031 92.40 927 97% 7,258 92.60 672 96% — — — —% 139,500 98.32 13,716 $ $ $ $ $ $ $ $ Percent vested.............................................................................................................. —% —% —% 131 GL 2023 FORM 10-K Globe Life Inc. Notes to Consolidated Financial Statements (Dollar amounts in thousands, except per share data) Time-vested restricted stockholders are entitled to dividend payments on the unvested stock. Director restricted stock unit holders are entitled to dividend equivalents. These equivalents are granted in the forff m of additional restricted stock units and vest immediately upon grant. Dividend equivalents are applicable only to directors' restricted stock units. Perforr rmance shares held by employees are not entitled to dividend equivalents and are not entitled to dividend payments until the shares are vested and settled. An analysis of nonvested restricted stock is as folff lows: Executive Performance Shares Directors Restricted Stock Directors Restricted Stock Units Employees Restricted Stock Units 2021: Balance at December 31, 2020 .............................. Grants............................................................................... rmance shares(1) ................................. Additional perforr 518,976 139,500 (94,883) — 10,031 — — 7,258 — Restriction lapses........................................................... (210,155) (9,742) (6,969) Forfeitures ....................................................................... Balance at December 31, 2021 .............................. 2022: Grants............................................................................... rmance shares(1) ................................. Additional perforr Restriction lapses........................................................... Forfeitures ....................................................................... (11,050) 342,388 146,500 (16,102) (66,751) (7,500) Balance at December 31, 2022 .............................. 398,535 2023: Grants............................................................................... rmance shares(1) ................................. Additional perforr Restriction lapses........................................................... Forfeitures ....................................................................... 81,300 (28,857) (84,298) (12,600) Balance at December 31, 2023 .............................. 354,080 — 289 10,746 — (11,035) — — 7,110 — (7,110) — — — 289 8,956 — (9,245) — — 9,479 — (9,479) — — (1) Estimated additional (reduced) share grants expected due to achievement of perforr rmance criteria. — — — — — — — — — — — 96,975 — — (4,410) 92,565 Total 518,976 156,789 (94,883) (226,866) (11,050) 342,966 166,202 (16,102) (87,031) (7,500) 398,535 194,864 (28,857) (100,887) (17,010) 446,645 An analysis of the weighted-average grant-date fair values per share of nonvested restricted stock is as follows for the year 2023: Executive Performance Shares Directors Restricted Stock Directors Restricted Stock Units Grant-date fair value per share at January 1, 2023 ............. $ 100.68 $ — $ — $ Grants................................................................................................ Estimated additional perforr rmance shares ................................... Restriction lapses ............................................................................ Forfeitures......................................................................................... Grant-date fair value per share at December 31, 2023 ....... 120.49 (99.81) (100.74) (100.74) 105.28 119.59 — 117.92 — (119.59) (117.92) — — — — Employees Restricted Stock Units — 120.18 — — (120.49) 120.16 132 GL 2023 FORM 10-K Globe Life Inc. Notes to Consolidated Financial Statements (Dollar amounts in thousands, except per share data) Note 15—Business Segments Globe Life is organized into four investments. In addition, other expenses not included in these segments are reported in "Corporate & Other." life insurance, supplemental health insurance, annuities, and segments: ff Globe Life's reportable insurance segments are based on the insurance product lines it markets and administers: life insurance, supplemental health insurance, and annuities. These major product lines are set out as reportable segments because of the common characteristics of products within these categories, comparability of margins, and the similarity in regulatory environment and management techniques. There is also an investment segment that manages the investment portfolio and cash flow forff the insurance segments and the corporate function, which has been retrospectively adjusted to exclude the interest on deferred acquisition costs due to the adoption of ASU 2018-12 and the interest on debt. The Company's chief operating decision makers evaluate the overall perforr rmance 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. An immaterial amount of annuities sold as companion products are included in the life segment. Health insurance products are generally guaranteed renewable and include Medicare Supplement, cancer, critical illness, accident, and other limited-benefit supplemental hospital and surgical products. Annuities include fixed-benefit contracts. The folff lowing tables present segment premium revenue by each of Globe Life's distribution channels. Premium Income by Distribution Channel For the Year 2023 Life Health Annuity Total Distribution Channel Amount % of Total American Income ................................ $ 1,588,702 Direct to Consumer............................. Liberty National ................................... United American.................................. Family Heritage ................................... 991,406 349,736 7,311 6,134 Other ..................................................... 193,955 51 32 11 — — 6 Amount $ 120,332 68,575 187,934 545,723 396,209 — % of Total Amount % of Total Amount % of Total — — — — — — — — $ 1,709,034 — — — — — 1,059,981 537,670 553,034 402,343 193,955 38 24 12 13 9 4 — $ 4,456,017 100 $ 3,137,244 100 $ 1,318,773 100 $ Life Health Annuity Total For the Year 2022 % of Total Amount % of Total Amount % of Total Distribution Channel Amount % of Total American Income ................................ $ 1,505,034 Direct to Consumer............................. Liberty National ................................... United American.................................. Family Heritage ................................... 985,488 327,469 7,966 5,586 Other ..................................................... 196,281 50 33 11 — — 6 Amount $ 117,353 71,129 187,241 539,874 366,820 — $ 3,027,824 100 $ 1,282,417 100 $ — — — 1 — — 1 — $ 1,622,387 — — 100 — — 1,056,617 514,710 547,841 372,406 196,281 38 24 12 13 9 4 100 $ 4,310,242 100 $ 9 5 14 42 30 — $ 9 5 15 42 29 — 133 GL 2023 FORM 10-K Globe Life Inc. Notes to Consolidated Financial Statements (Dollar amounts in thousands, except per share data) Life Health Annuity Total For the Year 2021 Distribution Channel Amount % of Total American Income ................................. $ 1,401,898 Direct to Consumer .............................. Liberty National..................................... United American ................................... Family Heritage..................................... 968,365 311,200 8,892 4,957 Other....................................................... 