EX-99.1 2 q4fy2024earningsrelease.htm EX-99.1 Document

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GLOBE LIFE INC. REPORTS
Fourth Quarter 2024 Results


McKinney, TX, February 5, 2025—Globe Life Inc. (NYSE: GL) reported today that for the quarter ended December 31, 2024, net income was $3.01 per diluted common share, compared with $2.88 per diluted common share for the year-ago quarter. Net operating income for the quarter was $3.14 per diluted common share, compared with $2.80 per diluted common share for the year-ago quarter.

Net income for the year ended December 31, 2024 was $11.94 per diluted common share, compared with $10.07 per diluted common share for the year-ago period. Net operating income for the year ended December 31, 2024 was $12.37 per diluted common share compared with $10.65 per diluted common share for the year-ago period.


HIGHLIGHTS:
l
Net income as an ROE was 21.7% for the twelve months ended December 31, 2024. Net operating income as an ROE excluding accumulated other comprehensive income (AOCI) was 15.1% for the same period.
l
For the full year, net income increased 10% and net operating income increased 8%.
l
At the American Income Life Division, life net sales increased 22% and life premium increased 7% over the year-ago quarter. Additionally, the average producing agent count increased 7% over the year-ago quarter.
l
At the Liberty National Division, life premiums increased 5% and the average producing agent count increased 11% over the year-ago quarter.
l
At the Family Heritage Division, health net sales increased 6% and premiums increased 8% over the year-ago quarter. Additionally, the average producing agent count increased 11% over the year-ago quarter.
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Net investment income grew 4% over the year-ago quarter.
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337,821 shares of Globe Life Inc. common stock were repurchased during the quarter.





Note: As used in the earnings release, "Globe Life," the "Company," "we," "our," and "us" refer to Globe Life Inc., a Delaware corporation incorporated in 1979, its subsidiaries and affiliates.
1
GL Q4 2024 Earnings Release
GLOBE LIFE INC.
Earnings Release—Q4 2024
(Dollar amounts in thousands, except share and per share data)
(Unaudited)

RESULTS OF OPERATIONS

Net operating income, a non-GAAP(1) financial measure, has been used consistently by Globe Life’s management for many years to evaluate the operating performance of the Company, and is a measure commonly used in the life insurance industry. It differs from net income primarily because it excludes certain non-operating items such as realized investment gains and losses and certain significant and unusual items included in net income. Management believes an analysis of net operating income is important in understanding the profitability and operating trends of the Company’s business. Net income is the most directly comparable GAAP measure.

The following table represents Globe Life's operating summary for the three months ended December 31, 2024 and 2023:
Operating Summary
Per Share
Three Months Ended
December 31,		Three Months Ended
December 31,
20242023%
Chg.		20242023%
Chg.
Insurance underwriting income(2)
$3.99 $3.43 16$337,984 $327,825 3
Excess investment income(2)
0.45 0.38 1838,325 35,824 7
Interest on debt(0.42)(0.27)56(35,679)(25,676)39
Parent company expense
(0.04)(0.03)(3,234)(2,612)
Income tax expense(0.72)(0.68)6(61,150)(64,993)(6)
Stock compensation benefit (expense), net of tax(0.12)(0.03)(10,437)(2,955)
Net operating income 3.14 2.80 12265,809 267,413 (1)
Reconciling items, net of tax:
Realized gain (loss)—investments0.02 0.11 1,890 10,496 
Non-operating expenses— (0.03)(13)(2,396)
Legal proceedings(4)
(0.15)(0.01)(12,490)(711)
Net income(3)
$3.01 $2.88 $255,196 $274,802 
Weighted average diluted shares outstanding 84,749 95,464 
(1)GAAP is defined as accounting principles generally accepted in the United States of America.
(2)Definitions included within this document.
(3)A GAAP-basis condensed consolidated statement of operations is included in the appendix of this report.
(4)Includes an estimate of costs associated with settlement of certain litigation claims not related to the Department of Justice, Securities and Exchange Commission, or Equal Employment Opportunity Commission matters, as well as certain additional legal expenses incurred.


