What changed in Globe Life's 10-K — 2023 vs 2024
vs
Paragraph-level year-over-year comparison of Globe Life's 2023 and 2024 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2024 report.
+359 added−323 removedSource: 10-K (2025-02-26) vs 10-K (2024-02-28)
Top changes in Globe Life's 2024 10-K
359 paragraphs added · 323 removed · 281 edited across 7 sections
- Item 7. Management's Discussion & Analysis+250 / −229 · 196 edited
- Item 1A. Risk Factors+52 / −34 · 31 edited
- Item 1. Business+30 / −34 · 30 edited
- Item 1C. Cybersecurity+16 / −14 · 13 edited
- Item 6. [Reserved]+7 / −7 · 7 edited
Item 1. Business
Business — how the company describes what it does
30 edited+0 added−4 removed21 unchanged
Item 1. Business
Business — how the company describes what it does
30 edited+0 added−4 removed21 unchanged
2023 filing
2024 filing
Biggest changeOur 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. 1 Per 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 Table of Contents As of December 31, 2023 and 2022, the Globe Life employees, (excluding independently-contracted agents) identify as follows: 2023 Ethnicity/Race Gender Generations White 52 % Female 68 % Baby Boomers (1946-1964) 16 % Black or African American 24 Male 32 Gen X (1965-1977) 29 Hispanic or Latino 13 Millennials (1978-1995) 45 Asian 9 Gen Z (1996-2012) 10 American Indian or Alaskan Native 1 Native Hawaiian or Pacific Islander — Other or Not Specified 1 Total 100 % 100 % 100 % 2022 Ethnicity/Race Gender Generations White 54 % Female 68 % Baby Boomers (1946-1964) 18 % Black or African American 22 Male 32 Gen X (1965-1977) 30 Hispanic or Latino 13 Millennials (1978-1995) 43 Asian 9 Gen Z (1996-2012) 9 American Indian or Alaskan Native 1 Native Hawaiian or Pacific Islander — Other or Not Specified 1 Total 100 % 100 % 100 % We conduct a confidential survey biennially to give our employees the opportunity to provide candid feedback about their experiences at the Company, including but not limited to, confidence in the Company and leadership, competitiveness of our compensation and benefit package, and departmental relationships.
Biggest changeAs of December 31, 2024 and 2023, the Globe Life employees, (excluding independently-contracted agents) identify as follows: 2024 Ethnicity/Race Gender Generations White 51 % Female 68 % Baby Boomers (1946-1964) 14 % Black or African American 25 Male 32 Gen X (1965-1977) 29 Hispanic or Latino 13 Millennials (1978-1995) 44 Asian 9 Gen Z (1996-2012) 13 American Indian or Alaskan Native 1 Native Hawaiian or Pacific Islander — Other or Not Specified 1 Total 100 % 100 % 100 % 1 Per 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 2024 FORM 10-K Table of Contents 2023 Ethnicity/Race Gender Generations White 52 % Female 68 % Baby Boomers (1946-1964) 16 % Black or African American 24 Male 32 Gen X (1965-1977) 29 Hispanic or Latino 13 Millennials (1978-1995) 45 Asian 9 Gen Z (1996-2012) 10 American Indian or Alaskan Native 1 Native Hawaiian or Pacific Islander — Other or Not Specified 1 Total 100 % 100 % 100 % We conduct a confidential survey biennially to give our employees the opportunity to provide candid feedback about their experiences at the Company, including but not limited to, confidence in the Company and leadership, competitiveness of our compensation and benefit package, and departmental relationships.
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.
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 records and examinations.
Globe Life Inc. and its subsidiaries have registered as a holding company system pursuant to such legislation in Indiana, Nebraska, Ohio, and New York.
Globe Life Inc. and its subsidiaries have registered as a holding company system pursuant to such legislation in Indiana, Nebraska, Ohio, Texas, and New York.
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 Task Force on Climate-related Financial Disclosures (TCFD) recommendations. Environmental responsibility and sustainability are key components of our overall corporate responsibility efforts.
We plan to advance our sustainable business practices by further developing the Company's sustainability strategy and have substantially aligned disclosures with the Sustainability Accounting Standards Board (SASB) standards and the Task Force on Climate-related Financial Disclosures (TCFD) recommendations. Environmental responsibility and sustainability are key components of our overall corporate responsibility efforts.
Other information included in Globe Life's website is not incorporated into this filing. 1 GL 2023 FORM 10-K Table of Contents The following table presents Globe Life's business by primary marketing distribution method. Additional information concerning industry segments may be found in Management’s Discussion and Analysis and in Note 15—Business Segments within the Notes to the Consolidated Financial Statements .
Other information included in Globe Life's website is not incorporated into this filing. 1 GL 2024 FORM 10-K Table of Contents The following table presents Globe Life's business by primary marketing distribution channel. Additional information concerning industry segments may be found in Management’s Discussion and Analysis and in Note 15—Business Segments within the Notes to the Consolidated Financial Statements .
United American Division United American Insurance Company McKinney, Texas 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 Table of Contents Insurance Life Insurance The distribution channels for life insurance products include direct to consumer, exclusive agents, and independent agents.
United American Division United American Insurance Company McKinney, Texas Supplemental health Medicare coverage to beneficiaries and, to a lesser extent, supplemental limited-benefit coverage to people under age 65. 3,355 independent producing agents in the U.S. 2 GL 2024 FORM 10-K Table of Contents Insurance Life Insurance —The distribution channels for life insurance products include direct to consumer, exclusive agents, and independent agents.
The following table presents supplemental health annualized premium in force information for the three years ended December 31, 2023 by product category.
The following table presents supplemental health annualized premium in force information for the three years ended December 31, 2024 by product category.
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.
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, 2024, the Company had 3,732 full-time, part-time, and temporary employees, a 3% increase over the prior year.
Liberty National Division Liberty National Life Insurance Company McKinney, Texas 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.
Liberty National Division Liberty National Life Insurance Company McKinney, Texas Life and supplemental health limited-benefit insurance distributed through in-home and worksite channels. 3,664 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. 1,399 average producing agents in the U.S.
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 for exclusive agent counts.
The increase in headcount in 2024 was primarily to support the increased growth in recent periods, as well as lower attrition levels than normal. The Company engages over 16,400 independently-contracted insurance agents. Refer to Management's Discussion & Analysis for exclusive agent counts.
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 Table of Contents
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. 7 GL 2024 FORM 10-K Table of Contents
In furtherance of our commitment to our employees, we offer a comprehensive employee benefits package that includes competitive monetary benefits, retirement 7 GL 2023 FORM 10-K Table of Contents benefits through a Section 401(k) plan and a qualified pension to eligible employees, fitness center reimbursement, paid-time-off (based on years of service), health insurance, dental and vision insurance, employee resource program, health savings and flexible spending accounts, family leave, and tuition assistance.
In furtherance of our commitment to our employees, we offer a comprehensive employee benefits package that includes competitive monetary benefits, retirement benefits through a Section 401(k) plan and a qualified pension to eligible employees, fitness center reimbursement, paid-time-off (based on years of service), health insurance, dental and vision insurance, employee resource program, health savings and flexible spending accounts, family leave, and tuition assistance.
American Income Life Division American Income Life Insurance Company Waco, Texas 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.
American Income Life Division American Income Life Insurance Company Waco, Texas Individual life and supplemental health limited-benefit insurance marketed to working families. 11,741 average producing agents in the U.S., Canada, and New Zealand.
In addition, to enable the Company to appropriately respond to ESG-related challenges and opportunities, the Company has in place an ESG Committee, and the Board and its committees regularly engage with senior management on relevant ESG-related issues.
In addition, to enable the Company to appropriately respond to related challenges and opportunities, the Company has in place a Sustainability Committee, and the Board and its committees regularly engage with senior management on relevant and related issues.
We strive to reduce our impact on the environment by implementing green building initiatives at our corporate facilities, placing a company-wide emphasis on recycling and reducing waste generally, and focusing on efforts to reduce the use of paper and water.
We strive to reduce our impact on the environment by placing a company-wide emphasis on recycling and reducing waste at our corporate facilities, focusing on efforts to reduce the use of paper and water.
The assumptions used in the calculation of Globe Life's reserves are reported in Note 1—Significant Accounting Policies . 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.
The assumptions used in the calculation of Globe Life's reserves are reported in Note 1—Significant Accounting Policies . Reserves for 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. Reinsurance —Globe Life has historically participated in third-party reinsurance.
In 2023, we provided financial support of approximately $4.3 million to organizations within that focus, including charities that support underserved communities, provide scholarships to youth, and advance equity and diversity efforts. Talent Development At Globe Life, we believe investing in our employees through training and development is paramount to their success.
In 2024, we provided financial support of more than $7 million to organizations within that focus, including charities that support underserved communities, provide scholarships to youth, and advance equity and diversity efforts. Talent Development At Globe Life, we believe investing in our employees through training and development is paramount to their success.
Insurance companies are also required to file detailed annual reports with supervisory agencies, and records of their business are subject to examination at any time. Under the rules of the 5 GL 2023 FORM 10-K Table of Contents National Association of Insurance Commissioners (NAIC), insurance companies are examined periodically by one or more of the supervisory agencies.
Insurance companies are also required to file detailed annual reports with supervisory agencies, and records of their business are subject to examination at any time. Under the rules of the National Association of Insurance Commissioners (NAIC), insurance companies are examined periodically by one or more of the supervisory agencies.
Generally, the mortality and lapse assumptions used in the calculations of reserves are based on Company experience. Similar reserves 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.
Generally, the mortality and lapse 4 GL 2024 FORM 10-K Table of Contents assumptions used in the calculations of reserves are based on Company experience. Similar reserves 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.
Profitability is affected by actual experience deviations from the established assumptions and to the extent investment income varies from that required for policy reserves. Collections for annuity products and certain life products are not recognized as revenues, but are added to policyholder account values.
Profitability is affected by actual experience deviations from the established assumptions and to the extent investment income varies from that required for policy reserves. Collections for 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.
Annualized Premium in Force (Dollar amounts in thousands) 2023 2022 2021 Direct to Consumer $ 70,249 $ 72,161 $ 74,627 Exclusive agents: Liberty National 200,160 196,336 196,783 American Income 116,962 113,087 111,102 Family Heritage 418,693 387,897 363,226 Independent agents: United American 579,237 558,373 540,340 $ 1,385,301 $ 1,327,854 $ 1,286,078 Globe Life offers Medicare Supplement and limited-benefit supplemental health insurance products that include accident, cancer, critical illness, heart, and intensive care products.