198,618 48 34 11 — — 7 Amount $ 114,742 73,976 187,669 480,656 343,839 — $ 9 6 16 40 29 — $ 2,893,930 100 $ 1,200,882 100 $ — — — 1 — — 1 — $ 1,516,640 — — 100 — — 1,042,341 498,869 489,549 348,796 198,618 37 25 12 12 9 5 100 $ 4,094,813 100 % of Total Amount % of Total Amount % of Total Due to the nature of the life insurance industry, Globe Life has no individual or group which would be considered a majoa r customer. Substantially all of Globe Life's business is conducted in the United States. rr the insurance segments is The measure of profitability established by the chief operating decision makers forff underwr iting margin beforff e other income and administrative expenses, in accordance with the manner in which the segments are managed. It essentially represents gross profit margin on insurance products beforff e insurance administrative expenses and consists primarily of premium less net policy benefits, acquisition expenses, and commissions. Required interest on policy liabilities is reflected as a component of the Investment segment (rather than as a component of underwriting margin in the insurance and annuity segments) in order to match this cost with the investment income earned on the assets supporting the policy liabilities. The measure of profitability forff the Investment segment is excess investment income, representing the income earned on the investment portfolio in excess of policy requirements. During the implementation of ASU 2018-12, the Company reviewed its segment disclosures and modified the measure of profitability of our Investment Segment due to the adoption impact of the standard and to align more appropriately with how we view and measure this segment. As of January 1, 2023, this measure was retrospectively adjusted to exclude the interest on deferred acquisition costs due to the adoption of ASU 2018-12 and the interest expense on debt. Other than the above- mentioned interest allocations, no other intersegment revenues or expenses are recognized. Expenses directly attributable to corporate operations are included in the “Corporate & Other” category. Stock-based compensation expense is considered a corporate expense by Globe Life management and is included in this category. All other unallocated revenues and expenses on a pretax basis, including insurance administrative expense and interest on debt, are also included in the “Corporate & Other” segment category. Globe Life holds a sizable investment portfolio to support its insurance liabilities, the yield from which is used to offsff et policy benefit, acquisition, administrative, and tax expenses. This yield or investment income is taken into account when establishing premium rates and profitability expectations for its insurance products. From time to time, investments are sold or called, or experience a credit loss event, each of which are reflected by the Company as realized gain (loss)—investments. These gains or losses generally occur as a result of disposition due to issuer calls, compliance with Company investment policies, or other reasons ofteff n beyond management’s control. Unlike investment income, realized gains and losses are incidental to insurance operations, and only overall yields are considered when setting premium rates or insurance product profitability expectations. While these gains and losses are not relevant to segment profitability or core operating results, they can have a material positive or negative result on net income. For these reasons, management removes realized investment gains and losses when it views its segment operations. Management also removes non-operating items unrelated to the Company's core insurance activities when evaluating those results. Thereforff e, these items are excluded in its presentation of segment results because accounting guidance requires that operating segment results be presented as management views its business. With the exception of the administrative settlements, all of these items are included in “Other operating expense” in the Consolidll ated Stattt ements ott iott ns for the appropriate year. See additional detail below in the tables. f OperO atrr 134 GL 2023 FORM 10-K Globe Life Inc. Notes to Consolidated Financial Statements (Dollar amounts in thousands, except per share data) lowing tables set forth a reconciliation of Globe Life's revenues and operations by segment to its major information concerning fii cant Accountintt g Policll The folff income statement line items. See Note—1 Signi reconciling items of segment profits to pretax income. ies for additional i Year Ended December 31, 2023 Life Health Annuity Investment Corporate & Other Adjustments Consolidated Revenue: Premium................................................... $ 3,137,244 $1,318,773 $ — $ — $ — $ Net investment income .......................... Other income........................................... — — — — — 1,056,884 — — Total revenue ..................................... 3,137,244 1,318,773 — 1,056,884 Expenses: Policy obligations.................................... 2,050,789 776,362 28,039 9,061 Required interest on reserverr s .............. (772,701) (106,516) (38,224) 917,441 Required interest on DAC ..................... — — — Amortization of acquisition costs.......... 327,426 50,598 1,676 Commissions, premium taxes, and non-deferred acquisition costs ............. Insurance administrative expense(1) .... Parent expense....................................... Stock-based compensation expense .. Interest expense ..................................... 338,758 220,392 — — — — — — — — 17 — — — — — — — — — — — — 308 308 — — — — — 301,161 10,866 30,736 102,316 Total expenses .................................. 1,944,272 940,836 (8,492) 926,502 445,079 Subtotal ....................................................... 1,192,972 377,937 8,492 130,382 (444,771) — — — — — — — — — 900 4,170 (2) (3) — — 5,070 (5,070) $ 4,456,017 1,056,884 308 5,513,209 2,864,251 — — 379,700 559,167 302,061 15,036 30,736 102,316 4,253,267 1,259,942 Non-operating items............................... — — — — — 5,070 (2,3) 5,070 Measure of segment profitability (pretax) ............................................. $ 1,192,972 $ 377,937 $ 8,492 $ 130,382 $ (444,771) $ ( ) — 1,265,012 Realized gain (loss)—investments .......................................................................................................................................................... Legal proceedings...................................................................................................................................................................................... Non-operating expenses........................................................................................................................................................................... (65,676) (900) (4,170) Income before income taxes per Consolidll atdd ed Stattt ements of Operatrr iott ns ............................................................................ $ 1,194,266 (1) Administrative expense is not allocated to insurance segments. (2) Legal proceedings (3) Non-operating expenses. 135 GL 2023 FORM 10-K Globe Life Inc. Notes to Consolidated Financial Statements (Dollar amounts in thousands, except per share data) Life Health Annuity Investment Corporate & Other Adjustments Consolidated Year Ended December 31, 2022 Revenue: Premium................................................... $ 3,027,824 $1,282,417 $ 1 $ — $ — $ Net investment income .......................... Other income........................................... — — — — Total revenue ..................................... 3,027,824 1,282,417 — — 1 991,800 — 991,800 — 1,246 1,246 Expenses: Policy obligations.................................... 2,035,693 752,866 32,503 4,372 Required interest on reserverr s .............. (735,688) (102,315) (44,836) 882,839 Amortization of acquisition costs.......... 298,841 48,185 1,798 Commissions, premium taxes, and non-deferred acquisition costs ............. Insurance administrative expense(1) .... Parent expense....................................... Stock-based compensation expense .. Interest expense ..................................... 299,453 206,544 — — — — — — — — 25 — — — — — — — — — — — — — — 299,341 11,156 35,650 90,395 Total expenses .................................. 1,898,299 905,280 (10,510) 887,211 436,542 Subtotal ....................................................... 