Core Insights - The U.S. Attorney's Office for the Western District of Pennsylvania has closed its investigation into Globe Life Inc. and American Income Life (AIL), indicating no enforcement action will be taken against them [1] Company Overview - Globe Life Inc. is headquartered in McKinney, Texas, and employs over 16,000 insurance agents and 3,600 corporate employees [2] - The company has issued more life insurance policies than any other life insurance company in the U.S., with over 17 million policies in force [2] - Globe Life's subsidiaries include American Income Life Insurance Company, Family Heritage Life Insurance Company of America, Globe Life And Accident Insurance Company, Liberty National Life Insurance Company, and United American Insurance Company [2]

Core Viewpoint - Globe Life's stock prospects have improved following a positive quarterly earnings report and the resolution of an SEC investigation, leading to a nearly 3% increase in stock price, outperforming the S&P 500 index [1]. Group 1: Analyst Upgrade - CFRA analyst Catherine Seifert upgraded Globe Life's recommendation from hold to buy, raising the price target from $130 to $155 per share [2]. Group 2: SEC Investigation Resolution - The SEC concluded its investigation into Globe Life without recommending enforcement action, which was related to allegations of fraud from short seller reports concerning the company and its subsidiary, American Income Life [4]. Group 3: Q2 Earnings Performance - Globe Life reported a nearly 3% year-over-year revenue increase to $1.48 billion, while net income decreased slightly by 2%, yet still exceeded consensus analyst estimates, indicating stable performance in a conservative industry [6]. - Management provided optimistic guidance regarding anticipated reserve releases in Q3 and subsequent periods, and showed positive developments in underwriting, particularly in mortality categories [5].

Group 1 - Globe Life Inc. received a letter from the SEC notifying that their investigation has concluded without recommending enforcement action against the company [1] - Globe Life is headquartered in McKinney, Texas, and employs over 16,000 insurance agents and 3,600 corporate employees [2] - The company has issued more life insurance policies than any other in the U.S., with over 17 million policies in force [2]

Core Insights - Globe Life Inc. reported a second-quarter 2025 net operating income of $3.27 per share, exceeding the Zacks Consensus Estimate by 0.6% and reflecting a year-over-year increase of 10.1% driven by higher Life insurance underwriting income [1][8] - The company's total premium revenues reached $1.2 billion, marking a 4% increase year over year, primarily due to higher Life and Health insurance premiums [2] - Operating revenues were reported at $1.5 billion, up 3.2% from the previous year, although this figure missed the Zacks Consensus Estimate by 0.4% [2] Financial Performance - Net investment income decreased by 1% year over year to $282.2 million [2] - Excess investment income, a profitability measure, fell 19% year over year to $34.8 million [3] - Total insurance underwriting income increased by 4% year over year to $354.2 million, attributed to higher Life underwriting income [3] Expenses and Benefits - Total benefits and expenses surged 89% year over year to $1.16 billion, driven by increased policyholder benefits and other operating expenses [4] - Administrative expenses rose by 4.7% year over year to $86 million [3] Segment Performance - Life insurance premium revenues increased by 3.1% year over year to $840 million, supported by growth from distribution channels like American Income and Liberty National [5] - Health insurance premium revenues rose by 8% year over year to $378 million, with net health sales increasing by 19% [6] Shareholder Information - As of June 30, 2025, shareholders' equity, excluding AOCI, decreased by 0.2% year over year to $7.4 billion, while book value per share increased by 9.6% to $90.26 [7] - The company repurchased 1.9 million shares worth $226 million during the reported quarter [10] Future Outlook - Globe Life projects net operating income in the range of $14.25 to $14.65 per share for the year ending December 31, 2025 [11]