Annualized Premium in Force (Dollar amounts in thousands) 2024 2023 2022 Direct to Consumer $ 74,815 $ 70,249 $ 72,161 Exclusive agents: Liberty National 201,874 200,160 196,336 American Income 119,986 116,962 113,087 Family Heritage 454,725 418,693 387,897 Independent agents: United American 624,446 579,237 558,373 $ 1,475,846 $ 1,385,301 $ 1,327,854 Globe Life offers Medicare Supplement and limited-benefit supplemental health insurance products that include accident, cancer, critical illness, heart, intensive care, and other health products.
The following table presents annualized premium in force 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 7,609 8,426 Other 200,840 203,438 205,822 $ 3,185,745 $ 3,061,520 $ 2,943,185 (1) See definition of annualized premium in force under Results of Operations in Management's Discussion & Analysis .
The following table presents annualized premium in force for the three years ended December 31, 2024 by distribution method: Annualized Premium in Force (1) (Dollar amounts in thousands) 2024 2023 2022 Direct to Consumer $ 922,508 $ 933,057 $ 936,507 Exclusive agents: American Income 1,761,713 1,654,197 1,553,003 Liberty National 410,912 390,693 360,963 Independent agents: United American 6,499 6,958 7,609 Other 197,629 200,840 203,438 $ 3,299,261 $ 3,185,745 $ 3,061,520 (1) See definition of annualized premium in force under Results of Operations i n Management's Discussion & Analysis .
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 68 Interest-sensitive 29,929 1 31,838 1 33,912 1 Term 753,261 24 756,471 25 750,005 26 Other 188,739 6 166,333 5 147,919 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 Policy Count Average Face Amount per Policy Policy Count Average Face Amount per Policy Policy Count Average Face Amount per Policy Whole life: Traditional 9,050,091 $ 16.0 9,011,227 $ 15.7 8,963,774 $ 15.3 Interest-sensitive 176,339 20.4 183,887 20.4 191,536 20.4 Term 4,680,364 15.1 4,720,870 15.3 4,731,044 15.3 Other 479,664 17.3 453,515 16.1 432,372 15.3 14,386,458 $ 15.8 14,369,499 $ 15.6 14,318,726 $ 15.3 3 GL 2023 FORM 10-K Table of Contents Health Insurance The following table presents Globe Life's health insurance annualized premium in force for the three years ended December 31, 2023 by distribution channel.
Annualized Premium in Force (Dollar amounts in thousands) 2024 2023 2022 Amount % of Total Amount % of Total Amount % of Total Whole life: Traditional $ 2,321,947 70 $ 2,213,816 69 $ 2,106,878 69 Interest-sensitive 28,105 1 29,929 1 31,838 1 Term 745,231 23 753,261 24 756,471 25 Other 203,978 6 188,739 6 166,333 5 $ 3,299,261 100 $ 3,185,745 100 $ 3,061,520 100 Policy Count and Average Face Amount Per Policy (Dollar amounts in thousands) 2024 2023 2022 Policy Count Average Face Amount per Policy Policy Count Average Face Amount per Policy Policy Count Average Face Amount per Policy Whole life: Traditional 9,092,122 $ 16.2 9,050,091 $ 16.0 9,011,227 $ 15.7 Interest-sensitive 169,054 20.4 176,339 20.4 183,887 20.4 Term 4,600,839 15.2 4,680,364 15.1 4,720,870 15.3 Other 495,894 18.1 479,664 17.3 453,515 16.1 14,357,909 $ 16.0 14,386,458 $ 15.8 14,369,499 $ 15.6 3 GL 2024 FORM 10-K Table of Contents Health Insurance —The following table presents Globe Life's health insurance annualized premium in force for the three years ended December 31, 2024 by distribution channel.
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.
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.
Profits are also earned from investment income in excess of the amounts required for policy reserves. 4 GL 2023 FORM 10-K Table of Contents Underwriting The underwriting standards of Globe Life's insurance subsidiaries are established by management.
Profits are earned to the extent these revenues exceed actual costs. Profits are also earned from investment income in excess of the amounts required for policy reserves. Underwriting —The underwriting standards of Globe Life's insurance subsidiaries are established by management.
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 affiliates and for the payment of certain dividends and other distributions.
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 affiliates and for the payment of certain dividends and other distributions. 5 GL 2024 FORM 10-K Table of Contents Sustainable Business Practices Globe Life’s sustainable business practices are a driver of the success and longevity that our Company has experienced since its origin.
Annualized Premium in Force (Dollar amounts in thousands) 2023 2022 2021 Amount % of Total Amount % of Total Amount % of Total Limited-benefit plans $ 782,424 56 $ 735,858 55 $ 700,767 54 Medicare Supplement 602,877 44 591,996 45 585,311 46 $ 1,385,301 100 $ 1,327,854 100 $ 1,286,078 100 Annuities Annuity products include single-premium and flexible-premium deferred annuities.
Annualized Premium in Force (Dollar amounts in thousands) 2024 2023 2022 Amount % of Total Amount % of Total Amount % of Total Limited-benefit plans $ 824,844 56 $ 782,424 56 $ 735,858 55 Medicare Supplement 651,002 44 602,877 44 591,996 45 $ 1,475,846 100 $ 1,385,301 100 $ 1,327,854 100 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.
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—Investments and Management’s Discussion and Analysis ).
See Schedule IV , Note 1—Significant Accounting Policies , Note 5—Commitments and Contingencies , Note 6—Policy Liabilities , and Note 8—Liability for Unpaid Claims for more information. 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.
Globe Life promotes a diverse work force, where differences are celebrated and inclusiveness is embraced, to better enable our employees to consistently achieve outstanding individual and collective results.
Globe Life promotes a diverse and inclusive work force to better enable our employees to consistently achieve outstanding individual and collective results. Our commitment to diversity starts at the top; of the 9 independent Board members, 56% are women and 33% are racial/ethnic minorities as of December 31, 2024.
Competition Globe Life competes with other insurance carriers through policyholder service, price, product design, and sales efforts. While there are insurance companies competing with Globe Life, no individual company dominates any of Globe Life's life or health insurance markets.
Approximately 88% of our invested assets, at fair value, are fixed maturities at December 31, 2024 (see Note 4—Investments and Management’s Discussion and Analysis ). Competition —Globe Life competes with other life and health insurance carriers through policyholder service, price, product design, and sales efforts.
Removed
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.
Removed
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.
Removed
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 and Contingencies , Note 6—Policy Liabilities , and Note 8—Liability for Unpaid Claims for more information.
Removed
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.
Item 1A. Risk Factors
Risk Factors — what could go wrong, per management
31 edited+21 added−3 removed59 unchanged
Item 1A. Risk Factors
Risk Factors — what could go wrong, per management
31 edited+21 added−3 removed59 unchanged
2023 filing
2024 filing
Biggest changeCertain 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.
Biggest changeOur 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 corporate responsibility and sustainability expectations.
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.
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, our credit ratings and credit capacity.
Additionally, the Company is at risk of being unable to meet legal, regulatory, financial or customer obligations if the information 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.
Additionally, the Company is at risk of being unable to meet legal, regulatory, financial or customer obligations if the data, information 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 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.
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 data, information systems, facilities or networks of such third-party vendors.
We are subject to the privacy and security 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). HIPAA additionally requires that we impose privacy and security requirements on our business associates.
We are subject to the privacy and security 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). HIPAA additionally requires that we impose privacy and security requirements on our third-party business associates.
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 licensing, policy forms, capital adequacy, solvency, reserves and permitted investments.
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, use of emerging technologies, agent licensing, independent agent practices, policy forms, capital adequacy, solvency, reserves and permitted investments.
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.
Future changes in rules, regulations or interpretations of existing rules and regulations, or significant adverse judgments in litigation, could require us to reclassify all or a portion of our agents as employees and the impact could significantly increase our operating costs and negatively impact our insurance business.
Significant downgrades, delinquencies and defaults in our investment portfolio could potentially result in lower net investment income and increased realized and unrealized investment losses. Our invested assets are subject to the customary risks of defaults, downgrades, and changes in market values.
Financial and Strategic Risks Our investments are subject to market and credit risks. Significant downgrades, delinquencies and defaults in our investment portfolio could potentially result in lower net investment income and increased realized and unrealized investment losses. Our invested assets are subject to the customary risks of defaults, downgrades, and changes in market values.
The use of third-party vendors to support the Company's operations makes the Company susceptible to the operational risk of those third parties, which could lower revenues, increase costs, reduce profits, disrupt business, or damage the Company’s reputation.
The use of third-party vendors, including independent sales agents, to support the Company's operations makes the Company susceptible to the operational risk of those third parties, which could lower revenues, increase costs, reduce profits, disrupt business, or damage the Company’s reputation.
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 10 GL 2023 FORM 10-K Table of Contents regulations by their states of domicile.
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 regulations by their states of domicile.
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 Table of Contents Our business is subject to the risk of direct or indirect effects of climate change.
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. Our business is subject to the risk of direct or indirect effects of climate change.
An increase in interest rates could result in certain policyholders surrendering their life or annuity policies for cash, thereby potentially requiring our insurance subsidiaries to liquidate invested assets if other sources of liquidity are not available to meet their obligations.
An increase in interest rates could result in certain policyholders surrendering their life or annuity policies for cash, thereby potentially requiring our insurance subsidiaries to liquidate invested assets if other sources of liquidity are 9 GL 2024 FORM 10-K Table of Contents not available to meet their obligations.
Obtaining timely and appropriate premium rate increases for certain supplemental health insurance policies is critical. 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.
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.
(Refer to Note 1—Significant Accounting Policies under the caption Accounting Pronouncements Yet to be Adopted ) Non-compliance with laws or regulations related to customer and consumer privacy and information security, including a failure to ensure that our business associates with access to sensitive customer and consumer information maintain its confidentiality, could materially adversely affect our reputation and business operations.
