v3.25.2
Business Segments
 6 Months Ended
Jun. 30, 2025
Segment Reporting [Abstract]  
Business Segments Note 12—Business Segments
Globe Life is organized into three operating segments: life, health, and investments.

Globe Life's reportable insurance segments are based on the insurance product lines it markets and administers: life insurance and supplemental health insurance. There is also an investment segment that manages the investment portfolio and cash flow for the insurance segments. The Company's chief operating decision makers ("CODM"), our Co-CEOs, evaluate the overall performance of the operations of the Company in accordance with these segments.

During the fourth quarter of 2024 we entered into a coinsurance agreement to cede a majority of the annuity business to a third-party insurer. This impacted a significant portion of our annuities which had previously been classified as one of our reportable segments. The annuity segment has historically represented less than 1% of revenue and has not been core to the Company's business. We adjusted our segments from four down to three at December 31, 2024. All quarterly presentations of segment information related to prior year have been recast for the periods presented to reflect this change in segments.

Life insurance products marketed by Globe Life include traditional whole life and term life insurance. Health insurance products are generally guaranteed renewable and include Medicare Supplement, cancer, critical illness, accident, and other limited-benefit supplemental hospital and surgical products.

The Company adopted ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, in 2024 which added disclosure requirements to segment expenses, improving the financial reporting of the entity’s overall performance and assessment of future cash flows. The disclosures required more detailed information related to the entity’s reportable segments and the new disclosures are also required prospectively on a quarterly basis. The prior-year presentation has been recast to reflect the new disclosures in accordance with this adopted accounting standard.

The following tables present segment premium revenue by each of Globe Life's distribution channels.
Premium Income by Distribution Channel
Three Months Ended June 30, 2025
 LifeHealthTotal
Distribution ChannelAmount% of
Total		Amount% of
Total		Amount% of
Total
American Income$445,511 53 $31,422 8 $476,933 39 
Direct to Consumer246,223 29 19,212 5 265,435 22 
Liberty National97,263 12 47,631 13 144,894 12 
United American1,570 — 163,978 43 165,548 13 
Family Heritage1,796 — 115,856 31 117,652 10 
Other47,181 6 — — 47,181 4 
Total
$839,544 100 $378,099 100 $1,217,643 100 
Premium Income by Distribution Channel
 Three Months Ended June 30, 2024
 LifeHealthTotal
Distribution ChannelAmount
% of
Total
Amount
% of
Total
Amount
% of
Total
American Income$423,534 52 $30,721 9 $454,255 39 
Direct to Consumer248,839 31 18,132 5 266,971 23 
Liberty National92,197 11 47,705 14 139,902 12 
United American1,558 — 149,230 42 150,788 13 
Family Heritage1,645 — 105,855 30 107,500 9 
Other47,709 6 — — 47,709 4 
Total
$815,482 100 $351,643 100 $1,167,125 100 
Six Months Ended June 30, 2025
 LifeHealthTotal
Distribution ChannelAmount% of
Total		Amount% of
Total		Amount% of
Total
American Income$883,377 53 $62,113 8 $945,490 39 
Direct to Consumer491,823 29 38,188 5 530,011 22 
Liberty National193,445 12 95,553 13 288,998 12 
United American3,162 — 323,826 43 326,988 13 
Family Heritage3,522 — 228,210 31 231,732 10 
Other94,078 6 — — 94,078 4 
Total
$1,669,407 100 $747,890 100 $2,417,297 100 
 Six Months Ended June 30, 2024
 LifeHealthTotal
Distribution ChannelAmount
% of
Total
Amount
% of
Total
Amount
% of
Total
American Income$837,578 52 $61,218 9 $898,796 39 
Direct to Consumer496,879 31 35,998 5 532,877 23 
Liberty National182,974 11 95,335 14 278,309 12 
United American3,401 — 290,865 42 294,266 13 
Family Heritage3,261 — 209,246 30 212,507 9 
Other95,654 6 — — 95,654 4 
Total
$1,619,747 100 $692,662 100 $2,312,409 100 

Due to the nature of the life insurance industry, Globe Life has no individual or group that would be considered a major customer. Substantially all of Globe Life's business is conducted in the United States.
 
