eb246e76413272c08449b1b83a5d51cd32e8f233c5900333a8a0f8ffbd15d046

Globe Life Inc. is an insurance holding company operating primarily in the United States, focusing on individual life and supplemental health insurance products targeted at lower middle to middle-income households **[0000320335-24-000060_gl-20240930.htm:53]** **[0000320335-24-000025_gl-20240331.htm:47]** **[0000320335-24-000006_gl-20231231.htm:82]**. The company is organized into four main segments: life insurance, supplemental health insurance, annuities, and investments **[0000320335-24-000060_gl-20240930.htm:53]** **[0000320335-24-000025_gl-20240331.htm:47]** **[0000320335-24-000006_gl-20231231.htm:82]**. Life insurance is the predominant segment, representing a significant portion of the total premium and underwriting margin in 2024 **[0000320335-24-000060_gl-20240930.htm:72]**. Globe Life markets its products through various distribution channels, including exclusive agencies, an independent agency, and a Direct to Consumer division **[0000320335-24-000006_gl-20231231.htm:82]** **[0000320335-24-000060_gl-20240930.htm:7]**.

1. **Life Insurance** - Offers traditional whole life and term life insurance products, representing the largest segment of the business and contributing significantly to the underwriting margin **[0000320335-24-000060_gl-20240930.htm:72]**.
2. **Supplemental Health Insurance** - Provides guaranteed renewable products, including Medicare Supplement, cancer, critical illness, accident, and other limited-benefit supplemental hospital and surgical products **[0000320335-24-000060_gl-20240930.htm:53]** **[0000320335-24-000006_gl-20231231.htm:178]**.
3. **Investments** - Manages the investment portfolio and cash flow for the insurance segments and the corporate function **[0000320335-24-000060_gl-20240930.htm:53]**.
4. **Annuities** - Includes fixed-benefit contracts, which are not currently marketed as stand-alone products and represent an insignificant part of the business **[0000320335-24-000025_gl-20240331.htm:59]**.

6050de579ad977ba9ee634e403387247619b62755a909d0e8aedd95a824c6454

| Metric (in thousands) | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|-----------------------|---------|---------|---------|---------|---------|---------|---------|
| Life Insurance        | $772,597  **[0000320335-23-000030_gl-20230331.htm:43]**  | $781,733  **[0000320335-23-000044_gl-20230630.htm:53]**  | $788,099  **[0000320335-23-000054_gl-20230930.htm:58]**  | N/A     | $804,265  **[0000320335-24-000025_gl-20240331.htm:42]**  | $815,482  **[0000320335-24-000048_gl-20240630.htm:53]**  | $818,638  **[0000320335-24-000060_gl-20240930.htm:57]**  |
| Health Insurance      | $322,493  **[0000320335-23-000030_gl-20230331.htm:43]**  | $329,187  **[0000320335-23-000044_gl-20230630.htm:53]**  | $331,236  **[0000320335-23-000054_gl-20230930.htm:58]**  | N/A     | $341,019  **[0000320335-24-000025_gl-20240331.htm:42]**  | $351,643  **[0000320335-24-000048_gl-20240630.htm:53]**  | $353,955  **[0000320335-24-000060_gl-20240930.htm:57]**  |
| Annuity               | $0  **[0000320335-23-000030_gl-20230331.htm:43]**  | $0  **[0000320335-23-000044_gl-20230630.htm:53]**  | $0  **[0000320335-23-000054_gl-20230930.htm:58]**  | N/A     | $0  **[0000320335-24-000025_gl-20240331.htm:42]**  | $0  **[0000320335-24-000048_gl-20240630.htm:53]**  | $0  **[0000320335-24-000060_gl-20240930.htm:57]**  |
| Investment            | $257,105  **[0000320335-23-000030_gl-20230331.htm:46]**  | $261,244  **[0000320335-23-000044_gl-20230630.htm:56]**  | $266,926  **[0000320335-23-000054_gl-20230930.htm:58]**  | N/A     | $282,578  **[0000320335-24-000025_gl-20240331.htm:42]**  | $285,636  **[0000320335-24-000048_gl-20240630.htm:53]**  | $284,964  **[0000320335-24-000060_gl-20240930.htm:57]**  |
| Corporate & Other     | $50  **[0000320335-23-000030_gl-20230331.htm:46]**  | $85  **[0000320335-23-000044_gl-20230630.htm:56]**  | $50  **[0000320335-23-000054_gl-20230930.htm:58]**  | N/A     | $76  **[0000320335-24-000025_gl-20240331.htm:42]**  | $74  **[0000320335-24-000048_gl-20240630.htm:53]**  | $42  **[0000320335-24-000060_gl-20240930.htm:57]**  |
| Total Revenue         | $1,352,245  **[0000320335-23-000030_gl-20230331.htm:46]**  | $1,372,249  **[0000320335-23-000044_gl-20230630.htm:56]**  | $1,386,311  **[0000320335-23-000054_gl-20230930.htm:58]**  | N/A     | $1,427,938  **[0000320335-24-000025_gl-20240331.htm:42]**  | $1,452,835  **[0000320335-24-000048_gl-20240630.htm:53]**  | $1,457,599  **[0000320335-24-000060_gl-20240930.htm:57]**  |

