Investments

3 Months Ended

Mar. 31, 2023

Investments, Debt and Equity Securities [Abstract]

Investments

Note 4—Investments

Portfolio Composition: Summaries of fixed maturities available for sale by amortized cost, fair value, and allowance for credit losses at March 31, 2023 and December 31, 2022, and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income (loss) are as follows. Redeemable preferred stock is included within "Corporates, by sector."

	At March 31, 2023
	Amortized Cost		Allowance for Credit Losses		Gross Unrealized Gains		Gross Unrealized Losses		Fair  Value(1)		% of Total Fixed Maturities(2)
Fixed maturities available for sale:
U.S. Government direct, guaranteed, and government-sponsored enterprises	$	389,441	$	—	$	114	$	(27,482)	$	362,073	2
States, municipalities, and political subdivisions	2,894,161		—		41,407		(426,929)		2,508,639		15
Foreign governments	53,789		—		13		(11,282)		42,520		—
Corporates, by sector:
Financial	4,973,445		(26,040)		84,796		(453,394)		4,578,807		27
Utilities	1,958,888		—		70,798		(94,579)		1,935,107		11
Energy	1,434,766		—		38,477		(80,338)		1,392,905		8
Other corporate sectors	6,697,469		(6,727)		126,968		(557,390)		6,260,320		36
Total corporates	15,064,568		(32,767)		321,039		(1,185,701)		14,167,139		82
Collateralized debt obligations	36,778		—		8,724		—		45,502		—
Other asset-backed securities	87,966		—		4		(6,958)		81,012		1
Total fixed maturities	$	18,526,703	$	(32,767)	$	371,301	$	(1,658,352)	$	17,206,885	100

(1)Amount reported in the balance sheet.

(2)At fair value.

The Company has exposure to banks as part of its fixed maturity portfolio. The Company’s bank securities had a fair value of $1.3 billion (8% of the total fixed maturity portfolio) at March 31, 2023 and December 31, 2022.

	At December 31, 2022
	Amortized Cost		Allowance for Credit Losses		Gross Unrealized Gains		Gross Unrealized Losses		Fair  Value(1)		% of Total Fixed Maturities(2)
Fixed maturities available for sale:
U.S. Government direct, guaranteed, and government-sponsored enterprises	$	394,439	$	—	$	27	$	(38,968)	$	355,498	2
States, municipalities, and political subdivisions	2,791,030		—		24,328		(505,447)		2,309,911		14
Foreign governments	55,164		—		6		(12,706)		42,464		—
Corporates, by sector:
Financial	4,907,794		—		63,126		(504,489)		4,466,431		27
Utilities	1,924,190		—		36,670		(125,713)		1,835,147		11
Energy	1,436,598		—		22,637		(101,923)		1,357,312		8
Other corporate sectors	6,667,043		—		78,903		(738,772)		6,007,174		37
Total corporates	14,935,625		—		201,336		(1,470,897)		13,666,064		83
Collateralized debt obligations	37,098		—		13,266		—		50,364		—
Other asset-backed securities	88,336		—		4		(9,276)		79,064		1
Total fixed maturities	$	18,301,692	$	—	$	238,967	$	(2,037,294)	$	16,503,365	100

(1)Amount reported in the balance sheet.

(2)At fair value.

A schedule of fixed maturities available for sale by contractual maturity date at March 31, 2023, is shown below on an amortized cost basis, net of allowance for credit losses, and on a fair value basis. Actual disposition dates could differ from contractual maturities due to call or prepayment provisions.

	At March 31, 2023
	Amortized Cost, net		Fair Value
Fixed maturities available for sale:
Due in one year or less	$	169,491	$	170,003
Due after one year through five years	1,113,684		1,118,421
Due after five years through ten years	1,691,785		1,717,908
Due after ten years through twenty years	7,976,112		7,740,695
Due after twenty years	7,418,120		6,333,344
Mortgage-backed and asset-backed securities	124,744		126,514
	$	18,493,936	$	17,206,885

Analysis of Investment Operations: "Net investment income" for the three month periods ended March 31, 2023 and 2022 is summarized as follows:

	Three Months Ended March 31,
	2023		2022		% Change
Fixed maturities available for sale	$	232,299	$	225,284	3
Policy loans	11,755		11,428		3
Other long-term investments(1)	15,743		12,713		24
Short-term investments	1,595		2
	261,392		249,427		5
Less investment expense	(4,287)		(4,533)		(5)
Net investment income	$	257,105	$	244,894	5

(1)For the three months ended March 31, 2023 and 2022, the investment funds, accounted for under the fair value option method, recorded $11.3 million and $10.7 million of distributions, respectively, in net investment income. Refer to Other Long-Term Investments below for further discussion on the investment funds.