1,129,525 377,137 10,511 104,589 (435,296) — — — — — — — — 8,175 (368) (2,3) (3) — — 7,807 (7,807) $ 4,310,242 991,800 1,246 5,303,288 2,825,434 — 348,824 506,022 307,516 10,788 35,650 90,395 4,124,629 1,178,659 Non-operating items............................... — — — — — 7,807 (2,3) 7,807 Measure of segment profitability (pretax) ............................................. $ 1,129,525 $ 377,137 $ 10,511 $ 104,589 $ (435,296) $ ( ) — 1,186,466 Realized gain (loss)—investments .......................................................................................................................................................... Legal proceedings...................................................................................................................................................................................... Non-operating expenses........................................................................................................................................................................... (76,548) (2,496) (5,311) Income before income taxes per Consolidll atdd ed Stattt ements of Operatrr iott ns ............................................................................ $ 1,102,111 (1) Administrative expense is not allocated to insurance segments. (2) Legal proceedings. (3) Non-operating expenses. 136 GL 2023 FORM 10-K Globe Life Inc. Notes to Consolidated Financial Statements (Dollar amounts in thousands, except per share data) Year Ended December 31, 2021 Life Health Annuity Investment Corporate & Other Adjustments Consolidated Revenue: Premium................................................... $ 2,893,930 $1,200,882 $ Net investment income .......................... Other income........................................... — — — — Total revenue ...................................... 2,893,930 1,200,882 1 — — 1 $ — $ — $ 956,690 — 956,690 — 1,216 1,216 — — — — $ 4,094,813 956,690 1,216 5,052,719 Expenses: Policy obligations..................................... 1,897,194 721,309 34,975 4,243 Required interest on reserverr s ............... (710,301) (98,477) (46,695) 855,473 Required interest on DAC ...................... — — — Amortization of acquisition costs........... 270,924 44,824 1,868 Commissions, premium taxes, and non-deferred acquisition costs .............. Insurance administrative expense(1) .... Parent expense........................................ Stock-based compensation expense ... Interest expense ...................................... 274,475 180,748 — — — — — — — — 27 — — — — — — — — — — 1,325 (2) 2,659,046 — — — — — — — — — 271,631 10,398 9,553 30,272 83,486 175 — — (3,4) (4) — — 317,616 455,250 282,029 9,728 30,272 83,486 Total expenses ................................... 1,732,292 Subtotal ........................................................ 1,161,638 848,404 352,478 (9,825) 859,716 394,942 9,826 96,974 (393,726) 11,898 (11,898) 3,837,427 1,215,292 Non-operating items................................ — — — — — 11,898 (2,3,4) 11,898 Measure of segment profitability (pretax) ............................................. $ 1,161,638 $ 352,478 $ 9,826 $ 96,974 $ (393,726) $ ) ( — 1,227,190 Realized gain (loss)—investments .......................................................................................................................................................... Realized loss—redemption of debt ......................................................................................................................................................... Administrative settlements........................................................................................................................................................................ Legal proceedings...................................................................................................................................................................................... Non-operating expenses........................................................................................................................................................................... 68,633 (9,314) (1,325) (8,139) (2,434) Income before income taxes per Consolidll atdd ed Stattt ements of Operatrr iott ns ............................................................................ $ 1,274,611 (1) Administrative expense is not allocated to insurance segments. (2) Administrative settlements. (3) Legal proceedings. (4) Non-operating expenses. 137 GL 2023 FORM 10-K Globe Life Inc. Notes to 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. is assigned to the insurance segments at the time of purchase. All other assets are included in the Goodwill Corporate & Other category. The tables below reconcile segment assets to total assets as reported on the Consolidll ated Balance Sheetstt . Assets by Segment At December 31, 2023 Life Health Annuity Investment Corporate & Other Consolidated Cash and invested assets......... $ Accrued investment income ..... — $ — — $ — Deferred acquisition costs......... 5,271,775 Goodwill ....................................... 309,609 Other assets................................ — 734,735 172,182 — — $ 19,827,199 $ — $ 19,827,199 — 2,967 — — 270,396 — — — — — — 270,396 6,009,477 481,791 1,462,636 1,462,636 Total assets ......................... $ 5,581,384 $ 906,917 $ 2,967 $ 20,097,595 $ 1,462,636 $ 28,051,499 Life Health Annuity Investment Corporate & Other Consolidated At December 31, 2022 Cash and invested assets......... $ Accrued investment income ..... — $ — — $ — Deferred acquisition costs......... 4,844,291 Goodwill ....................................... 309,609 Other assets................................ — 686,763 172,182 — — $ 18,300,927 $ — $ 18,300,927 — 4,643 — 259,581 — — — — — — 259,581 5,535,697 481,791 1,408,801 1,408,801 Total assets ......................... $ 5,153,900 $ 858,945 $ 4,643 $ 18,560,508 $ 1,408,801 $ 25,986,797 138 GL 2023 FORM 10-K Globe Life Inc. Notes to Consolidated Financial Statements (Dollar amounts in thousands, except per share data) Liabilities forff each segment are reported also on a specific identification basis similar to the assets. The insurance segments' liabilities contain future policy benefits, unearned and advance premiums, and policy claims and other benefits payable. Other policyholders' funds are included in Other as well as current and deferred income taxes payable. Debt represents both short and long-term. The tables below reconcile segment liabilities to total liabilities as reported on the Consolidll ated Balance Sheetstt . Liabilities by Segment At December 31, 2023 Future policy benefits................. $ 16,304,797 $ 2,382,517 $ 773,039 $ — $ — $ 19,460,353 Life Health Annuity Investment Corporate & Other Consolidated Unearned and advance premiums..................................... Policy claims and other benefits payable ......................... 196,630 57,937 320,066 194,809 Debt .............................................. — Other............................................. 98,958 — — — — — — — — 2,115,672 138,000 — — — 982,271 254,567 514,875 2,115,672 1,219,229 Total liabilities .................... $ 16,920,451 $ 2,635,263 $ 773,039 $ 2,253,672 $ 982,271 $ 23,564,696 Life Health Annuity Investment Corporate & Other Consolidated At December 31, 2022 Future policy benefits................. $ 14,936,157 $ 2,206,866 $ 954,318 $ — $ — $ 18,097,341 Unearned and advance premiums..................................... Policy claims and other benefits payable ......................... Debt .............................................. Other............................................. 196,263 57,097 325,070 184,286 — — — — — — — — — — 2,077,055 — — — 23,000 1,077,108 253,360 509,356 2,077,055 1,100,108 Total liabilities .................... $ 15,457,490 $ 2,448,249 $ 954,318 $ 2,100,055 $ 1,077,108 $ 22,037,220 139 GL 2023 FORM 10-K Globe Life Inc. Notes to Consolidated Financial Statements (Dollar amounts in thousands, except per share data) Note 16—Selected Quarterly Data (Unaudited) The folff lowing is an unaudited summary of quarterly results for the two years ended December 31, 2023. The information includes all adjustments (consisting of normal accruals), which management considers necessary for a the figures below have been fair presentation of retrospectively adjusted due to the impacts of ASU 2018-12. See Note 1—Signi ies for fii cant Accountintt g Policll additional information regarding the impact of the adoption. the results of operations for these periods. In addition, i March 31, June 30, September 30, December 31, Three Months Ended 2023: Total assets...................................................................... $ Total liabilities .................................................................. Premium income............................................................. Net investment income .................................................. Realized gains (losses).................................................. Total revenue................................................................... Policyholder benefits...................................................... Amortization of deferred acquisition costs.................. Pretax income ................................................................. Net income....................................................................... $ $ 26,922,329 23,076,038 1,095,090 257,105 (30,927) 1,321,318 707,927 92,322 274,234 223,610 $ $ 26,769,793 22,789,487 1,110,920 261,244 (45,843) 1,326,406 717,510 94,080 264,506 215,260 $ $ 26,223,345 21,600,214 1,119,335 266,926 (2,193) 1,384,118 719,044 95,757 318,815 257,083 Basic net income per common share.......................... Diluted net income per common share........................ 