ca722db82d3cdcd294b92efc5937ee4c6e4ee4c8f9842c474eeb3ee2066fee7c

22066cfc1c6f386b38431039849b5345ccd651deccc877267ceed43f7a068f11

| Metric / Quarter | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| **Annualized Health Premium in Force ($B)** | **1.33** **[0000320335-23-000008_gl-20221231.htm:5]** | **1.33** **[0000320335-23-000030_gl-20230331.htm:60]** | **1.34** **[0000320335-23-000044_gl-20230630.htm:73]** | **1.36** **[0000320335-23-000054_gl-20230930.htm:75]** | **1.39** **[0000320335-24-000006_gl-20231231.htm:43]** | **1.40** **[0000320335-24-000025_gl-20240331.htm:57]** | **1.44** **[0000320335-24-000048_gl-20240630.htm:72]** | **1.45** **[0000320335-24-000060_gl-20240930.htm:79]** |
| **First-Year Collected Premium ($M)** | **N/A** | **30** **[0000320335-23-000030_gl-20230331.htm:60]** | **64** **[0000320335-23-000044_gl-20230630.htm:73]** | **98** **[0000320335-23-000054_gl-20230930.htm:75]** | **133** **[0000320335-24-000006_gl-20231231.htm:44]** | **37** **[0000320335-24-000025_gl-20240331.htm:58]** | **77** **[0000320335-24-000048_gl-20240630.htm:73]** | **119** **[0000320335-24-000060_gl-20240930.htm:79]** |
| **Underwriting Margin Life (% of Premium)** | **28%** **[0000320335-23-000002_q4fy2022earningsrelease.htm:3]** | **38%** **[GL_3249683_1]** | **38%** **[0000320335-23-000040_q2fy2023earningsrelease.htm:2]** **[0000320335-23-000040_q2fy2023earningsrelease.htm:4]** | **38%** **[GL_3362462_1]** | **38%** **[GL_3372716_1]** | **38%** **[GL_3380344_5]** | **39%** **[GL_3394499_3]** | **47%** **[0000320335-24-000058_q3fy2024earningsrelease.htm:2]** |
| **Underwriting Margin Health (% of Premium)** | **25%** **[0000320335-23-000002_q4fy2022earningsrelease.htm:3]** | **28%** **[GL_3249683_1]** | **28%** **[0000320335-23-000040_q2fy2023earningsrelease.htm:2]** **[0000320335-23-000040_q2fy2023earningsrelease.htm:4]** | **29%** **[GL_3362462_1]** | **29%** **[GL_3372716_1]** | **27%** **[GL_3380344_5]** | **29%** **[GL_3394499_3]** | **25%** **[0000320335-24-000058_q3fy2024earningsrelease.htm:2]** |
| **Average Monthly Life Premium ($)** | **N/A** | **N/A** | **N/A** | **N/A** | **N/A** | **44** **[0000320335-24-000025_gl-20240331.htm:56]** | **57** **[0000320335-24-000048_gl-20240630.htm:69]** | **56** **[0000320335-24-000060_gl-20240930.htm:75]** |
| **Average Producing Agent Count American Income** | **9,243** **[GL_3226590_1]** | **9,714** **[0000320335-23-000027_q1fy2023earningsrelease.htm:4]** | **10,488** **[GL_3384495_2]** | **10,993** **[GL_3362462_2]** | **11,131** **[0000320335-24-000004_q4fy2023earningsrelease.htm:5]** | **11,139** **[0000320335-24-000018_q1fy2024earningsrelease.htm:4]** | **11,869** **[0000320335-24-000044_q2fy2024earningsrelease.htm:4]** | **12,031** **[0000320335-24-000058_q3fy2024earningsrelease.htm:4]** |
| **Average Producing Agent Count Liberty National** | **2,946** **[GL_3226590_1]** | **3,011** **[0000320335-23-000027_q1fy2023earningsrelease.htm:4]** | **3,180** **[GL_3384495_2]** | **3,339** **[GL_3362462_2]** | **3,387** **[0000320335-24-000004_q4fy2023earningsrelease.htm:5]** | **3,419** **[0000320335-24-000018_q1fy2024earningsrelease.htm:4]** | **3,700** **[0000320335-24-000044_q2fy2024earningsrelease.htm:4]** | **3,794** **[0000320335-24-000058_q3fy2024earningsrelease.htm:4]** |
| **Average Producing Agent Count Family Heritage** | **1,334** **[GL_3226590_1]** | **1,298** **[0000320335-23-000027_q1fy2023earningsrelease.htm:4]** | **1,345** **[GL_3384495_2]** | **1,323** **[GL_3362462_2]** | **1,368** **[0000320335-24-000004_q4fy2023earningsrelease.htm:5]** | **1,295** **[0000320335-24-000018_q1fy2024earningsrelease.htm:4]** | **1,361** **[0000320335-24-000044_q2fy2024earningsrelease.htm:4]** | **1,429** **[0000320335-24-000058_q3fy2024earningsrelease.htm:4]** |
| **Present Value of Expected Future Policy Benefits Life ($M)** | **N/A** | **26,987.682** **[0000320335-23-000030_gl-20230331.htm:35]** **[0000320335-23-000030_gl-20230331.htm:36]** | **26,772.991** **[0000320335-23-000044_gl-20230630.htm:37]** **[0000320335-23-000044_gl-20230630.htm:43]** | **24,907.260** **[0000320335-23-000054_gl-20230930.htm:45]** **[0000320335-23-000054_gl-20230930.htm:46]** | **27,723.158** **[0000320335-24-000006_gl-20231231.htm:135]** | **27,061.942** **[0000320335-24-000025_gl-20240331.htm:22]** **[0000320335-24-000025_gl-20240331.htm:31]** | **26,507.907** **[0000320335-24-000048_gl-20240630.htm:32]** **[0000320335-24-000048_gl-20240630.htm:39]** | **28,150.367** **[0000320335-24-000060_gl-20240930.htm:31]** |
| **Present Value of Expected Future Policy Benefits Health ($M)** | **N/A** | **7,670.753** **[0000320335-23-000030_gl-20230331.htm:35]** **[0000320335-23-000030_gl-20230331.htm:36]** | **7,621.433** **[0000320335-23-000044_gl-20230630.htm:37]** | **7,637.496** **[0000320335-23-000054_gl-20230930.htm:45]** **[0000320335-23-000054_gl-20230930.htm:46]** | **8,441.002** **[0000320335-24-000006_gl-20231231.htm:142]** | **8,298.702** **[0000320335-24-000025_gl-20240331.htm:22]** | **8,260.784** **[0000320335-24-000048_gl-20240630.htm:32]** | **8,898.122** **[0000320335-24-000060_gl-20240930.htm:36]** |
| **Excess Investment Income ($M)** | **62.8** **[0000320335-23-000002_q4fy2022earningsrelease.htm:6]** **[0000320335-23-000002_q4fy2022earningsrelease.htm:1]** | **29.3** **[0000320335-23-000027_q1fy2023earningsrelease.htm:5]** **[0000320335-23-000030_gl-20230331.htm:63]** **[0000320335-23-000030_gl-20230331.htm:54]** | **31.4** **[0000320335-23-000040_q2fy2023earningsrelease.htm:5]** **[0000320335-23-000040_q2fy2023earningsrelease.htm:1]** | **33.9** **[0000320335-23-000050_q3fy2023earningsrelease.htm:5]** **[0000320335-23-000050_q3fy2023earningsrelease.htm:1]** | **35.8** **[0000320335-24-000004_q4fy2023earningsrelease.htm:6]** | **43.8** **[0000320335-24-000018_q1fy2024earningsrelease.htm:4]** **[0000320335-24-000025_gl-20240331.htm:61]** **[0000320335-24-000025_gl-20240331.htm:51]** | **42.8** **[0000320335-24-000044_q2fy2024earningsrelease.htm:5]** **[0000320335-24-000044_q2fy2024earningsrelease.htm:1]** | **39.5** **[0000320335-24-000058_q3fy2024earningsrelease.htm:5]** **[0000320335-24-000058_q3fy2024earningsrelease.htm:1]** |
| **Health Insurance Underwriting Margin ($M)** | **81.668** **[0000320335-23-000002_q4fy2022earningsrelease.htm:5]** | **91.332** **[0000320335-23-000027_q1fy2023earningsrelease.htm:2]** | **92** **[0000320335-23-000040_q2fy2023earningsrelease.htm:2]** | **96.7** **[0000320335-23-000050_q3fy2023earningsrelease.htm:2]** | **97.486** **[0000320335-24-000004_q4fy2023earningsrelease.htm:3]** | **93.77** **[0000320335-24-000018_q1fy2024earningsrelease.htm:2]** | **100.488** **[0000320335-24-000044_q2fy2024earningsrelease.htm:2]** | **86.963** **[0000320335-24-000058_q3fy2024earningsrelease.htm:2]** |
| **Life Insurance Underwriting Margin ($M)** | **212.387** **[0000320335-23-000002_q4fy2022earningsrelease.htm:3]** | **291.274** **[0000320335-23-000027_q1fy2023earningsrelease.htm:2]** | **296.13** **[0000320335-23-000040_q2fy2023earningsrelease.htm:2]** **[0000320335-23-000040_q2fy2023earningsrelease.htm:3]** | **300.088** **[0000320335-23-000050_q3fy2023earningsrelease.htm:2]** | **305.48** **[0000320335-24-000004_q4fy2023earningsrelease.htm:3]** | **309** **[GL_3380344_5]** | **320.323** **[0000320335-24-000044_q2fy2024earningsrelease.htm:2]** | **387.183** **[0000320335-24-000058_q3fy2024earningsrelease.htm:2]** |

615ab64694e71ebb5611398ec92c782379c5ea2d5b24c18207dd2d958afd4670

1. Given that mortality rates remain higher than pre-pandemic levels and you haven't returned to pre-pandemic assumptions, what specific measures are you taking to address the ongoing excess mortality, and how might this impact your future profitability?

2. With health margins under pressure due to higher claims in the Medicare supplement business and a lag in obtaining rate increases effective in 2025, how do you plan to manage the short-term profitability challenges, and what is your strategy if regulators do not approve sufficient rate increases?