(Refer to Note 1—Significant Accounting Policies under the caption Accounting Pronouncements Yet to be Adopted ) 13 GL 2024 FORM 10-K Table of Contents Non-compliance with laws or regulations related to customer and consumer privacy and information security, including a failure to ensure that third parties with access to sensitive customer and consumer information maintain its confidentiality, could materially adversely affect our reputation and business operations.
If our internal sources of liquidity prove to be insufficient, we may not be able to successfully obtain additional financing on favorable terms or at all.
If our internal sources of liquidity prove to 10 GL 2024 FORM 10-K Table of Contents be insufficient, we may not be able to successfully obtain additional financing on favorable terms or at all.
The Company may be adversely affected 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 Table of Contents Financial and Strategic Risks Our investments are subject to market and credit risks.
The Company may be adversely affected by a third-party vendor who 8 GL 2024 FORM 10-K Table of Contents 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.
Changes to the Internal Revenue Code, administrative rulings, or court decisions affecting the insurance industry, including the products insurers offer, could increase our effective 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.
Changes to the Internal Revenue Code, administrative rulings, or court decisions affecting the insurance industry, including the products insurers offer, could increase our effective 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. 14 GL 2024 FORM 10-K Table of Contents Damage to the brand and reputation of Globe Life or its subsidiaries could affect our ability to conduct business.
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.
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.
The Company utilizes third-party vendors to provide certain business support services and functions, which exposes the Company to risks outside the control of the Company that may lead to business disruptions.
The Company utilizes third-party vendors, including independent sales agents, to provide certain business services and functions, which exposes the Company to risks outside the control of the Company.
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 affecting our ability to sell insurance products through independent insurance agencies.
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 affecting our ability to sell insurance products through independent insurance agencies. 11 GL 2024 FORM 10-K Table of Contents Obtaining timely and appropriate premium rate increases for certain supplemental health insurance policies is critical.
We may fail to meet expectations relating to corporate responsibility and sustainability standards and practices . 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 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.
Noncompliance with these laws, whether by us or by one of our business associates, could have a material adverse effect 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. 13 GL 2023 FORM 10-K Table of Contents General Risk Factors The failure to maintain effective and efficient information systems at the Company could adversely affect our financial condition and results of operations.
Noncompliance with these laws, whether by us or by one of our business associates, could have a material adverse effect 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.
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 affect our reputation, business, financial performance and growth. We may face adverse regulatory, investor, customer, media, or public scrutiny leading to business, reputational, or legal challenges. 14 GL 2023 FORM 10-K Table of Contents Item 1B.
Failure to meet, or achieve progress on, our expectations, on a timely basis, or at all, could adversely affect our reputation, business, financial performance, and growth. We may face adverse regulatory, investor, customer, media, or public scrutiny leading to business, reputational, or legal challenges.
Damage to the brand and reputation of Globe Life or its subsidiaries could affect our ability to conduct business. Negative publicity through traditional media, internet, social media and other public forums could damage our brand or reputation and adversely impact our agent recruiting efforts, the ability to market our products and the persistency of in-force policies.
Negative publicity through traditional media, internet, social media, and other public forums, including short seller reports and allegations of independent agent misconduct could damage our brand or reputation, which could adversely impact our ability to recruit and retain agents, our ability to market our products, and the persistency of in-force policies.
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 Table of Contents A ratings downgrade or other negative action by a rating agency could materially affect our business, financial condition, and results of operations.
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.
Various rating agencies review the financial performance and condition of insurers, 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 ratings downgrade or other negative action by a rating agency could materially affect our business, financial condition, and results of operations. Various rating agencies review the financial performance and condition of insurers, including our insurance subsidiaries, and publish their financial strength ratings as indicators of an insurer’s ability to fulfill its contractual obligations.
Our business is highly dependent upon the internet, third-party service providers, and information systems to operate in an efficient and resilient manner. We gather and maintain data for the purpose of conducting marketing, actuarial analysis, sales, and policy administration functions.
General Risk Factors The failure to maintain effective and efficient information systems at the Company could adversely affect our financial condition and results of operations. Our business is highly dependent upon the internet, third-party service providers, and information systems to operate in an efficient and resilient manner.
The primary purpose of this supervision and regulation is the protection of policyholders, not investors.
Insurance companies, including our insurance subsidiaries, are subject to extensive supervision and regulation in the states in which they conduct business. The primary purpose of this supervision and regulation is the protection of policyholders, not investors.
Our ability to modernize and maintain our information technology systems and infrastructure requires us to commit significant resources and effective planning and execution.
We gather and maintain data for the purpose of conducting marketing, actuarial analysis, sales, and policy administration functions. Our ability to modernize and maintain our information technology systems and infrastructure requires us to commit significant resources and effective planning and execution. This modernization includes the responsible and secure use of emerging technologies like artificial intelligence.
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 investors, customers, regulators, or others.
In addition, our policies, and processes to evaluate and manage these standards in coordination with other business priorities may not prove completely effective or satisfy investors, customers, regulators, or others. 15 GL 2024 FORM 10-K Table of Contents Item 1B. Unresolved Staff Comments As of December 31, 2024, Globe Life had no unresolved SEC staff comments.
Also, regulatory authorities have relatively broad discretion to grant, renew or revoke licenses or approvals. The insurance laws, regulations and policies currently affecting our companies may change at any time, possibly having an adverse effect on our business.
Attorney’s Office for the Western District of Pennsylvania seeking documents related to sales practices by certain of our independent sales agents contracted to sell American Income Life Insurance Company policies. The insurance laws, regulations and policies currently affecting our companies may change at any time, possibly having an adverse effect on our business.
Removed
Changes in assumptions could materially impact our financial condition and results of operations.
Added
In September 2024, the Equal Employment Opportunity Commission (EEOC) notified us that it had determined that all sales agents affiliated with State General Agent Simon Arias were employees, not independent contractors, of Globe Life Inc. and/or AIL. Such determination is not binding but we expect any potential civil action brought by the EEOC would include such an allegation.
Removed
Climate change may also influence investor sentiment with respect to the Company and investments in our portfolio. Legal, Regulatory, and Compliance Risks Our businesses are heavily regulated and changes in regulation may reduce our profitability and growth. Insurance companies, including our insurance subsidiaries, are subject to extensive supervision and regulation in the states in which they conduct business.
Added
A future adverse judgment in connection with any such civil litigation described above could result in substantial damages.
Removed
Unresolved Staff Comments As of December 31, 2023, Globe Life had no unresolved SEC staff comments.
Added
We employ controls and procedures designed to facilitate service quality of our third party vendors; however, such controls and procedures cannot be 100% effective in all cases.
Added
Extensive federal and state laws regulate our business, imposing certain requirements that independent sales agents must follow in dealing with clients. Misconduct of our independent sales agents could result in violations of law by, or claims against, us or our subsidiaries. From time to time, we are subject to private litigation as a result of alleged misconduct by independent agents.
Added
We employ controls and procedures designed to prevent and detect agent misconduct; however, such controls and procedures cannot be 100% effective in all cases.
Added
Instances of misconduct or non-compliance or violations of laws or regulations by our independent sales agents could result in adverse findings in either examinations or litigation and subject us to sanctions, monetary liabilities, restrictions on or loss of the operation of our business or reputational harm, any of which could have a material adverse effect on our business, financial condition or results of operations.
Added
We have become subject to, and may in the future be subject to, short selling strategies driving down the market price of our common stock. Short selling is the practice of selling securities that the seller does not own but may have borrowed with the intention of buying identical securities back at a later date.
Added
A short seller hopes to profit from a decline in the value of the securities between the sale of the borrowed securities and the purchase of the replacement shares, as the short seller expects to pay less in that purchase than it received in the sale.
Added
Because it is in the short seller’s best interests for the price of the securities to decline, some short sellers publish, or arrange for the publication of, opinions or characterizations regarding the relevant issuer, its business prospects and similar matters calculated to or which may create negative market momentum, which may permit them to obtain profits for themselves as a result of selling the stock short.
Added
Companies, like us, that are subject to unfavorable allegations, even if untrue, may have to expend a significant amount of resources to investigate such allegations and/or defend themselves, including in connection with securityholder litigation against Globe Life Inc. or investigations by regulators related to or prompted by such allegations.
Added
Since April 2024, we have been and continue to be the target of several short sellers who have published reports making allegations about the Company, which resulted in a significant decline in the price of our common stock. In addition, these reports resulted in significant negative publicity against us, damaged our reputation, and exposed us to securities class action litigation.
Added
We have already expended significant resources to defend and repair our reputation. We will continue to defend against any unfounded and unsubstantiated claims about our business, our disclosures, and the integrity of our financial statements, which may require us to expend significant resources. We may be subject to additional short seller reports and activity in the future.
Added
The publication of any such commentary regarding us may bring about a temporary, or long term, decline in the market price of our common stock. No assurances can be made that similar declines in the market price of our common stock or negative publicity will not occur in the future, in connection with such commentary by short sellers or otherwise.
Added
These ratings are important to maintaining public confidence in our insurance products.
Added
Climate change may also influence investor sentiment with respect to the Company and investments in our portfolio. 12 GL 2024 FORM 10-K Table of Contents Legal, Regulatory, and Compliance Risks Recent volatility in the trading price of our common stock has and can be expected to result in securities class action litigation.
Added
In April 2024, the trading price of our common stock dropped following the publication of certain short seller reports. As of the date of this Report, one putative securities class action has been filed against Globe Life Inc. and we expect that other putative class action claims may be filed as well.
Added
While we intend to defend such actions vigorously, any judgment against us or any future stockholder litigation could have a material adverse effect on our business, financial condition or results of operations. Our businesses are heavily regulated and changes in regulation or regulatory scrutiny may have a material adverse impact on our business, financial condition or results of operation.
Added
Regulatory authorities also have the power to conduct investigations, and to bring administrative or judicial proceedings against us, which could result in suspension or revocation of our licenses, cease and desist orders, fines, civil penalties, disgorgement, criminal penalties or other disciplinary action that could have a material adverse impact on our business, financial condition or results of operation.
Added
Press coverage and other public statements that allege wrongdoing, even if untrue, can lead to increased regulatory inquiries or investigations including any that may arise in connection with the subpoenas from U.S.
Added
Additionally, any violation or alleged violation of law or regulations could result in significant legal costs or in legal proceedings that may result in monetary and legal remedies being imposed against the Company, which could have a material adverse effect on our business, financial condition or results of operations.