2.32 2.28 2.26 2.24 2.72 2.68 28,051,499 23,564,696 1,130,672 271,609 13,287 1,415,691 719,770 97,541 336,711 274,802 2.92 2.88 March 31, June 30, September 30, December 31, Three Months Ended 2022: Total assets...................................................................... $ Total liabilities .................................................................. Premium income............................................................. Net investment income .................................................. Realized gains (losses).................................................. Total revenue................................................................... Policyholder benefits...................................................... Amortization of deferred acquisition costs.................. Pretax income ................................................................. Net income....................................................................... $ 28,215,723 25,671,448 1,064,812 244,894 (7,244) 1,302,626 694,149 84,496 294,176 237,484 $ 26,424,294 23,203,991 1,077,199 244,712 (30,446) 1,291,764 691,431 86,185 276,449 223,973 $ 25,248,899 21,638,930 1,079,282 246,711 (29,155) 1,297,237 737,576 88,012 234,776 190,586 25,986,797 22,037,220 1,088,949 255,483 (9,703) 1,335,113 702,278 90,131 296,710 242,343 Basic net income per common share.......................... Diluted net income per common share........................ 2.39 2.37 2.28 2.26 1.96 1.94 2.50 2.46 140 GL 2023 FORM 10-K ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURES None. Item 9A. Controls and Procedures ontrolrr s all nd Procrr eduresrr Evalvv uatiott n of Disclosure Crr : Globe Life Inc., under the direction of the Co-Chairmen and Chief Executive Offiff cers 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 Offiff cers and the Executive Vice President and Chief Financial Offiff cer, as appropriate to allow timely decisions regarding required disclosures. As of the end of the fiscal year completed December 31, 2023, an evaluation was perforr rmed under the supervirr sion and with the participation of Globe Life management, including the Co-Chairmen and Chief Executive Offiff cers 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 Offiff cers 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-K. 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-K. p g l Contrott n Internarr l over FinFF ancial Reportirr ngii Management's Annual Report orr is responsible for establishing and maintaining adequate internal control over financial reporting as defined in Rule 13a-15(f) under the the Securities Exchange Act of 1934. Management evaluated the design and operating effectiveness of Company's internal control over financial reporting based on the criteria established in Internal Contrott Integratrr ed Framrr issued by the Committee of Sponsoring Organizations (COSO) of the Treadway Commission. Based upon their evaluation as of December 31, 2023, the Co-Chairmen and Chief Executive Offiff cers and the Executive Vice President and Chief Financial Officer have concluded that Globe Life's internal control over financial reporting is effeff ctive as of the date of this Form 10-K. In compliance with Section 302 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. § 1350), each of these offiff cers executed a Certification included as an exhibit to this Form 10-K. g: Management (( eworww k ( 2013) rr l—ll p g Changes in Internal Contrott g: During the period ended December 31, 2023 there have not been any changes to Globe Life Inc.'s internal control over financial reporting, or in other factors that could significantly affeff ct the internal control over financial reporting subsequent to the date of their evaluation, which have materially affeff cted, or are reasonably likely to materially affeff ct, internal control over financial reporting. l over FinFF ancial p ii Reportirr ngii Refer to Deloitte & Touche LLP's, Company's internal controls over financial reporting. independent registered public accounting firm, attestation report on the 141 GL 2023 FORM 10-K MANAGEMENT'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING Management at Globe Life is responsible for establishing and maintaining adequate internal control over financial reporting for the Company and for assessing the effectiveness of internal control on an annual basis. As a framework forff effeff ctive internal control over financial reporting described in Internal Contrott 20(( 13) issued by the l—ll Committee of Sponsoring Organizations of the Treadway Commission. assessing internal control over financial reporting, the Company utilizes the criteria forff Integratrr ed Framrr rr eworww k ( There are inherent limitations in the effectiveness of any internal control, including the possibility of human error and the circumvention or overriding of controls. Accordingly, even effeff ctive internal controls can provide only reasonable the assurance with respect effeff ctiveness of internal control may vary over time. to financial statement preparation. Further, because of changes in conditions, Management evaluated the Company’s internal control over financial reporting, and based on its assessment, determined that the Company’s internal control over financial reporting was effective as of December 31, 2023. The Company’s independent registered public accounting firm has issued an attestation report on the Company’s internal control over financial reporting as stated in their report which is included herein. /s/ J. Matthew Darden J. Matthew Darden Co-Chairman and Chief Executive Offiff cer /s/ Frank M. Svoboda Frank M. Svoboda Co-Chairman and Chief Executive Offiff cer /s/ Thomas P. Kalmbach Thomas P. Kalmbach Executive Vice President and Chief Financial Officer February 28, 2024 142 GL 2023 FORM 10-K REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Shareholders and the Board of Directors of Globe Life Inc. Opinion on Internal Control over Financial Reporting We have audited the internal control over financial reporting of Globe Life Inc. and subsidiaries (the “Company”) as of December 31, 2023, based on criteria established in Internal Contrott 20(( 13) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2023, based on criteria established in Internal Contrott rr 20(( 13) issued by COSO. l — Integratrr ed Framrr l — Integratrr ed Framrr rr eworww k ( eworww k ( We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated financial statements and financial statement schedules as of and for the year ended December 31, 2023 of the Company and our report dated February 28, 2024, expressed an unqualified opinion on those financial statements and financial statement schedules and included an explanatory paragraph regarding the Company’s adoption of a new accounting standard. Basis for Opinion The Company’s management is responsible for maintaining effeff ctive internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management's Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perforr rm the audit to obtain reasonable assurance about whether effeff ctive internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and rming such other procedures as we operating effectiveness of internal control based on the assessed risk, and perforr considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Definition and Limitations of Internal Control over Financial Reporting A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements forff external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projeo ctions of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. /s/ Deloitte & Touche LLP Dallas, Texas February 28, 2024 143 GL 2023 FORM 10-K (b) Trading arrangements Item 9B. Other Information During the three months ended December 31, 2023, 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. Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections Not Applicable. PART III ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE Information required by this item is incorporated by reference from the sections entitled “PROPOSAL NUMBER 1 - Election of Directors,” “Director Nominee Profiles,” "Director Nominee Skills and Qualifications," “Executive Offiff cers,” “AUDIT COMMITTEE REPORT,” “Governance Guidelines and Codes of Ethics,” "Committees of the Board of Directors," “Qualifications of Directors,” “Procedures for Director Nominations by Shareholders,” and “DELINQUENT SECTION 16(a) REPORTS” in the Proxy Statement for the Annual Meeting of Shareholders to be held April 25, 2024 (the Proxy Statement), which is to be filed with the Securities and Exchange Commission (SEC). ITEM 11. EXECUTIVE COMPENSATION Information required by this item is incorporated by reference from the sections entitled “EXECUTIVE COMPENSATIAA ON - COMPENSATION DISCUSSION AND ANALYSIS,” “COMPENSATIAA ON COMMITTEE REPORT,” “SUMMARY COMPENSATIAA ON TABLE,” “2023 GRANTS OF PLAN-BASED AWAAA RDS,” “OUTSTANTT DING EQUITY AWARWW DS AT FISCAL YEAR-END 2023,” “OPTION EXERCISES AND STOCK VESTED DURING FISCAL YEAR ECEMBER 31, 2023,” “POTENTIAL PAYPP MENTS ENDED DECEMBER 31, 2023,” “PENSION BENEFITS AT DAA VERSUS PERFORMANCE," "CEO PAY RATIAA O," “2023 UPON TERMINATION OR CHANGE-IN-CONTROL,” "PAYPP DIRECTOR COMPENSATIAA ON,” and “PAYPP MENTS TO DIRECTORS” in the Proxy Statement, which is to be filed with the SEC. ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS 1. Equity Compensation Plan Information as of December 31, 2023 (a) (b) (c) Number of securities to be issued upon exercise of outstanding options, warrants, and rights Weighted-average exercise price of outstanding options, warrants, and rights Number of securities remaining available for future issuance under equity compensation plans (excluding securities in column (a)) 5,940,320 $ 96.19 2,331,316 Plan Categoryrr Equity compensation plans approved by security holders............................................... Equity compensation plans not approved by security holders.......................................... Total .................................................................. 5,940,320 $ 96.19 2,331,316 2. 3. Security ownership of certain beneficial owners: Information required by this item is incorporated by reference from the section entitled “PRINCIPAL SHAREHOLDERS” in the Proxy Statement, which is to be filed with the SEC. Security ownership of management: Information required by this item is incorporated by reference from the section entitled “Stock Ownership” in the Proxy Statement, which is to be filed with the SEC. 144 GL 2023 FORM 10-K 4. Changes in control: Globe Life knows of no arrangements, including any pledges by any person of its securities, the operation of which may at a subsequent date result in a change of control. ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS AND DIRECTOR INDEPENDENCE Information required by this item is incorporated by reference from the sections entitled “RELATEAA D PARPP TY TRANSACTION POLICY AND TRANSACTIONS” and “Director in the Proxy Statement, which is to be filed with the SEC. Independence Determinations” ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES Information required by this Item is incorporated by reference from the section entitled “PRINCIPAL ACCOUNTING FIRM FEES” and “PRE-APPROVAL POLICY FOR ACCOUNTING FEES” in the Proxy Statement, which is to be filed with the SEC. PART IV ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES Index of documents filed as a part of this report: Financial Statements: Globe Life Inc. and Subsidiaries: Page of this report Report of Independent Registered Public Accounting Firm.............................................................. Consolidated Balance Sheets at December 31, 2023 and 2022..................................................... Consolidated Statements of Operations for each of the three years in the period ended December 31, 2023 ................................................................................................................................ Consolidated Statements of Comprehensive Income for each of the three years in the period ended December 31, 2023 .................................................................................................................... Consolidated Statements of Shareholders’ Equity for each of the three years in the period ended December 31, 2023 .................................................................................................................... Consolidated Statements of Cash Flows for each of the three years in the period ended December 31, 2023 ................................................................................................................................ Notes to Consolidated Financial Statements...................................................................................... each of the three years in the period ended Schedules Supporting Financial Statements forff December 31, 2023: II. Condensed Financial Inforff mation of Registrant (Parent Company).............................................. IV. Reinsurance (Consolidated) ............................................................................................................... Schedules not referred to have been omitted as inapplicable or not required by Regulation S-X. 54 57 58 59 60 61 62 150 154 145 GL 2023 FORM 10-K EXHIBITS Exhibit No. Description Form Filing Date 3.1 3.2 3.3 4.1 4.2 4.3 4.4 4.5 4.6 4.7 10.1 10.2 10.3 10.4 10.5 10.6 10.7 10.8 10.9 10.10 10.11 10.12 Restated Certificate of Incorporation of Globe Life Inc. Certificate of Amendment of Certificate of Incorporation of Globe Life Inc. Amended and Restated By-Laws of Globe Life Inc., as amended August 10, 2023 Junior Subordinated Indenture, dated November 2, 2001, between Torchmark Corporation and The Bank of New York defining the rights of the 7 3/4% Junior Subordinated Debentures 8-K 8-K 8-K 8-K August 8, 2019 May 2, 2023 August 15, 2023 November 2, 2001 Third Supplemental Indenture dated as of November 17, 2017 between Torchmark Corporation and Regions Bank, as Trustee, supplementing the Junior Subordinated Indenture dated as of November 2, 2001 8-K November 17, 2017 Fourth Supplemental Indenture dated as of June 14, 2021 between Globe Life Inc. and Regions Bank, as Trustee, supplementing the Junior Subordinated Indenture dated as of November 2, 2001 Senior Indenture, dated as of September 24, 2018, between Torchmark Corporation and Regions Bank, as Trustee First Supplemental Indenture, dated as of September 27, 2018, between Torchmark Corporation and Regions Bank, as Trustee Second Supplemental Indenture, dated as of August 21, 2020, between Globe Life Inc. and Regions Bank, as Trustee Third Supplemental Indenture, dated as of May 19, 2022, between Globe Life Inc. and Regions Bank, as Trustee 8-K S-3 8-K 8-K 8-K June 14, 2021 September 24, 2018 September 27, 2018 August 21, 2020 May 19, 2022 Form of Retirement Life Insurance Benefit Agreement ($1,995,000 face amount limit)* 10-K March 22, 2002 Form of Retirement Life Insurance Benefit Agreement ($495,000 face amount limit)* 10-K March 22, 2002 TorTT chmark Corporation Supplemental Executive Retirement Plan* Amendment No. 1 to the TorTT chmark Corporation Supplemental Executive Retirement Plan* 8-K 10-K January 25, 2007 February 29, 2008 Amendment No. 2 to the TorTT chmark Corporation Supplemental