Selected information about sales of fixed maturities available for sale is as follows:

	Three Months Ended March 31,
	2023		2022
Fixed maturities available for sale:
Proceeds from sales(1)	$	15,705	$	75,116
Gross realized gains	—		773
Gross realized losses	(358)		(3,679)

(1)There were no unsettled sales in the periods ended March 31, 2023 and 2022.

An analysis of "Realized gains (losses)" is as follows:

	Three Months Ended March 31,
	2023		2022
Realized investment gains (losses):
Fixed maturities available for sale:
Sales and other(1)	$	(357)	$	4,549
Provision for credit losses	(32,767)		387
Fair value option—change in fair value	1,858		(5,338)
Other investments	339		(6,842)
Realized gains (losses) from investments	(30,927)		(7,244)
Applicable tax	6,495		1,521
Realized gains (losses), net of tax	$	(24,432)	$	(5,723)

(1)During the three months ended March 31, 2023 and 2022, the Company recorded $0 and $0 of exchanges of fixed maturities (noncash transactions) that resulted in $0 and $0, respectively, in realized gains (losses).

Fair Value Measurements: The following tables represent the fair value of fixed maturities measured on a recurring basis at March 31, 2023 and December 31, 2022:

	Fair Value Measurement at March 31, 2023 Using:
	Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Total Fair Value
Fixed maturities available for sale
U.S. Government direct, guaranteed, and government-sponsored enterprises	$	—		$	362,073		$	—		$	362,073
States, municipalities, and political subdivisions	—			2,508,639			—			2,508,639
Foreign governments	—			42,520			—			42,520
Corporates, by sector:
Financial	—			4,445,091			133,716			4,578,807
Utilities	—			1,822,748			112,359			1,935,107
Energy	—			1,381,989			10,916			1,392,905
Other corporate sectors	—			6,045,672			214,648			6,260,320
Total corporates	—			13,695,500			471,639			14,167,139
Collateralized debt obligations	—			—			45,502			45,502
Other asset-backed securities	—			81,012			—			81,012
Total fixed maturities	$	—		$	16,689,744		$	517,141		$	17,206,885
Percentage of total	—		%	97		%	3		%	100		%

	Fair Value Measurement at December 31, 2022 Using:
	Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Total Fair Value
Fixed maturities available for sale
U.S. Government direct, guaranteed, and government-sponsored enterprises	$	—		$	355,498		$	—		$	355,498
States, municipalities, and political subdivisions	—			2,309,911			—			2,309,911
Foreign governments	—			42,464			—			42,464
Corporates, by sector:
Financial	—			4,332,495			133,936			4,466,431
Utilities	—			1,723,832			111,315			1,835,147
Energy	—			1,346,212			11,100			1,357,312
Other corporate sectors	—			5,785,442			221,732			6,007,174
Total corporates	—			13,187,981			478,083			13,666,064
Collateralized debt obligations	—			—			50,364			50,364
Other asset-backed securities	—			79,064			—			79,064
Total fixed maturities	$	—		$	15,974,918		$	528,447		$	16,503,365
Percentage of total	—		%	97		%	3		%	100		%

The following tables represent changes in fixed maturities measured at fair value on a recurring basis using significant unobservable inputs (Level 3):

	Analysis of Changes in Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Asset- backed Securities			Collateralized Debt Obligations			Corporates			Total
Balance at January 1, 2023	$	—		$	50,364		$	478,083		$	528,447
Included in realized gains / losses	—			—			—			—
Included in other comprehensive income	—			(4,542)			5,370			828
Acquisitions	—			—			—			—
Sales	—			—			—			—
Amortization	—			1,141			2			1,143
Other(1)	—			(1,461)			(11,816)			(13,277)
Transfers into Level 3(2)	—			—			—			—
Transfers out of Level 3(2)	—			—			—			—
Balance at March 31, 2023	$	—		$	45,502		$	471,639		$	517,141
Percent of total fixed maturities	—		%	—		%	3		%	3		%

(1)Includes capitalized interest, foreign exchange adjustments, and principal repayments. 

(2)Considered to be transferred at the end of the period. Transfers into Level 3 occur when observable inputs are no longer available. Transfers out of Level 3 occur when observable inputs become available.