Added
A reduction in the number of agents selling our products, or the rate of growth of the number of agents selling our products may have an adverse impact on product sales and profit, and such impact may be material. We may fail to meet expectations relating to corporate responsibility and sustainability standards and practices .
Item 1C. Cybersecurity
Cybersecurity — threats and controls disclosure
13 edited+3 added−1 removed12 unchanged
Item 1C. Cybersecurity
Cybersecurity — threats and controls disclosure
13 edited+3 added−1 removed12 unchanged
2023 filing
2024 filing
Biggest changeIncident 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 enforcement engagement.
Biggest changeThe 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.
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 Officer ("CISO"), who reports to the CRO, leads our cyber risk management and strategy and the Information Security Department.
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 Officer ("CISO"), who reports to the General Counsel and CRO, leads our cyber risk management and strategy and the Information Security Department.
Risk Factors , General Risk Factors, "The failure to maintain effective and efficient information systems at the Company could adversely affect our financial condition and results of operations." Governance Our Board of Directors considers information security to be an enterprise-wide risk management issue and oversees material cybersecurity risks through the Audit Committee.
Risk Factors , General Risk Factors, “The failure to maintain effective and efficient information systems at the Company could adversely affect our financial condition and results of operations.” Governance Our Board of Directors considers information security to be an enterprise-wide risk management issue and oversees material cybersecurity risks through the Audit Committee.
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, the use of encryption, intrusion prevention, endpoint security, password protection, multi-factor authentication, internal phishing testing and security awareness training, and vulnerability scanning and penetration testing.
We employ a variety of internal measures to detect, prevent, and reduce the frequency and severity of cybersecurity incidents on the Company’s infrastructure, which may include, but are not limited to, the use of encryption, intrusion prevention, endpoint security, password protection, multi-factor authentication, internal phishing testing, security awareness training, and vulnerability scanning and penetration testing.
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.
These updates include compliance measures designed to meet 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.
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. We assess the effectiveness of our policies and controls internally as well as through the engagement of third parties to conduct regular reviews, penetration tests, and vulnerability scans of information systems and applications.
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. We assess the effectiveness of our corporate policies and controls internally, as well as through the engagement of external advisors to conduct regular reviews, penetration tests, and vulnerability scans of Company information systems and applications.
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.
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. 17 GL 2024 FORM 10-K Table of Contents
To date, 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.
To date, 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, we anticipate that our systems and data will continue to face attacks or other cybersecurity risks and there can be no guarantee that we will not experience such an incident in the future.
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 information security (including cybersecurity) incidents experienced by our third-party vendors.
In addition, cybersecurity is incorporated into our third-party risk management program. We assess the ability of our vendors as appropriate to adequately protect information, which includes requiring agreements that address cybersecurity. We periodically review and assess vendors’ adherence to these agreements and review for information security (including cybersecurity) incidents experienced by our third-party vendors.
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 efforts, 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.
The CISO also provides an annual update to the entire Board of Directors on topics such as changes in cybersecurity, top threats facing the Company, key risks and mitigation efforts, and any potential material cybersecurity incidents.
We describe whether 15 GL 2023 FORM 10-K Table of Contents and how risks from identified cybersecurity threats, including as a result of previous cybersecurity incidents, have materially affected or are reasonably likely to materially affect us, including our business strategy, results of operations, or financial condition under Item 1A.
Although we maintain cybersecurity insurance, the costs and expenses related to cybersecurity incidents may not be fully insured. We describe whether and how risks from identified cybersecurity threats, including as a result of previous cybersecurity incidents, have materially affected or are reasonably likely to materially affect us, including our business strategy, results of operations, or financial condition under Item 1A.
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 effect on our reputation, financial condition and results of operations.
Due to the type and volume of information that we collect and store to support our business, including to provide insurance coverage to prospective, current and former policyholders, we are an attractive target for cyber threat actors seeking financial gain.
Escalation is designed to raise awareness of events that may require disclosure to help ensure assessments are performed without unreasonable delay. In alignment with our plan, we maintain playbooks that outline processes for responding to certain incidents commonly observed in the insurance industry.
In alignment with our plan, we maintain playbooks that outline processes for responding to certain incidents commonly observed in the insurance industry.
Removed
Although we maintain cybersecurity insurance, the costs and expenses related to cybersecurity incidents may not be fully insured.
Added
With respect to our independent sales agents, we require each agent to execute an agent agreement containing terms governing the ownership, use and confidentiality of policyholder and proprietary information. We also engage with agency offices to support their use of measures and safeguards to protect information.
Added
Our failure to maintain the safety of our policyholder’s information could have a 16 GL 2024 FORM 10-K Table of Contents material adverse effect on our reputation, financial condition and results of operations.
Added
The plan also includes information pertaining to roles and responsibilities, escalation, third-party support, documentation, reporting, and law enforcement engagement. Escalation is designed to raise awareness of events that may require disclosure to help ensure assessments are performed without unreasonable delay.
Item 2. Properties
Properties — owned and leased real estate
1 edited+0 added−1 removed0 unchanged
Item 2. Properties
Properties — owned and leased real estate
1 edited+0 added−1 removed0 unchanged
2023 filing
2024 filing
Biggest changeItem 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, Texas (headquarters) and at the Waco, Texas and Oklahoma City, Oklahoma campuses.
Biggest changeItem 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, Texas (headquarters) and at the Waco, Texas and Oklahoma City, Oklahoma campuses. Additionally, the Company leases other buildings across the U.S.
Removed
Additionally, the Company leases other buildings across the U.S. 16 GL 2023 FORM 10-K Table of Contents
Item 5. Market for Registrant's Common Equity
Market for Common Equity — stock, dividends, buybacks
3 edited+0 added−0 removed1 unchanged
Item 5. Market for Registrant's Common Equity
Market for Common Equity — stock, dividends, buybacks
3 edited+0 added−0 removed1 unchanged
2023 filing
2024 filing
Biggest changeAll rights reserved. 18 GL 2023 FORM 10-K Table of Contents Purchases of Certain Equity Securities by the Issuer and affiliated 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 $ 109.75 235,678 — November 1-30, 2023 437,158 118.25 437,158 — December 1-31, 2023 541,892 122.96 541,892 —
Biggest changePurchases of Certain Equity Securities by the Issuer and affiliated purchasers for the Fourth Quarter 2024 (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, 2024 374,567 $ 105.45 374,567 — November 1-30, 2024 — — — — December 1-31, 2024 116,484 108.77 116,484 —
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.
There were 1,859 shareholders of record on December 31, 2024, 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. *$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.
Globe Life's stock is included within the S&P 500 Index. *$100 invested on 12/31/2019 in stock or index, including reinvestment of dividends. Fiscal year ended December 31. Copyright© 2025 Standard & Poor's, a division of S&P Global. All rights reserved.
Item 6. [Reserved]
Selected Financial Data — reserved (removed by SEC in 2021)
7 edited+0 added−0 removed8 unchanged
Item 6. [Reserved]
Selected Financial Data — reserved (removed by SEC in 2021)
7 edited+0 added−0 removed8 unchanged
2023 filing
2024 filing
Biggest changeCompromise 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.
Biggest changeCompromise by a malicious actor or other event that causes a loss of secure data from, or inaccessibility to, our computer and other information technology systems; 13. The impact of reputational damage on the Company including the impact on the Company's ability to attract and retain agents; 14.
Economic and other conditions, including the impact of inflation, geopolitical events, and the recent pandemic on the U.S. economy, leading to unexpected changes in lapse rates and/or sales of our policies, as well as levels of mortality, morbidity, and utilization of health care services that differ from Globe Life's assumptions; 2.
Economic and other conditions, including the continued impact of inflation, geopolitical events, and the recent pandemic on the U.S. economy, leading to unexpected changes in lapse rates and/or sales of our policies, as well as levels of mortality, morbidity, and utilization of health care services that differ from Globe Life's assumptions; 2.
Item 6. [Reserved] 19 GL 2023 FORM 10-K Table of Contents CAUTIONARY STATEMENTS We caution readers regarding certain forward-looking statements contained in the foregoing discussion and elsewhere in this document, and in any other statements made by, or on behalf of Globe Life whether or not in future filings with the Securities and Exchange Commission.
Item 6. [Reserved] 19 GL 2024 FORM 10-K Table of Contents CAUTIONARY STATEMENTS We caution readers regarding certain forward-looking statements contained in the foregoing discussion and elsewhere in this document, and in any other statements made by, or on behalf of Globe Life whether or not in future filings with the Securities and Exchange Commission.
The severity, magnitude, and impact of natural or man-made catastrophic events, including but not limited to pandemics, tornadoes, hurricanes, earthquakes, war and terrorism, on our operations and personnel, commercial activity, level of claims, and demand for our products; and 14.
The severity, magnitude, and impact of natural or man-made catastrophic events, including but not limited to pandemics, tornadoes, hurricanes, earthquakes, war and terrorism, on our operations and personnel, commercial activity, level of claims, and demand for our products; and 15.
Market trends in the senior-aged health care industry that provide alternatives to traditional Medicare (such as Health Maintenance Organizations and other managed care or private plans) and that could affect the sales of traditional Medicare Supplement insurance; 4. Interest rate changes that affect product sales, financing costs, and/or investment portfolio yield; 5.
Market trends in the senior-aged health care industry that provide alternatives to traditional Medicare (such as Health Maintenance Organizations and other managed care or private plans) and that could affect the sales of traditional Medicare Supplement insurance; 4. Interest rate changes that affect product sales, financing costs, and/or investment yields; 5.
Our ability to access the commercial paper and debt markets, particularly if such markets become unpredictable or unstable for a certain period. Readers are also directed to consider other risks and uncertainties described in other documents on file with the Securities and Exchange Commission. 20 GL 2023 FORM 10-K Table of Contents GLOBE LIFE INC. Management's Discussion & Analysis
Globe Life's ability to access the commercial paper and debt markets, particularly if such markets become unpredictable or unstable for a certain period. Readers are also directed to consider other risks and uncertainties described in other documents on file with the Securities and Exchange Commission. 20 GL 2024 FORM 10-K Table of Contents GLOBE LIFE INC. Management's Discussion & Analysis
Changes in the competitiveness of the Company's products and pricing; 7. Litigation results; 8. Levels of administrative and operational efficiencies that differ from our assumptions (including any reduction in efficiencies resulting from increased costs arising from the impact of higher than anticipated inflation); 9.