Executive Retirement Plan* 10-K February 29, 2008 Amendment Three to the TorTT chmark Corporation Supplemental Executive Retirement Plan* 10-K February 27, 2009 Amendment Four to the TorTT chmark Corporation Supplemental Executive Retirement Plan* 10-K February 27, 2020 Amendment Five to the TorTT chmark Corporation Supplemental Executive Retirement Plan* 8-K May 5, 2015 Amendment Six to the Torchmark Corporation Supplemental Executive Retirement Plan* 10-K March 1, 2019 Amendment Seven to the TorTT chmark Corporation Supplemental Executive Retirement Plan* 10-Q November 5, 2020 Torchmark Corporation Non-Employee Director Compensation Plan, as amended and restated* 8-K April 29, 2008 Form of Restricted Stock Unit AwaAA rd Notice under Torchmark Corporation Non- Employee Director Compensation Plan* 10-K February 29, 2008 146 GL 2023 FORM 10-K Exhibit No. 10.13 10.14 10.15 Description Receivables Purchase Agreement dated as of December 31, 2008 among AILIC Receivables Corporation, American Income Life Insurance Company and TMK Re, Ltd. Form 8-K Filing Date January 6, 2009 Amendment No.1 to Receivables Purchase Agreement dated as of December 31, 2008 among AILIC Receivables Corporation, American Income Life Insurance Company, and TMK Re, Ltd. 10-K February 28, 2014 Amendment No.2 to Receivables Purchase Agreement dated as of December 31, 2008 among AILIC Receivables Corporation, American Income Life Insurance Company, and TMK Re, Ltd. 10-K March 1, 2019 10.16 Torchmark Corporation 2011 Incentive Plan* 10.17 First Amendment to Torchmark Corporation 2011 Incentive Plan* 10.18 Form of Ten year Stock Option under Torchmark Corporation 2011 Incentive Plan* Form of Seven year Stock Option under Torchmark Corporation 2011 Incentive Plan* 8-K 8-K 8-K 8-K May 4, 2011 April 29, 2014 May 4, 2011 May 4, 2011 Form of Seven YeaYY r Stock Option Grant Agreement under Torchmark Corporation 2011 Incentive Plan, as amended with Non-Compete, Non-Solicit and Confidentiality Provisions* 10-K February 27, 2017 Form of Ten YeaYY r Stock Option Grant Agreement under Torchmark Corporation 2011 Incentive Plan, as amended with Non-Compete, Non-Solicit and Confidentiality Provisions* 10-K February 27, 2017 Form of Seven YeaYY r Stock Option Grant Agreement (Special) under Torchmark Corporation 2011 Incentive Plan, as amended with Non-Compete, Non-Solicit and Confidentiality Provisions* 10-K February 27, 2017 Torchmark Corporation Amended 2011 Non-Employee Director Compensation Plan, effeff ctive January, 2017* 10-K February 27, 2017 Form of Restricted Stock Unit AwaAA rd Notice under Torchmark Corporation 2011 Non-Employee Director Compensation Plan* 10-K February 28, 2011 10.25 Torchmark Corporation 2018 Incentive Plan* 10.26 First Amendment to Torchmark Corporation 2018 Incentive Plan* 10.27 Second Amendment to Globe Life Inc. 2018 Incentive Plan* 10.28 10.29 Second Amended and Restated Globe Life Inc. 2018 Non-Employee Director Compensation Plan* Form of Perforff mance Share Award under Torchmark Corporation 2018 Incentive Plan* 10.30 Form of Perforff mance Share Award under Globe Life Inc. 2018 Incentive Plan* Form of Perforff mance Share Award under Globe Life Inc. 2018 Incentive Plan (2021)* 8-K 10-K 10-Q 10-K 8-K 10-K 10-K May 2, 2018 February 27, 2020 May 9, 2023 February 28, 2024 May 2, 2018 February 27, 2020 February 25, 2021 Form of Perforff mance Share Award under Globe Life Inc. 2018 Incentive Plan (2022)* 10-K February 23, 2022 10.33 Form of Seven YeaYY r Stock Option under Globe Life Inc. 2018 Incentive Plan* Form of Seven YeaYY r Stock Option under Torchmark Corporation 2018 Incentive Plan with Non-Compete, Non-Solicit and Confidentiality Provisions* 10-K 8-K February 27, 2020 May 2, 2018 Form of Seven YeaYY r Stock Option under Globe Life Inc. 2018 Incentive Plan with Non-Compete, Non-Solicit and Confidentiality Provisions* 10-K February 27, 2020 10.36 Form of Ten YeaYY r Stock Option under Torchmark Corporation 2018 Incentive Plan* 8-K May 2, 2018 147 GL 2023 FORM 10-K 10.19 10.20 10.21 10.22 10.23 10.24 10.31 10.32 10.34 10.35 Exhibit No. 10.37 10.38 10.39 10.40 10.41 Form of Ten YeaYY r Stock Option under Torchmark Corporation 2018 Incentive Plan with Non-Compete, Non-Solicit and Confidentiality Provisions* Description Form 8-K Filing Date May 2, 2018 Form of Stock Option under Globe Life Inc. 2018 Non-Employee Director Compensation Plan* 10-K February 27, 2020 Form of Restricted Stock under Globe Life Inc. 2018 Non-Employee Director Compensation Plan* 10-K February 27, 2020 Form of Restricted Stock Unit AwaAA rd Notice under Globe Life Inc. 2018 Non- Employee Director Compensation Plan* 10-K February 27, 2020 Torchmark Corporation 2019 Management Incentive Plan (Effeff ctive as of January 1, 2019)* 8-K March 4, 2019 10.42 Globe Life Inc. Management Incentive Plan (Effeff ctive as of January 1, 2024)* 10.43 The Globe Life Inc. Amended and Restated Pension Plan Generally Effeff ctive as of January 1, 2020* 10.44 Globe Life Inc. Savings and Investment Plan* Amended and Restated Credit Agreement dated as of September 30, 2021 among Bank of America, N.A., the Lenders party thereto, Globe Life Inc. and TMK RE, LTD. 8-K 10-Q 10-K 8-K November 9, 2023 November 5, 2020 February 27, 2020 October 1, 2021 10.45 10.46 10.47 10.48 10.49 10.50 10.51 10.52 10.53 10.54 10.55 10.56 10.57 First Amendment to Amended and Restated Credit Agreement dated January 10, 2023 among Bank of America, N.A., the Lenders party thereto, Globe Life Inc. and TMK RE, LTD. 10-K February 23, 2023 Form of Perforff mance Share Award Certificate under Globe Life Inc. 2018 Incentive Plan (2023)* 10-K February 23, 2023 Form of Seven YeaYY r Stock Option under Globe Life Inc. 2018 Incentive Plan (2023)* 10-K February 23, 2023 Form of Seven YeaYY r Stock Option under Globe Life Inc. 2018 Incentive Plan with Non-Compete, Non-Solicit and Confidentiality Provisions (2023)* 10-K February 23, 2023 Form of Restricted Stock Unit AwaAA rd Certificate under Globe Life Inc. 2018 Incentive Plan* 10-K February 23, 2023 Form of Restricted Stock Unit AwaAA rd Certificate under Globe Life Inc. 2018 Incentive Plan with Non-Compete, Non-Solicit and Confidentiality Provisions* 10-K February 23, 2023 Delayed Draw TerTT m Loan Agreement dated as of April 14, 2023 among Bank of America, N.A., as Administrative Agent, the Lenders party thereto, and Globe Life Inc. 8-K April 18, 2023 Form of Seven YeaYY r Stock Option under Globe Life Inc. 2018 Incentive Plan (2024)* 10-K February 28, 2024 Form of Seven YeaYY r Stock Option under Globe Life Inc. 2018 Incentive Plan with Non-Compete, Non-Solicit and Confidentiality Provisions (2024)* 10-K February 28, 2024 Form of Seven YeaYY r Stock Option under Globe Life Inc. 2018 Incentive Plan with Non-Compete, Non-Solicit and Confidentiality Provisions (Special) (2024)* 10-K February 28, 2024 Form of Restricted Stock Unit AwaAA rd Certificate under Globe Life Inc. 2018 Incentive Plan (2024)* 10-K February 28, 2024 Form of Restricted Stock Unit AwaAA rd Certificate under Globe Life Inc. 2018 Incentive Plan with Non-Compete, Non-Solicit and Confidentiality Provisions (2024)* 10-K February 28, 2024 10.58 Form of Perforff mance Share Award Certificate under Globe Life Inc. 2018 Incentive Plan (2024)* 10-K February 28, 2024 148 GL 2023 FORM 10-K Exhibit No. Description 21 23 24 31.1 31.2 31.3 32.1 Subsidiaries of the Registrant Consent of Deloitte & ToucTT he LLP Powers of Attorney Rule 13a-14(a)/15d-14(a) Certification by J. Matthew Darden Rule 13a-14(a)/15d-14(a) Certification by Frank M. Svoboda Rule 13a-14(a)/15d-14(a) Certification by Thomas P. Kalmbach Section 1350 Certification by J. Matthew Darden, Frank M. Svoboda, and Thomas P. Kalmbach 97 Globe Life Inc. Clawback Policy 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 TaxTT onomy Extension Schema Document. 101.CAL Inline XBRL TaxTT onomy Extension Calculation Linkbase Document. 101.LAB Inline XBRL TaxTT onomy Extension Label Linkbase Document. 101.PRE Inline XBRL TaxTT onomy Extension Presentation Linkbase Document. 101.DEF Inline XBRL TaxTT onomy Extension Definition Linkbase Document. 