GLOBE LIFE INC
For the period ended Jun 30, 2024. Filed Aug 7, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2024 · Filed Aug 7, 2024
GL$157.18-1.3%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-03-31; filed 2024-05-08.
0000320335-24-000025
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsAnalysis of Profitability by SegmentLifeHealthCurrent report: 10-Q
Period ended 2024-06-30; filed 2024-08-07.
0000320335-24-000048
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsAnalysis of Profitability by SegmentLifeHealthThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 195 previous paragraphs and 200 current paragraphs.
126 unchanged; 68 reworded; 6 added; 1 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 30 previous and 30 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (6)
Current report
Excluding our Direct to Consumer Division, we sell our policies primarily through independently contracted agents (“agents”) who earn commissions in accordance with contracts they have with the respective insurance subsidiary of the Company. These contract arrangements with agents cover commission structures and rates, contract periods, credit terms for settlement of agent advance accounts, vesting rights in future renewal commissions upon termination of contracts and responsibility for premium collections. Contract terms with agents vary, but generally commissions are earned over the life of the policy as premiums are paid. Commissions are calculated on a policy-by-policy basis and vary by product type and policy year. Commission rates are higher for the first-year premium when a policy is issued and are generally reduced for policies that remain in effect for renewal periods (e.g., commission rates may reduce in years 2-10 and again in year 11 and after). After a certain period (typically 10 years), commission rates become constant over the remaining life of the policy and are considered level commissions.
Current report
Generally, commissions are paid to an agent when due over the life of a policy as premiums are paid. However, some agents may qualify to have their commissions (primarily first-year commissions) paid in advance of when the commissions are earned. To the extent an advance is made, we will generally advance up to 65% of first year commissions. This creates an agent debit balance which is classified within “Other receivables” in the consolidated financial statements. If an agent has an agent debit balance with the company, commissions earned by that agent are generally first applied to reduce the amounts owed the company. Any excess will be paid to the agent in cash.
Current report
Commissions are earned by the agent over the contract period as long as premium is paid by the policyholder and the policy stays in force. As the commissions are earned by the agent and commission expense is incurred by the Company the agent debit balance is reduced. The portion of commission expense incurred related to non-level commissions is deferred and recorded as “Deferred acquisition cost.” The portion of level commission is recognized as an expense within “Commissions, premium taxes, and non-deferred acquisition costs.”
Current report
Cancellations are not included in lapses.
Current report
Approximately 90% of our premiums are collected monthly; however, other premium payment options such as quarterly and annual are offered by the Company and may be elected by the policyholder. The majority of premiums are paid by way of automatic draft or electronic payment from our policyholders and to a lesser extent from other payment methods such as check, credit card, and worksite payroll deduction.
Current report
Net sales rose 5% in the six months ended June 30, 2024 over the same period in 2023 due primarily to increased agent count.
Removed paragraphs (1)
Previous report
Net sales fell 2% in the three months ended March 31, 2024 over the same period in 2023. In the first quarter, a new underwriting and new-business platform was implemented, which resulted in a temporary slowdown in the time to issue policies.
Reworded paragraphs (68)
Previous wording
•Net income as a return on equity (ROE) for the three months ended March 31, 2024 was 21.3% and net operating income as an ROE, excluding accumulated other comprehensive income(1) was 14.3%.
Current wording
•Net income as a return on equity (ROE) for the six months ended June 30, 2024 was 20.8% and net operating income as an ROE, excluding accumulated other comprehensive income(1) was 14.5%.
Previous wording
•Total premium increased 5% over the same period in the prior year. Life premium increased 4% for the period from $773 million in 2023 to $804 million in 2024.
Current wording
•Total premium increased 5% over the same period in the prior year. Life premium increased 4% for the period from $1.55 billion in 2023 to $1.62 billion in 2024.
Previous wording
•Total net sales increased 7% over the same period in the prior year from $190 million in 2023 to $204 million in 2024. The average producing agent count across all of the exclusive agencies increased 13% over the prior year.
Current wording
•Total net sales increased 10% over the same period in the prior year from $379 million in 2023 to $415 million in 2024. The average producing agent count across all of the exclusive agencies increased 13% over the prior year.
Previous wording
•Book value per share increased 33% over the same period in the prior year from $39.74 to $53.03. Book value per share, excluding accumulated other comprehensive income(1), increased 12% over the prior year from $70.34 in 2023 to $79.00 in 2024.