Note: Tables in this earnings release may not sum due to rounding.

2
GL Q4 2024 Earnings Release
GLOBE LIFE INC.
Earnings Release—Q4 2024
(Dollar amounts in thousands, except share and per share data)
(Unaudited)
The following table represents Globe Life's operating summary for the year ended December 31, 2024 and 2023:
Operating Summary
Per Share
Year Ended December 31,Year Ended December 31,
20242023%
Chg.		20242023%
Chg.
Insurance underwriting income(1)
$15.51 $13.27 17$1,390,226 $1,278,548 9
Excess investment income(1)
1.83 1.35 36164,404 130,382 26
Interest on debt(1.42)(1.06)34(127,092)(102,316)24
Parent company expense(0.14)(0.11)(12,400)(10,866)
Income tax expense(3.05)(2.59)18(273,121)(249,546)9
Stock compensation benefit (expense), net of tax(0.37)(0.20)(33,033)(19,558)
Net operating income 12.37 10.65 161,108,984 1,026,644 8
Reconciling items, net of tax:
Realized gain (loss)—investments(0.21)(0.54)(19,108)(51,884)
Non-operating expenses(0.02)(0.03)(2,070)(3,294)
Legal proceedings(3)
(0.19)(0.01)(17,044)(711)
Net income(2)
$11.94 $10.07 $1,070,762 $970,755 
Weighted average diluted shares outstanding 89,661 96,364 
(1)Definitions included within this document.
(2)A GAAP-basis condensed consolidated statement of operations is included in the appendix of this report.
(3)Refer to footnote (4) of the Operating Summary on the previous page.



3
GL Q4 2024 Earnings Release
GLOBE LIFE INC.
Earnings Release—Q4 2024
(Dollar amounts in thousands, except share and per share data)
(Unaudited)
MANAGEMENT VS. GAAP MEASURES

Shareholders' equity, excluding AOCI, and book value per share, excluding AOCI, are non-GAAP measures that are utilized by management to view the business without the effect of changes in AOCI, which are primarily attributable to fluctuation in interest rates. Management views the business in this manner because it creates more meaningful and easily identifiable trends, as we exclude fluctuations resulting from changes in interest rates. Shareholders' equity and book value per share are the most directly comparable GAAP measures.
Year Ended
December 31,
20242023
Net income
$1,070,762 $970,755 
Net operating income
1,108,984 1,026,644 
Net income as an ROE(1)
21.7 %23.2 %
Net operating income as an ROE (excluding AOCI)(1)
15.1 %14.7 %
December 31,
20242023
Shareholders' equity$5,305,520 $4,486,803 
Impact of adjustment to exclude AOCI2,029,720 2,772,419 
Shareholders' equity, excluding AOCI$7,335,240 $7,259,222 
Book value per share$62.50 $47.10 
Impact of adjustment to exclude AOCI23.90 29.11 
Book value per share, excluding AOCI$86.40 $76.21 
(1) Calculated using average shareholders' equity for the measurement period.

4
GL Q4 2024 Earnings Release
GLOBE LIFE INC.
Earnings Release—Q4 2024
(Dollar amounts in thousands, except share and per share data)
(Unaudited)
INSURANCE OPERATIONS:

Life insurance accounted for 79% of the Company’s insurance underwriting margin for the quarter and 70% of total premium revenue.

Health insurance accounted for 21% of the Company's insurance underwriting margin for the quarter and 30% of total premium revenue.

Net sales of life insurance increased 11% for the quarter, and net health sales increased 6%.