104 Cover Page Interactive Data File (forff matted as inline XBRL with applicable taxonomy extension inforf mation contained in Exhibits 101). * Compensatory plan or arrangement. Form 10-K Filing Date February 28, 2024 10-K 10-K 10-K 10-K 10-K 10-K 10-K 10-K 10-K 10-K 10-K 10-K 10-K 10-K February 28, 2024 February 28, 2024 February 28, 2024 February 28, 2024 February 28, 2024 February 28, 2024 February 28, 2024 February 28, 2024 February 28, 2024 February 28, 2024 February 28, 2024 February 28, 2024 February 28, 2024 February 28, 2024 149 GL 2023 FORM 10-K Globe Life Inc. (PARENT COMPANY) SCHEDULE II. CONDENSED FINANCIAL INFORMATION OF REGISTRANT Condensed Balance Sheets (Dollar amounts in thousands) December 31, 2023 2022 Assets: Investments: Long-term investments ....................................................................................................................... $ 42,360 $ Short-term investments....................................................................................................................... Total investments............................................................................................................................... Cash ......................................................................................................................................................... 1,005 43,365 1,003 31,651 15,001 46,652 58 Investment in affiff liates ........................................................................................................................... 6,539,183 5,940,586 Due from affiliates .................................................................................................................................. Taxes receivable from affiliates............................................................................................................ Other assets............................................................................................................................................ 105,279 14,163 181,443 131,353 14,161 173,044 Total assets ........................................................................................................................................ $ 6,884,436 $ 6,305,854 Liabilities: Short-term debt....................................................................................................................................... $ 486,113 $ 449,103 Long-term debt ....................................................................................................................................... 1,779,137 1,777,490 Other liabilities ........................................................................................................................................ 132,383 129,684 Total liabilities..................................................................................................................................... 2,397,633 2,356,277 Shareholders’ equity: Preferred stock ....................................................................................................................................... Common stock........................................................................................................................................ Additional paid-in capital ....................................................................................................................... 351 102,218 882,985 351 105,218 880,172 Accumulated other comprehensive income....................................................................................... (2,772,419) (2,790,313) Retained earnings .................................................................................................................................. 7,478,813 6,894,535 Treasury stock ........................................................................................................................................ (1,205,145) (1,140,386) Total shareholders’ equity ................................................................................................................ 4,486,803 3,949,577 Total liabilities and shareholders’ equity ........................................................................................ $ 6,884,436 $ 6,305,854 Prior period amounts have been adjusted forf the adoption of ASU 2018-12 on January 1, 2023. See Notes to Consolidated Financial Statements and accompanying Report of Independent Registered Public Accounting Firm. 150 GL 2023 FORM 10-K Globe Life Inc. (PARENT COMPANY) SCHEDULE II. CONDENSED FINANCIAL INFORMATION OF REGISTRANT (continued) Condensed Statement of Operations (Dollar amounts in thousands) Net investment income........................................................................................................ $ Realized gains (losses)....................................................................................................... Total revenue ............................................................................................................. General operating expenses.............................................................................................. Reimbursements from affiliates ......................................................................................... Interest expense................................................................................................................... Total expenses .......................................................................................................... Operating income (loss) beforff e income taxes and equity in earnings of affiliates .... Income tax expense ............................................................................................................ Net operating loss beforff e equity in earnings of affiff liates............................................... Equity in earnings of affiff liates, net of tax.......................................................................... Net income .................................................................................................................. Year Ended December 31, 2023 2022 2021 36,237 $ 33,664 $ 32,816 5,924 42,161 (9,643) 24,021 (5,682) 27,134 59,051 (59,796) 107,180 106,435 (64,274) 10,706 (53,568) 1,024,323 970,755 59,307 (51,312) 97,051 105,046 (81,025) 12,426 (68,599) 962,985 894,386 51,378 (57,504) 86,751 80,625 (53,491) 9,682 (43,809) 1,074,923 1,031,114 Other comprehensive income (loss): Attributable to Parent Company ..................................................................................... Attributable to affiliates..................................................................................................... 1,113 16,781 75,076 1,369,659 58,903 501,854 Comprehensive income (loss) ................................................................................... $ 988,649 $ 2,339,121 $ 1,591,871 Prior period amounts have been adjusted forf the adoption of ASU 2018-12 on January 1, 2023. See Notes to Consolidated Financial Statements and accompanying Report of Independent Registered Public Accounting Firm. 151 GL 2023 FORM 10-K Globe Life Inc. (PARENT COMPANY) SCHEDULE II. CONDENSED FINANCIAL INFORMATION OF REGISTRANT—(continued) Condensed Statement of Cash Flows (Dollar amounts in thousands) Year Ended December 31, 2023 2022 2021 Net income ......................................................................................................................... $ Equity in earnings of affiff liates.......................................................................................... 970,755 $ 894,386 $ 1,031,114 (1,024,323) (962,985) (1,074,923) Cash dividends from subsidiaries................................................................................... Other, net............................................................................................................................ Cash provided from operations ................................................................................. 459,535 33,846 439,813 407,042 26,444 364,887 478,535 58,617 493,343 Cash provided from (used for) investing activities: Net decrease (increase) in short-term investments.................................................. Investment in subsidiaries............................................................................................. Other long-term investments ........................................................................................ 