The measure of profitability established by the CODM for the insurance segments is underwriting margin before other income and administrative expenses, in accordance with the manner in which the segments are managed. It essentially represents gross profit margin on insurance products before insurance administrative expenses and consists primarily of premium less net policy benefits, acquisition expenses, and commissions. Required interest on policy liabilities is reflected as a component of the Investment segment (rather than as a component of underwriting margin in the insurance segment) in order to match this cost with the investment income earned on the assets supporting the policy liabilities.
The measure of profitability for the Investment segment is excess investment income, representing the net income earned on the investment portfolio in excess of policy requirements. Other than the required interest on the insurance segments, no other intersegment revenues or expenses are recognized. Expenses directly attributable to corporate operations are included in the “Corporate & Other” category. Stock-based compensation expense is considered a corporate expense by Globe Life management and is included in this category. All other unallocated revenues and expenses on a pretax basis, including insurance administrative expense and interest on debt, are also included in the “Corporate & Other” segment category.
 
Globe Life holds a sizable investment portfolio to support its insurance liabilities, the yield from which is used to offset policy benefit, acquisition, administrative, and tax expenses. This yield or investment income is taken into account when establishing premium rates and profitability expectations for its insurance products. From time to time, investments are sold or called, or experience a credit loss event, each of which are reflected by the Company as realized gain (loss)—investments. These gains or losses generally occur as a result of disposition due to issuer calls, compliance with Company investment policies, or other reasons often beyond management’s control. Unlike investment income, realized gains and losses are incidental to insurance operations, and only overall yields are considered when setting premium rates or insurance product profitability expectations. While these gains and losses are not relevant to segment profitability or core operating results, they can have a material positive or negative result on net income. For these reasons, management removes realized investment gains and losses when it views its segment operations.