Changes in the competitiveness of the Company's products and pricing; 7. Litigation results or regulatory actions against the Company; 8. Levels of administrative and operational efficiencies that differ from our assumptions (including any reduction in efficiencies resulting from increased costs arising from the impact of higher than anticipated inflation); 9.
Item 7. Management's Discussion & Analysis
Management's Discussion & Analysis (MD&A) — revenue / margin commentary
196 edited+54 added−33 removed62 unchanged
Item 7. Management's Discussion & Analysis
Management's Discussion & Analysis (MD&A) — revenue / margin commentary
196 edited+54 added−33 removed62 unchanged
2023 filing
2024 filing
Biggest changeAnalysis of Profitability by Segment (Dollar amounts in thousands) 2023 2022 2021 2023 Change % 2022 Change % Life insurance underwriting margin $ 1,192,972 $ 1,129,525 $ 1,161,638 $ 63,447 6 $ (32,113) (3) Health insurance underwriting margin 377,937 377,137 352,478 800 — 24,659 7 Annuity underwriting margin 8,492 10,511 9,826 (2,019) (19) 685 7 Excess investment income 130,382 104,589 96,974 25,793 25 7,615 8 Other insurance: Other income 308 1,246 1,216 (938) (75) 30 2 Administrative expense (301,161) (299,341) (271,631) (1,820) 1 (27,710) 10 Corporate and other (143,918) (137,201) (123,311) (6,717) 5 (13,890) 11 Pre-tax total 1,265,012 1,186,466 1,227,190 78,546 7 (40,724) (3) Applicable taxes (238,368) (225,439) (233,538) (12,929) 6 8,099 (3) Net operating income 1,026,644 961,027 993,652 65,617 7 (32,625) (3) Reconciling items, net of tax: Realized gain (loss)—investments (51,884) (60,473) 54,220 8,589 (114,693) Realized loss—redemption of debt — — (7,358) — 7,358 Administrative settlements — — (1,047) — 1,047 Non-operating expenses (3,294) (4,196) (1,923) 902 (2,273) Legal proceedings (711) (1,972) (6,430) 1,261 4,458 Net income $ 970,755 $ 894,386 $ 1,031,114 $ 76,369 9 $ (136,728) (13) The results for each of the years presented above are impacted, as previously noted, by the reserve development and assumption changes in the third quarter of 2023, 2022, and 2021.
Biggest changeAnalysis of Profitability by Segment (Dollar amounts in thousands) 2024 2023 2022 2024 Change % 2023 Change % Life insurance underwriting margin $ 1,352,597 $ 1,192,972 $ 1,129,525 $ 159,625 13 $ 63,447 6 Health insurance underwriting margin 372,423 377,937 377,137 (5,514) (1) 800 — Excess investment income 164,404 130,382 104,589 34,022 26 25,793 25 Segment profit or (loss) 1,889,424 1,701,291 1,611,251 188,133 11 90,040 6 Annuity and other income 7,636 8,800 11,757 (1,164) (13) (2,957) (25) Administrative expense (342,430) (301,161) (299,341) (41,269) 14 (1,820) 1 Other corporate expense (179,610) (143,918) (137,201) (35,692) 25 (6,717) 5 Pre-tax total 1,375,020 1,265,012 1,186,466 110,008 9 78,546 7 Applicable taxes (266,036) (238,368) (225,439) (27,668) 12 (12,929) 6 Net operating income 1,108,984 1,026,644 961,027 82,340 8 65,617 7 Reconciling items, net of tax: Realized gains (losses) (19,108) (51,884) (60,473) 32,776 8,589 Non-operating expenses (2,070) (3,294) (4,196) 1,224 902 Legal proceedings (17,044) (711) (1,972) (16,333) 1,261 Net income $ 1,070,762 $ 970,755 $ 894,386 $ 100,007 10 $ 76,369 9 The life insurance segment is our primary segment and is the largest contributor to earnings in each year presented.
Additionally, this division has invested in and successfully implemented technology that allows the agency force 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 majority of sales through virtual presentations.
Additionally, this Division has invested in and successfully implemented technology that allows the agency force to engage in virtual recruiting, training, and sales activity. The agents have shifted to primarily a virtual experience with customers and have generated the vast majority of sales through virtual presentations.
A portion of the excess cash inflows in the current year will provide for the payment of future policy benefits and are invested primarily in long-term fixed maturities as they better match the long-term nature of these obligations. Excess cash available from the insurance subsidiaries’ operations is generally distributed as a dividend to the Parent Company, subject to regulatory restrictions.
A portion of cash inflows in the current year will provide for the payment of future policy benefits and are invested primarily in long-term fixed maturities as they better match the long-term nature of these obligations. Excess cash available from the insurance subsidiaries’ operations is generally distributed as a dividend to the Parent Company, subject to regulatory restrictions.
Our strong cash flows from operations, ongoing investment maturities, and available liquidity under credit facility make any need to sell securities for liquidity highly unlikely. Capital Resources. The Parent Company's capital structure consists of short-term debt (the commercial paper facility and current maturities of long-term debt) , long-term debt, and shareholders’ equity.
Our strong cash flows from operations, ongoing investment maturities, and available liquidity under our credit facility make any need to sell securities for liquidity highly unlikely. Capital Resources. The Parent Company's capital structure consists of short-term debt (the commercial paper facility and current maturities of long-term debt) , long-term debt, and shareholders’ equity.
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 after they have made substantial investments during the year to grow the business.
Excess cash flow, as we define it, results primarily from the dividends received by the Parent Company from its insurance subsidiaries less the interest paid on debt. The cash received by the Parent Company from our insurance subsidiaries is after they have made substantial investments during the year to grow the business.
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 13 13 Banks 36,906 — (4,401) 32,505 1,327,272 25,019 (71,714) 1,280,577 7 7 Other financial 74,965 — (25,255) 49,710 1,287,194 25,634 (153,171) 1,159,657 7 7 Total financial 218,881 — (42,128) 176,753 5,028,151 112,368 (388,340) 4,752,179 27 27 Industrial Energy 44,652 — (7,481) 37,171 1,446,480 58,637 (62,324) 1,442,793 8 8 Basic materials — — — — 1,166,385 39,248 (64,501) 1,141,132 6 6 Consumer, non-cyclical — — — — 2,096,651 32,071 (160,828) 1,967,894 11 11 Other industrials 5,185 110 — 5,295 1,101,059 32,541 (78,817) 1,054,783 6 6 Communications — — — — 868,131 21,006 (73,323) 815,814 4 5 Transportation 8,403 — (415) 7,988 534,468 21,113 (24,649) 530,932 3 3 Consumer. cyclical 136,343 — (25,059) 111,284 515,169 4,941 (57,735) 462,375 3 3 Technology 32,543 625 — 33,168 280,668 3,521 (44,670) 239,519 1 1 Total industrial 227,126 735 (32,955) 194,906 8,009,011 213,078 (566,847) 7,655,242 42 43 Utilities 34,698 722 (1,523) 33,897 2,017,967 73,925 (94,130) 1,997,762 11 11 Total corporates 480,705 1,457 (76,606) 405,556 15,055,129 399,371 (1,049,317) 14,405,183 80 81 States, municipalities, and political divisions: General obligations — — — — 887,013 8,526 (135,003) 760,536 4 4 Revenues — — — — 2,409,292 38,820 (268,326) 2,179,786 13 12 Total states, municipalities, and political divisions — — — — 3,296,305 47,346 (403,329) 2,940,322 17 16 Other fixed maturities: Government (U.S. and foreign) — — — — 442,903 8 (42,654) 400,257 2 2 Collateralized debt obligations 37,110 5,036 — 42,146 37,110 5,036 — 42,146 — — Other asset-backed securities 11,696 — (409) 11,287 86,352 3 (4,057) 82,298 1 1 Total fixed maturities $ 529,511 $ 6,493 $ (77,015) $ 458,989 $ 18,917,799 $ 451,764 $ (1,499,357) $ 17,870,206 100 100 39 GL 2023 FORM 10-K Table of Contents GLOBE LIFE INC.
Management's Discussion & Analysis Fixed Maturities by Sector December 31, 2023 (Dollar amounts in thousands) Below Investment Grade Total Fixed Maturities % of Total Fixed Maturities Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Amortized Cost 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 13 13 Banks 36,906 — (4,401) 32,505 1,327,272 25,019 (71,714) 1,280,577 7 7 Other financial 74,965 — (25,255) 49,710 1,287,194 25,634 (153,171) 1,159,657 7 7 Total financial 218,881 — (42,128) 176,753 5,028,151 112,368 (388,340) 4,752,179 27 27 Industrial Energy 44,652 — (7,481) 37,171 1,446,480 58,637 (62,324) 1,442,793 8 8 Basic materials — — — — 1,166,385 39,248 (64,501) 1,141,132 6 6 Consumer, non-cyclical — — — — 2,096,651 32,071 (160,828) 1,967,894 11 11 Other industrials 5,185 110 — 5,295 1,101,059 32,541 (78,817) 1,054,783 6 6 Communications — — — — 868,131 21,006 (73,323) 815,814 4 5 Transportation 8,403 — (415) 7,988 534,468 21,113 (24,649) 530,932 3 3 Consumer. cyclical 136,343 — (25,059) 111,284 515,169 4,941 (57,735) 462,375 3 3 Technology 32,543 625 — 33,168 280,668 3,521 (44,670) 239,519 1 1 Total industrial 227,126 735 (32,955) 194,906 8,009,011 213,078 (566,847) 7,655,242 42 43 Utilities 34,698 722 (1,523) 33,897 2,017,967 73,925 (94,130) 1,997,762 11 11 Total corporates 480,705 1,457 (76,606) 405,556 15,055,129 399,371 (1,049,317) 14,405,183 80 81 States, municipalities, and political divisions: General obligations — — — — 887,013 8,526 (135,003) 760,536 4 4 Revenues — — — — 2,409,292 38,820 (268,326) 2,179,786 13 12 Total states, municipalities, and political divisions — — — — 3,296,305 47,346 (403,329) 2,940,322 17 16 Other fixed maturities: Government (U.S., municipal, and foreign) — — — — 442,903 8 (42,654) 400,257 2 2 Collateralized debt obligations 37,110 5,036 — 42,146 37,110 5,036 — 42,146 — — Other asset-backed securities 11,696 — (409) 11,287 86,352 3 (4,057) 82,298 1 1 Total fixed maturities $ 529,511 $ 6,493 $ (77,015) $ 458,989 $ 18,917,799 $ 451,764 $ (1,499,357) $ 17,870,206 100 100 41 GL 2024 FORM 10-K Table of Contents GLOBE LIFE INC.