The following table summarizes Globe Life's premium revenue by product type for the three months ended December 31, 2024 and 2023:
Insurance Premium Revenue
Quarter Ended
December 31, 2024December 31, 2023%
Chg.
Life insurance$822,962 $794,815 4
Health insurance358,308 335,857 7
Total$1,181,270 $1,130,672 4

INSURANCE UNDERWRITING INCOME

Insurance underwriting margin is management’s measure of profitability of the Company's life and health segments’ underwriting performance, and consists of premiums less policy obligations (excluding interest on policy liabilities), commissions and other acquisition expenses. Insurance underwriting income is the sum of the insurance underwriting margins of the life and health segments, plus annuity and other income, less administrative expenses. It excludes the investment segment, interest on debt, Parent Company expense, stock compensation expense and income taxes. Management believes this information helps provide a better understanding of the business and a more meaningful analysis of underwriting results by distribution channel. Insurance underwriting income, a non-GAAP measure, is a component of net operating income, which is reconciled to net income in the Results of Operations section above.

The following table summarizes Globe Life's insurance underwriting income by segment for the three months ended December 31, 2024 and 2023:
Insurance Underwriting Income
Quarter Ended
December 31, 2024% of
Premium		December 31, 2023% of
Premium		%
Chg.
Insurance underwriting margins:
Life$336,080 41$305,480 3810
Health91,202 2597,486 29(6)
427,282 402,966 6
Annuity and other income
2,060 2,069 
Administrative expenses(91,358)(77,210)
Insurance underwriting income$337,984 $327,825 3
Per share$3.99 $3.43 16

The ratio of administrative expenses to premium was 7.7%, compared with 6.8% for the year-ago quarter.

5
GL Q4 2024 Earnings Release
GLOBE LIFE INC.
Earnings Release—Q4 2024
(Dollar amounts in thousands, except share and per share data)
(Unaudited)
LIFE INSURANCE RESULTS BY DISTRIBUTION CHANNEL

Our distribution channels consist of the following exclusive divisions: American Income Life Division (American Income), Liberty National Division (Liberty National), Family Heritage Division (Family Heritage), Direct to Consumer Division (Direct to Consumer); and an independent agency, United American Division (United American).

Total premium, underwriting margins, first-year collected premium and net sales by all distribution channels are shown at https://investors.globelifeinsurance.com at "Financial Reports and Other Financial Information."
Life Underwriting Margin
Quarter Ended
December 31,
20242023
Amount% of PremiumAmount% of Premium% Chg.
American Income $198,970 46 $183,176 45 9
Direct to Consumer 71,236 29 59,241 24 20
Liberty National 33,650 36 31,144 35 8
Other 32,224 64 31,919 62 1
Total$336,080 41 $305,480 38 10
Life Premium
Quarter Ended
December 31,
20242023%
Chg.
American Income $432,792 $406,356 7
Direct to Consumer 245,218 247,274 (1)
Liberty National 94,462 89,700 5
Other 50,490 51,485 (2)
Total$822,962 $794,815 4
Life Net Sales(1)
Quarter Ended
December 31,
20242023%
Chg.
American Income $93,343 $76,323 22
Direct to Consumer 23,059 25,861 (11)
Liberty National 26,316 26,046 1
Other 2,211 2,188 1
Total$144,929 $130,418 11
(1)Net sales is calculated as annualized premium issued, net of cancellations in the first thirty days after issue, except in the case of Direct to Consumer, where net sales is annualized premium issued at the time the first full premium is paid after any introductory offer period (typically 1 month) has expired. 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.

6
GL Q4 2024 Earnings Release
GLOBE LIFE INC.
Earnings Release—Q4 2024
(Dollar amounts in thousands, except share and per share data)
(Unaudited)
HEALTH INSURANCE RESULTS BY DISTRIBUTION CHANNEL
Health Underwriting Margin
Quarter Ended
December 31,
20242023
Amount% of PremiumAmount% of Premium% Chg.
United American $5,464 4 $14,180 10 (61)
Family Heritage 39,997 36 35,633 35 12
Liberty National 26,852 56 27,157 57 (1)
American Income 18,788 61 19,080 62 (2)
Direct to Consumer101 1 1,436 8 (93)
Total$91,202 25 $97,486 29 (6)
Health Premium
Quarter Ended
December 31,
20242023%
Chg.
United American $151,399 $138,586 9
Family Heritage 110,589 102,180 8
Liberty National 47,769 47,416 1
American Income 30,628 30,676 —
Direct to Consumer 17,923 16,999 5
Total$358,308 $335,857 7
Health Net Sales(1)
Quarter Ended
December 31,
20242023%
Chg.
United American $30,116 $28,155 7
Family Heritage 26,761 25,228 6
Liberty National 8,910 9,349 (5)
American Income 5,151 4,235 22
Direct to Consumer 2,698 2,220 22
Total$73,636 $69,187 6
(1)Net sales is calculated as annualized premium issued, net of cancellations in the first thirty days after issue, except in the case of Direct to Consumer, where net sales is annualized premium issued at the time the first full premium is paid after any introductory offer period (typically 1 month) has expired. 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.

