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