Management also removes non-operating items unrelated to the Company's core insurance activities when evaluating those results. Therefore, these items are excluded in its presentation of segment results because accounting guidance requires that operating segment results be presented as management views its business. All of these items are included in “Other operating expense” in the Condensed Consolidated Statements of Operations for the appropriate year. See additional detail below in the tables.
The following tables set forth a reconciliation of Globe Life's revenues and operations by segment to its major income statement line items. See Note 1—Significant Accounting Policies for additional information concerning reconciling items of segment profits to pretax income.
Three Months Ended June 30, 2025
LifeHealthInvestmentConsolidated
Revenue:
Premium$839,544 $378,099 $— $1,217,643 
Net investment income— — 282,169 282,169 
Segment revenue
839,544 378,099 282,169 1,499,812 
Realized gains (losses)(18,574)
Other income49 
Total consolidated revenue
$1,481,287 
Expenses:
Policy obligations(1)
519,355 229,924 5,410 754,689 
Required interest on reserves (211,160)(28,391)241,931 2,380 
Amortization of acquisition costs 96,201 14,841 — 111,042 
Commissions42,357 41,965 — 84,322 
Premium taxes16,682 7,649 — 24,331 
Non-deferred acquisition costs36,035 14,054 — 50,089 
Segment profit or (loss) $340,074 $98,057 $34,828 472,959 
Insurance administrative expenses:
Salaries34,677 
Other employee costs9,407 
Information technology costs19,555 
Legal costs5,827 
Other administrative costs16,581 
Parent expense3,555 
Stock-based compensation expense14,043 
Interest expense34,885 
Legal proceedings4,648 
Annuity(2,043)
 Total expenses1,167,988 
Income before income taxes per Condensed Consolidated Statements of Operations
$313,299 
(1)Policy obligations are based upon policyholder behavior and impacts related to lapses, mortality, and morbidity. For detailed information, including remeasurement gains and losses, see Note 6—Policy Liabilities.
Three Months Ended June 30, 2024
LifeHealthInvestmentConsolidated
Revenue:
Premium$815,482 $351,643 $— $1,167,125 
Net investment income— — 285,636 285,636 
Segment revenue815,482 351,643 285,636 1,452,761 
Realized gains (losses)(12,589)
Other income74 
Total consolidated revenue
1,440,246 
Expenses:
Policy obligations(1)
518,792 205,423 5,536 729,751 
Required interest on reserves (201,815)(27,410)237,309 8,084 
Amortization of acquisition costs 87,915 13,611 — 101,526 
Commissions39,698 41,661 — 81,359 
Premium taxes17,200 5,274 — 22,474 
Non-deferred acquisition costs33,369 12,596 — 45,965 
Segment profit or (loss) $320,323 $100,488 $42,791 463,602 
Insurance administrative expenses:
Salaries30,855 
Other employee costs8,063 
Information technology costs20,561 
Legal costs6,889 
Other administrative costs15,828 
Parent expense3,130 
Stock-based compensation expense10,090 
Interest expense31,404 
Legal proceedings2,435 
Non-operating expenses1,257 
Annuity(1,748)
 Total expenses1,117,923 
Income before income taxes per Condensed Consolidated Statements of Operations
$322,323 
(1)Policy obligations are based upon policyholder behavior and impacts related to lapses, mortality, and morbidity. For detailed information, including remeasurement gains and losses, see Note 6—Policy Liabilities.
Six Months Ended June 30, 2025
LifeHealthInvestmentConsolidated
Revenue:
Premium$1,669,407 $747,890 $— $2,417,297 
Net investment income— — 562,783 562,783 
Segment revenue1,669,407 747,890 562,783 2,980,080 
Realized gains (losses)(18,489)
Other income118 
Total consolidated revenue
$2,961,709 
Expenses:
Policy obligations(1)
1,029,111 463,853 10,804 1,503,768 
Required interest on reserves (419,696)(56,677)481,281 4,908 
Amortization of acquisition costs 186,834 29,360 — 216,194 
Commissions87,924 84,852 — 172,776 
Premium taxes34,693 15,142 — 49,835 
Non-deferred acquisition costs73,203 28,582 — 101,785 
Segment profit or (loss)
$677,338 $182,778 $70,698 930,814 
Insurance administrative expenses:
Salaries68,365 
Other employee costs19,708 
Information technology costs40,491 
Legal costs12,076 
Other administrative costs32,956 
Parent expense6,605 
Stock-based compensation expense26,062 
Interest expense69,877 
Legal proceedings10,776 
Annuity(3,853)
 Total expenses2,332,329 
Income before income taxes per Condensed Consolidated Statement of Operations
$629,380 
(1)Policy obligations are based upon policyholder behavior and impacts related to lapses, mortality, and morbidity. For detailed information, including remeasurement gains and losses, see Note 6—Policy Liabilities.
Six Months Ended June 30, 2024
LifeHealthInvestmentConsolidated
Revenue:
Premium$1,619,747 $692,662 $— $2,312,409 
Net investment income— — 568,214 568,214 
Segment revenue1,619,747 692,662 568,214 2,880,623 
Realized gains (losses)(24,388)
Other income150 
Total consolidated revenue $2,856,385 
Expenses:
Policy obligations(1)
1,038,663 407,750 9,004 $1,455,417 
Required interest on reserves (401,522)(54,583)472,634 16,529 
Amortization of acquisition costs 173,683 26,922 — 200,605 
  Commissions78,388 80,810 — 159,198 
  Premium taxes34,286 12,090 — 46,376 
  Non-deferred acquisition costs66,915 25,415 — 92,330 
Segment profit or (loss)
$629,334 $194,258 $86,576 910,168 
Insurance administrative expenses:
Salaries62,029 
Other employee costs18,076 
Information technology costs38,868 
Legal costs12,162 
Other administrative costs31,472 
Parent expense5,956 
Stock-based compensation expense19,357 
Interest expense60,025 
Legal proceedings2,435 
Non-operating expenses1,967 
Annuity
(3,663)
 Total expenses2,219,139 
Income before income taxes per Condensed Consolidated Statement of Operations
$637,246 
(1)Policy obligations are based upon policyholder behavior and impacts related to lapses, mortality, and morbidity. For detailed information, including remeasurement gains and losses, see Note 6—Policy Liabilities.
Assets for each segment are reported based on a specific identification basis. The insurance segments’ assets contain DAC. The investment segment includes the investment portfolio, cash, and accrued investment income. Goodwill is assigned to the insurance segments at the time of purchase. All other assets are included in the annuity and other corporate category. The tables below reconcile segment assets to total assets as reported on the Condensed Consolidated Balance Sheets.
 
Assets by Segment

 June 30, 2025
 LifeHealthInvestmentConsolidated
Cash and invested assets$— $— $20,164,212 $20,164,212 
Accrued investment income— — 271,670 271,670 
Deferred acquisition costs5,931,048 823,082 — 6,754,130 
Goodwill309,609 180,837 — 490,446 
Total segment assets
$6,240,657 $1,003,919 $20,435,882 27,680,458 
Annuity and other corporate
2,128,890 
Total assets
$29,809,348 

 December 31, 2024
 LifeHealthInvestmentConsolidated
Cash and invested assets$— $— $19,736,888 $19,736,888 
Accrued investment income— — 269,791 269,791 
Deferred acquisition costs5,700,755 793,421 — 6,494,176 
Goodwill309,609 180,837 — 490,446 
Total segment assets
$6,010,364 $974,258 $20,006,679 26,991,301 
Annuity and other corporate
2,084,880 
Total assets
$29,076,181