GLOBE LIFE INC.GL

GLOBE LIFE INC. Segments Disclosure

10-KFiled Feb 25, 20268 min read
Note 15—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 (the "CODM"), our Co-CEOs, evaluate the overall performance of the operations of the Company in accordance with these 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 following tables present segment premium revenue by each of Globe Life's distribution channels.
Premium Income by Distribution Channel
For the Year 2025
 LifeHealthTotal
Distribution ChannelAmount% of
Total		Amount% of
Total		Amount% of
Total
American Income$1,791,356 53 $124,947 8 $1,916,303 39 
Direct to Consumer981,006 29 76,514 5 1,057,520 21 
Liberty National390,094 12 190,468 12 580,562 12 
United American6,188 — 666,758 44 672,946 14 
Family Heritage7,404 — 468,063 31 475,467 10 
Other187,422 6 — — 187,422 4 
Total premium
$3,363,470 100 $1,526,750 100 $4,890,220 100 
 For the Year 2024
 LifeHealthTotal
Distribution ChannelAmount
% of
Total
Amount
% of
Total
Amount
% of
Total
American Income$1,698,209 52 $123,123 9 $1,821,332 39 
Direct to Consumer988,522 30 71,993 5 1,060,515 23 
Liberty National371,061 12 190,381 14 561,442 12 
United American6,600 — 591,774 42 598,374 13 
Family Heritage6,661 — 427,654 30 434,315 9 
Other190,294 6 — — 190,294 4 
Total premium
$3,261,347 100 $1,404,925 100 $4,666,272 100 
 For the Year 2023
 LifeHealthTotal
Distribution ChannelAmount
% of
Total
Amount
% of
Total
Amount% of
Total
American Income$1,588,702 51 $120,332 9 $1,709,034 38 
Direct to Consumer991,406 32 68,575 5 1,059,981 24 
Liberty National349,736 11 187,934 14 537,670 12 
United American7,311 — 545,723 42 553,034 13 
Family Heritage6,134 — 396,209 30 402,343 9 
Other193,955 6 — — 193,955 4 
Total premium
$3,137,244 100 $1,318,773 100 $4,456,017 100 

