Globe Life Inc. earnings

Management highlights

Frank mentioned net income was $271 million, or $3.39 per share in Q1, net operating income $274 million, or $3.43 per share, up 12% y - ago. Matt discussed strong first quarter sales results with total life net sales up 6% and total health net sales up 58%. Different distribution channels had varying performance, like American Income Life life premiums up 5%, Liberty National life premiums up 4%, Family Heritage health premiums up 10%, direct - to - consumer life premiums down ~1% but underwriting margin up 15%, United American General Agency health premiums up 22%. Investment operations: Excess investment income $37 million, up ~$1 million y - ago, net investment income $290 million, up 3%, expected net investment income and required interest to grow ~4% full year, expected to invest ~$800 - $900 million in fixed maturities full year.

Guidance

Full year 2026 net operating earnings per diluted share estimated in range of $15.40 - $15.90, 8% growth at midpoint. Life premium revenue expected to grow 3% - 3.5% full year. Health premium revenue expected to grow 14% - 17% full year. Expected investment income growth 4% - 4.5% full year.

Segment performance

Insurance operations: Total premium revenue grew 6% in Q1 over year - ago, expected to grow ~7% full year. Life premium revenue in Q1 increased 3% to $853 million, life underwriting margin was $349 million, up 3% y - ago, 41% of premium in Q1, expected 42% - 45% full year 2026, ~41% in Q2 and Q4, higher in Q3. Health premium revenue grew 13% to $417 million, health underwriting margin up 12% to $95 million, expected 14% - 17% full year, 23% of premium in Q1, expected 23% - 27% full year. Administrative expenses were $94 million in Q1, up ~8% y - ago, 7.4% of premium, expected 7.3% of premium full year.

Risks & headwinds

Lapse rates expected to remain elevated in 2026 due to macroeconomic environment. Threat of new entrants in direct - to - consumer channel with different distribution strategies.

Analyst Q&A

• Q: Jack Madden with BMO Capital Markets asked about lapse rate trends.

  A: Matt said lapse rates expected to remain elevated in 2026 due to economic stress, considered AIL first quarter lapse rates as fluctuation, mix of business and macroeconomic factors involved.

• Q: Wilma Burtis with Raymond James asked about higher buybacks in 2026.

  A: Matt said excess cash flows finalized were higher than last call range, opportunity to accelerate share repurchases due to favorable market conditions in Q1.

• Q: Wes Carmichael with Wells Fargo asked about life sales, agent count, and premium growth.

  A: Matt broke down by distribution channels, Liberty growing as expected, American Income Life compensation structure driving sales but agent count growth behind, direct - to - consumer sales growth tempered but still pleased.

• Q: Pablo Sington with JP Morgan asked about anti - selection risk in health business and remeasurement gains.

  A: Matt said not a function of anti - selection, seasonality and rate increases driving first quarter health margins, remeasurement gains on life largely from mortality claims, on health from future rate increases.

• Q: Randy Binner with Texas Capital asked about qualitative assessment of mortality assumptions and American income agent retention.

  A: Matt said mortality trends from lifestyle behavior, non - medical deaths improving, American Income Life agent retention focusing on early days, balance between recruiting and sales in incentive compensation.