Any future regulatory changes that restrict the use of off-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.
Any future regulatory changes that restrict the use of off-shore captive reinsurers might require Globe Life to obtain third-party financing, which could cause an 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.
In addition to offering financial incentives and training opportunities, the agency has made considerable investments in information technology, including a customer relationship management (CRM) tool for the agency force. This tool is designed to drive productivity in lead distribution, conservation of business, manager dashboards, and new agent recruiting.
In addition to offering financial incentives and training opportunities, the Division has made considerable investments in information technology, including a customer relationship management (CRM) tool for the agency force. This tool is designed to drive productivity in lead distribution, conservation of business, manager dashboards, and new agent recruiting.
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 Subsidiary Liquidity . The operations of our insurance subsidiaries have historically generated substantial cash inflows in excess of immediate cash needs.
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 advances from the Federal Home Loan Bank. Insurance Subsidiary Liquidity . The operations of our insurance subsidiaries have historically generated substantial cash inflows in excess of immediate cash needs.
As the division 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 Other Agencies distribution channels primarily include non-exclusive independent agencies selling primarily life insurance.
As the Division continues to gain momentum in its sales and recruiting initiatives, as well as advances in its technology and CRM platform, the Division anticipates continued growth in recruiting activity, average producing agent count and net sales. The Other agency distribution channels primarily include non-exclusive independent agencies selling primarily life insurance.
At times, the values of our fixed maturities can also be affected 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.
At times, the values of our fixed maturities can also be affected by illiquidity in the financial markets. Illiquidity may contribute to a spread widening, and accordingly to unrealized losses, on many securities that we would expect to be fully recoverable.
The long-term nature of our insurance policy liabilities and strong operating cash-flow substantially mitigate any future need to liquidate portions of the portfolio. The following table illustrates the interest rate sensitivity of our fixed maturity portfolio at December 31, 2023. This table measures the effect of a parallel shift in interest rates (as represented by the U.S.
The long-term nature of our insurance policy liabilities and strong operating cash-flow substantially mitigate any future need to liquidate portions of the portfolio. The following table illustrates the interest rate sensitivity of our fixed maturity portfolio at December 31, 2024. This table measures the effect of a parallel shift in interest rates (as represented by the U.S.
Additionally, the Company does not participate in securities lending and has no off-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.
Additionally, the Company does not participate in securities lending and has no off-balance sheet investments as of December 31, 2024. 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.
Management's Discussion & Analysis Corporate securities, which consist of bonds and redeemable preferred stocks, were the largest component of the fixed maturity portfolio as of December 31, 2023, representing 80% of amortized cost, net, and 81% of fair value. The remainder of the portfolio is invested primarily in securities issued by the U.S. government and U.S. municipalities.
Management's Discussion & Analysis Corporate securities, which consist of bonds and redeemable preferred stocks, were the largest component of the fixed maturity portfolio as of December 31, 2024, representing 80% of amortized cost, net, and 81% of fair value. The remainder of the portfolio is invested primarily in securities issued by the U.S. government and U.S. municipalities.
During 2023, shareholders’ equity increased as a result of net income of $971 million, but was offset by share repurchases of $380 million and an additional $127 million in share repurchases to offset 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.
Additionally, the balance of AOCI increased $743 million primarily due to increased interest rates and discount rates over the period. During 2023, shareholders' equity increased as a result of net income of $971 million, but was offset by share repurchases of $380 million and an additional $127 million in share repurchases to offset the dilution from stock option exercises.
Since the liability for future policy benefits for traditional and limited-payment long duration life and health products comprises approximately 92% of the total liability for future policy benefits, it is subject to interest rate risk. A decrease in discount rates will cause an increase in the obligation with a corresponding change in AOCI.
Since the liability for future policy benefits for traditional and limited-payment long duration life and health products comprises approximately 93% of the total liability for future policy benefits, it is subject to interest rate risk. A decrease in discount rates will cause an increase in the obligation with a corresponding change in AOCI.
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 foreseeable future to conduct its operations and to maintain target capital ratios in the insurance subsidiaries through internally generated cash flow and the credit facility.
The outstanding letters of credit remained at $115 million at December 31, 2024. Through internally generated cash flow and the credit facility the Parent Company expects to have readily available funds for 2025 and the foreseeable future to conduct its operations and to maintain target capital ratios in the insurance subsidiaries.
The investment segment involves the management of our capital resources, including investments and the management of liquidity. Our measure of profitability for the investment segment is excess investment income, as seen below: Net investment income (Required interest on policy liabilities) Excess investment income 21 GL 2023 FORM 10-K Table of Contents GLOBE LIFE INC.
The investment segment involves the management of our capital resources, including investments and the management of liquidity. Our measure of profitability for the investment segment is excess investment income, as seen below: Net investment income (Required interest on policy liabilities) Excess investment income 21 GL 2024 FORM 10-K Table of Contents GLOBE LIFE INC.
Further, approximately 97% of our fixed income securities are publicly traded, freely tradable under SEC Rule 144, or qualified for resale under SEC Rule 144A. While our fixed income securities are classified as available for sale, we have the ability and general intent to hold any securities to recovery or maturity.
Further, approximately 98% of our fixed income securities are publicly traded, freely tradable under SEC Rule 144, or qualified for resale under SEC Rule 144A. While our fixed income securities are classified as available for sale, we have the ability and general intent to hold any securities to recovery or maturity.
For these reasons, and in line with industry practice, we remove the effects of realized gains and losses when evaluating overall insurance operating results. The following table summarizes our tax-effected realized gains (losses) by component for each of the three years ended December 31, 2023.
For these reasons, and in line with industry practice, we remove the effects of realized gains and losses when evaluating overall insurance operating results. The following table summarizes our tax-effected realized gains (losses) by component for each of the three years ended December 31, 2024.
The following table presents these ratings for our five largest insurance subsidiaries at December 31, 2023. Standard & Poor’s A.M. Best Liberty National Life Insurance Company AA- A Globe Life And Accident Insurance Company AA- A United American Insurance Company AA- A American Income Life Insurance Company AA- A Family Heritage Life Insurance Company of America NR A A.M.
The following table presents these ratings for our five largest insurance subsidiaries at December 31, 2024. Standard & Poor’s A.M. Best Liberty National Life Insurance Company AA- A Globe Life And Accident Insurance Company AA- A United American Insurance Company AA- A American Income Life Insurance Company AA- A Family Heritage Life Insurance Company of America NR A A.M.
Management's Discussion & Analysis In 2023, the largest contributor of total underwriting margin was the life insurance segment and the primary distribution channel was the American Income Life Division. The following charts represent the breakdown of total underwriting margin by operating segment and distribution channel for the year ended December 31, 2023.
Management's Discussion & Analysis In 2024, the largest contributor of total underwriting margin was the life insurance segment and the primary distribution channel was the American Income Life Division (American Income). The following charts represent the breakdown of total underwriting margin by operating segment and distribution channel for the year ended December 31, 2024.
For more information about our fixed maturity portfolio by component at December 31, 2023 and December 31, 2022, including a discussion of allowance for credit losses, an analysis of unrealized investment losses and a schedule of maturities, see Note 4—Investments .
For more information about our fixed maturity portfolio by component at December 31, 2024 and December 31, 2023, including a discussion of allowance for credit losses, an analysis of unrealized investment losses, and a schedule of maturities, see Note 4—Investments .
As of December 31, 2023, the Parent Company was in full compliance with all covenants related to the aforementioned debt. As a part of the credit facility, Globe Life has stand-by letters of credit. These letters are issued among our subsidiaries, one of which is an offshore captive reinsurer, and have no impact on company obligations as a whole.
As of December 31, 2024, the Parent Company was in full compliance with all covenants related to the aforementioned debt. As a part of the credit facility, Globe Life has stand-by letters of credit. These letters are issued among our insurance subsidiaries, one of which is an offshore captive reinsurer, and have no impact on company obligations as a whole.
The insurance product line segments involve the marketing, underwriting, 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.
Insurance Product Line Segments. The insurance product line segments involve the marketing, underwriting, and administration of policies. Each product line is further subdivided by the various distribution channels that market the insurance policies. Each distribution channel operates in a niche market offering insurance products designed for that particular market.
The following table illustrates the sensitivity of our liability for 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.
The following table illustrates the sensitivity of our liability for future policy benefits, including the corresponding pre-tax impact on OCI, and net income, as of December 31, 2024, to changes in cash flow assumptions.
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. Underwriting margin as a percent of premium was 34% in 2023, the same as in 2022, and 31% in 2021.
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. Underwriting margin as a percent of premium was 34% in 2024, the same as in 2023 and 2022.
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.
Data for both of these average life measures is provided in the above chart. During 2024 and 2023, 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, 2024, we invested primarily in the industrial, financial, and utility sectors.
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 for 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.
The Company reviews, and updates as necessary, its cash flow assumptions (mortality, morbidity, and lapses) used to calculate the change in the liability for 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.
The following table illustrates the interest rate sensitivity of our liability for future policy benefits as of December 31, 2023. This table measures the effect of a parallel shift in discount rates on the liability.
The following table illustrates the interest rate sensitivity of our liability for future policy benefits as of December 31, 2024. This table measures the effect of a parallel shift in discount rates on the liability.
We hold a substantial investment in high-quality fixed maturities to provide for the funding of our future policy contractual obligations over long periods of time. While these securities are generally expected to be held to maturity, they are classified as available for sale and are sold from time to time to maximize risk-adjusted, capital-adjusted returns.
We hold a substantial investment in high-quality fixed maturities to provide for the funding of our future policy contractual obligations over long periods of time. While these securities are generally expected to be held to maturity, they are classified as available for sale and are sold from time to time to maximize risk-adjusted, capital-adjusted returns or for other general purposes.
The following tables summarize certain information about the major corporate sectors and security types held in our fixed maturity portfolio at December 31, 2023 and 2022.
