Business Segments

12 Months Ended

Dec. 31, 2023

Segment Reporting [Abstract]

Business Segments

Note 15—Business Segments

Globe Life is organized into four segments: life insurance, supplemental health insurance, annuities, and investments. In addition, other expenses not included in these segments are reported in "Corporate & Other."

Globe Life's reportable insurance segments are based on the insurance product lines it markets and administers: life insurance, supplemental health insurance, and annuities. These major product lines are set out as reportable segments because of the common characteristics of products within these categories, comparability of margins, and the similarity in regulatory environment and management techniques. There is also an investment segment that manages the investment portfolio and cash flow for the insurance segments and the corporate function, which has been retrospectively adjusted to exclude the interest on deferred acquisition costs due to the adoption of ASU 2018-12 and the interest on debt. The Company's chief operating decision makers 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. An immaterial amount of annuities sold as companion products are included in the life segment. Health insurance products are generally guaranteed renewable and include Medicare Supplement, cancer, critical illness, accident, and other limited-benefit supplemental hospital and surgical products. Annuities include fixed-benefit contracts.

The following tables present segment premium revenue by each of Globe Life's distribution channels.

Premium Income by Distribution Channel

	For the Year 2023
	Life			Health			Annuity			Total
Distribution Channel	Amount		% of Total	Amount		% of Total	Amount		% of Total	Amount		% of Total
American Income	$	1,588,702	51	$	120,332	9	$	—	—	$	1,709,034	38
Direct to Consumer	991,406		32	68,575		5	—		—	1,059,981		24
Liberty National	349,736		11	187,934		14	—		—	537,670		12
United American	7,311		—	545,723		42	—		—	553,034		13
Family Heritage	6,134		—	396,209		30	—		—	402,343		9
Other	193,955		6	—		—	—		—	193,955		4
	$	3,137,244	100	$	1,318,773	100	$	—	—	$	4,456,017	100

	For the Year 2022
	Life			Health			Annuity			Total
Distribution Channel	Amount		% of Total	Amount		% of Total	Amount		% of Total	Amount		% of Total
American Income	$	1,505,034	50	$	117,353	9	$	—	—	$	1,622,387	38
Direct to Consumer	985,488		33	71,129		5	—		—	1,056,617		24
Liberty National	327,469		11	187,241		15	—		—	514,710		12
United American	7,966		—	539,874		42	1		100	547,841		13
Family Heritage	5,586		—	366,820		29	—		—	372,406		9
Other	196,281		6	—		—	—		—	196,281		4
	$	3,027,824	100	$	1,282,417	100	$	1	100	$	4,310,242	100

	For the Year 2021
	Life			Health			Annuity			Total
Distribution Channel	Amount		% of Total	Amount		% of Total	Amount		% of Total	Amount		% of Total
American Income	$	1,401,898	48	$	114,742	9	$	—	—	$	1,516,640	37
Direct to Consumer	968,365		34	73,976		6	—		—	1,042,341		25
Liberty National	311,200		11	187,669		16	—		—	498,869		12
United American	8,892		—	480,656		40	1		100	489,549		12
Family Heritage	4,957		—	343,839		29	—		—	348,796		9
Other	198,618		7	—		—	—		—	198,618		5
	$	2,893,930	100	$	1,200,882	100	$	1	100	$	4,094,813	100

Due to the nature of the life 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 chief operating decision makers 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 and annuity segments) 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 income earned on the investment portfolio in excess of policy requirements. During the implementation of ASU 2018-12, the Company reviewed its segment disclosures and modified the measure of profitability of our Investment Segment due to the adoption impact of the standard and to align more appropriately with how we view and measure this segment. As of January 1, 2023, this measure was retrospectively adjusted to exclude the interest on deferred acquisition costs due to the adoption of ASU 2018-12 and the interest expense on debt. Other than the above-mentioned interest allocations, 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. With the exception of the administrative settlements, all of these items are included in “Other operating expense” in the 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.