3. Considering your intent to increase investments in commercial mortgage loans and limited partnerships to 25-30% of total acquisitions in 2025, how are you assessing and mitigating the risks associated with these alternative investments, especially if interest rates begin to decline?

4. Given that your 2025 guidance does not include any capital benefits from the Bermuda platform and acknowledging the time it takes to realize such benefits, can you explain the reasons for the delay in concluding this evaluation and how it aligns with your overall capital management strategy?

5. While you have seen recent improvements in life claims and margins, how sustainable do you believe these favorable trends are, and what factors could potentially reverse this improvement in the near future?

879c3b3433bf453a414e3b84fcd84651629187856919f8d4f247187d84e090ef

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)

9e0a38afc284eb3209d5eb2ce4404087f81fb7fdf3ae604fb304b5262f9b4486

Life Premium

Health Premium

Annuity Premium

Net Investment Income

Other Income

- Realized Investment Gains

- Medicare Part D Premium

- Other Premium

- Adjustments

Total Revenue

c62669f238c202a668c8b726220e82ef78e54160bd19d77923b3dd4f081a1873

**Annualized Health Premium in Force ($B)**

**First-Year Collected Premium ($M)**

**Underwriting Margin Life (% of Premium)**

**Underwriting Margin Health (% of Premium)**

**Average Monthly Life Premium ($)**

**Average Producing Agent Count American Income**

**Average Producing Agent Count Liberty National**

**Average Producing Agent Count Family Heritage**

**Present Value of Expected Future Policy Benefits Life ($M)**

**Present Value of Expected Future Policy Benefits Health ($M)**

**Excess Investment Income ($M)**

**Health Insurance Underwriting Margin ($M)**

**Life Insurance Underwriting Margin ($M)**

a5839e6e14e5fc3f9dbc2f2de87e71781a0eda5249f4f7e2fedb2ef4e82ca26d

### Q3 2024 Earnings Call
- **Issued Period**: Q3 2024
- **Guided Period**: FY 2024 and FY 2025
- **Guidance**:
  1. **Net Operating Earnings per Diluted Share**:
     - FY 2024: $12.20 to $12.40
     - FY 2025: $13.20 to $13.90
  2. **Premium Revenue Growth**:
     - Life Insurance: 4.5% to 5%
     - Health Insurance: 7.5% to 8.5%
  3. **Underwriting Margins as a Percent of Premium**:
     - Life Insurance: 39% to 42%
     - Health Insurance: 26% to 28%
  4. **Net Investment Income**: Flat to low single-digit growth in 2025
  5. **Required Interest**: 3% to 3.5% growth
  6. **Parent Excess Cash Flows**: $575 to $625 million for 2025
  7. **Sales Growth for 2025**:
     - Life Sales: High single-digit to low double-digit growth
     - Health Sales: Low double-digit growth
  8. **Average Yield on Fixed Maturity Portfolio**:
     - 2024: 5.25%
     - 2025: 5.24%
  9. **Yield Impacting Net Investment Income**:
     - 2024: 8% to 9%
     - 2025: 7% to 8%  **[GL_3403838_7]** **[GL_3403838_5]** **[GL_3403838_3]** .

### Q2 2024 Earnings Call
- **Issued Period**: Q2 2024
- **Guided Period**: FY 2024
- **Guidance**:
  1. **Operating Earnings Per Diluted Share**: $11.80 to $12.10
  2. **Average Producing Agent Count Trends**:
     - American Income: Low double-digit growth
     - Liberty National: Mid-teens growth
     - Family Heritage: Mid-single-digit growth
  3. **Net Life Sales**:
     - American Income: Mid-teens growth
     - Liberty National: Low double-digit growth
     - Direct-to-consumer: Slightly down
  4. **Net Health Sales**:
     - Liberty National: High single-digit growth
     - Family Heritage: High single-digit growth
     - United American General Agency: Low to mid-single-digit growth
  5. **Life Premium Revenue**: 4.5% to 5% growth
  6. **Life Underwriting Margin**: 9% to 10% growth
  7. **Health Premium Revenue**: 6.5% to 7% growth
  8. **Health Underwriting Margin**: 1% to 2% growth
  9. **Administrative Expenses**: 7% of premium
  10. **Net Investment Income**: 7% to 8% growth
  11. **Required Interest**: 5% to 5.5% growth
  12. **Excess Investment Income**: 20% to 25% growth
  13. **Share Repurchases**: $750 million to $770 million
  14. **Consolidated Company Action RBC Ratio**: 300% to 320%  **[GL_3394499_9]** **[GL_3394499_5]** **[GL_3394499_3]** **[GL_3394499_6]** **[GL_3394499_8]** .

### Q1 2024 Earnings Call
- **Issued Period**: Q1 2024
- **Guided Period**: FY 2024
- **Guidance**:
  1. **Net Operating Earnings Per Diluted Share**: $11.50 to $12.00
  2. **Investment Plans**:
     - Fixed Maturities: $1 billion to $1.2 billion at 5.6% to 5.8% yield
     - Commercial Mortgage Loans: $400 million to $500 million at 8% to 10% return
  3. **Life Premium Revenue Growth**: 4.5% to 5%
  4. **Life Underwriting Margin Growth**: 7% to 7.5%
  5. **Health Premium Revenue Growth**: 7%
  6. **Health Underwriting Margin Growth**: 5% to 6%
  7. **Administrative Expenses**: 7% of premium
  8. **Net Investment Income Growth**: 7% to 9%
  9. **Required Interest Growth**: 5% to 5.5%
  10. **Excess Investment Income Growth**: 25% to 30%
  11. **Share Repurchases**: $350 million to $370 million
  12. **Capital Levels**: 300% to 320% RBC ratio
  13. **Agent Count and Sales Growth at American Income Life (AIL)**: Low single digits and mid single digits
  14. **Net Life Sales Growth**:
      - Liberty National: Mid-teens growth
      - Direct to Consumer: Slightly down
  15. **Net Health Sales Growth**:
      - Liberty National: Mid-teens growth
      - Family Heritage: Low double-digit growth
      - United American General Agency: Low to mid-single-digit growth  **[GL_3380344_11]** **[GL_3380344_9]** **[GL_3380344_7]** **[GL_3380344_5]** **[GL_3380344_8]** **[GL_3380344_10]** .

### Q4 2023 Earnings Call
- **Issued Period**: Q4 2023
- **Guided Period**: FY 2024
- **Guidance**:
  1. **Net Operating Earnings per Diluted Share**: $11.30 to $11.80
  2. **Life Insurance Operations**:
     - Life Premium Revenue Growth: 4.5% to 5%
     - Life Underwriting Margin Growth: 7% to 7.5%
  3. **Health Insurance Operations**:
     - Health Premium Revenue Growth: 7% to 8%
     - Health Underwriting Margin Growth: 5% to 6%
  4. **Administrative Expenses**: 7% of premium
  5. **Net Investment Income**: 5% to 6% growth
  6. **Excess Cash Flows**: $420 million to $460 million
  7. **Share Repurchases**: $330 million to $370 million
  8. **Average Producing Agent Count Growth**:
     - American Income Life: High single-digit growth
     - Liberty National: Low double-digit growth
     - Family Heritage: Low double-digit growth
  9. **Net Life Sales Growth**:
     - American Income Life: Low double-digit growth
     - Liberty National: Low double-digit growth
     - Direct-to-Consumer: Relatively flat
  10. **Net Health Sales Growth**:
      - Liberty National: Low double-digit growth
      - Family Heritage: Low double-digit growth
      - United American General Agency: Low- to mid-single-digit growth
  11. **Capital Levels**: 300% to 320% RBC ratio  **[GL_3372716_1]** **[GL_3372716_8]** **[GL_3372716_5]** **[GL_3372716_7]** **[GL_3372716_3]** .