Financial Data and Key Metrics Changes - In Q2, net income was $253 million or $3.5 per share, compared to $258 million or $2.83 per share a year ago [6] - Net operating income for the quarter was $271 million or $3.27 per share, a 10% increase over the $2.97 per share from a year ago [6] - Return on equity through June 30 is 18.8%, with book value per share at $66.07; excluding AOCI, return on equity is 14.4% and book value per share is $90.26, up 10% from a year ago [6] Business Line Data and Key Metrics Changes - Life insurance premium revenue increased 3% to $840 million, with life underwriting margin up 6% to $340 million [6] - Health insurance premium revenue grew 8% to $378 million, while health underwriting margin decreased 2% to $98 million due to higher obligations [8] - Administrative expenses were $86 million for the quarter, a 5% increase over the previous year, representing 7.1% of premium [9] Market Data and Key Metrics Changes - American Income Life saw life premiums up 5% to $446 million, with a life underwriting margin increase of 6% to $205 million [11] - Liberty National's life premiums were up 5% to $97 million, but net life sales decreased 5% to $25 million due to lower agent productivity [12] - Family Heritage health premiums increased 9% to $116 million, with health underwriting margin up 12% to $41 million [13] Company Strategy and Development Direction - The company expects life premium revenue to grow around 3.5% for the year, with health premium revenue anticipated to grow between 8% to 9% [7][8] - The company is focusing on maintaining and growing its exclusive agency force, which is seen as a core competency [10] - A Bermuda reinsurance affiliate is being established to enhance financial flexibility and support continued sales and premium growth [34][35] Management's Comments on Operating Environment and Future Outlook - Management noted favorable mortality trends contributing to lower life policy obligations than anticipated [38] - The company anticipates a total remeasurement gain in Q3 related to life and health assumption updates to be in the range of $110 million to $160 million [40] - For 2025, net operating earnings per diluted share are estimated to be in the range of $14.25 to $14.65, representing a 17% growth at the midpoint [42] Other Important Information - The company repurchased approximately 1.9 million shares for a total cost of approximately $226 million during the quarter [28] - Liquid assets at the parent company increased from approximately $90 million to $105 million during the quarter [28] - The company plans to maintain a consolidated RBC ratio in the range of 300% to 320% [33] Q&A Session Summary Question: How should we think about the higher earnings guidance translating to statutory earnings and cash flows? - Management indicated that favorable mortality experience translates into additional statutory income, while assumption changes primarily impact GAAP [47] Question: Any thoughts on the timeline towards getting to the $200 million incremental benefits from the Bermuda affiliate? - Management stated it is premature to discuss timing but will provide updates as plans are finalized [50] Question: Given the lower guidance on life insurance sales, what gives confidence for the second half of the year? - Management noted strong agent count growth as a leading indicator for future sales growth, despite some delays in productivity [56] Question: How does the company view the Medicare Supplement market in light of regulatory changes? - Management believes there will always be a strong market for Medicare Supplement policies, despite fluctuations due to Medicare Advantage [60] Question: What is the expected impact of the Bermuda reinsurance on free cash flow? - Management confirmed that the expected benefits from Bermuda would enhance financial flexibility and could lead to increased cash flow for shareholders [72]

Financial Data and Key Metrics Changes - In Q2 2025, net income was $253 million or $3.5 per share, compared to $258 million or $2.83 per share a year ago [5] - Net operating income for the quarter was $271 million or $3.27 per share, a 10% increase over the $2.97 per share from a year ago [5] - Return on equity through June 30 was 18.8%, with book value per share at $66.07; excluding accumulated other comprehensive income, return on equity was 14.4% and book value per share was $90.26, up 10% from a year ago [5] Business Line Data and Key Metrics Changes - Life insurance premium revenue increased 3% year-over-year to $840 million, with life underwriting margin up 6% to $340 million [5][6] - Health insurance premium revenue grew 8% to $378 million, while health underwriting margin decreased 2% to $98 million due to higher obligations [6] - Administrative expenses were $86 million for the quarter, a 5% increase over the previous year, representing 7.1% of premium [7] Market Data and Key Metrics Changes - American Income Life saw life premiums up 5% to $446 million, with net life sales up 2% to $96 million [9] - Liberty National's life premiums increased 5% to $97 