	Year Ended December 31, 2023
	Life		Health		Annuity		Investment		Corporate & Other		Adjustments			Consolidated
Revenue:
Premium	$	3,137,244	$	1,318,773	$	—	$	—	$	—	$	—		$	4,456,017
Net investment income	—		—		—		1,056,884		—		—			1,056,884
Other income	—		—		—		—		308		—			308
Total revenue	3,137,244		1,318,773		—		1,056,884		308		—			5,513,209
Expenses:
Policy obligations	2,050,789		776,362		28,039		9,061		—		—			2,864,251
Required interest on reserves	(772,701)		(106,516)		(38,224)		917,441		—		—			—
Required interest on DAC	—		—		—		—		—		—			—
Amortization of acquisition costs	327,426		50,598		1,676		—		—		—			379,700
Commissions, premium taxes, and non-deferred acquisition costs	338,758		220,392		17		—		—		—			559,167
Insurance administrative expense(1)	—		—		—		—		301,161		900		(2)	302,061
Parent expense	—		—		—		—		10,866		4,170		(3)	15,036
Stock-based compensation expense	—		—		—		—		30,736		—			30,736
Interest expense	—		—		—		—		102,316		—			102,316
Total expenses	1,944,272		940,836		(8,492)		926,502		445,079		5,070			4,253,267
Subtotal	1,192,972		377,937		8,492		130,382		(444,771)		(5,070)			1,259,942
Non-operating items	—		—		—		—		—		5,070		(2,3)	5,070
Measure of segment profitability (pretax)	$	1,192,972	$	377,937	$	8,492	$	130,382	$	(444,771)	$	—		1,265,012
Realized gain (loss)—investments														(65,676)
Legal proceedings														(900)
Non-operating expenses														(4,170)
Income before income taxes per Consolidated Statements of Operations														$	1,194,266

(1)Administrative expense is not allocated to insurance segments.

(2)Legal proceedings

(3)Non-operating expenses.

	Year Ended December 31, 2022
	Life		Health		Annuity		Investment		Corporate & Other		Adjustments			Consolidated
Revenue:
Premium	$	3,027,824	$	1,282,417	$	1	$	—	$	—	$	—		$	4,310,242
Net investment income	—		—		—		991,800		—		—			991,800
Other income	—		—		—		—		1,246		—			1,246
Total revenue	3,027,824		1,282,417		1		991,800		1,246		—			5,303,288
Expenses:
Policy obligations	2,035,693		752,866		32,503		4,372		—		—			2,825,434
Required interest on reserves	(735,688)		(102,315)		(44,836)		882,839		—		—			—
Amortization of acquisition costs	298,841		48,185		1,798		—		—		—			348,824
Commissions, premium taxes, and non-deferred acquisition costs	299,453		206,544		25		—		—		—			506,022
Insurance administrative expense(1)	—		—		—		—		299,341		8,175		(2,3)	307,516
Parent expense	—		—		—		—		11,156		(368)		(3)	10,788
Stock-based compensation expense	—		—		—		—		35,650		—			35,650
Interest expense	—		—		—		—		90,395		—			90,395
Total expenses	1,898,299		905,280		(10,510)		887,211		436,542		7,807			4,124,629
Subtotal	1,129,525		377,137		10,511		104,589		(435,296)		(7,807)			1,178,659
Non-operating items	—		—		—		—		—		7,807		(2,3)	7,807
Measure of segment profitability (pretax)	$	1,129,525	$	377,137	$	10,511	$	104,589	$	(435,296)	$	—		1,186,466
Realized gain (loss)—investments														(76,548)
Legal proceedings														(2,496)
Non-operating expenses														(5,311)
Income before income taxes per Consolidated Statements of Operations														$	1,102,111

(1)Administrative expense is not allocated to insurance segments.

(2)Legal proceedings.

(3)Non-operating expenses.