7
GL Q4 2024 Earnings Release
GLOBE LIFE INC.
Earnings Release—Q4 2024
(Dollar amounts in thousands, except share and per share data)
(Unaudited)
PRODUCING EXCLUSIVE AGENT COUNT RESULTS BY DISTRIBUTION CHANNEL

Quarterly Average
Producing Agent Count(1)
Quarter EndedQuarter Ended
December 31,September 30,
20242023% Chg.2024
American Income11,926 11,131 7 12,031 
Liberty National 3,743 3,387 11 3,794 
Family Heritage 1,512 1,368 11 1,429 

(1) The quarterly average producing agent count is based on the actual count at the beginning and end of each week during the period.


INVESTMENTS

Management uses excess investment income as the measure to evaluate the performance of the investment segment. It is defined as net investment income less the required interest attributable to policy liabilities. We also view excess investment income per diluted common share as an important and useful measure to evaluate performance of the investment segment, since it takes into consideration our stock repurchase program.

The following table summarizes Globe Life's investment income, excess investment income, and excess investment income per diluted common share.
Excess Investment Income
Quarter Ended
December 31,
20242023%
Chg.
Net investment income$282,453 $271,609 4
Interest on policy liabilities(1)
(244,128)(235,785)4
Excess investment income$38,325 $35,824 7
Per share$0.45 $0.38 18
(1)Interest on policy liabilities, at original discount rates, is a component of total policyholder benefits, a GAAP measure.

Net investment income increased 4% and average invested assets increased 3%. Required interest on policy liabilities increased 4% and average policy liabilities increased 4%.

8
GL Q4 2024 Earnings Release
GLOBE LIFE INC.
Earnings Release—Q4 2024
(Dollar amounts in thousands, except share and per share data)
(Unaudited)
The composition of the investment portfolio at book value at December 31, 2024 is as follows:
Investment Portfolio
As of
December 31, 2024
Amount% of Total
Fixed maturities at fair value(1)
$17,155,012 88 
Mortgage loans
396,088 2 
Policy loans699,669 4 
Other long-term investments(2)
1,235,759 6 
Short-term investments85,035 — 
Total$19,571,563 
(1) As of December 31, 2024, fixed maturities at amortized cost were $18.8 billion, net of $10.4 million of allowance for credit losses.
(2) Includes $987 million of investments accounted for under the fair value option which have a cost of $966 million as of December 31, 2024.

Fixed maturities at amortized cost, net of allowance for credit losses, by asset class as of December 31, 2024 are as follows:
Fixed Maturity Portfolio by Sector
As of
December 31, 2024
Investment GradeBelow Investment GradeTotal Amortized Cost, net
Corporate bonds$14,482,274 $487,443 $14,969,717 
Municipals3,300,901 — 3,300,901 
Government, agencies, and GSEs(1)
438,636 — 438,636 
Collateralized debt obligations— 36,923 36,923 
Other asset-backed securities74,483 4,754 79,237 
Total$18,296,294 $529,120 $18,825,414 
(1) Government-Sponsored Enterprises

Below are fixed maturities available for sale by amortized cost, allowance for credit losses, and fair value at December 31, 2024 and the corresponding amounts of net unrealized gains and losses recognized in accumulated other comprehensive income (loss).
As of
Amortized
Cost		Allowance for Credit LossesNet Unrealized Gains (Losses)Fair
 Value
December 31, 2024
$18,835,809 $(10,395)$(1,670,402)$17,155,012 

At amortized cost, net of allowance for credit losses, 97% of fixed maturities (97% at fair value) were rated “investment grade.” The fixed maturity portfolio earned an annual taxable equivalent effective yield of 5.27% during the fourth quarter of 2024, compared with 5.23% in the year-ago quarter.

