c66c0adf6050fbde79e1c056494e0c2cc917f369e085586bacf4dff90b7b2478

Adjustments for Non-Cash Items

Stock-Based Compensation (USD, thousands)

Changes in Working Capital

Capital Expenditures (CapEx) (USD, thousands)

Proceeds from / Repayments of Debt (USD, thousands)

Share Repurchases (USD, thousands)

Dividend Payments (USD, thousands)

Net Change in Cash (USD, thousands)

5857f5bb50d4336e69dc8a36476e0368d2cddef80f08ca93b173e728e285f88b

Annualized health premium in force (USD billions)

Average producing agent count for Family Heritage Division (count)

Average producing agent count for Liberty National Division (count)

Average producing agent count for American Income Division (count)

Average monthly life premium per policy issued for the Liberty National Division (USD)

Effective annual yield on fixed maturity acquisitions (percentage)

Average life to next call for fixed maturity acquisitions (years)

Average life to maturity for fixed maturity acquisitions (years)

Average rating for fixed maturity acquisitions (rating scale)

Taxable equivalent effective yield on the entire fixed maturity portfolio (percentage)

Percentage of commercial mortgage loans with LTV less than 70% (percentage)

Percentage of commercial mortgage loans with LTV from 70% to 80% (percentage)

Percentage of commercial mortgage loans with LTV from 81% to 90% (percentage)

Percentage of commercial mortgage loans with LTV greater than 90% (percentage)

17769869eed8689f2527ec575ec199fc980a99410b1d6771fa14e51899496eee

0f084c4e0254b830011c139c069fb182211143823579c956e63d295e09d925d2

Life premium (USD, thousands)

Health premium (USD, thousands)

Total premium (USD, thousands)

Net Investment Income (USD, thousands)

Realized Gains (Losses) (USD, thousands)

Other Income (USD, thousands)

Total Revenue (USD, thousands)

Life policyholder benefits (USD, thousands)

Health policyholder benefits (USD, thousands)

Other policyholder benefits (USD, thousands)

Total policyholder benefits (USD, thousands)

Amortization of Deferred Acquisition Costs (USD, thousands)

Commissions, Premium Taxes, and Non-Deferred Acquisition Costs (USD, thousands)

Other Operating Expense (USD, thousands)

Interest Expense (USD, thousands)

Total Benefits and Expenses (USD, thousands)

Income Before Income Taxes (USD, thousands)

Income Tax Benefit (Expense) (USD, thousands)

Net Income (USD, thousands)

5624b8f59520602a20688a8eb687cf2f77661f84c9c73109b6f4135ca516936f

Cash provided from (used for) operating activities (USD, thousands)

Cash provided from (used for) investing activities (USD, thousands)

Cash provided from (used for) financing activities (USD, thousands)

Effect of foreign exchange rate changes on cash (USD, thousands)

Net increase (decrease) in cash (USD, thousands)

Cash at beginning of year (USD, thousands)

Cash at end of period (USD, thousands)

e168f8984aa01a69ed37a124a9b70a1d42aeff566221b8ce483176269ec565f1

The drop in cash in Q1 2024 appears to be linked to several factors. **Insurance underwriting income**, **investment income**, and **share repurchases** all played roles, with the company noting that limited share repurchases during a blackout period for a potential acquisition may have affected cash flow. Additionally, despite reporting strong operational cash flows from writing life and supplemental health insurance policies, these financial activities collectively contributed to the cash drop in Q1 2024.  **[0000320335-24-000018_q1fy2024earningsrelease.htm:5]** 

What contributed to the drop in Cash in Q1 2024?

The jump in total assets in Q3 2024 was driven by **three key factors**. First, there was a **significant increase in investments**, including higher values in fixed maturities, mortgage loans, policy loans, and other long-term investments. Second, **deferred acquisition costs** rose, reflecting increased expenditures related to acquiring new insurance policies. Lastly, the **cash balance** also increased, further contributing to the overall growth in assets.  **[0000320335-24-000060_gl-20240930.htm:2]** 

What factors drove the jump in Total assets in Q3 2024?

The sharp increase in long-term debt in Q3 2024 is primarily due to the **issuance of new senior notes**. Globe Life issued **$450 million** in Senior Notes (with net proceeds of **$445 million** after the underwriters' discount) to fund general corporate purposes including share repurchases. This issuance caused the long-term debt to rise substantially from **$1.6 billion** at December 31, 2023, to **$2.3 billion** by September 30, 2024.  **[0000320335-24-000060_gl-20240930.htm:96]** 

Why did Long-term debt increase sharply in Q3 2024?

The documents do not provide any information regarding the cause of the spike in **short-term debt** in Q1 2024.   

What caused the spike in Short-term debt in Q1 2024?

60b227eaddbfe08baba97d0778a5a59ce9dd3c25022c5470dbc52ca16ce8bca3

Operating Cash Flow was **$126,524 thousand lower** in Q1 2024 compared to Q1 2023, declining from **$477,330 thousand** to **$350,806 thousand**. The documents state that while this decrease is significant, they do not provide a detailed breakdown of the reasons. They suggest that potential factors might include variations in **policyholder benefits**, **deferred acquisition costs**, or **income tax changes**—common factors influencing operating cash flows in the insurance industry.  **[0000320335-24-000025_gl-20240331.htm:4]** 

Why was Operating Cash Flow significantly lower in Q1 2024?

In Q2 2024, the positive investing cash flow was mainly driven by **substantially higher cash inflows** from the sale or maturation of investments. Notably, **fixed maturities available for sale sold** increased from **$145,824** in Q2 2023 to **$510,904** in Q2 2024, and **mortgage loans sold or matured** rose from **$9,913** to **$26,071**, which together provided a significant boost to cash receipts. Although there were increased outflows from acquiring investments and other changes, these strong inflows largely drove the unusually positive result.   