520a88d2ff3bbe5f85612d98c2cb989fb52809f0b4e16983a8fb65981e5508b3

| Name                  | Position                                                                 | Start Date  | Short Bio                                                                                                                                                                                                 |
|-----------------------|--------------------------------------------------------------------------|-------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Jennifer A. Haworth   | Executive Vice President and Chief Marketing Officer                      | Jan 2020    | Jennifer A. Haworth has been the EVP and Chief Marketing Officer of Globe Life Inc. since January 2020. She previously served as Division SVP of Marketing at Globe since September 2019  **[0000320335-24-000010_gl-20240315.htm:16]** **[0000320335-23-000014_gl-20230315.htm:32]** .                                              |
| Robert E. Hensley     | Executive Vice President and Chief Investment Officer                     | Jul 2021    | Robert E. Hensley has been serving as the EVP and Chief Investment Officer of Globe Life Inc. since July 2021. He was previously the Divisional SVP of Investments for several divisions starting in February 2021  **[0000320335-24-000010_gl-20240315.htm:16]** **[0000320335-23-000014_gl-20230315.htm:32]** **[0000320335-23-000012_gl-20230303.htm:32]** .                  |
| Thomas P. Kalmbach    | EVP and Chief Financial Officer; President of Globe; President of Family Heritage | Jan 2023    | Thomas P. Kalmbach has been serving as the EVP and CFO of Globe Life Inc. since January 2023. He also holds the position of President of Globe since January 2023 and President of Family Heritage since April 2022  **[0000320335-24-000010_gl-20240315.htm:16]** **[0000320335-23-000014_gl-20230315.htm:32]** .                      |
| Michael C. Majors     | EVP, Policy Acquisition and Chief Strategy Officer; President of United American | Jan 2023    | Michael C. Majors has been serving as the EVP, Policy Acquisition and Chief Strategy Officer of Globe Life since January 2023. He has also been the President of United American since March 2015  **[0000320335-24-000010_gl-20240315.htm:16]** **[0000320335-23-000014_gl-20230315.htm:32]** .                                       |
| R. Brian Mitchell     | EVP and General Counsel; Chief Risk Officer; President of American Income; President of Liberty | Jan 2023    | R. Brian Mitchell has been the EVP and General Counsel of Globe Life Inc. since June 2012. He became the Chief Risk Officer in May 2017, President of American Income in January 2023, and President of Liberty since July 2018  **[0000320335-24-000010_gl-20240315.htm:16]** **[0000320335-23-000014_gl-20230315.htm:32]** .         |
| Dolores L. Skarjune   | Executive Vice President and Chief Administrative Officer                 | Jan 2023    | Dolores L. Skarjune has been serving as the EVP and Chief Administrative Officer of Globe Life Inc. since January 2023. She was previously the Divisional SVP of Sales and Administration for several divisions from September 2019  **[0000320335-24-000010_gl-20240315.htm:16]** **[0000320335-23-000014_gl-20230315.htm:32]** **[0000320335-23-000012_gl-20230303.htm:32]** . |
| Christopher K. Tyler  | Executive Vice President and Chief Information Officer                    | Jun 2022    | Christopher K. Tyler is the EVP and Chief Information Officer of Globe Life Inc. since June 2022. He previously served as the CIO at Magellan Health from February 2020 to May 2022  **[0000320335-24-000010_gl-20240315.htm:16]** **[0000320335-23-000014_gl-20230315.htm:32]** **[0000320335-23-000012_gl-20230303.htm:32]** .                                                  |
| Rebecca E. Zorn       | Executive Vice President and Chief Talent Officer                         | Jan 2021    | Rebecca E. Zorn has been the EVP and Chief Talent Officer of Globe Life Inc. since January 2021. She also serves as the Divisional SVP and Chief Talent Officer for several divisions since September 2019  **[0000320335-24-000010_gl-20240315.htm:16]** **[0000320335-23-000014_gl-20230315.htm:32]** **[0000320335-23-000012_gl-20230303.htm:32]** .                           |
| Frank M. Svoboda      | Co-Chairman and Chief Executive Officer                                   | Jan 2023    | Frank M. Svoboda is the Co-Chairman and CEO of Globe Life Inc. since January 2023. He was previously the Senior EVP and CFO from April 2022 to December 2022  **[0000320335-24-000010_gl-20240315.htm:11]** **[0000320335-24-000010_gl-20240315.htm:50]** **[0000320335-23-000014_gl-20230315.htm:11]** .                                                                         |
| J. Matthew Darden     | Co-Chairman and Chief Executive Officer                                   | Jan 2023    | J. Matthew Darden has been serving as the Co-Chairman and CEO of Globe Life Inc. since January 2023. He was previously the Senior EVP and Chief Strategy Officer from April 2022 to December 2022  **[0000320335-24-000010_gl-20240315.htm:10]** **[0000320335-23-000014_gl-20230315.htm:32]** **[0000320335-23-000012_gl-20230303.htm:32]** .                                    |

150d2704c650ad31c26a2213d187872ec53739a1a3e2dc024300c2ed1caad085

| Program Details          | Program 1                  |
|--------------------------|----------------------------|
| Approval Date            | N/A                        |
| End Date/Duration        | N/A                        |
| Total additional amount  | N/A                        |
| Remaining authorization  | N/A                        |
| Details                  | The share buyback program is part of an ongoing strategy that began in **1986**. It is reviewed quarterly by the Board of Directors and continues indefinitely unless the Board decides to suspend, terminate, or modify it. The program aims to utilize excess cash flows to provide a better return to shareholders compared to other investment alternatives.  **[0000320335-24-000060_gl-20240930.htm:92]** **[0000320335-24-000006_gl-20231231.htm:57]** **[0000320335-23-000008_gl-20221231.htm:56]** **[0000320335-24-000025_gl-20240331.htm:70]** **[0000320335-24-000048_gl-20240630.htm:85]** **[GL_3380344_10]**  |

1dd424c7b7b621383026eede4ff6217bdc3f5abd6bc38b39061475a9b7eba856

**Annual guidance for FY 2024:**
- **Operating earnings per diluted share**: $12.20 to $12.40  **[GL_3403838_7]**  (raised from $11.80 to $12.10  **[GL_3394499_9]** )  
- **Premium revenue growth (life)**: 4.5% to 5%  **[GL_3403838_7]**  (no change from prior guidance  **[GL_3394499_9]** )  
- **Premium revenue growth (health)**: 7.5% to 8.5%  **[GL_3403838_7]**  (raised from 6.5% to 7%  **[GL_3394499_9]** )  
- **Underwriting margins as a percent of premium (life)**: 39% to 42%  **[GL_3403838_7]**  (no prior guidance)  
- **Underwriting margins as a percent of premium (health)**: 26% to 28%  **[GL_3403838_7]**  (no prior guidance)  
- **Yield impacting net investment income**: 8% to 9%  **[GL_3403838_7]**  (raised from 7% to 8%  **[GL_3394499_9]** )  
- **Average yield on fixed maturity portfolio**: 5.25%  **[GL_3403838_7]**  (no prior guidance)