Current wording
•Book value per share increased 40% over the same period in the prior year from $41.44 to $58.06. Book value per share, excluding accumulated other comprehensive income(1), increased 14% over the prior year from $72.09 in 2023 to $82.38 in 2024.
Previous wording
The following graphs represent net income and net operating income for the three month periods ended March 31, 2024 and 2023.
Current wording
The following graphs represent net income and net operating income for the six month periods ended June 30, 2024 and 2023.
Previous wording
Net operating income as an ROE, excluding accumulated other comprehensive income (AOCI), is considered a non-GAAP measure. Management utilizes this measure to view the business without the effect of changes in AOCI, which are primarily attributable to fluctuation in interest rates. The impact of the adjustment to exclude AOCI is $(2.47) billion and $(2.96) billion for the three months ended March 31, 2024 and 2023, respectively.
Current wording
Net operating income as an ROE, excluding accumulated other comprehensive income (AOCI), is considered a non-GAAP measure. Management utilizes this measure to view the business without the effect of changes in AOCI, which are primarily attributable to fluctuation in interest rates. The impact of the adjustment to exclude AOCI is $(2.2) billion and $(2.9) billion for the six months ended June 30, 2024 and 2023, respectively.
Previous wording
Book value per share, excluding AOCI, is also considered a non-GAAP measure. Management utilizes this measure to view the book value of the business without the effect of changes in AOCI, which are primarily attributable to fluctuation in interest rates. The impact of the adjustment to exclude AOCI is $(25.97) and $(30.60) for the three months ended March 31, 2024 and 2023, respectively.
Current wording
Book value per share, excluding AOCI, is also considered a non-GAAP measure. Management utilizes this measure to view the book value of the business without the effect of changes in AOCI, which are primarily attributable to fluctuation in interest rates. The impact of the adjustment to exclude AOCI is $(24.32) and $(30.65) for the six months ended June 30, 2024 and 2023, respectively.
Previous wording
Summary of Operations. Net income increased 14% to $254 million during the three months ended March 31, 2024, compared with $224 million in the same period in 2023. On a diluted per common share basis, net income per common share for the three months ended March 31, 2024 increased 17% from $2.28 to $2.67.
Current wording
Summary of Operations. Net income increased 17% to $513 million during the six months ended June 30, 2024, compared with $439 million in the same period in 2023. On a diluted per common share basis, net income per common share for the six months ended June 30, 2024 increased 22% from $4.52 to $5.51.
Previous wording
Net operating income increased 6% to $264 million for the three months ended March 31, 2024, compared with $248 million for the same period in 2023, primarily due to a 50% increase in excess investment income as well as a 6% increase in life underwriting margin. On a diluted per common share basis, net operating income per common share for the three months ended March 31, 2024 increased from $2.53 to $2.78, a 10% increase. Net operating income is the consolidated total of segment profits after tax and as such is considered a non-GAAP measure. Net income is the most directly comparable GAAP measure. We do not consider realized gains and losses to be a component of our core insurance operations or operating segments. Additionally, net income was affected by certain non-operating items. We do not view these items as components of core operating results because they are not indicative of past performance or future prospects of the insurance operations. We remove items such as these that relate to prior periods or are non-operating items when evaluating the results of current operations, and therefore exclude such items from our segment analysis for current periods.
Current wording
Net operating income increased 7% to $535 million for the six months ended June 30, 2024, compared with $500 million for the same period in 2023, primarily due to a 43% increase in excess investment income as well as a 7% increase in life underwriting margin. On a diluted per common share basis, net operating income per common share for the six months ended June 30, 2024 increased from $5.15 to $5.76, a 12% increase. Net operating income is the consolidated total of segment profits after tax and as such is considered a non-GAAP measure. Net income is the most directly comparable GAAP measure. We do not consider realized gains and losses to be a component of our core insurance operations or operating segments. Additionally, net income was affected by certain non-operating items. We do not view these items as components of core operating results because they are not indicative of past performance or future prospects of the insurance operations. We remove items such as these that relate to prior periods or are non-operating items when evaluating the results of current operations, and therefore exclude such items from our segment analysis for current periods.
Previous wording
The liability for future policy benefits is determined each reporting period based on the net level premium method. Net level premiums reflect a recomputed net premium ratio using actual experience since the issue date, and expected future experience based on future cash-flow assumptions. See Note 6—Policy Liabilities for additional information. The policy liability is accrued as premium revenue is recognized and adjusted for differences between actual and expected experience in the form of remeasurement gains and losses during the period.