What drove the unusually positive Investing Cash Flow in Q2 2024?

Financing activities turned positive in Q1 2024 because the company made several significant adjustments compared to Q1 2023. The **acquisition of treasury stock** was substantially lower, dropping from **$179,276** in Q1 2023 to **$23,469** in Q1 2024, reducing the cash outflow from this activity. Additionally, there was a major increase in **net borrowing from FHLB**, rising from **$45,000** to **$242,000**, which provided a strong cash inflow. The company also transformed its position on **deposit-type products** from a net outflow of **$(54,487)** in Q1 2023 to a net inflow of **$124,475** in Q1 2024. Although the **issuance of common stock** contributed slightly less in Q1 2024 (**$29,763** versus **$37,024** in Q1 2023), the other changes more than compensated, thus flipping the overall cash flow from financing activities to a net inflow of **$356,956** in Q1 2024.  **[0000320335-24-000025_gl-20240331.htm:4]** 

Why did Financing Activities flip from negative to positive in Q1 2024?

a2f1baedc6f5c33818b365459f535ca0fc746942d00a884749f77c5522a62731

The switch to **positive Realized Gains in Q4 2023** was driven primarily by the **$11.9 million gain** from fair value adjustments on investments, which more than offset the losses incurred from other activities such as the disposition of certain holdings, sales of fixed maturity investments, and the recording of a provision for credit losses. This fair value gain played a key role in turning the overall net result positive in Q4 2023.  **[0000320335-24-000006_gl-20231231.htm:77]** **[0000320335-24-000006_gl-20231231.htm:50]** **[0000320335-24-000006_gl-20231231.htm:119]** 

Why did Realized Gains turn positive in Q4 2023?

The drop in Q3 2024 was primarily due to a significant remeasurement gain of **$70.6 million**, which reduced the life policy obligations. Notably, **$57 million** of this gain was attributed to assumption changes reflecting recent trends in mortality and lapses.  **[0000320335-24-000058_q3fy2024earningsrelease.htm:8]** **[GL_3403838_7]** 

Why did Life policyholder benefits drop in Q3 2024?

The jump in Income Before Taxes in Q3 2024 was primarily driven by a **significant increase in insurance underwriting income**. Specifically, underwriting income grew by **19%**, with a key boost coming from a **29% rise in life insurance underwriting margins** (from **$300,088** to **$387,183**) despite a **10% decline in health insurance underwriting margins**. Additionally, **net investment income increased by 7%** due to higher average invested assets and a slight yield improvement, while **administrative expenses rose**, though this was partially offset by **lower policyholder benefits**. Together, these factors resulted in approximately an **18% overall increase** compared to the prior year.  **[0000320335-24-000058_q3fy2024earningsrelease.htm:8]** **[20241023DA37791:8]** **[0000320335-24-000058_q3fy2024earningsrelease.htm:2]** **[0000320335-24-000058_q3fy2024earningsrelease.htm:1]** **[0000320335-24-000058_q3fy2024earningsrelease.htm:5]** 

What drove the jump in Income Before Taxes in Q3 2024?

The significant increase in **Net Income** for Q3 2024 was driven by several key factors. First, there was a **19% rise in insurance underwriting income**, fueled by a **29% increase in life insurance underwriting margin** and a notable **$71 million remeasurement gain** that unlocked favorable assumptions in mortality and lapses.  **[0000320335-24-000058_q3fy2024earningsrelease.htm:1]** **[0000320335-24-000058_q3fy2024earningsrelease.htm:2]** **[GL_3403838_7]**  Additionally, **premium revenue grew by 5%**, with both life and health insurance segments contributing to this growth.  **[0000320335-24-000058_q3fy2024earningsrelease.htm:1]** **[0000320335-24-000058_q3fy2024earningsrelease.htm:2]**  **Net investment income** also increased by **7%**, further bolstering overall profitability.  **[0000320335-24-000058_q3fy2024earningsrelease.htm:8]** **[0000320335-24-000058_q3fy2024earningsrelease.htm:2]**  Finally, the company executed **share repurchases of 5.8 million shares** at a total cost of **$580 million**, which reduced the share count and enhanced earnings per share, while a significant **$46.3 million remeasurement gain** compared to **$3.2 million** in the prior year further improved margins.  **[20241023DA37791:0]** **[0000320335-24-000058_q3fy2024earningsrelease.htm:0]** **[GL_3403838_7]** 

What factors led to the significant increase in Net Income in Q3 2024?

**Total Revenue peaked in Q3 2024 due to a combination of factors.** Premium revenue experienced a **5% increase**, driven by a **4% rise in life premiums** and a **7% growth in health premiums**. Additionally, net investment income grew by **7%**, while realized losses remained virtually unchanged. These factors collectively contributed to the revenue peak observed in Q3 2024.  **[0000320335-24-000058_q3fy2024earningsrelease.htm:8]** 

Why did Total Revenue peak in Q3 2024?

13c5cca1d73ca4d229a715198f5d74adf5eac775ba1ced460cc2f8d61d468dda

6911bca445938feafd999ec542d71dcc02c5d26642a871c0147b2020e8ceccb7

Life Premium

Health Premium

Annuity Premium

Net Investment Income

Other Income

- Realized Investment Gains

- Medicare Part D Premium

- Other Premium

- Adjustments

Total Revenue

5e29cc397d7815b1a51a82f0d625b3e764fbce79e49551210071c845abdb8c81

Globe Life Inc (GL)

Financials