The following tables summarize certain information about the major corporate sectors and security types held in our fixed maturity portfolio at December 31, 2024 and 2023.
The following chart presents the growth in net investment income and the growth in mean invested assets. 2023 2022 2021 Growth in net investment income 6.6 % 3.7 % 3.2 % Growth in mean invested assets (at amortized cost) 3.5 % 4.1 % 5.3 % Globe Life's net investment income benefits from higher interest rates on new investments.
The following chart presents the growth in net investment income and the growth in mean invested assets. 2024 2023 2022 Growth in net investment income 7.5 % 6.6 % 3.7 % Growth in mean invested assets (at amortized cost) 4.5 % 3.5 % 4.1 % Globe Life's net investment income benefits from higher interest rates on new investments.
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 for the year 2023 and projected benefit obligation as of December 31, 2023. 51 GL 2023 FORM 10-K Table of Contents GLOBE LIFE INC.
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 for the year 2024 and projected benefit obligation as of December 31, 2024. 52 GL 2024 FORM 10-K Table of Contents GLOBE LIFE INC.
Additional information on our accounting policies is disclosed in Note 1—Significant Accounting Policies . Future Policy Benefits. Considerable information concerning the policies, procedures, and other relevant data related to the valuation of our liability for future policy benefits is presented in Note 1—Significant Accounting Policies and Note 6—Policy Liabilities .
Considerable information concerning the policies, procedures, and other relevant data related to the valuation of our liability for future policy benefits is presented in Note 1—Significant Accounting Policies and Note 6—Policy Liabilities .
As excess investment income per diluted common share 33 GL 2023 FORM 10-K Table of Contents 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 Investment Income .
As excess investment income per diluted common share 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. 34 GL 2024 FORM 10-K Table of Contents GLOBE LIFE INC. Management's Discussion & Analysis Excess Investment Income .
In addition to these liquid assets, $17.9 billion (fair value at December 31, 2023) of fixed income securities are available for sale in the event of an unexpected need. Approximately $1.3 billion, at fair value, are pledged for outstanding FHLB advances and reinsurance.
In addition to these liquid assets, $17.2 billion (fair value at December 31, 2024) of fixed income securities are available for sale in the event of an unexpected need. Approximately $1.3 billion, at fair value, are pledged for outstanding FHLB advances and reinsurance.
While increasing interest rates have resulted in a net unrealized loss from our available for sale debt securities included in accumulated other comprehensive income (loss) as of 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.
While increasing interest rates have resulted in a net unrealized loss from our available for sale debt securities included in accumulated other comprehensive income (loss) as of December 31, 2024, we are not concerned because we do not generally intend to sell, nor is it likely that we will be required to sell, fixed maturity investments prior to their anticipated recovery.
(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 Table of Contents GLOBE LIFE INC. Management's Discussion & Analysis Credit Risk Sensitivity .
(3) Effective duration is a measure of the price sensitivity of a fixed-income security to a 1% change in interest rates. 39 GL 2024 FORM 10-K Table of Contents GLOBE LIFE INC. Management's Discussion & Analysis Credit Risk Sensitivity .
Note 10—Postretirement Benefits 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 Table of Contents
Note 10—Postretirement Benefits 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. 53 GL 2024 FORM 10-K Table of Contents
At December 31, 2023, our gross liability under these plans was $628 million, but was offset 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, projected salary increases, and the discount rate at which future obligations could be settled.
At December 31, 2024, our gross liability under these plans was $635 million, but was offset by assets of $615 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, projected salary increases, and the discount rate at which future obligations could be settled.
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.
The United American Division was Globe Life's largest health agency in terms of health premium income, with net sales up 11% from the same period in the prior year.
The impact of the adjustment to exclude AOCI is $(2.77) billion and $(2.79) billion for the year ended December 31, 2023 and 2022, respectively. Book value per share, excluding AOCI, is also considered a non-GAAP measure.
The impact of the adjustment to exclude AOCI is $(2.03) billion and $(2.77) billion for the year ended December 31, 2024 and 2023, respectively. Book value per share, excluding AOCI, is also considered a non-GAAP measure.
For the year ended December 31, 2023, 2022, and 2021, shareholder dividends were $84 million, $81 million, and $80 million, respectively. For more information on the restrictions on the payment of dividends by subsidiaries, see the Restrictions section of Note 13—Shareholders' Equity .
For the year ended December 31, 2024, 2023, and 2022, shareholder dividends were $85 million, $84 million, and $81 million, respectively. For more information on the restrictions on the payment of dividends by subsidiaries, see the Restrictions section of Note 13—Shareholders' Equity .
The great majority of our life and health insurance policies are fixed interest rate protection policies, not investment products, and are accounted for under current GAAP accounting guidance for long-duration insurance products which mandate that interest rate assumptions for a particular block of business be “locked in” for the life of that block of business.
Management's Discussion & Analysis The vast majority of our life and health insurance policies are fixed interest rate protection policies, not investment products, and are accounted for under current GAAP accounting guidance for long-duration insurance products which mandate that interest rate assumptions for a particular block of business be “locked in” for the life of that block of business.
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 following table summarizes selected information for fixed maturity investments.
We believe this strategy is appropriate since our expected future cash flows are generally stable and predictable and the likelihood that we will need to sell invested assets to raise cash is low. The following table summarizes selected information for fixed maturity investments.
The Company holds insignificant amounts in foreign 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.
The Company holds insignificant amounts in foreign 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, 2024, the total fixed maturity portfolio consisted of 1,014 issuers.
Refer to Analysis of Profitability by Segment for non-GAAP reconciliation to GAAP. 22 GL 2023 FORM 10-K Table of Contents GLOBE LIFE INC. Management's Discussion & Analysis Summary of Operations. Net income increased 9% to $971 million in 2023, compared with $894 million in 2022. In 2022, net income decreased 13% from $1.03 billion in 2021.
Refer to Analysis of Profitability by Segment for non-GAAP reconciliation to GAAP. 22 GL 2024 FORM 10-K Table of Contents GLOBE LIFE INC. Management's Discussion & Analysis Summary of Operations. Net income increased 10% to $1.07 billion in 2024, compared with $971 million in 2023. In 2023, net income increased 9% from $894 million in 2022.
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 Table of Contents GLOBE LIFE INC. Management's Discussion & Analysis SHARE REPURCHASES Globe Life has an ongoing share repurchase program that began in 1986.
Insurance administrative expenses as a percent of premium were 7.3% for the year ended December 31, 2024 compared to 6.8% for the same period in 2023. 44 GL 2024 FORM 10-K Table of Contents GLOBE LIFE INC. Management's Discussion & Analysis SHARE REPURCHASES Globe Life has an ongoing share repurchase program that began in 1986.
Additional sources of liquidity for the Parent Company are cash, intercompany receivables, intercompany borrowings, public debt markets, term loans, and a revolving credit facility. See Schedule II for more information. The credit facility is discussed below. Short-Term Borrowings.
Additional sources of liquidity for the Parent Company are cash, intercompany receivables, intercompany borrowings, public debt markets, term loans, and a revolving credit facility. See Schedule II for more information. The credit facility is discussed below. Short-Term Borrowings. An additional source of Parent Company liquidity is a credit facility with a group of lenders.
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.
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 $(23.90) and $(29.11) for the year ended December 31, 2024 and 2023, respectively.
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 portfolio was 5.20% in 2023.
Net investment income increased at a compound annual growth rate of 6% over the three years ending 2024. 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 portfolio was 5.26% in 2024, compared with 5.20% in 2023.
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. 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.
Throughout the remainder of this discussion, share repurchases will only refer to those made from excess cash flow at the Parent Company and exclude anti-dilutive share repurchases related to stock options exercised. FINANCIAL CONDITION Liquidity. Liquidity provides Globe Life with the ability to meet on demand the cash commitments required to support our business operations and meet our financial obligations.
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 efficiently as possible in the future.
Additionally, the balance of AOCI increased $18 million due to increased interest rates and discount rates over the period. We plan to use excess cash available at the Parent Company as efficiently as possible in the future.
First-year collected premium from Medicare Supplement policies make up the remaining $52 million, or 28%, for 2023 compared with $60 million, or 36%, in 2022. A discussion of health operations by distribution channel follows. The United American Division consists of non-exclusive independent agencies who may also sell for other companies.
First-year collected premium from Medicare Supplement policies make up the remaining $64 million, or 29%, for 2024 compared with $52 million, or 28%, in 2023. A discussion of health operations by distribution channel follows. The United American Division consists of non-exclusive independent agencies and brokers who may also sell for other companies.
(2) The discount rate for determining the net periodic benefit cost was 5.71% for 2023. The discount rate used for determining the projected 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.
(2) The discount rate for determining the net periodic benefit cost was 5.40% for 2024. The discount rate used for determining the projected benefit obligation as of December 31, 2024 was 5.81%. (3) The expected long-term return rate assumed was 7.18% at December 31, 2024, and 6.98% in the prior year.
Management's Discussion & Analysis Selected information concerning the fixed maturity portfolio is as follows: Fixed Maturity Portfolio Selected Information At December 31, 2023 2022 Average annual effective yield (1) 5.23% 5.19% Average life, in years, to: Next call (2) 14.6 14.7 Maturity (2) 18.6 18.5 Effective duration to: Next call (2,3) 9.0 8.8 Maturity (2,3) 10.7 10.4 (1) Tax-equivalent basis.
Selected information concerning the fixed maturity portfolio is as follows: Fixed Maturity Portfolio Selected Information At December 31, 2024 2023 Average annual effective yield (1) 5.25% 5.23% Average life, in years, to: Next call (2) 15.1 14.6 Maturity (2) 19.3 18.6 Effective duration to: Next call (2,3) 8.8 9.0 Maturity (2,3) 10.6 10.7 (1) Tax-equivalent basis.
As noted under the caption Credit Facility in Note 12 , the Parent Company has in place a revolving credit facility. The insurance subsidiaries have no additional outstanding credit facilities. Cash and short-term investments were $185 million at the end of 2023 compared with $207 million at the end of 2022.
As noted under the caption Credit Facility in Note 12—Debt , the Parent Company has in place a revolving credit facility. The insurance companies have no additional outstanding credit facilities. Cash and short-term investments were $250 million at the end of 2024 compared with $185 million at the end of 2023.