	Analysis of Changes in Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Asset- backed Securities			Collateralized Debt Obligations			Corporates			Total
Balance at January 1, 2022	$	—		$	63,505		$	641,688		$	705,193
Included in realized gains / losses	—			—			—			—
Included in other comprehensive income	—			(3,809)			(36,360)			(40,169)
Acquisitions	—			—			—			—
Sales	—			—			—			—
Amortization	—			1,123			1			1,124
Other(1)	—			(1,281)			(19,359)			(20,640)
Transfers into Level 3(2)	—			—			—			—
Transfers out of Level 3(2)	—			—			—			—
Balance at March 31, 2022	$	—		$	59,538		$	585,970		$	645,508
Percent of total fixed maturities	—		%	—		%	3		%	3		%

(1)Includes capitalized interest, foreign exchange adjustments, and principal repayments. 

(2)Considered to be transferred at the end of the period. Transfers into Level 3 occur when observable inputs are no longer available. Transfers out of Level 3 occur when observable inputs become available.

The following table presents changes in unrealized gains and losses for the period included in accumulated other comprehensive income for assets held at the end of the reporting period for Level 3s:

	Changes in Unrealized Gains (Losses) included in Accumulated Other Comprehensive Income for Assets Held at the End of the Period
	Asset- backed Securities		Collateralized Debt Obligations		Corporates		Total
At March 31, 2023	$	—	$	(4,542)	$	5,370	$	828
At March 31, 2022	—		(3,809)		(36,360)		(40,169)

Unrealized Loss Analysis: The following table discloses information about fixed maturities available for sale in an unrealized loss position.

	Less than Twelve Months	Twelve Months or Longer	Total
Number of issues (CUSIPs) held:
As of March 31, 2023	624	1,290	1,914
As of December 31, 2022	1,819	157	1,976

Globe Life's entire fixed maturity portfolio consisted of 2,379 issues by 987 different issuers at March 31, 2023 and 2,328 issues by 979 different issuers at December 31, 2022. The weighted-average quality rating of all unrealized loss positions at amortized cost was A- as of March 31, 2023 and December 31, 2022.

The following tables disclose unrealized investment losses by class and major sector of fixed maturities available for sale at March 31, 2023 and December 31, 2022.

Analysis of Gross Unrealized Investment Losses

	At March 31, 2023
	Less than Twelve Months				Twelve Months or Longer				Total
	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
Fixed maturities available for sale:
Investment grade securities:
U.S. Government direct, guaranteed, and government-sponsored enterprises	$	275,114	$	(17,384)	$	84,691	$	(10,098)	$	359,805	$	(27,482)
States, municipalities, and political subdivisions	601,542		(23,575)		1,219,137		(403,354)		1,820,679		(426,929)
Foreign governments	15,491		(145)		25,555		(11,137)		41,046		(11,282)
Corporates, by sector:
Financial	1,355,645		(92,771)		1,482,482		(308,161)		2,838,127		(400,932)
Utilities	304,897		(14,438)		474,873		(77,678)		779,770		(92,116)
Energy	319,199		(11,489)		332,106		(58,433)		651,305		(69,922)
Other corporate sectors	1,211,339		(64,035)		2,859,975		(470,663)		4,071,314		(534,698)
Total corporates	3,191,080		(182,733)		5,149,436		(914,935)		8,340,516		(1,097,668)
Collateralized debt obligations	—		—		—		—		—		—
Other asset-backed securities	25,733		(696)		43,631		(5,454)		69,364		(6,150)
Total investment grade securities	4,108,960		(224,533)		6,522,450		(1,344,978)		10,631,410		(1,569,511)
Below investment grade securities:
States, municipalities, and political subdivisions	—		—		—		—		—		—
Corporates, by sector:
Financial	79,716		(9,059)		106,971		(43,403)		186,687		(52,462)
Utilities	8,265		(662)		20,166		(1,801)		28,431		(2,463)
Energy	—		—		34,289		(10,416)		34,289		(10,416)
Other corporate sectors	71,156		(4,350)		90,580		(18,342)		161,736		(22,692)
Total corporates	159,137		(14,071)		252,006		(73,962)		411,143		(88,033)
Collateralized debt obligations	—		—		—		—		—		—
Other asset-backed securities	—		—		11,580		(808)		11,580		(808)
Total below investment grade securities	159,137		(14,071)		263,586		(74,770)		422,723		(88,841)
Total fixed maturities	$	4,268,097	$	(238,604)	$	6,786,036	$	(1,419,748)	$	11,054,133	$	(1,658,352)

Gross unrealized losses may fluctuate quarter over quarter due to adverse factors in the market that affect our holdings, such as changes in interest rates or credit spreads. The Company considers many factors when determining whether an allowance for a credit loss should be recorded. While the Company holds securities that may be in an unrealized loss position from time to time, Globe Life does not generally intend to sell and it is likely that management will not be required to sell the fixed maturities prior to their anticipated recovery or maturity due to the strong cash flows generated by its insurance operations.