Globe Life is not a party to any credit default swaps and does not participate in securities lending.


9
GL Q4 2024 Earnings Release
GLOBE LIFE INC.
Earnings Release—Q4 2024
(Dollar amounts in thousands, except share and per share data)
(Unaudited)
Comparable information for acquisitions of fixed maturity and other investments is as follows:
Fixed Maturity Acquisitions
Quarter Ended
December 31,
20242023
Amount$377,772 $443,385 
Average annual effective yield5.8 %6.6 %
Average ratingA-BBB+
Average life (in years) to:
Next call28.1 20.3 
Maturity34.8 23.2 

Other Investment Acquisitions
Quarter Ended
December 31,
20242023
Limited partnerships
$12,365 $50,929 
Mortgage loans
39,850 62,827 
Common stock
2,081 1,958 
Total$54,296 $115,714 

SHARE REPURCHASE:

During the quarter, the Company repurchased 337,821 shares of Globe Life Inc. common stock at a total cost of $36 million and an average share price of $105.37.

For the year ended December 31, 2024, the Company repurchased 10.1 million shares of Globe Life Inc. common stock at a total cost of $946 million and an average share price of $93.76.

LIQUIDITY/CAPITAL:

Globe Life's operations consist primarily of writing basic protection life and supplemental health insurance policies which generate strong and stable cash flows. These cash flows are not impacted by volatile equity markets. Liquidity at the Parent Company is sufficient to meet additional capital needs of the insurance companies.

EARNINGS GUIDANCE FOR THE YEAR ENDING DECEMBER 31, 2025:

Globe Life projects net operating income between $13.45 to $14.05 per diluted common share for the year ending December 31, 2025.

NON-GAAP MEASURES:

In this news release, Globe Life includes non-GAAP measures to enhance investors' understanding of management's view of the business. The non-GAAP measures are not a substitute for GAAP, but rather a supplement to increase transparency by providing broader perspective. Globe Life's definitions of non-GAAP measures may differ from other companies' definitions. More detailed financial information, including various GAAP and non-GAAP measurements, is located at https://investors.globelifeinsurance.com on the Investors page under “Financial Reports and Other Financial Information."
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GL Q4 2024 Earnings Release

CAUTION REGARDING FORWARD-LOOKING STATEMENTS:
This press release may contain forward-looking statements within the meaning of the federal securities laws. These prospective statements reflect management’s current expectations, but are not guarantees of future performance. Whether or not actual results differ materially from forward-looking statements may depend on numerous foreseeable and unforeseeable events or developments, which may be national in scope, related to the insurance industry generally, or applicable to the Company specifically. Such events or developments could include, but are not necessarily limited to:

1) Economic and other conditions, 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) Regulatory developments, including changes in accounting standards or governmental regulations (particularly those impacting taxes and changes to the Federal Medicare program that would affect Medicare Supplement);
3) Market trends in the senior-aged health care industry that provide alternatives to traditional Medicare (such as Health Maintenance Organizations and other managed care or private plans) and that could affect the sales of traditional Medicare Supplement insurance;
4) Interest rate changes that affect product sales, financing costs, and/or investment yields;
5) General economic, industry sector or individual debt issuers’ financial conditions (including developments and volatility arising from geopolitical events, particularly in certain industries that may compromise part of our investment portfolio) that may affect the current market value of securities we own, or that may impair an issuer’s ability to make principal and/or interest payments due on those securities;
6) Changes in the competitiveness of the Company's products and pricing;
7) Litigation results;
8) Levels of administrative and operational 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) The ability to obtain timely and appropriate premium rate increases for health insurance policies from our regulators;
10) The customer response to new products and marketing initiatives;
11) Reported amounts in the consolidated financial statements which are based on management estimates and judgments which may differ from the actual amounts ultimately realized;
12) Compromise 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 any reputational damage on the Company including the impact on the Company's ability to attract and retain agents;

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 and demand for our products; and
15) 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. Globe Life specifically disclaims any obligation to update or revise any forward-looking statement because of new information, future developments or otherwise.