**Annual guidance for FY 2025:**
- **Net operating earnings per diluted share**: $13.20 to $13.90  **[GL_3403838_7]**  (no prior guidance)  
- **Net investment income**: Flat to low single-digit growth  **[GL_3403838_7]**  (no prior guidance)  
- **Required interest**: 3% to 3.5% growth  **[GL_3403838_7]**  (no prior guidance)  
- **Parent excess cash flows**: $575 to $625 million  **[GL_3403838_7]**  (no prior guidance)  
- **Sales growth (life)**: High single-digit to low double-digit growth  **[GL_3403838_7]**  (no prior guidance)  
- **Sales growth (health)**: Low double-digit growth  **[GL_3403838_7]**  (no prior guidance)  
- **Average yield on fixed maturity portfolio**: 5.24%  **[GL_3403838_7]**  (no prior guidance)  
- **Yield impacting net investment income**: 7% to 8%  **[GL_3403838_7]**  (no prior guidance)

fb6c6336c0ef3ca56cf1e4da31c807f08ce76b3fa53b2ea60aee4616391c7054

| Name                  | Start Date | End Date | Reason for Change |
|-----------------------|------------|----------|-------------------|
| Deloitte & Touche LLP | 1999  **[0000320335-24-000006_gl-20231231.htm:75]**    | Present  | Current auditor   |

d00e49e6ba19171578cd0b3524eba605fe582a679c91886c577029b06bef7972

2eb1655f24edbc2eec7acd0374350b90dcde042136a4ff327b8bc67e6307b835

- **Globe Life increased its earnings guidance by $0.20 per share**, with less than half due to higher investment income and the remainder driven by share price changes, indicating enhanced profitability.  **[GL_3380344_31]**
- The company **decided to prioritize share repurchases over acquisitions**, choosing to allocate funds toward purchasing its own shares, which they believe provides the best risk-adjusted returns to shareholders.  **[GL_3380344_21]**
- **Stable and consistent growth in premiums and cash flows**, with In-Force business growing over **5%** over the past **3, 5, and 10 years**, and generating over **$1 billion of operating cash flow annually**, demonstrating strong financial stability.  **[GL_3380344_37]**

c1a35718cb6569e837e771068c96c6047002793563034be4aee516caa7a71bbf

23794d91c53ae875c8e247d72561e35d9d06ee07c70c9e0dbcc977a6d161504a

- Total Revenue: $1.455 billion (+5% YoY)  **[0000320335-24-000060_gl-20240930.htm:3]** **[0000320335-23-000054_gl-20230930.htm:3]**   
- Health Premium: $354 million (+7% YoY)  **[0000320335-24-000060_gl-20240930.htm:3]** **[0000320335-23-000054_gl-20230930.htm:58]** **[0000320335-23-000054_gl-20230930.htm:55]**   
- Net Investment Income: $285 million (+7% YoY)  **[0000320335-24-000060_gl-20240930.htm:3]** **[0000320335-23-000054_gl-20230930.htm:58]** **[0000320335-23-000054_gl-20230930.htm:55]**   
- Net Income: $302.994 million (+18% YoY)  **[0000320335-24-000060_gl-20240930.htm:3]** **[0000320335-23-000054_gl-20230930.htm:3]**   
- Diluted EPS: $3.42 (+28% YoY)  **[0000320335-24-000060_gl-20240930.htm:3]** **[0000320335-23-000054_gl-20230930.htm:3]**   
- Share Repurchases: $591.106k (up from $96.898k) → **+510% YoY**  **[0000320335-24-000060_gl-20240930.htm:6]** **[0000320335-23-000054_gl-20230930.htm:7]**   
- Long-Term Debt: $2.324 billion (+29% YoY)  **[0000320335-24-000060_gl-20240930.htm:2]** **[0000320335-23-000054_gl-20230930.htm:2]**   

6fdead92963bbb4dcb76ad827dca79deffad7482cc320d3a53a2272c35afb4bf

| Year | Amount Due (Millions) | Debt Type                     | Interest Rate (%) | % of Total Debt                                                                 |
|----------|---------------------------|-----------------------------------|-----------------------|------------------------------------------------------------------------------------|
| 2027     | 250.0 **[0000320335-24-000060_gl-20240930.htm:96]**             | Term Loan                        | 6.593  **[0000320335-24-000060_gl-20240930.htm:96]** **[0000320335-24-000060_gl-20240930.htm:51]**       | 8.9% = (250.0 / 2,793.9) * 100  **[0000320335-24-000060_gl-20240930.htm:96]** **[0000320335-24-000060_gl-20240930.htm:51]**                                          |
| 2028     | 550.0 **[0000320335-24-000060_gl-20240930.htm:96]**             | Senior Notes                     | 4.550  **[0000320335-24-000060_gl-20240930.htm:96]** **[0000320335-24-000060_gl-20240930.htm:51]**       | 19.7% = (550.0 / 2,793.9) * 100  **[0000320335-24-000060_gl-20240930.htm:96]** **[0000320335-24-000060_gl-20240930.htm:51]**                                         |
| 2030     | 400.0 **[0000320335-24-000060_gl-20240930.htm:96]**             | Senior Notes                     | 2.150  **[0000320335-24-000060_gl-20240930.htm:96]** **[0000320335-24-000060_gl-20240930.htm:51]**       | 14.3% = (400.0 / 2,793.9) * 100  **[0000320335-24-000060_gl-20240930.htm:96]** **[0000320335-24-000060_gl-20240930.htm:51]**                                         |
| 2032     | 250.0 **[0000320335-24-000060_gl-20240930.htm:96]**             | Senior Notes                     | 4.800  **[0000320335-24-000060_gl-20240930.htm:96]** **[0000320335-24-000060_gl-20240930.htm:51]**       | 8.9% = (250.0 / 2,793.9) * 100  **[0000320335-24-000060_gl-20240930.htm:96]** **[0000320335-24-000060_gl-20240930.htm:51]**                                          |
| 2034     | 450.0 **[0000320335-24-000060_gl-20240930.htm:96]**             | Senior Notes                     | 5.850  **[0000320335-24-000060_gl-20240930.htm:96]** **[0000320335-24-000060_gl-20240930.htm:51]**       | 16.1% = (450.0 / 2,793.9) * 100  **[0000320335-24-000060_gl-20240930.htm:96]** **[0000320335-24-000060_gl-20240930.htm:51]**                                         |
| 2057     | 125.0 **[0000320335-24-000060_gl-20240930.htm:96]**             | Junior Subordinated Debentures   | 5.275  **[0000320335-24-000060_gl-20240930.htm:96]** **[0000320335-24-000060_gl-20240930.htm:51]**       | 4.5% = (125.0 / 2,793.9) * 100  **[0000320335-24-000060_gl-20240930.htm:96]** **[0000320335-24-000060_gl-20240930.htm:51]**                                          |
| 2061     | 325.0 **[0000320335-24-000060_gl-20240930.htm:96]**             | Junior Subordinated Debentures   | 4.250  **[0000320335-24-000060_gl-20240930.htm:96]** **[0000320335-24-000060_gl-20240930.htm:51]**       | 11.6% = (325.0 / 2,793.9) * 100  **[0000320335-24-000060_gl-20240930.htm:96]** **[0000320335-24-000060_gl-20240930.htm:51]**                                         |
| N/A      | 443.9  **[0000320335-24-000060_gl-20240930.htm:96]** **[0000320335-24-000060_gl-20240930.htm:51]**           | Short-Term Debt (Commercial Paper & FHLB Borrowings) | Variable **[0000320335-24-000060_gl-20240930.htm:51]** | 15.9% = (443.9 / 2,793.9) * 100  **[0000320335-24-000060_gl-20240930.htm:96]** **[0000320335-24-000060_gl-20240930.htm:51]**                                         |

bc03dfddda78ffb701e101c3412e684dbdf6268ebdd08a350c4381801234c2df

5cbf6e14eda889285dcd1f03a661668d2e17d343739113df5b6c4cf9a75c7206

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

1. **Prioritizing Share Buybacks over M&A**  
   **Q:** Why did you walk away from the potential acquisition?  
   **A:** Management decided to walk away primarily because the current low stock price made share repurchases a better use of funds for shareholders, offering the highest and best risk-adjusted returns. They believe buying back shares at prices below book value provides a very good return for shareholders.  **[GL_3380344_22]** ,  **[GL_3380344_18]** 