Current wording
Net operating income is primarily comprised of insurance underwriting margin plus excess investment income, offset by operating expenses. As previously noted, a component of insurance underwriting margin is policy obligations, which includes for each reporting period the change in the liability for future policy benefits (LFPB). The LFPB is determined each reporting period based on the net level premium method. Net level premiums reflect a recomputed net premium ratio using actual experience since the issue date, and expected future experience based on future cash-flow assumptions. See Note 6—Policy Liabilities for additional information. The policy liability is accrued as premium revenue is recognized and adjusted for differences between actual and expected experience in the form of remeasurement gains and losses during the period. If actual mortality, morbidity, and lapse experience equals our expected assumptions used in the development of our liability for future policy benefits, there would be no impact to our financial results. Actual experience can have a material impact on financial results to the extent it significantly deviates from the expected assumptions which are used to develop our estimates of the liability for future policy benefits and amortization of the deferred acquisition cost asset (DAC). For example, deviations in actual versus expected lapses in the early policy years tend to have a larger impact on DAC amortization than LFPB change in reserves. Conversely, deviations in actual versus expected lapses in the later policy years typically have a larger impact on LFPB change in reserves than DAC amortization. This is due to the release of DAC and LFPB where DAC capitalization in earlier years is amortizing over time and the LFPB is increasing over time as the policy stays inforce. Disaggregated rollforwards of our present value of expected future net premiums and our expected future policy benefits are presented within Note 6—Policy Liabilities, which include disclosure of remeasurement gain (loss) for the effect of actual variances from expected experience and the changes in assumptions (mortality, morbidity, and lapses) on future cash flows.
Previous wording
The life insurance segment is our primary segment and is the largest contributor to earnings in each period presented. The life insurance segment underwriting margin increased $18 million compared with the prior period, primarily a result of increased premiums and favorable policy obligations as a percent of premium. Excess investment income increased $15 million compared with the prior period, resulting from growth in our invested assets and increased yields due to higher interest rates. The health segment contributed to the growth in income as well, contributing $94 million of underwriting margin in the first three months of 2024 compared with $91 million in the first three months of 2023.
Current wording
The life insurance segment is our primary segment and is the largest contributor to earnings in each period presented. The life insurance segment underwriting margin increased $42 million compared with the prior period, primarily a result of increased premiums and favorable policy obligations as a percent of premium. Excess investment income increased $26 million compared with the prior period, resulting from growth in our invested assets and increased yields due to higher interest rates. The health segment contributed to the growth in income as well, contributing $194 million of underwriting margin in the first six months of 2024 compared with $184 million in the first six months of 2023.
Previous wording
In 2024, the largest contributor of total underwriting margin was the life insurance segment and the primary distribution channel was the American Income Life Division (American Income). The following charts represent the breakdown of total underwriting margin by operating segment and distribution channel for the three months ended March 31, 2024.
Current wording
In 2024, the largest contributor of total underwriting margin was the life insurance segment and the primary distribution channel was the American Income Life Division (American Income). The following charts represent the breakdown of total underwriting margin by operating segment and distribution channel for the six months ended June 30, 2024.
Previous wording
Total premium income rose 5% for the three months ended March 31, 2024 to $1.15 billion. Total net sales increased 7% to $204 million, when compared with 2023. Total first-year collected premium (defined in the following section) increased 10% to $161 million for 2024 compared to $146 million in 2023.
Current wording
Total premium income rose 5% for the six months ended June 30, 2024 to $2.31 billion. Total net sales increased 10% to $415 million, when compared with 2023. Total first-year collected premium (defined in the following section) increased 12% to $333 million for 2024 compared to $297 million in 2023.
Previous wording
Life insurance premium income increased 4% to $804 million over the prior-year total of $773 million. Life net sales rose 7% to $149 million for the first three months of 2024. First-year collected life premium increased 8% to $111 million. Life underwriting margin, as a percent of premium, was flat at 38% for 2024 and 2023. Underwriting margin increased to $309 million in 2024, compared to $291 million for the same period in 2023.
Current wording
Life insurance premium income increased 4% to $1.62 billion over the prior-year total of $1.55 billion. Life net sales rose 8% to $303 million for the first six months of 2024. First-year collected life premium increased 9% to $227 million. Life underwriting margin, as a percent of premium, increased to 39% for 2024 from 38%. Underwriting margin increased to $629 million in 2024, compared to $587 million for the same period in 2023.