11
GL Q4 2024 Earnings Release

EARNINGS RELEASE CONFERENCE CALL WEBCAST:

Globe Life will provide a live audio webcast of its fourth quarter 2024 earnings release conference call with financial analysts at 11:00 am (Eastern) tomorrow, February 6, 2025. Access to the live webcast and replay will be available at https://investors.globelifeinsurance.com on the Calls and Meetings page, at the Conference Calls on the Web icon. Immediately following this press release, supplemental financial reports will be available before the conference call on the Investors page menu of the Globe Life website at “Financial Reports.”
For additional information contact:
Mike Majors, Executive Vice President - Policy Acquisition and Chief Strategy Officer
Globe Life Inc.
3700 South Stonebridge Drive
P. O. Box 8080
McKinney, Texas 75070-8080
Phone: 972-569-3627 or email: investors@globe.life
Website: https://investors.globelifeinsurance.com

12
GL Q4 2024 Earnings Release
GLOBE LIFE INC.
Earnings Release—Q4 2024
(Dollar amounts in thousands, except share and per share data)
(Unaudited)
APPENDIX

GLOBE LIFE INC.
GAAP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended
December 31,		Year Ended
December 31,
 2024202320242023
Revenue:
Life premium$822,962 $794,815 $3,261,347 $3,137,244 
Health premium358,308 335,857 1,404,925 1,318,773 
Other premium— — — — 
Total premium1,181,270 1,130,672 4,666,272 4,456,017 
Net investment income282,453 271,609 1,135,631 1,056,884 
Realized gains (losses)2,392 13,287 (24,188)(65,676)
Other income162 123 354 308 
Total revenue1,466,277 1,415,691 5,778,069 5,447,533 
Benefits and expenses:
Life policyholder benefits(1)
507,812 514,472 2,000,977 2,050,789 
Health policyholder benefits(2)
221,901 195,686 851,577 776,362 
Other policyholder benefits9,059 9,612 41,889 37,100 
Total policyholder benefits738,772 719,770 2,894,443 2,864,251 
Amortization of deferred acquisition costs104,298 97,541 410,001 379,700 
Commissions, premium taxes, and non-deferred acquisition costs153,148 144,234 600,753 559,167 
Other operating expense121,947 91,759 419,143 347,833 
Interest expense35,679 25,676 127,092 102,316 
Total benefits and expenses1,153,844 1,078,980 4,451,432 4,253,267 
Income before income taxes312,433 336,711 1,326,637 1,194,266 
Income tax benefit (expense)(57,237)(61,909)(255,875)(223,511)
Net income$255,196 $274,802 $1,070,762 $970,755 
Basic net income per common share$3.04 $2.92 $11.99 $10.21 
Diluted net income per common share$3.01 $2.88 $11.94 $10.07 
(1)Net of total remeasurement including both the impact of assumption changes and the effect of actual to expected experience adjustments, resulting in a gain of $19.1 million for the three months ended December 31, 2024, and a total remeasurement gain of $12.9 million for the same period in 2023. Net of a total remeasurement gain of $107.0 million for the year ended December 31, 2024, and a total remeasurement gain of $29.4 million for the same period in 2023.
(2)Net of a total remeasurement, including both the impact of assumption changes and the effect of actual to expected experience adjustments, resulting in a loss of $0.1 million for the three months ended December 31, 2024, and a total remeasurement gain of $3.5 million for the same period in 2023. Net of a total remeasurement loss of $3.2 million for the year ended December 31, 2024, and a total remeasurement gain of $11.8 million for the same period in 2023.
13
GL Q4 2024 Earnings Release