Due to the nature of the life and health insurance industry, Globe Life has no individual or group which 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 CODMs 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” on the Consolidated Statements of Operations for the appropriate year. See additional detail below in the tables.
Year Ended December 31, 2025
LifeHealthInvestmentConsolidated
Revenue:
Premium$3,363,470 $1,526,750 $— $4,890,220 
Net investment income— — 1,130,198 1,130,198 
Segment revenue3,363,470 1,526,750 1,130,198 6,020,418 
Realized gains (losses)(27,788)
Other income1,688 
Total consolidated revenue
$5,994,318 
Expenses:
Policy obligations(1)
1,924,929 931,141 22,415 2,878,485 
Required interest on reserves (845,875)(113,832)969,390 9,683 
Amortization of acquisition costs 386,450 59,897 — 446,347 
Commissions174,029 173,490 — 347,519 
Premium taxes68,132 29,825 — 97,957 
Non-deferred acquisition costs146,444 56,101 — 202,545 
Segment profit or (loss)
$1,509,361 $390,128 $138,393 2,037,882 
Insurance administrative expenses:
Salaries137,015 
Other employee costs41,609 
Information technology costs82,573 
Legal costs22,510 
Other administrative costs71,888 
Parent expense14,182 
Stock-based compensation expense53,355 
Interest expense141,221 
Legal proceedings17,053 
Other expenses2,183 
Annuity(7,782)
 Total expenses4,558,343 
Income before income taxes per Consolidated Statement of Operations
$1,435,975 
(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.
Year Ended December 31, 2024
LifeHealthInvestmentConsolidated
Revenue:
Premium$3,261,347 $1,404,925 $— $4,666,272 
Net investment income— — 1,135,631 1,135,631 
Segment revenue3,261,347 1,404,925 1,135,631 5,801,903 
Realized gains (losses)(24,188)
Other income354 
Total consolidated revenue $5,778,069 
Expenses:
Policy obligations(1)
2,000,977 851,577 20,969 $2,873,523 
Required interest on reserves (811,147)(110,342)950,258 28,769 
Amortization of acquisition costs 356,223 52,224 — 408,447 
  Commissions159,703 158,869 — 318,572 
  Premium taxes68,360 28,421 — 96,781 
  Non-deferred acquisition costs134,634 51,753 — 186,387 
Segment profit or (loss)
$1,352,597 $372,423 $164,404 1,889,424 
Insurance administrative expenses:
Salaries129,369 
Other employee costs36,176 
Information technology costs80,555 
Legal costs30,478 
Other administrative costs65,852 
Parent expense12,400 
Stock-based compensation expense40,118 
Interest expense127,092 
Legal proceedings21,575 
Other expenses
2,620 
Annuity
(7,282)
 Total expenses4,451,432 
Income before income taxes per Consolidated Statement of Operations
$1,326,637 
(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.
Year Ended December 31, 2023
LifeHealthInvestmentConsolidated
Revenue:
Premium$3,137,244 $1,318,773 $— $4,456,017 
Net investment income— — 1,056,884 1,056,884 
Segment revenue3,137,244 1,318,773 1,056,884 5,512,901 
Realized gains (losses)(65,676)
Other income308 
Total consolidated revenue $5,447,533 
Expenses:
Policy obligations(1)
2,050,789 776,362 9,061 $2,836,212 
Required interest on reserves(772,701)(106,516)917,441 38,224 
Amortization of acquisition costs327,426 50,598 — 378,024 
Commissions145,678 150,192 — 295,870 
Premium taxes64,571 26,440 — 91,011 
Non-deferred acquisition costs128,509 43,760 — 172,269 
Segment profit or (loss)
$1,192,972 $377,937 $130,382 1,701,291 
Insurance administrative expenses:
Salaries119,699 
Other employee costs35,905 
Information technology costs64,998 
Legal costs15,335 
Other administrative costs65,224 
Parent expense10,866 
Stock-based compensation expense30,736 
Interest expense102,316 
Legal proceedings900 
Other expenses
4,170 
Annuity
(8,492)
Total expenses4,253,267 
Income before income taxes per Consolidated Statement of Operations
$1,194,266 
(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 Consolidated Balance Sheets.
 
Assets by Segment

 At December 31, 2025
 LifeHealthInvestmentConsolidated
Cash and invested assets$— $— $20,614,713 $20,614,713 
Accrued investment income— — 272,818 272,818 
Deferred acquisition costs6,147,750 851,386 — 6,999,136 
Goodwill309,609 180,837 — 490,446 
Total segment assets
$6,457,359 $1,032,223 $20,887,531 28,377,113 
Annuity and other corporate
2,436,579 
Total assets
$30,813,692 

 At 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 
Liabilities for each segment are reported also on a specific identification basis similar to the assets. The insurance segments' liabilities contain future policy benefits, unearned and advance premiums, and policy claims and other benefits payable. Other policyholders' funds and annuities are included in annuity and other corporate as well as current and deferred income taxes payable. Debt represents both short and long-term. The tables below reconcile segment liabilities to total liabilities as reported on the Consolidated Balance Sheets.

Liabilities by Segment
 At December 31, 2025
 LifeHealthInvestmentConsolidated
Future policy benefits$16,123,927 $2,465,091 $— $18,589,018 
Unearned and advance premiums199,011 71,652 — 270,663 
Policy claims and other benefits payable315,595 225,237 — 540,832 
Debt— — 2,625,449 2,625,449 
Other95,047 — 437,000 532,047 
Total segment liabilities
$16,733,580 $2,761,980 $3,062,449 22,558,009 
Annuity and other corporate
2,281,104 
Total liabilities
$24,839,113 

At December 31, 2024
LifeHealthInvestmentConsolidated
Future policy benefits$15,484,596 $2,316,094 $— $17,800,690 
Unearned and advance premiums198,127 59,504 — 257,631 
Policy claims and other benefits payable321,838 210,994 — 532,832 
Debt— — 2,739,652 2,739,652 
Other96,604 — 372,000 468,604 
Total segment liabilities
$16,101,165 $2,586,592 $3,111,652 21,799,409 
Annuity and other corporate
1,971,252 
Total liabilities
$23,770,661 
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About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.

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