	Year Ended December 31, 2021
	Life		Health		Annuity		Investment		Corporate & Other		Adjustments			Consolidated
Revenue:
Premium	$	2,893,930	$	1,200,882	$	1	$	—	$	—	$	—		$	4,094,813
Net investment income	—		—		—		956,690		—		—			956,690
Other income	—		—		—		—		1,216		—			1,216
Total revenue	2,893,930		1,200,882		1		956,690		1,216		—			5,052,719
Expenses:
Policy obligations	1,897,194		721,309		34,975		4,243		—		1,325		(2)	2,659,046
Required interest on reserves	(710,301)		(98,477)		(46,695)		855,473		—		—			—
Required interest on DAC	—		—		—		—		—		—			—
Amortization of acquisition costs	270,924		44,824		1,868		—		—		—			317,616
Commissions, premium taxes, and non-deferred acquisition costs	274,475		180,748		27		—		—		—			455,250
Insurance administrative expense(1)	—		—		—		—		271,631		10,398		(3,4)	282,029
Parent expense	—		—		—		—		9,553		175		(4)	9,728
Stock-based compensation expense	—		—		—		—		30,272		—			30,272
Interest expense	—		—		—				83,486		—			83,486
Total expenses	1,732,292		848,404		(9,825)		859,716		394,942		11,898			3,837,427
Subtotal	1,161,638		352,478		9,826		96,974		(393,726)		(11,898)			1,215,292
Non-operating items	—		—		—		—		—		11,898		(2,3,4)	11,898
Measure of segment profitability (pretax)	$	1,161,638	$	352,478	$	9,826	$	96,974	$	(393,726)	$	—		1,227,190
Realized gain (loss)—investments														68,633
Realized loss—redemption of debt														(9,314)
Administrative settlements														(1,325)
Legal proceedings														(8,139)
Non-operating expenses														(2,434)
Income before income taxes per Consolidated Statements of Operations														$	1,274,611

(1)Administrative expense is not allocated to insurance segments.

(2)Administrative settlements.

(3)Legal proceedings.

(4)Non-operating expenses.

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 Corporate & Other category. The tables below reconcile segment assets to total assets as reported on the Consolidated Balance Sheets.

Assets by Segment

	At December 31, 2023
	Life		Health		Annuity		Investment		Corporate & Other		Consolidated
Cash and invested assets	$	—	$	—	$	—	$	19,827,199	$	—	$	19,827,199
Accrued investment income	—		—		—		270,396		—		270,396
Deferred acquisition costs	5,271,775		734,735		2,967		—		—		6,009,477
Goodwill	309,609		172,182		—		—		—		481,791
Other assets	—		—		—		—		1,462,636		1,462,636
Total assets	$	5,581,384	$	906,917	$	2,967	$	20,097,595	$	1,462,636	$	28,051,499

	At December 31, 2022
	Life		Health		Annuity		Investment		Corporate & Other		Consolidated
Cash and invested assets	$	—	$	—	$	—	$	18,300,927	$	—	$	18,300,927
Accrued investment income	—		—		—		259,581		—		259,581
Deferred acquisition costs	4,844,291		686,763		4,643		—		—		5,535,697
Goodwill	309,609		172,182				—		—		481,791
Other assets	—		—		—		—		1,408,801		1,408,801
Total assets	$	5,153,900	$	858,945	$	4,643	$	18,560,508	$	1,408,801	$	25,986,797

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 are included in Other 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, 2023
	Life		Health		Annuity		Investment		Corporate & Other		Consolidated
Future policy benefits	$	16,304,797	$	2,382,517	$	773,039	$	—	$	—	$	19,460,353
Unearned and advance premiums	196,630		57,937		—		—		—		254,567
Policy claims and other benefits payable	320,066		194,809		—		—		—		514,875
Debt	—		—		—		2,115,672		—		2,115,672
Other	98,958		—		—		138,000		982,271		1,219,229
Total liabilities	$	16,920,451	$	2,635,263	$	773,039	$	2,253,672	$	982,271	$	23,564,696

	At December 31, 2022
	Life		Health		Annuity		Investment		Corporate & Other		Consolidated
Future policy benefits	$	14,936,157	$	2,206,866	$	954,318	$	—	$	—	$	18,097,341
Unearned and advance premiums	196,263		57,097		—		—		—		253,360
Policy claims and other benefits payable	325,070		184,286		—		—		—		509,356
Debt	—		—		—		2,077,055		—		2,077,055
Other	—		—		—		23,000		1,077,108		1,100,108
Total liabilities	$	15,457,490	$	2,448,249	$	954,318	$	2,100,055	$	1,077,108	$	22,037,220