2. **Impact of Investigations on Business**  
   **Q:** Is the ongoing WilmerHale investigation affecting your business?  
   **A:** Management stated they are not seeing any impact on their business from the investigation. Agent recruiting pipelines remain strong with no significant changes, and customer feedback has been minimal, with call volumes on the topic decreasing to zero recently.  **[GL_3380344_13]** ,  **[GL_3380344_29]** ,  **[GL_3380344_38]** 

3. **Guidance Update and Excess Cash Flow**  
   **Q:** What drove the increase in 2024 excess cash flow guidance?  
   **A:** The increase in excess cash flow guidance is due to higher statutory earnings and favorable mortality results in the third and fourth quarters of 2023, leading to higher subsidiary dividends to the parent company.  **[GL_3380344_24]** 

4. **Consideration of In-Force Reinsurance Transactions**  
   **Q:** Would you consider in-force reinsurance to fund share buybacks?  
   **A:** Management is open to exploring various options, including in-force reinsurance transactions, to monetize existing in-force value and generate additional buyback capacity, taking advantage of the depressed stock valuation.  **[GL_3380344_16]** 

5. **Assumption Changes and Remeasurement Gains**  
   **Q:** Are remeasurement gains from assumption changes included in guidance?  
   **A:** Remeasurement gains or losses from assumption changes are reflected in the guidance range. Management continues to monitor mortality trends and will adjust assumptions accordingly in the third quarter, but it's too early to know the exact impact.  **[GL_3380344_32]** ,  **[GL_3380344_34]** 

6. **American Income Life Lapse Rates**  
   **Q:** What's driving higher lapse rates at American Income Life?  
   **A:** The uptick in lapse rates is attributed to normal fluctuations and seasonality, with the first quarter typically higher. Additionally, a change in the mix of business, with more new policies in their early durations that have slightly higher lapse rates, is impacting overall lapse rates.  **[GL_3380344_28]** 

7. **Composition of Sales Channels**  
   **Q:** How significant is the Arias Organization to your sales?  
   **A:** The Arias Organization accounts for about **6%** of American Income Life's new sales, which is about **3%** of overall company sales. While it's one of the larger agency groups, the company has over 100 agency owners, and the top 20% produce around **70–80%** of new sales.  **[GL_3380344_30]** ,  **[GL_3380344_31]** 

8. **Investment in Higher-Yield Assets**  
   **Q:** What are your plans for investing in higher-yield assets?  
   **A:** The company anticipates investing about **$400–$500 million** in non-fixed maturity investments during the year, including transitional commercial mortgage loans and limited partnership strategies in areas like infrastructure and private credit, targeting expected returns of **8% to 10%**.  **[GL_3380344_40]** 

9. **Blackout Periods and Buyback Timing**  
   **Q:** When does the buyback blackout period end?  
   **A:** The blackout period ends tomorrow, and the company will be open to buying back shares again. They had previously been in a blackout due to considering a material acquisition, which they are no longer pursuing.  **[GL_3380344_13]** ,  **[GL_3380344_19]** 

10. **Impact of Postage Costs on Direct Response Sales**  
    **Q:** How are higher postage costs affecting Direct Response sales?  
    **A:** Higher postage costs have impacted Direct Response sales, but the effect is diminishing over time as more sales shift to digital channels. Management expects sales growth in this area to be slightly down for the year but notes the importance of Direct-to-Consumer activities in supporting agency sales.  **[GL_3380344_37]** 

11. **Mortality Trends Relative to Pre-COVID Levels**  
    **Q:** How do current mortality trends compare to pre-COVID levels?  
    **A:** Mortality experience is still running a little higher than pre-COVID levels, particularly due to elevated drug-related deaths and heart disease. However, there have been significant improvements in motor vehicle accidents and homicides.  **[GL_3380344_33]** 

12. **Stability of In-Force Premiums**  
    **Q:** Have you observed any trends in premiums from policies in-force over one year?  
    **A:** The percentage of premiums from policies in-force over one year has been stable, demonstrating consistent growth. The in-force business has grown over **5%** in each of the past 3, 5, and 10 years, showing the stable nature of the business and consistent cash flow.  **[GL_3380344_39]** 

13. **Capital Strain from New Business**  
    **Q:** What's the capital strain on free cash flow from new business?  
    **A:** For the agency channels, the statutory strain is about **40–50%** of any increase in sales. If there were no new sales, about half of that amount would increase excess cash flows, leading to higher statutory earnings in the current year and excess cash flows to the parent in the following year.  **[GL_3380344_14]** ,  **[GL_3380344_15]** 

14. **Mix of First-Year vs. Renewal Commissions**  
    **Q:** How significant are renewal commissions compared to first-year commissions?  
    **A:** The majority of commissions are paid in the first year, with renewal commissions being less than **10%** of renewal premiums.  **[GL_3380344_17]** 

18ede47a02d914b946ee18838840b25348783ddab01976fe755ffecf358cd8b4

- **Significant Agent Count Growth Expected to Drive Sales in 2024**: GL's American Income division saw accelerating agent count growth throughout 2023, with increases of **3.5% in Q1**, **8.5% in Q2**, **16% in Q3**, and **20% in Q4**. This acceleration bodes well for sales growth in 2024 as new agents become productive.  **[GL_3372716_12]**
- **Raised 2024 EPS Outlook Due to Continued Remeasurement Gains**: The company increased its 2024 EPS guidance, with the biggest driver being continued **remeasurement gains in the life segments** observed in Q3 and Q4 of 2023. GL expects these gains to continue into the first half of 2024, positively impacting earnings.  **[GL_3372716_16]** **[GL_3372716_18]**
- **Potential Tailwinds in Medicare Supplement Business**: GL anticipates potential tailwinds in its Medicare Supplement business due to possible **disenrollment from Medicare Advantage plans** and competitors' price increases. This could benefit GL's supplemental products in 2024 as customers seek alternatives.  **[GL_3372716_10]**

e48a0e28a0b13eeebc9784b8b08c184ed9f8d571db3e7c8652c6520f5d2b1982

- **Strong and sustainable agent count growth**, particularly at American Income and Liberty National, driven by **middle management expansion**, is expected to support **robust future sales growth**.  **[GL_3403838_16]**
- **Favorable claims experience** is **improving life margins**, and if trends continue, the company could see additional **remeasurement gains**, boosting profitability.  **[GL_3403838_12]** **[GL_3403838_8]**
- Potential **tailwinds for Medicare Supplement sales** due to **disruptions in Medicare Advantage plans**, which could benefit Globe Life's **Medicare Supplement business**.  **[GL_3403838_31]**

240bd7593ce92aec8d9a5ba8c8e6715158db1d68c74e3d98500452ae44b9b597

1. **Share Buybacks Guidance**  
   **Q:** What's the buyback assumption in 2025 EPS guidance?  
   **A:** Management anticipates **$575 million to $625 million** in excess cash flow for 2025, which they plan to use for share buybacks absent other uses. No further buybacks are planned for 2024 beyond the **$20 million** already completed.  **[GL_3403838_10]** 

2. **Assumption Unlocking and Future Remeasurement Gains**  
   **Q:** Does assumption unlocking eliminate future remeasurement gains?  
   **A:** The assumption unlocking resets long-term mortality, morbidity, and lapse assumptions. While this updates expectations, if favorable near-term mortality trends continue, the company could still see additional favorable remeasurement gains. The guidance range anticipates variations due to these factors.  **[GL_3403838_12]** **[GL_3403838_11]** 