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.
The division experienced a 10% rise in health net sales in 2024 as compared with 2023, primarily due to an increase in producing agents and improved agent productivity and training. The Division will continue to implement incentive and retention programs to further increases in the number of producing agents.
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 $ 952,822 5 $ 880,729 5 AA 3,179,618 17 2,789,626 15 A 5,118,085 27 4,976,280 28 BBB+ 3,615,102 19 3,495,898 19 BBB 4,278,786 23 4,056,833 23 BBB- 1,243,875 6 1,211,851 7 Total investment grade 18,388,288 97 17,411,217 97 A- Below investment grade: BB 450,503 3 376,912 3 B 37,896 — 35,929 — Below B 41,112 — 46,148 — Total below investment grade 529,511 3 458,989 3 BB $ 18,917,799 100 $ 17,870,206 100 Weighted average composite quality rating A- 41 GL 2023 FORM 10-K Table of Contents GLOBE LIFE INC.
Management's Discussion & Analysis 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 Investment grade: AAA $ 952,822 5 $ 880,729 5 AA 3,179,618 17 2,789,626 15 A 5,118,085 27 4,976,280 28 BBB+ 3,615,102 19 3,495,898 19 BBB 4,278,786 23 4,056,833 23 BBB- 1,243,875 6 1,211,851 7 Total investment grade 18,388,288 97 17,411,217 97 A- Below investment grade: BB 450,503 3 376,912 3 B 37,896 — 35,929 — Below B 41,112 — 46,148 — Total below investment grade 529,511 3 458,989 3 BB $ 18,917,799 100 $ 17,870,206 100 Weighted average composite quality rating A- The overall quality rating of the portfolio is A-, the same as of year end 2023.
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.
Excess investment income per common share, reflecting the impact of our share repurchase program and increased net investment income, increased 36% to $1.83 from $1.35 when compared with the same period in 2023. Insurance administrative expenses increased 14% in 2024 when compared with the prior-year period.
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.
Fixed maturities rated BBB are 46% of the total portfolio at December 31, 2024, down from 48% at December 31, 2023. While this ratio is high relative to our peers, it is at its lowest level since 2007 and we have limited exposure to higher-risk assets such as derivatives, equities, and asset-backed securities.
We find this flexibility to be attractive to new recruits as well as a driver of sustainability for our agency force. The Direct to Consumer Division (DTC) offers adult and juvenile life insurance through a variety of marketing approaches, including direct mailings, insert media, and electronic media.
We find this flexibility to be attractive to new recruits as well as a driver of sustainability for our agency force. The Direct to Consumer Division (DTC) markets adult and juvenile life insurance through a variety of mediums, including direct mail, insert media, and digital marketing.
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 opportunities as well as improve the productivity of agents selling in the individual life market.
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 opportunities as well as improve the productivity of agents selling in the individual life market.
Management's Discussion & Analysis Current Highlights. • Net income as a return on equity (ROE) for the year ended December 31, 2023 was 23.2% and net operating income as an ROE, excluding accumulated other comprehensive income (1) was 14.7%. • Total premium increased 3% over the same period in the prior year.
Management's Discussion & Analysis Current Highlights. • Net income as a return on equity (ROE) for the year ended December 31, 2024 was 21.7% and net operating income as an ROE, excluding accumulated other comprehensive income (1) was 15.1%. • Total premium increased 5% over the same period in the prior year.
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 for all policies in their first policy year.
Management considers net sales to be a better indicator of the rate of premium growth than annualized premium issued since annualized premium issued excludes cancellations, and cancellations do not contribute to premium income. • First-year collected premium is defined as the premium collected during the reporting period for all policies in their first policy year.
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 Table of Contents GLOBE LIFE INC. Management's Discussion & Analysis Globe Life's operations on a segment-by-segment basis are discussed in depth below.
Overall, the Company continues to see positive signs in its core operations, including sales and premium growth, and continues to achieve an operating ROE (excluding accumulated other comprehensive income) generally in the mid-teens. 23 GL 2024 FORM 10-K Table of Contents GLOBE LIFE INC. Management's Discussion & Analysis Globe Life's operations on a segment-by-segment basis are discussed in depth below.
The other distribution channels contributed $207 million of life premium income, or 7% of Globe Life's total life premium income in 2023, and contrib uted 2% of net sales for the year.
The other distribution channels contributed $204 million of life premium income, or 6% of Globe Life's total life premium income in 2024, and contrib uted 2% of net sales for the year.
With no specified authorization amount, 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.
Management generally determines the amount of repurchases based on the amount of the excess cash flows and other available sources after the payment of dividends to the Parent Company shareholders, general market conditions, and other alternative uses.
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. • Total net sales increased 6% over the same period in the prior year from $722 million in 2022 to $768 million in 2023.
Life premium increased 4% for the period from $3.14 billion in 2023 to $3.26 billion in 2024. • Net investment income increased 7% over the same period in the prior year. • Total net sales increased 9% over the same period in the prior year from $768 million in 2023 to $840 million in 2024.
Fixed Maturity Acquisitions Selected Information (Dollar amounts in thousands) Year Ended December 31, 2023 2022 2021 Cost of acquisitions: Investment-grade corporate securities $ 967,588 $ 812,697 $ 566,400 Investment-grade municipal securities 572,654 599,946 434,482 Other investment-grade securities — 7,577 10,465 Total fixed maturity acquisitions (1) $ 1,540,242 $ 1,420,220 $ 1,011,347 Effective annual yield (one year compounded) (2) 6.13 % 5.18 % 3.39 % Average life (in years, to next call) 18.0 13.5 21.7 Average life (in years, to maturity) 24.8 22.8 31.7 Average rating A A A+ (1) Fixed maturity acquisitions included unsettled trades of $4 million in 2023, $0 in 2022 and $7 million in 2021.
Fixed Maturity Acquisitions Selected Information (Dollar amounts in thousands) Year Ended December 31, 2024 2023 2022 Cost of acquisitions: Investment-grade corporate securities $ 1,258,203 $ 967,588 $ 812,697 Investment-grade municipal securities 94,658 572,654 599,946 Other securities 29,577 — 7,577 Total fixed maturity acquisitions (1) $ 1,382,438 $ 1,540,242 $ 1,420,220 Effective annual yield (one year compounded) (2) 5.93 % 6.13 % 5.18 % Average life (in years, to next call) 29.4 18.0 13.5 Average life (in years, to maturity) 33.3 24.8 22.8 Average rating A- A A (1) Fixed maturity acquisitions included unsettled trades of $3.2 million in 2024, $3.8 million in 2023, and $0 in 2022.
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.
The average producing agent count across all of the exclusive agencies increased 11% over the prior year. • Book value per share increased 33% over the same period in the prior year from $47.10 to $62.50.
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 repurchases are made from excess cash flow after the payment of shareholder dividends.
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.
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 after determining that the repurchases provide a greater risk-adjusted after-tax return than other investment alternatives.
Since implementing our share repurchase program in 1986, we have used $10.3 billion to repurchase Globe Life Inc. common shares after determining that the repurchases provide a greater risk-adjusted after-tax return than other investment alternatives.
Life insurance premium income increased 4% to $3.14 billion over the prior-year total of $3.03 billion. Life net sales rose 3% to $544 million for the year ended 2023. First-year collected life premium increased 3% to $420 million. Life underwriting margin, as a percent of premium, increased to 38% in 2023 from 37%.
Life insurance premium income increased 4% to $3.26 billion over the prior-year total of $3.14 billion. Life net sales rose 9% to $595 million for the year ended 2024. First-year collected life premium increased 8% to $455 million. Life underwriting margin, as a percent of premium, increased to 41% for 2024 from 38% in 2023.
As discussed in Note 15—Business Segments , management regards this as a more meaningful analysis of the investment and insurance segments. Required interest is based on the original discount rate assumptions for our insurance policies in force.
As discussed in Note 15—Business Segments , management regards this as a more meaningful analysis of the investment and insurance segments. Required interest is based on the original discount rate assumptions for our insurance policies in force. 35 GL 2024 FORM 10-K Table of Contents GLOBE LIFE INC.
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.
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.
An analysis of changes in our portfolio of below-investment grade fixed maturities at amortized cost, net of allowance for credit losses is as follows: Below-Investment Grade Fixed Maturities (Dollar amounts in thousands) Year Ended December 31, 2023 2022 Balance at beginning of period $ 542,497 $ 701,546 Downgrades by rating agencies 117,731 50,147 Upgrades by rating agencies (32,540) (97,462) Dispositions (95,060) (116,791) Provision for credit losses (6,811) (31) Amortization and other 3,694 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.
An analysis of changes in our portfolio of below-investment grade fixed maturities at amortized cost, net of allowance for credit losses is as follows: Below-Investment Grade Fixed Maturities (Dollar amounts in thousands) Year Ended December 31, 2024 2023 Balance at beginning of period $ 529,511 $ 542,497 Downgrades by rating agencies 101,018 117,731 Upgrades by rating agencies (76,754) (32,540) Dispositions (40,907) (95,060) Acquisitions 20,292 — Provision for credit losses (3,280) (6,811) Amortization and other (760) 3,694 Balance at end of period $ 529,120 $ 529,511 Our investment policy calls for investing primarily in fixed maturities that are investment grade and meet our quality and yield objectives.
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.
Year Ended December 31, (Amounts in Thousands) Projected 2025 2024 2023 2022 Liquidity Sources: Dividends from Subsidiaries $ 724,000 $ 692,690 $ 459,535 $ 407,042 Excess Cash Flows (1) 810,000 455,013 416,081 358,981 (1) Excess cash flows are reported gross of shareholder dividends.
Fixed maturities had a fair value of $17.9 billion at December 31, 2023, compared with $16.5 billion at December 31, 2022. The net unrealized loss position in the fixed-maturity portfolio decreased from $1.8 billion at December 31, 2022 to $1.0 billion at December 31, 2023 due to a decrease in market rates during the period.
Fixed maturities had a fair value of $17.2 billion at December 31, 2024, compared with $17.9 billion at December 31, 2023. The net unrealized loss position in the fixed-maturity portfolio increased from $1.0 billion at December 31, 2023 to $1.7 billion at December 31, 2024 due to an increase in market rates during the period.
… 203 more changes not shown on this page.