Analysis of Gross Unrealized Investment Losses

	At December 31, 2022
	Less than Twelve Months				Twelve Months or Longer				Total
	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
Fixed maturities available for sale:
Investment grade securities:
U.S. Government direct, guaranteed, and government-sponsored enterprises	$	349,887	$	(38,218)	$	3,424	$	(750)	$	353,311	$	(38,968)
States, municipalities, and political subdivisions	1,767,624		(453,149)		95,124		(52,298)		1,862,748		(505,447)
Foreign governments	6,297		(201)		25,134		(12,505)		31,431		(12,706)
Corporates, by sector:
Financial	2,837,918		(426,132)		109,784		(42,173)		2,947,702		(468,305)
Utilities	1,088,219		(116,272)		21,636		(6,268)		1,109,855		(122,540)
Energy	855,853		(91,755)		—		—		855,853		(91,755)
Other corporate sectors	4,155,986		(665,831)		94,299		(42,344)		4,250,285		(708,175)
Total corporates	8,937,976		(1,299,990)		225,719		(90,785)		9,163,695		(1,390,775)
Collateralized debt obligations	—		—		—		—		—		—
Other asset-backed securities	60,157		(5,223)		7,960		(2,435)		68,117		(7,658)
Total investment grade securities	11,121,941		(1,796,781)		357,361		(158,773)		11,479,302		(1,955,554)
Below investment grade securities:
States, municipalities, and political subdivisions	—		—		—		—		—		—
Corporates, by sector:
Financial	120,377		(18,901)		38,348		(17,283)		158,725		(36,184)
Utilities	27,722		(3,173)		—		—		27,722		(3,173)
Energy	14,480		(2,182)		20,075		(7,986)		34,555		(10,168)
Other corporate sectors	166,159		(25,962)		6,670		(4,635)		172,829		(30,597)
Total corporates	328,738		(50,218)		65,093		(29,904)		393,831		(80,122)
Collateralized debt obligations	—		—		—		—		—		—
Other asset-backed securities	—		—		10,874		(1,618)		10,874		(1,618)
Total below investment grade securities	328,738		(50,218)		75,967		(31,522)		404,705		(81,740)
Total fixed maturities	$	11,450,679	$	(1,846,999)	$	433,328	$	(190,295)	$	11,884,007	$	(2,037,294)

Fixed Maturities, Allowance for Credit Losses: A summary of the activity in the allowance for credit losses is as follows.

	Three Months Ended March 31,
	2023		2022
Allowance for credit losses beginning balance	$	—	$	387
Additions to allowance for which credit losses were not previously recorded	32,767		—
Additions (reductions) to allowance for fixed maturities that previously had an allowance	—		—
Reduction of allowance for which the Company intends to sell or more likely than not will be required to sell or sold during the period	—		(387)
Allowance for credit losses ending balance	$	32,767	$	—

As of March 31, 2023 and December 31, 2022, the Company did not have any fixed maturities in non-accrual status.

Other Long-Term Investments: Other long-term investments consist of the following assets:

	March 31, 2023		December 31, 2022
Investment funds	$	789,197	$	768,689
Commercial mortgage loan participations	204,275		181,305
Other	29,139		26,022
Total	$	1,022,611	$	976,016

The following table presents additional information about the Company's investment funds as of March 31, 2023 and December 31, 2022 at fair value:

	Fair Value				Unfunded Commitments
Investment Category	March 31, 2023		December 31, 2022		March 31, 2023		Redemption Term/Notice
Commercial mortgage loans	$	454,144	$	431,405	$	330,245	Fully redeemable and non-redeemable with varying terms.
Opportunistic credit	157,899		158,524		—		Initial 2 year lock on each new investment/semi-annual withdrawals thereafter/full redemption within 36 month period.
Infrastructure	158,036		159,534		21,366		Fully redeemable and non-redeemable with varying terms.
Other	19,118		19,226		120,079
Total investment funds	$	789,197	$	768,689	$	471,690

The Company had $21 million of capital called during the year from existing investment funds. Our unfunded commitments were $472 million as of March 31, 2023.