Previous wording
Health insurance premium income increased 6% to $341 million over the prior-year total of $322 million. Health net sales rose 9% to $54 million for the first three months of 2024. First-year collected health premium rose 17% to $51 million. Health underwriting margin, as a percent of premium, was 27% in 2024, compared to 28% for the same period in 2023. Health underwriting margin increased 3% to $94 million for the first three months of 2024, compared to the same period in 2023.
Current wording
Health insurance premium income increased 6% to $693 million over the prior-year total of $652 million. Health net sales rose 13% to $112 million for the first six months of 2024. First-year collected health premium rose 20% to $107 million. Health underwriting margin, as a percent of premium, was 28% for 2024 and 2023. Health underwriting margin increased 6% to $194 million for the first six months of 2024, compared to the same period in 2023.
Previous wording
Excess investment income, the measure of profitability of our investment segment, increased 50% during the first three months of 2024 to $43.8 million from $29.3 million in the same period in 2023. Excess investment income per common share, reflecting the impact of our share repurchase program and increased net investment income, increased 53% to $0.46 from $0.30 when compared with the same period in 2023.
Current wording
Excess investment income, the measure of profitability of our investment segment, increased 43% during the first six months of 2024 to $86.6 million from $60.6 million in the same period in 2023. Excess investment income per common share, reflecting the impact of our share repurchase program and increased net investment income, increased 50% to $0.93 from $0.62 when compared with the same period in 2023.
Previous wording
Insurance administrative expenses increased 9% in 2024 when compared with the prior-year period. These expenses were 7.0% as a percent of premium during 2024 compared to 6.7% in 2023.
Current wording
Insurance administrative expenses increased 9% in 2024 when compared with the prior-year period. These expenses were 7.0% as a percent of premium during 2024 compared to 6.8% in 2023.
Previous wording
For the three months ended March 31, 2024, the Company repurchased 128 thousand Globe Life Inc. shares at a total cost of $15.6 million for an average share price of $122.13.
Current wording
For the six months ended June 30, 2024, the Company repurchased 4.0 million Globe Life Inc. shares at a total cost of $330 million for an average share price of $83.17.
Previous wording
•Net sales are calculated as annualized premium issued, net of cancellations in the first thirty days after issue, except in the case of Direct to Consumer, where net sales is annualized premium issued at the time the first full premium is paid after any introductory offer period has expired. Management considers net sales to be a better indicator of the rate of premium growth than annualized premium issued.
Current wording
•Net sales is calculated as annualized premium issued, net of cancellations in the first thirty days after issue, except in the case of Direct to Consumer, where net sales is annualized premium issued at the time the first full premium is paid after any introductory offer period (typically 1 month) has expired. Management considers net sales to be a better indicator of the rate of premium growth than annualized premium issued since annualized premium issued excludes cancellations, and cancellations do not contribute to premium income.
Previous wording
•First-year collected premium is defined as the premium collected during the reporting period for all policies in their first policy year. First-year collected premium takes lapses into account in the first year when lapses are more likely to occur, and thus is a useful indicator of how much new premium is expected to be added to premium income in the future.
Current wording
•First-year collected premium is defined as the premium collected during the reporting period for all policies in their first policy year. First-year collected premium takes lapses into account in the first year when lapses are more likely to occur, and thus is a useful indicator of how much new premium is expected to be added to premium income in the future. First-year collected premiums are lower than net sales over the prior 12 months because premiums are not collected on lapsed policies after the date of lapse.
Previous wording
Net policy obligations amounted to 40% of premium for the three months ended March 31, 2024 compared to 41% in the year ago period.
Current wording
Net policy obligations amounted to 39% of premium for the six months ended June 30, 2024 compared to 41% in the year ago period.
Previous wording
Annualized life premium in force was $3.23 billion at March 31, 2024, an increase of 4% over $3.11 billion a year earlier.
Current wording
Annualized life premium in force was $3.27 billion at June 30, 2024, an increase of 4% over $3.14 billion a year earlier.
Previous wording
The American Income Life Division markets to members of labor unions and other affinity groups and continues to diversify its lead sources, utilizing third-party internet vendor leads and obtaining referrals to facilitate sustainable growth. This division is Globe Life's largest contributor of life premium of any distribution channel at 52% of the Company's March 31, 2024 total life premium. For the three months ended March 31, 2024, the average monthly life premium issued per policy was $58 as compared to $53 for the same period in the prior year. Net sales were $97 million for the three months ended March 31, 2024, up from $83 million in the year-ago period. The underwriting margin, as a percent of premium, was 45% for the three months ended March 31, 2024 and 2023.