3. **Sustainability of Agent Count Growth**  
   **Q:** Is agent count growth sustainable over next few years?  
   **A:** Growth in middle management is key to sustaining agent growth. Recent quarters showed **double-digit agent count growth** at American Income and Liberty, supported by strong middle management growth. Management expects this momentum to continue into 2025, translating into robust sales growth.  **[GL_3403838_16]** 

4. **Health Margins and Medicare Supplement Repricing**  
   **Q:** Can you reprice Medicare Supplement to improve margins?  
   **A:** The company annually reviews medical trends and files for rate increases with regulators. They have successfully obtained approvals and expect rate increases to take effect in 2025. Though there's sometimes a lag, they anticipate appropriate adjustments to address margin pressures.  **[GL_3403838_17]** 

5. **EEOC Investigation on Agent Classification**  
   **Q:** Any updates on EEOC issue regarding agent classification?  
   **A:** No significant updates. EEOC findings are not binding. The company has a history of court rulings affirming that American Income agents are independent contractors. Related private litigation claims have been dismissed with prejudice.  **[GL_3403838_13]** 

6. **Impact of GLP-1 Drugs on Mortality Assumptions**  
   **Q:** Are GLP-1 drugs factored into mortality assumptions?  
   **A:** The company is not currently incorporating potential mortality improvements from GLP-1 drugs into assumptions. They are monitoring the situation but will wait until impacts are evident in their insured population due to access and affordability considerations.  **[GL_3403838_14]** 

7. **Bermuda Platform and Capital Benefits**  
   **Q:** Does 2025 guidance include benefits from Bermuda platform?  
   **A:** The guidance does not include any potential benefits from Bermuda. The company is still evaluating this option, expecting to conclude in 2025. Any benefits would accrue over time after achieving reciprocal jurisdiction status.  **[GL_3403838_15]** 

8. **Life Margins and Claims Experience**  
   **Q:** Are improved life margins due to declining claims?  
   **A:** The company is seeing improved claims experience with continued favorable trends in life insurance claims. They are pleased with current levels and hope this continues in future quarters.  **[GL_3403838_8]** 

9. **Higher Lapses in AIL and Direct Response**  
   **Q:** What's causing higher lapses in AIL and Direct Response?  
   **A:** Lapse rates fluctuate quarterly. Current higher lapses are consistent with rates seen during times of economic stress. The company attributes this to general economic conditions but remains pleased with the business's resilience.  **[GL_3403838_9]** 

c7407e48de6dcec22a241f0891e448bb58ce2474a1f1976ce20ab738613b7017

1. **Mortality Experience Improvement**  
   **Q:** Is mortality returning to pre-pandemic levels?  
   **A:** Management observed that mortality in the third and fourth quarters of 2023 has improved significantly, getting fairly close to pre-pandemic levels. Excess mortality seems to have dropped faster than their assumptions anticipated, which is promising for future results ( **[GL_3372716_12]** ,  **[GL_3372716_13]** ).

2. **Earnings Guidance Increase**  
   **Q:** What's driving the higher 2024 EPS outlook?  
   **A:** The increased guidance is primarily due to continued remeasurement gains in the life segments, reflecting better-than-expected mortality experience. Additionally, potential assumption updates in the third quarter of 2024 could further impact earnings positively ( **[GL_3372716_13]** ,  **[GL_3372716_15]** ).

3. **Agent Count and Sales Growth**  
   **Q:** Why didn't sales grow as much as agent count?  
   **A:** Agent count growth accelerated in the last half of 2023, rising by **20%** in Q4. The lag in sales growth is due to the time needed to onboard and train new agents. Management expects these agents to become more productive in 2024, boosting sales ( **[GL_3372716_12]** ).

4. **Commercial Real Estate Exposure**  
   **Q:** What's the outlook for 2024 CRE maturities?  
   **A:** The company has **$70 million** in direct commercial mortgage loans maturing in 2024, with about **$16 million** related to office exposure. Most of these loans have a loan-to-value below **50%**, indicating a conservative risk profile ( **[GL_3372716_11]** ).

5. **Investment Income and Rate Sensitivity**  
   **Q:** How will rates affect net investment income?  
   **A:** Management expects fixed maturities yields of around **5.5%** in 2024, slightly lower than 2023 due to tighter spreads. They anticipate spreads to expand modestly over the year, which could benefit investment income ( **[GL_3372716_11]** ).

6. **Health Segment Sales Outlook**  
   **Q:** What's driving strong health sales guidance?  
   **A:** In the Family Heritage segment, increased agent count and the rollout of a new CRM system are boosting productivity. For Medicare Supplement products, strong fourth-quarter sales and potential market tailwinds from competitors adjusting pricing may enhance 2024 sales ( **[GL_3372716_13]** ,  **[GL_3372716_14]** ).

7. **Tri-Agency Rule Impact**  
   **Q:** Will new regulations affect your products?  
   **A:** The proposed Tri-Agency rule targets certain supplemental health plans the company sells. However, management is awaiting the final ruling expected in April and does not anticipate a significant impact on marketing efforts ( **[GL_3372716_10]** ).

8. **Capital Allocation and Cash Flow**  
   **Q:** Can you improve cash flow conversion?  
   **A:** The company is examining ways to enhance its cash flow conversion ratio, currently around **40-45%**, which is lower than industry averages. They aim to manage growth investments and capital requirements more efficiently, targeting a conversion ratio closer to **60%** ( **[GL_3372716_15]** ).

9. **Remeasurement Gains Timing**  
   **Q:** When will remeasurement gains impact earnings?  
   **A:** Remeasurement gains are expected to continue in the first and second quarters of 2024. Potential assumption updates in the third quarter may adjust future gains, with remeasurement gains likely to be lighter in the fourth quarter ( **[GL_3372716_14]** ).

10. **Recruiting Focus in 2024**  
    **Q:** Will you continue aggressive recruiting?  
    **A:** While they won't reduce recruiting efforts, the company plans to focus more on agent retention and productivity in 2024. Improved retention trends and training are expected to enhance agent effectiveness and sales performance ( **[GL_3372716_13]** ).

11. **Holding Company Liquidity**  
    **Q:** How much liquid assets do you keep?  
    **A:** The company maintains **$50 million to $60 million** in liquid assets at the parent holding company as a liquidity buffer ( **[GL_3372716_13]** ).

6345522b715a9187765d46394f763bf122cd2c15b8a4abb56fb81beb169233a3

- **Agent count and sales growth at American Income have slowed to low single-digit and mid-single-digit growth**, indicating potential challenges in maintaining previous growth levels.  **[GL_3380344_40]**
- **Share repurchases during the first quarter were lower than anticipated due to the evaluation of a potential acquisition**, which was ultimately not pursued, potentially reflecting uncertainty in capital allocation strategies.  **[GL_3380344_10]**
- **Renewal commissions constitute less than 10% of renewal premiums**, suggesting a heavy reliance on first-year commissions and potential concerns about long-term profitability and policy persistency.  **[GL_3380344_17]**

cdcc9d8cb89dd1a079d98b92848a39cac64793d7ad9aa770bc4c928748ab6663

- **Potential decrease in future remeasurement gains due to updated assumptions:** After resetting its assumptions based on long-term trends rather than recent favorable mortality experience, the company may not expect the same level of favorable remeasurement gains in the future, which could impact profitability.  **[GL_3403838_12]** ,  **[GL_3403838_27]** ,  **[GL_3403838_8]**
- **Sustainability of agent count growth is uncertain:** Questions have been raised about whether the significant growth in agent count, which has been boosting sales, is sustainable over the next few years without continuous additions to middle management. This could affect future sales momentum.  **[GL_3403838_16]**
- **Exposure to higher claims costs in health insurance products:** The company is experiencing higher claim costs due to increased utilization in its health premiums segment. Additionally, industry-wide increases in claims levels for senior health products may impact margins in its Medicare Supplement business.  **[GL_3403838_3]** ,  **[GL_3403838_31]** ,  **[GL_3403838_8]**