Commercial Mortgage Loan Participations (commercial mortgage loans): Summaries of commercial mortgage loans by property type and geographical location at March 31, 2023 and December 31, 2022 are as follows:

	March 31, 2023			December 31, 2022
	Carrying Value		% of Total	Carrying Value		% of Total
Property type:
Mixed use	$	59,965	29	$	62,375	34
Hospitality	28,033		14	27,796		15
Retail	23,744		12	15,342		9
Industrial	27,259		13	27,248		15
Multi-family	57,206		28	42,232		23
Office	11,137		6	8,101		5
Total recorded investment	207,344		102	183,094		101
Less allowance for credit losses	(3,069)		(2)	(1,789)		(1)
Carrying value, net of allowance for credit losses	$	204,275	100	$	181,305	100

	March 31, 2023			December 31, 2022
	Carrying Value		% of Total	Carrying Value		% of Total
Geographic location:
California	$	64,990	32	$	64,477	36
Texas	23,132		12	22,905		13
New York	27,570		14	19,167		11
Washington	14,939		7	14,925		8
Massachusetts	14,925		7	—		—
Florida	33,217		16	33,182		18
Other	28,571		14	28,438		15
Total recorded investment	207,344		102	183,094		101
Less allowance for credit losses	(3,069)		(2)	(1,789)		(1)
Carrying value, net of allowance for credit losses	$	204,275	100	$	181,305	100

The following tables are reflective of the key factors, debt service coverage ratios, and loan-to-value (LTV) ratios that are utilized by management to monitor the performance of the portfolios. The Company only makes new investments in commercial mortgage loans that have a LTV ratio less than 80%. Generally, a higher LTV ratio and a lower debt service coverage ratio can potentially equate to higher risk of loss.

	March 31, 2023
	Recorded Investment
	Debt Service Coverage Ratios(1)
	<1.00x		1.00x—1.20x		>1.20x		Total		% of Total
Loan-to-value ratio(2):
Less than 70%	$	24,235	$	123,466	$	20,430	$	168,131	81
70% to 80%	—		7,222		1,238		8,460		4
81% to 90%	8,307		—		—		8,307		4
Greater than 90%	7,035		15,411		—		22,446		11
Total	$	39,577	$	146,099	$	21,668	207,344		100
Less allowance for credit losses							(3,069)
Total, net of allowance for credit losses							$	204,275

(1)Annual net operating income divided by annual mortgage debt service (principal and interest).

(2)Loan balance divided by appraised value, including planned renovations and stabilized occupancy, at origination. Updated internal valuations are used when a loan is materially underperforming.

	December 31, 2022
	Recorded Investment
	Debt Service Coverage Ratios(1)
	<1.00x		1.00x—1.20x		>1.20x		Total		% of Total
Loan-to-value ratio(2):
Less than 70%	$	24,221	$	108,156	$	12,018	$	144,395	79
70% to 80%	—		22,120		1,238		23,358		13
81% to 90%	8,307		—		—		8,307		4
Greater than 90%	7,034		—		—		7,034		4
Total	$	39,562	$	130,276	$	13,256	183,094		100
Less allowance for credit losses							(1,789)
Total, net of allowance for credit losses							$	181,305

(1)Annual net operating income divided by annual mortgage debt service (principal and interest).

(2)Loan balance divided by appraised value, including planned renovations and stabilized occupancy, at origination. Updated internal valuations are used when a loan is materially underperforming.

As of March 31, 2023, the Company evaluated the commercial mortgage loan portfolio on a pool basis to determine the allowance for credit losses. At the end of the period, the Company had 25 loans in the portfolio. For the three months ended March 31, 2023, the allowance for credit losses increased $1.3 million. The provision for credit losses is included in "Realized gains (losses)" in the Condensed Consolidated Statements of Operations.

	Three Months Ended March 31,
	2023		2022
Allowance for credit losses beginning balance	$	1,789	$	827
Provision (reversal) for credit losses	1,280		—
Allowance for credit losses ending balance	$	3,069	$	827

There were no delinquent commercial mortgage loans as of March 31, 2023 and December 31, 2022. As of March 31, 2023 and December 31, 2022, the Company had no commercial mortgage loan in non-accrual status. The Company's unfunded commitment balance to commercial loan borrowers was $28 million as of March 31, 2023.