13,996 — (3,950) (15,001) (10,010) (2,000) 19,300 (159,924) (2,500) Loaned money to affiff liates............................................................................................ (479,629) (846,002) (1,049,932) Repayments from affiliates ........................................................................................... 505,929 886,002 1,200,932 Additions to properties................................................................................................... Cash provided from (used for) investing activities .............................................. (7,400) 28,946 — 12,989 — 7,876 Cash provided from (used for) financing activities: Repayment of debt......................................................................................................... (165,612) (300,000) (300,000) Proceeds from issuance of debt .................................................................................. Payment for debt issuance costs................................................................................. Net borrowing (repayment) of commercial paper...................................................... Issuance of stock............................................................................................................ 170,000 (757) 32,961 114,080 400,000 (5,272) (46,289) 111,970 325,000 (7,687) 74,974 69,826 Acquisitions of treasury stock....................................................................................... (511,100) (454,638) (541,435) Borrowed money from affiff liate ..................................................................................... Repayments to affiliates................................................................................................ Payment of dividends .................................................................................................... Cash provided from (used for) financing activities .............................................. 290,500 (290,500) (107,386) (467,814) 22,400 (22,400) (103,817) (398,046) Net increase (decrease) in cash ..................................................................................... Cash balance at beginning of period.............................................................................. 945 58 (20,170) 20,228 Cash balance at end of period ........................................................................................ $ 1,003 $ 58 $ 32,000 (32,000) (103,313) (482,635) 18,584 1,644 20,228 Prior period amounts have been adjusted forf the adoption of ASU 2018-12 on January 1, 2023. See Notes to Consolidated Financial Statements and accompanying Report of Independent Registered Public Accounting Firm. 152 GL 2023 FORM 10-K Globe Life Inc. (PARENT COMPANY) SCHEDULE II. 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: Dividends from subsidiaries............................................................................................. $ 459,535 $ 407,042 $ 478,535 Note B—Supplemental Disclosures of Cash Flow Information f lowing table summarizes non-cash transactions, which are not reflected on the Consolidll ated Stattt ements ott The folff Cash Flowsww : Year Ended December 31, 2023 2022 2021 Year Ended December 31, 2023 2022 2021 Stock-based compensation not involving cash ............................................................ $ 30,736 $ 35,650 $ Contribution of property to subsidiary ............................................................................ — — 30,272 5,004 The folff lowing table summarizes certain amounts paid (received) during the period: Interest paid........................................................................................................................ $ Income taxes paid (received) .......................................................................................... 104,493 $ 96,903 $ 86,206 (10,408) (11,537) (11,838) Year Ended December 31, 2023 2022 2021 Note C—Preferred Stock As of December 31, 2023, 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”). All issued and outstanding shares of Series A Preferred Stock were held by wholly-owned insurance subsidiaries. In the event of liquidation, the holders of the Series A Preferred Stock at the time outstanding would be entitled to receive a liquidating distribution out of the assets legally available to stockholders in the amount of $1 thousand per share or $351 million in the aggregate, plus any accrued and unpaid dividends, beforff e any distribution is made to holders of Globe Life common stock. Holders of Series A Preferred Stock do not have any voting rights nor have rights to convert such shares into shares of any other class of Globe Life capital stock. See accompanying Report of Independent Registered Public Accounting Firm. 153 GL 2023 FORM 10-K Globe Life Inc. SCHEDULE IV. REINSURANCE (CONSOLIDATED) (Dollar Amounts in thousands) Gross Amount Ceded to Other Companies(1) Assumed from Other Companies Net Amount Percentage of Amount Assumed to Net For the Year Ended December 31, 2023 Life insurance in forff ce .................................. $ 225,286,002 Premiums(2): $ 685,289 $ 1,996,223 $ 226,596,936 Life insurance.............................................. $ Health insurance......................................... 3,109,838 $ 4,597 $ 19,104 $ 3,124,345 1,281,720 2,720 39,773 1,318,773 Total premium ........................................ $ 4,391,558 $ 7,317 $ 58,877 $ 4,443,118 For the Year Ended December 31, 2022 Life insurance in forff ce .................................. $ 222,098,389 Premiums(2): $ 662,569 $ 2,172,728 $ 223,608,548 Life insurance.............................................. $ Health insurance......................................... 2,999,637 $ 4,361 $ 19,009 $ 3,014,285 1,238,498 3,091 47,010 1,282,417 Total premium ........................................ $ 4,238,135 $ 7,452 $ 66,019 $ 4,296,702 For the Year Ended December 31, 2021 Life insurance in forff ce .................................. $ 217,350,660 Premiums(2): $ 648,766 $ 2,371,163 $ 219,073,057 Life insurance.............................................. $ Health insurance......................................... 2,864,473 $ 4,286 $ 19,502 $ 2,879,689 1,191,773 3,312 12,421 1,200,882 Total premium ........................................ $ 4,056,246 $ 7,598 $ 31,923 $ 4,080,571 (1) No amounts have been netted against ceded premium. (2) Excludes policy charges of $12.9 million, $13.5 million, and $14.2 million in each of the years 2023, 2022, and 2021, respectively. 0.9 0.6 3.0 1.3 1.0 0.6 3.7 1.5 1.1 0.7 1.0 0.8 See accompanying Report of Independent Registered Public Accounting Firm. 154 GL 2023 FORM 10-K Pursuant to the requirements of Section 13 or 15(d) of the Securities Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. SIGNATURES By: By: By: By: Globe Life Inc. /s/ J. MATTHEW DARDEN J. Matthew Darden Co-Chairman and Chief Executive Offiff cer and Director /s/ FRANK M. SVOBODA Frank M. Svoboda Co-Chairman and Chief Executive Offiff cer and Director /s/ THOMAS P. KALMBACH Thomas P. Kalmbach Executive Vice President and Chief Financial Offiff cer /s/ M. SHANE HENRIE M. Shane Henrie Corporate Senior Vice President and Chief Accounting Officer Date: February 28, 2024 Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By: By: By: By: By: /s/ LINDA L. ADDISON * Linda L. Addison Director /s/ CHERYL D. ALSTON * Cherylrr D. Alston Director /s/ JAMES P. BRANNEN * James P. Brannen Director /s/ ALICE S. CHO * Alice S. Cho Director /s/ DAVID A. RODRIGUEZ * David A. Rodriguez Director By: By: By: By: By: /s/ MARILYNLL A. ALEXANDER * Marilyn A. Alexander Director /s/ MARK A. BLINN * Mark A. Blinn Director /s/ JANE BUCHAN * Jane Buchan Director /s/ STEVEN P. JOHNSON * Steven P. Johnson Director /s/ MARY ERR . THIGPEN * Mary E. Thigpen Director Date: February 28, 2024 *By: /s/ THOMAS P. KALMBACH Thomas P. Kalmbach Attorney-in-fact 155 GL 2023 FORM 10-K (THIS PAGE INTENTIONALLY LEFT BLANK) 3700 S Stonebridge Dr McKinney, Texas 75070 GlobeLifeInsurance.com 

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