Current wording
The American Income Life Division markets to members of labor unions and other affinity groups and continues to diversify its lead sources, utilizing third-party internet vendor leads and obtaining referrals to facilitate sustainable growth. This Division is Globe Life's largest contributor of life premium of any distribution channel at 52% of the Company's June 30, 2024 total life premium. For the six months ended June 30, 2024, the average monthly life premium issued per policy was $57 as compared to $53 for the same period in the prior year. Net sales were $192 million for the six months ended June 30, 2024, up from $165 million in the year-ago period. The underwriting margin, as a percent of premium, was 45% for the six months ended June 30, 2024 and 2023.
Previous wording
Below is the average producing agent count for the three months ended for the American Income Life Division. The average producing agent count is based on the actual count at the beginning and end of each week during the year. The average producing agent count increased 15% over the year-ago period, and over 65% of the division's net sales are driven by agents that have been producing for the division for 6 months or more. The increase in average producing agent count was driven by an increase in new agent recruiting. Sales growth in this division, as well as within our other exclusive agencies, is generally dependent on growth in the size of the agency force.
Current wording
Below is the average producing agent count for the six months ended June 30, 2024 for the American Income Life Division. The average producing agent count is based on the actual count at the beginning and end of each week during the year. The average producing agent count increased 14% over the year-ago period, and over 65% of the Division's net sales are driven by agents that have been producing for the Division for 6 months or more. The increase in average producing agent count was driven by an increase in new agent recruiting along with continued improvement in new agent retention. Sales growth in this Division, as well as within our other exclusive agencies, is generally dependent on growth in the size of the agency force.
Previous wording
American Income Life continues to focus on growing and strengthening the agency force, specifically through emphasis on agency middle-management growth and additional agency office openings. In addition to offering financial incentives and training opportunities, the agency has made considerable investments in information technology, including a customer relationship management (CRM) tool for the agency force. This tool is designed to drive productivity in lead distribution, conservation of business, manager dashboards and new agent recruiting. Additionally, this division has invested in and successfully implemented technology that allows the agency force to engage in virtual recruiting, training, and sales activity. The agents have shifted to primarily a virtual experience with the customers and have generated a vast majority of sales through virtual presentations. We find this flexibility to be enticing for new recruits as well as a driver of sustainability for our agency force.
Current wording
American Income Life continues to focus on growing and strengthening the agency force, specifically through emphasis on agency middle-management growth and additional agency office openings. In addition to offering financial incentives and training opportunities, the Division has made considerable investments in information technology, including a customer relationship management (CRM) tool for the agency force. This tool is designed to drive productivity in lead distribution, conservation of business, manager dashboards and new agent recruiting. Additionally, this Division has invested in and successfully implemented technology that allows the agency force to engage in virtual recruiting, training, and sales activity. The agents have shifted to primarily a virtual experience with the customers and have generated a vast majority of sales through virtual presentations. We find this flexibility to be enticing for new recruits as well as a driver of sustainability for our agency force.
Previous wording
The Direct to Consumer Division (DTC) offers adult and juvenile life insurance through a variety of marketing approaches, including direct mailings, insert media, and electronic media. In recent years, production from electronic media, which is comprised of sales through both the internet and inbound phone calls to our call center, continue to be the customer preference when compared to direct mail. The proportion of sales from the internet and inbound phone calls continue to outpace the activity from the direct mailings, but all three channels continue to work in an omnichannel approach. The different media channels support and complement one another in the division's efforts to reach the consumer. Additionally, this channel provides critical support to our agency business through brand impressions and the generation of sales leads. The DTC's long-term growth has been fueled by constant innovation and name recognition. We continually introduce new initiatives in this division in an attempt to increase response rates and create a seamless customer experience.
Current wording
The Direct to Consumer Division (DTC) offers adult and juvenile life insurance through a variety of marketing approaches, including direct mailings, insert media, and electronic media. In recent years, production from electronic media, which is comprised of sales through both the internet and inbound phone calls to our call center, continue to be the customer preference when compared to direct mail. The proportion of sales from the internet and inbound phone calls continue to outpace the activity from the direct mailings, but all three channels continue to work in an omnichannel approach. The different media channels support and complement one another in the Division's efforts to reach the consumer. Additionally, this channel provides critical support to our agency business through brand impressions and the generation of sales leads. DTC's long-term growth has been fueled by constant innovation and name recognition. We continually introduce new initiatives in this Division in an attempt to increase response rates and create a seamless customer experience.