million, but net life sales decreased 5% to $25 million due to lower agent productivity [10] - Family Heritage health premiums increased 9% to $116 million, with net health sales up 20% to $30 million [11] Company Strategy and Development Direction - The company expects life premium revenue to grow around 3.5% for the year, with health premium revenue anticipated to grow between 8% to 9% [6] - The company is focusing on maintaining and growing its exclusive agency force, which is seen as a core competency [8] - A Bermuda reinsurance affiliate is being established to reinsure a portion of new business and in-force life insurance policies, which is expected to enhance financial flexibility [30][31] Management's Comments on Operating Environment and Future Outlook - Management noted favorable mortality trends contributing to lower life policy obligations than anticipated, with a total remeasurement gain expected in Q3 between $110 million to $160 million [35] - The company anticipates continued favorable mortality experience, which will positively impact statutory income [42] - There is confidence in the health segment's performance, with expected improvements in health margins due to premium rate changes [36] Other Important Information - The company repurchased approximately 1.9 million shares for $226 million during the quarter, returning nearly $250 million to shareholders [25][26] - The company plans to maintain a consolidated RBC ratio in the range of 300% to 320%, with a current ratio of 316% [28][29] - The investment portfolio has a net unrealized loss position of approximately $1.6 billion, primarily due to interest rate fluctuations [20] Q&A Session Summary Question: How should we think about the higher earnings guidance translating to statutory earnings and cash flows? - Management indicated that favorable mortality experience translates into additional statutory income, while assumption changes primarily impact GAAP earnings [42] Question: Any thoughts on the timeline towards getting to the $200 million incremental benefits from the Bermuda affiliate? - Management stated it is premature to discuss timing but will provide updates as plans are finalized [44] Question: Given the lower guidance on life insurance sales, what gives confidence for the second half of the year? - Management noted strong agent count growth as a leading indicator for future sales growth, despite some delays in productivity [51] Question: How do you see the Medicare Supplement sales evolving with regulatory changes? - Management believes there will always be a strong market for Medicare Supplement policies, despite fluctuations due to Medicare Advantage [54] Question: Can you discuss the anticipated reserve releases and their impact on future years? - Management expects continued remeasurement gains relative to the new baseline mortality assumption, which could positively impact future earnings [97]

Globe Life (GL) came out with quarterly earnings of $3.27 per share, beating the Zacks Consensus Estimate of $3.25 per share. This compares to earnings of $2.97 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +0.62%. A quarter ago, it was expected that this life and health insurance company would post earnings of $3.24 per share when it actually produced earnings of $3.07, delivering a surprise of -5.25%.Over the last four qua ...

Globe Life Inc. Second Quarter 2025 Earnings Report [Executive Summary & Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Highlights) Globe Life Inc. achieved robust financial growth in Q2 2025, with increased diluted net income and operating income per share, strong life and health insurance performance, and active share repurchases [Q2 2025 Financial Performance Overview](index=1&type=section&id=Q2%202025%20Financial%20Performance%20Overview) This section provides a concise overview of Globe Life Inc.'s key financial metrics for the second quarter of 2025 | Metric | Q2 2025 | Q2 2024 | Y-o-Y Change | | :--------------------------------- | :------ | :------ | :----------- | | Diluted Net Income Per Share | $3.05 | $2.83 | +7.8% | | Diluted Net Operating Income Per Share | $3.27 | $2.97 | +10.1% | [Key Operational Highlights](index=1&type=section&id=Key%20Operational%20Highlights) This section highlights significant operational achievements and financial performance indicators for Globe Life Inc. during the quarter - For the six months ended June 30, 2025, Return on Equity (ROE) for net income was **18.8%**, and net operating income ROE (excluding AOCI) was **14.4%**[5](index=5&type=chunk) - Life insurance premiums for American Income Life and Liberty National divisions increased by **5%** year-over-year[5](index=5&type=chunk) - Family Heritage division saw **20%** growth in health insurance net sales, **9%** in health insurance premiums, and **10%** in average producing exclusive agents[5](index=5&type=chunk) - Direct to Consumer life insurance net sales increased **2%** year-over-year and **24%** sequentially; life underwriting income grew **8%** to **$69 million**[5](index=5&type=chunk) - Life underwriting income increased by **6%** year-over-year[5](index=5&type=chunk) - **1.9 million** shares of common stock were repurchased during the quarter at a total cost of **$226 million**[5](index=5&type=chunk) [Results of Operations](index=3&type=section&id=Results%20of%20Operations) This section details Globe Life Inc.'s Q2 2025 operating results, distinguishing between GAAP and non-GAAP financial metrics to highlight core business performance and trends [Operating Summary (Non-GAAP)](index=3&type=section&id=Operating%20Summary%20%28Non-GAAP%29) This section presents Globe Life's non-GAAP operating summary, focusing on key metrics used by management to assess core operational performance - Net operating income is a non-GAAP financial measure used by Globe Life management to assess operational performance, primarily excluding realized investment gains/losses and certain significant non-recurring items[7](index=7&type=chunk) Q2 2025 Operating Summary (Non-GAAP) | Metric | Q2 2025 (Per Share) | Q2 2024 (Per Share) | Y-o-Y Change (Per Share) | Q2 2025 (Thousands of USD) | Q2 2024 (Thousands of USD) | Y-o-Y Change (Thousands of USD) | | :------------------------------------- | :------------------ | :------------------ | :----------------------- | :------------------------- | :------------------------- | :------------------------------ | | Insurance Underwriting Income | $4.28 | $3.72 | 15% | $354,176 | $340,437 | 4% | | Excess Investment Income | $0.42 | $0.47 | (11)% | $34,828 | $42,791 | (19)% | | Debt Interest | ($0.42) | ($0.34) | 24% | ($34,885) | ($31,404) | 11% | | Parent Company Expenses | ($0.04) | ($0.03) | - | ($3,555) | ($3,130) | - | | Income Tax Expense | ($0.82) | ($0.75) | 9% | ($68,062) | ($68,857) | (1)% | | Equity-Based Compensation (Expense), After-Tax | ($0.14) | ($0.09) | - | ($11,407) | ($8,620) | - | | **Net Operating Income** | **$3.27** | **$2.97** | **10%** | **$271,095** | **$271,217** | **—** | | Realized Gains (Losses), After-Tax | ($0.18) | ($0.11) | - | ($14,674) | ($9,945) | - | | Non-Operating Expenses | — | ($0.01) | - | — | ($993) | - | | Legal Litigation | ($0.04) | ($0.02) | - | ($3,672) | ($1,924) | - | | **Net Income** | **$3.05** | **$2.83** | - | **$252,749** | **$258,355** | - | | Weighted Average Diluted Shares | 82,793 | 91,441 | - | - | - | - | [Management vs. GAAP Measures](index=4&type=section&id=Management%20vs.%20GAAP%20Measures) This section clarifies the distinction between management's non-GAAP metrics and GAAP measures, particularly regarding shareholder equity and book value - Management uses shareholder equity and book value per share, excluding Accumulated Other Comprehensive Income (AOCI), as non-GAAP metrics to better identify business trends by removing interest rate fluctuation impacts[11](index=11&type=chunk) Key Financial Metrics for H1 2025 | Metric | June 30, 2025 | June 30, 2024 | | :----------------------------------- | :------------ | :------------ | | Net Income | $507,312 | $512,572 | | Net Operating Income | $530,432 | $535,316 | | Net Income Return on Equity (ROE) | 18.8% | 20.8% | | Net Operating Income ROE (Excluding AOCI) | 14.4% | 14.5% | Shareholder Equity and Book Value Per Share (Excluding AOCI) | Metric | June 30, 2025 | June 30, 2024 | | :-------------------------------- | :------------ | :------------ | | Shareholder Equity | $5,419,030 | $5,227,754 | | Impact of AOCI Adjustment Excluded | $1,983,868 | $2,189,620 | | Shareholder Equity (Excluding AOCI) | $7,402,898 | $7,417,374 | | Book Value Per Share | $66.07 | $58.06 | | Impact of AOCI Adjustment Excluded | $24.19 | $24.32 | | Book Value Per Share (Excluding AOCI) | $90.26 | $82.38 | [Insurance Operations Performance](index=5&type=section&id=Insurance%20Operations%20Performance) Globe Life's insurance operations performed well in Q2 2025, with growth in both life and health premiums and net sales, driven by strong contributions from life insurance and significant health insurance net sales growth [Overall Insurance Underwriting](index=5&type=section&id=Overall%20Insurance%20Underwriting) This section provides an overview of Globe Life's total insurance underwriting performance, detailing contributions from life and health segments - Life insurance accounted for **78%** of the company's underwriting income and **69%** of total premium revenue this quarter, while health insurance contributed **22%** and **31%** respectively[15](index=15&type=chunk) - Life insurance net sales increased by **1%** and health insurance net sales by **19%** this quarter[16](index=16&type=chunk) Insurance Premium Revenue (Thousands of USD) | Product Type | June 30, 2025 | June 30, 2024 | Y-o-Y Change | | :----------- | :------------ | :------------ | :----------- | | Life Insurance | $839,544 | $815,482 | 3% | | Health Insurance | $378,099 | $351,643 | 8% | | **Total** | **$1,217,643**| **$1,167,125**| **4%** | Insurance Underwriting Income (Thousands of USD) | Metric | June 30, 2025 | 2025 Premium % | June 30, 2024 | 2024 Premium % | Y-o-Y Change | | :----------------------------- | :------------ | :------------- | :------------ | :------------- | :----------- | | Life Underwriting Income | $340,074 | 41% | $320,323 | 39% | 6% | | Health Underwriting Income | $98,057 | 26% | $100,488 | 29% | (2)% | | **Total Underwriting Income** | **$438,131** | - | **$420,811** | - | **4%** | | Annuity and Other Income | $2,092 | - | $1,822 | - | - | | Administrative Expenses | ($86,047) | - | ($82,196) | - | - | | **Insurance Underwriting Income** | **$354,176** | - | **$340,437** | - | **4%** | | Per Share | $4.28 | - | $3.72 | - | 15% | | Administrative Expense to Premium Ratio | 7.1% | - | 7.0% | - | - | [Life Insurance Results by Distribution Channel](index=6&type=section&id=Life%20Insurance%20Results%20by%20Distribution%20Channel) This section details Globe Life's life insurance performance, broken down by various distribution channels, including premiums, net sales, and underwriting income - The company's life insurance distribution channels include American Income Life, Liberty National, Family Heritage, Direct to Consumer, and independent agency United American[23](index=23&type=chunk) Life Insurance Premiums (Thousands of USD) | Channel | June 30, 2025 | June 30, 2024 | Y-o-Y Change | | :----------------- | :------------ | :------------ | :----------- | | American Income | $445,511 | $423,534 | 5% | | Direct to Consumer | $246,223 | $248,839 | (1)% | | Liberty National | $97,263 | $92,197 | 5% | | Other | $50,547 | $50,912 | (1)% | | **Total** | **$839,544** | **$815,482** | **3%** | Life Insurance Net Sales (Thousands of USD) | Channel | June 30, 2025 | June 30, 2024 | Y-o-Y Change | | :----------------- | :------------ | :------------ | :----------- | | American Income | $96,227 | $94,668 | 2% | | Direct to Consumer | $31,096 | $30,614 | 2% | | Liberty National | $24,615 | $25,889 | (5)% | | Other | $2,947 | $2,332 | 26% | | **Total** | **$154,885** | **$153,503** | **1%** | Life Underwriting Income (Thousands of USD) | Channel | 2025 Amount | 2025 Premium % | 2024 Amount | 2024 Premium % | Y-o-Y Change | | :----------------- | :---------- | :------------- | :---------- | :------------- | :----------- | | American Income | $204,533 | 46% | $192,662 | 45% | 6% | | Direct to Consumer | $68,959 | 28% | $63,848 | 26% | 8% | | Liberty National | $33,446 | 34% | $31,072 | 34% | 8% | | Other | $33,136 | 66% | $32,741 | 64% | 1% | | **Total** | **$340,074**| **41%** | **$320,323**| **39%** | **6%** | [Health Insurance Results by Distribution Channel](index=7&type=section&id=Health%20Insurance%20Results%20by%20Distribution%20Channel) This section presents Globe Life's health insurance performance, categorized by distribution channel, including underwriting income, premiums, and net sales Health Underwriting Income (Thousands of USD) | Channel | 2025 Amount | 2025 Premium % | 2024 Amount | 2024 Premium % | Y-o-Y Change | | :----------------- | :---------- | :------------- | :---------- | :------------- | :----------- | | United American | $12,402 | 8% | $16,571 | 11% | (25)% | | Family Heritage | $40,927 | 35% | $36,611 | 35% | 12% | | Liberty National | $24,372 | 51% | $26,400 | 55% | (8)% | | American Income | $19,325 | 62% | $19,092 | 62% | 1% | | Direct to Consumer | $1,031 | 5% | $1,814 | 10% | (43)% | | **Total** | **$98,057** | **26%** | **$100,488**| **29%** | **(2)%** | Health Insurance Premiums (Thousands of USD) | Channel | June 30, 2025 | June 30, 2024 | Y-o-Y Change | | :----------------- | :------------ | :------------ | :----------- | | United American | $163,978 | $149,230 | 10% | | Family Heritage | $115,856 | $105,855 | 9% | | Liberty National | $47,631 | $47,705 | — | | American Income | $31,422 | $30,721 | 2% | | Direct to Consumer | $19,212 | $18,132 | 6% | | **Total** | **$378,099** | **$351,643** | **8%** | Health Insurance Net Sales (Thousands of USD) | Channel | June 30, 