c525bab4980930a96ccc647f063ee5389e367ce2cc9be5aa04903d55826c9541

- **Globe Life's increased EPS outlook for 2024 relies heavily on continued remeasurement gains, which may not be sustainable.** The company's executive noted that the biggest driver of the higher guidance is "continued remeasurement gains in our life segments," and these gains are projected based on favorable mortality experience that may not persist.  **[GL_3372716_16]**
- **The company expects higher mortality in the first quarter due to seasonal flu and ongoing COVID-19 deaths, which could negatively impact life insurance claims.** The executive mentioned, "In the first quarter, usually mortality is a little bit higher, just because of seasonal flu... we still expect to see COVID deaths... we expect that we'd see 60,000 to 80,000 U.S. deaths in the U.S. next year."  **[GL_3372716_18]**
- **Globe Life's free cash flow conversion ratio is significantly below the industry average, at only 40% to 45% of GAAP EPS guidance, raising concerns about cash generation and capital efficiency.** An analyst pointed out this low conversion rate, and the executive acknowledged the issue, stating they are "taking a look at" ways to improve it but are "not sure" how to reach a higher conversion rate.  **[GL_3372716_21]**

9ba03ed24bd7c42e3a10dde716cb92d2942a2cabc50ce651c3ee49b8cb29e0b1

1. **Accelerated Share Buybacks**  
   **Q:** Are you pulling forward buybacks, and how will you finance them?  
   **A:** Management plans to increase share repurchases by adding **$400 million of additional debt**, bringing their debt-to-capital ratio closer to **25%**, within their target range of **23% to 27%**.  **[GL_3394499_12]**  They have adequate debt capacity and are also exploring capital management opportunities, like reinsurance, to free up excess capital.  **[GL_3394499_12]** **[GL_3394499_16]** 

2. **Regulatory Investigations Impact**  
   **Q:** Any impact from the Audit Committee review and DOJ, SEC investigations?  
   **A:** The Audit Committee's review found **no need to restate financials or disclosures**.  **[GL_3394499_14]** **[GL_3394499_17]**  Management believes they have appropriate procedures to identify and address misconduct and continues to enhance processes as needed.  **[GL_3394499_14]** **[GL_3394499_17]**  They are fully cooperating with the DOJ and SEC and will update investors on material developments.  **[GL_3394499_18]** **[GL_3394499_23]** **[GL_3394499_25]** 

3. **Free Cash Flow Conversion**  
   **Q:** Can you update on reaching 60% free cash flow conversion?  
   **A:** Management is striving toward a **60% free cash flow conversion** over the longer term.  **[GL_3394499_24]**  They are optimistic about **expanded excess cash flows in 2025** due to strong sales, favorable claims experience, and potential capital management initiatives like utilizing the Bermuda regulatory environment.  **[GL_3394499_24]** 

4. **Reinsurance and Capital Management**  
   **Q:** Are you considering reinsurance to free up capital?  
   **A:** They are evaluating reinsurance opportunities, including expanding their existing financial reinsurance program.  **[GL_3394499_20]**  Additionally, they are exploring managing capital within an economic framework like **Bermuda**, which could be promising as a longer-term solution.  **[GL_3394499_20]** 

5. **Mortality Trends and Margins**  
   **Q:** How are mortality trends affecting your results?  
   **A:** Mortality has been consistent but hasn't fully returned to pre-pandemic levels.  **[GL_3394499_28]**  Causes of death like heart disease, cancer, and neurological disorders remain slightly elevated.  **[GL_3394499_28]**  Favorable mortality trends led to remeasurement gains, and management anticipates a **favorable update to mortality assumptions** in Q3, improving underwriting margins to **39% to 41%**.  **[GL_3394499_19]** 

6. **Statutory Earnings and Valuation Changes**  
   **Q:** How will valuation manual changes affect statutory earnings?  
   **A:** Changes related to the aggregation of mortality assumptions allow the use of more favorable mortality assumptions in reserve valuation, potentially resulting in **higher statutory earnings** and increased **excess cash flows** or dividends in 2025.  **[GL_3394499_21]** **[GL_3394499_25]** **[GL_3394499_29]**  More details will be provided next quarter, but the impact is expected to be significant.  **[GL_3394499_29]** 

7. **Legal and M&A Expenses**  
   **Q:** Will legal and M&A expenses affect future cash flows?  
   **A:** Legal expenses related to the WilmerHale investigation and short-seller allegations will continue somewhat for the rest of the year but aren't expected to materially impact excess cash flows this year or next.  **[GL_3394499_11]**  M&A expenses aren't anticipated to continue unless new opportunities arise.  **[GL_3394499_11]** 

8. **Policy Lapse Rates**  
   **Q:** Are increases in first-year lapses concerning?  
   **A:** First-year lapse rates have increased slightly but remain in line with historical averages.  **[GL_3394499_10]**  At American Income Life, lapses are consistent with the **10-year average**, and variations are considered normal fluctuations.  **[GL_3394499_10]**  In Direct to Consumer, higher lapses may be related to increased Internet sales.  **[GL_3394499_10]** 

9. **Unauthorized Access Incident**  
   **Q:** What's the status of the unauthorized access issue?  
   **A:** The company addressed vulnerabilities related to access permissions and initiated a comprehensive investigation.  **[GL_3394499_15]**  The investigation is ongoing, but there's been **no material impact** on operations.  **[GL_3394499_15]** 

1c8bc050063e9c19b21c100faa0fb1a9b07b932d7a198b29747c2cd560e403b8

- **Improved statutory earnings in 2024 are expected to lead to higher subsidiary dividends and increased excess cash flows in 2025, due to favorable mortality experience and changes in valuation assumptions.**  **[GL_3394499_21]** **[GL_3394499_25]**
- **Globe Life plans to accelerate share repurchases, aiming to repurchase $750 million to $770 million of shares in 2024 by utilizing additional debt capacity while maintaining target debt/capital ratios within 23% to 27%.**  **[GL_3394499_12]**
- **The independent investigation confirmed the company's financial statements are accurate with no need for restatement, and confirmed that policies and procedures for detecting and addressing misconduct are adequate, alleviating previous concerns.**  **[GL_3394499_22]**

f2b2ef0a894001405caeb7b86d57dca04cd325d5a7a394e54bbe7df1aee58f84

- **Ongoing SEC and DOJ investigations into the company's sales practices** could lead to potential legal and reputational risks. The company is cooperating but cannot predict the outcomes, and acknowledges the various allegations are subject to litigation in various stages.  **[GL_3394499_25]** **[GL_3394499_2]**
- **Increasing financial leverage to fund accelerated share repurchases:** The company plans to add **$400 million of additional debt**, bringing the debt-to-capital ratio closer to **25%**, which may raise concerns about increased leverage and financial risk.  **[GL_3394499_12]**
- **Uncertainty around statutory valuation changes and their financial impact:** The company has not provided details on the expected impact of statutory valuation changes, suggesting it may be significant, but management deferred detailed discussion until next quarter.  **[GL_3394499_29]** **[GL_3394499_25]**

48cd4ceafc131c5d1fb2fbc1d171ca6d0bec0e3c3dc92ef3e9998bb8ecea7f88

Globe Life Inc (GL)

Financials