2025 | June 30, 2024 | Y-o-Y Change | | :----------------- | :------------ | :------------ | :----------- | | United American | $25,454 | $18,228 | 40% | | Family Heritage | $29,561 | $24,570 | 20% | | Liberty National | $8,182 | $8,356 | (2)% | | American Income | $4,749 | $5,792 | (18)% | | Direct to Consumer | $786 | $839 | (6)% | | **Total** | **$68,732** | **$57,785** | **19%** | [Producing Exclusive Agent Count](index=8&type=section&id=Producing%20Exclusive%20Agent%20Count) This section provides the average quarterly count of producing exclusive agents across Globe Life's key distribution channels Quarterly Average Producing Exclusive Agent Count | Channel | June 30, 2025 | June 30, 2024 | Y-o-Y Change | March 31, 2025 | | :----------------- | :------------ | :------------ | :----------- | :------------- | | American Income | 12,241 | 11,869 | 3% | 11,510 | | Liberty National | 3,882 | 3,700 | 5% | 3,688 | | Family Heritage | 1,498 | 1,361 | 10% | 1,417 | [Investment Performance and Portfolio](index=8&type=section&id=Investment%20Performance%20and%20Portfolio) Globe Life's investment division experienced a decline in excess investment income in Q2 2025, yet maintained a robust, predominantly investment-grade fixed-income portfolio with an improved effective yield [Excess Investment Income](index=8&type=section&id=Excess%20Investment%20Income) This section analyzes Globe Life's excess investment income, a key metric for evaluating the investment division's performance - Management uses excess investment income, defined as net investment income less accrued interest on policy liabilities, to evaluate the investment division's performance[32](index=32&type=chunk) Excess Investment Income (Thousands of USD) | Metric | June 30, 2025 | June 30, 2024 | Y-o-Y Change | | :------------------------- | :------------ | :------------ | :----------- | | Net Investment Income | $282,169 | $285,636 | (1)% | | Interest on Policy Liabilities | ($247,341) | ($242,845) | 2% | | **Excess Investment Income** | **$34,828** | **$42,791** | **(19)%** | | Excess Investment Income Per Share | $0.42 | $0.47 | (11)% | - Net investment income decreased by **1%**, while average invested assets remained largely flat; accrued interest on policy liabilities and average policy liabilities both increased by **2%**[36](index=36&type=chunk) [Investment Portfolio Composition](index=9&type=section&id=Investment%20Portfolio%20Composition) This section details the composition of Globe Life's investment portfolio, highlighting the dominance of fixed-income securities and their credit quality Investment Portfolio Book Value as of June 30, 2025 | Investment Type | Amount (Thousands of USD) | Percentage of Total | | :------------------------------- | :------------------------ | :------------------ | | Fixed Maturity Securities at Fair Value | $17,365,354 | 87% | | Mortgage Loans | $455,767 | 2% | | Policy Loans | $718,621 | 4% | | Other Long-Term Investments | $1,268,624 | 6% | | Short-Term Investments | $116,724 | 1% | | **Total** | **$19,925,090** | - | Fixed Maturity Securities Portfolio by Asset Class as of June 30, 2025 (Amortized Cost, Net of Credit Loss Allowance) | Asset Class | Investment Grade (Thousands of USD) | Below Investment Grade (Thousands of USD) | Total Amortized Cost, Net (Thousands of USD) | | :------------------------------- | :---------------------------------- | :---------------------------------------- | :------------------------------------------- | | Corporate Bonds | $14,628,153 | $491,174 | $15,119,327 | | Municipal Bonds | $3,303,151 | — | $3,303,151 | | Government, Agency, and GSEs | $450,798 | — | $450,798 | | Collateralized Debt Obligations | — | — | — | | Other Asset-Backed Securities | $64,518 | $11,648 | $76,166 | | **Total** | **$18,446,620** | **$502,822** | **$18,949,442** | - **97%** of fixed maturity securities were rated "investment grade" based on amortized cost (net of credit loss allowance) and fair value[41](index=41&type=chunk) - The annualized tax-equivalent effective yield for the fixed maturity securities portfolio was **5.29%** in Q2 2025, up from **5.26%** in the prior year period[41](index=41&type=chunk) [Investment Acquisitions](index=10&type=section&id=Investment%20Acquisitions) This section outlines Globe Life's investment acquisition activities, detailing fixed-income and other investment purchases during the period Fixed Maturity Acquisitions | Metric | June 30, 2025 | June 30, 2024 | | :-------------------------- | :------------ | :------------ | | Amount (Thousands of USD) | $263,252 | $240,669 | | Average Annual Effective Yield | 6.4% | 6.2% | | Average Rating | A | A | | Average Life (to next call) | 31.2 | 32.2 | | Average Life (to maturity) | 33.8 | 34.8 | Other Investment Acquisitions (Thousands of USD) | Investment Type | June 30, 2025 | June 30, 2024 | | :------------------- | :------------ | :------------ | | Limited Partnerships | $36,985 | $81,725 | | Mortgage Loans | $31,215 | $33,761 | | Common Stock | $1,342 | $2,044 | | Other Invested Assets | — | $1,500 | | **Total** | **$69,542** | **$119,030** | [Capital Management and Outlook](index=10&type=section&id=Capital%20Management%20and%20Outlook) Globe Life Inc. actively managed capital in Q2 2025 through share repurchases, maintaining strong liquidity and capital positions, and reaffirmed its full-year 2025 net operating income guidance [Share Repurchase Program](index=10&type=section&id=Share%20Repurchase%20Program) This section details Globe Life's share repurchase activities during the quarter, aimed at enhancing shareholder value - The company repurchased **1.9 million** shares of Globe Life Inc. common stock at a total cost of **$226 million**, with an average price of **$121.13** per share this quarter[48](index=48&type=chunk) [Liquidity and Capital Position](index=10&type=section&id=Liquidity%20and%20Capital%20Position) This section assesses Globe Life's liquidity and capital strength, emphasizing the stable cash flow generated by its core insurance operations - Globe Life's operations, primarily basic protection life and supplemental health insurance policies, generate strong and stable cash flows unaffected by stock market fluctuations[49](index=49&type=chunk) - The parent company maintains ample liquidity to meet additional capital requirements of its insurance subsidiaries[49](index=49&type=chunk) [Earnings Guidance for FY2025](index=10&type=section&id=Earnings%20Guidance%20for%20FY2025) This section provides Globe Life's reaffirmed earnings guidance for diluted net operating income per share for the full fiscal year 2025 - Globe Life anticipates diluted net operating income per share for the year ending December 31, 2025, to be between **$14.25** and **$14.65**, reaffirming previous guidance[50](index=50&type=chunk) [Additional Information](index=10&type=section&id=Additional%20Information) This section provides disclosures on non-GAAP financial measures, cautions regarding forward-looking statements and associated risks, and details for the upcoming earnings conference call webcast [Non-GAAP Measures Disclosure](index=10&type=section&id=Non-GAAP%20Measures%20Disclosure) This section clarifies the use of non-GAAP financial measures in Globe Life's press release, emphasizing their supplementary role to GAAP - Globe Life includes non-GAAP measures in its press release to enhance investor understanding of management's business perspective, serving as supplementary information rather than GAAP alternatives to increase transparency[51](index=51&type=chunk) [Caution Regarding Forward-Looking Statements](index=11&type=section&id=Caution%20Regarding%20Forward-Looking%20Statements) This section provides a cautionary statement regarding forward-looking information, outlining various factors that could cause actual results to differ materially - This press release may contain forward-looking statements as defined by federal securities laws, reflecting management's current expectations but not guaranteeing future performance[52](index=52&type=chunk) - Actual results could differ materially from forward-looking statements due to various foreseeable and unforeseeable events or developments, including economic conditions, regulatory changes, market trends, interest rate fluctuations, litigation outcomes, cybersecurity risks, and natural disasters[52](index=52&type=chunk) - The company expressly disclaims any obligation to update or revise any forward-looking statements due to new information, future developments, or otherwise[53](index=53&type=chunk) [Earnings Release Conference Call Webcast](index=12&type=section&id=Earnings%20Release%20Conference%20Call%20Webcast) This section provides details for accessing the live audio webcast of Globe Life's Q2 2025 earnings conference call and its subsequent replay - Globe Life will provide a live audio webcast of its Q2 2025 earnings conference call on July 24, 2025, at 11:00 AM ET[55](index=55&type=chunk) - The webcast and replay will be available on the "Calls and Meetings" page of the company's investor website at https://investors.globelifeinsurance.com[55](index=55&type=chunk) [Appendix: GAAP Condensed Consolidated Statements of Operations](index=13&type=section&id=Appendix%3A%20GAAP%20Condensed%20Consolidated%20Statements%20of%20Operations) This appendix presents Globe Life Inc.'s condensed consolidated GAAP statements of operations for Q2 and H1 2025, detailing key financial data including revenues, benefits, expenses, and net income GAAP Condensed Consolidated Statements of Operations (Thousands of USD) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :----------------------------------------- | :----------- | :----------- | :----------- | :----------- | | **Revenues:** | | | | | | Life insurance premiums | $839,544 | $815,482 | $1,669,407 | $1,619,747 | | Health insurance premiums | $378,099 | $351,643 | $747,890 | $692,662 | | Other premiums | — | — | — | — | | **Total premiums** | **$1,217,643** | **$1,167,125** | **$2,417,297** | **$2,312,409** | | Net investment income | $282,169 | $285,636 | $562,783 | $568,214 | | Realized gains (losses) | ($18,574) | ($12,589) | ($18,489) | ($24,388) | | Other income | $49 | $74 | $118 | $150 | | **Total revenues** | **$1,481,287** | **$1,440,246** | **$2,961,709** | **$2,856,385** | | **Benefits and Expenses:** | | | | | | Life policyholder benefits | $519,355 | $518,792 | $1,029,111 | $1,038,663 | | Health policyholder benefits | $229,924 | $205,423 | $463,853 | $407,750 | | Other policyholder benefits | $6,719 | $11,479 | $13,799 | $21,074 | | **Total policyholder benefits** | **$755,998** | **$735,694** | **$1,506,763** | **$1,467,487** | | Amortization of deferred acquisition costs | $111,401 | $101,915 | $216,916 | $201,393 | | Commissions, premium taxes, and non-deferred acquisition costs | $157,411 | $149,802 | $321,734 | $297,912 | | Other operating expenses | $108,293 | $99,108 | $217,039 | $192,322 | | Interest expense | $34,885 | $31,404 | $69,877 | $60,025 | | **Total benefits and expenses** | **$1,167,988** | **$1,117,923** | **$2,332,329** | **$2,219,139** | | Income before income taxes | $313,299 | $322,323 | $629,380 | $637,246 | | Income tax benefit (expense) | ($60,550) | ($63,968) | ($122,068) | ($124,674) | | **Net income** | **$252,749** | **$258,355** | **$507,312** | **$512,572** | | Basic net income per share | $3.09 | $2.83 | $6.13 | $5.53 | | Diluted net income per share | $3.05 | $2.83 | $6.07 | $5.51 |

Core Points - Globe Life Inc. reported a net income of $3.05 per diluted common share for Q2 2025, an increase from $2.83 in the same quarter last year, while net operating income rose to $3.27 per diluted common share from $2.97 [1][6][8] - The company experienced a 10% increase in net operating income per share compared to the previous year, and a 4% increase in total premium revenue [6][10] - Life insurance accounted for 78% of the company's insurance underwriting margin, while health insurance made up 22% [9][10] Financial Performance - For the three months ended June 30, 2025, insurance underwriting income was $354.176 million, a 4% increase from $340.437 million in the same period last year [5][12] - Life premiums increased by 5% year-over-year, while health net sales surged by 20% [6][10] - The company repurchased 1.9 million shares of common stock at a total cost of $226 million during the quarter [33] Investment Performance - Net investment income decreased by 1% to $282.169 million, while excess investment income fell by 19% to $34.828 million [22][23] - The investment portfolio as of June 30, 2025, totaled $19.925 billion, with fixed maturities making up 87% of the total [25][27] - The fixed maturity portfolio earned an annual taxable equivalent effective yield of 5.29% during Q2 2025, compared to 5.26% in the previous year [28] Guidance and Outlook - The company reaffirmed its guidance for net operating income between $14.25 to $14.65 per diluted common share for the year ending December 31, 2025 [35]

Core Insights - Investors in Globe Life Inc. (GL) should monitor stock movements due to significant activity in the options market, particularly the Aug 15, 2025 $95.00 Call which has high implied volatility [1] - Implied volatility indicates market expectations for future stock movement, suggesting potential upcoming events that could lead to significant price changes [2] - Analysts have mixed views on Globe Life, with one increasing earnings estimates while three have decreased them, resulting in a slight drop in the Zacks Consensus Estimate for the current quarter from $3.26 to $3.25 per share [3] Options Market Dynamics - The high implied volatility surrounding Globe Life shares may indicate a developing trading opportunity, as options traders often seek to sell premium on such options to capture decay [4] - Seasoned traders typically hope that the underlying stock does not move as much as initially expected by expiration, which aligns with the current market sentiment for Globe Life [4]