Previous wording
DTC net sales declined 12% to $29 million for the three months ended March 31, 2024 compared with $32 million for the same period in the prior year. This decline is due primarily to reductions in direct mail and mailing insert marketing activity resulting from the impact of inflation on postage, paper and online advertising costs. While total sales have declined, the focus has been on improving profitability and improving the underwriting margin. DTC’s underwriting margin, as a percent of premium, was 24% for the three months ended March 31, 2024 compared with 23% for the same period in 2023.
Current wording
DTC net sales declined 8% to $59 million for the six months ended June 30, 2024 compared with $64 million for the same period in the prior year. This decline is due primarily to reductions in direct mail and mailing insert marketing activity resulting from the impact of inflation on postage, paper and online advertising costs. While total sales have declined, the focus has been on improving profitability and improving the underwriting margin. DTC’s underwriting margin, as a percent of premium, was 25% for the six months ended June 30, 2024 compared with 23% for the same period in 2023.
Previous wording
The Liberty National Division markets individual life insurance to middle-income household and worksite customers. Recent investments in new sales technologies as well as recent growth in middle management within the agency are expected to help continue this growth. The underwriting margin as a percent of premium was 34% for the three months ended March 31, 2024, up from 32% during the same period a year ago. The increase isprimarily attributable toincreased premiums and lower policy obligations as a percent of premium, during thecurrent quarter of 2024 as compared to same period in 2023. For the three months ended March 31, 2024, the average monthly life premium per policy issued was $44 compared with $43 for the same period in the prior year.
Current wording
The Liberty National Division markets individual life insurance to middle-income household and worksite customers. Recent investments in new sales technologies as well as recent growth in middle management within the agency are expected to help continue this growth. The underwriting margin as a percent of premium was 34% for the six months ended June 30, 2024, up from 33% during the same period a year ago. The increase isprimarily attributable toincreased premiums and lower policy obligations as a percent of premium, duringthe first six months of 2024 as compared to same period in 2023. For the six months ended June 30, 2024, the average monthly life premium per policy issued was $43 the same as in the prior year period.
Previous wording
Below is the average producing agent count for the three months ended for the Liberty National Division. The average producing agent count is based on the actual count at the beginning and end of each week during the year.
Current wording
Below is the average producing agent count for the six months ended June 30, 2024 and 2023 for the Liberty National Division. The average producing agent count is based on the actual count at the beginning and end of each week during the year.
Previous wording
The Other Agencies distribution channels primarily include non-exclusive independent agencies selling primarily life insurance. The other distribution channels contributed $51 million of life premium income, or 6% of Globe Life's total life premium income in the three months ended March 31, 2024, and contributed 1% of net sales for the period.
Current wording
The Other agency distribution channels primarily include non-exclusive independent agencies selling primarily life insurance. The other distribution channels contributed $102 million of life premium income, or 6% of Globe Life's total life premium income in the six months ended June 30, 2024, and contributed 1% of net sales for the period.
Previous wording
Health premium accounted for 30% of our total premium in 2024, while the health underwriting margin accounted for 23% of total underwriting margin. Health underwriting margin increased 3% to $94 million compared to $91 million in the prior year. The Company continues to emphasize life insurance sales relative to health due to life’s superior long-term profitability and its greater contribution to excess investment income.
Current wording
Health premium accounted for 30% of our total premium in 2024, while the health underwriting margin accounted for 24% of total underwriting margin. Health underwriting margin increased 6% to $194 million compared to $184 million in the prior year. The Company continues to emphasize life insurance sales relative to health due to life’s superior long-term profitability and its greater contribution to excess investment income.
Previous wording
Premium related to limited-benefit supplemental health products comprise $192 million, or 56%, of the total health premiums for the three months ended March 31, 2024, compared with $180 million, or 56%, in the same period in the prior year. Premium from Medicare Supplement products comprises the remaining $149 million, or 44%, for the three months ended March 31, 2024, compared with $142 million, or 44%, in the same period in the prior year.
Current wording
Premium related to limited-benefit supplemental health products comprise $388 million, or 56%, of the total health premiums for the six months ended June 30, 2024, compared with $366 million, or 56%, in the same period in the prior year. Premium from Medicare Supplement products comprises the remaining $305 million, or 44%, for the six months ended June 30, 2024, compared with $286 million, or 44%, in the same period in the prior year.
Previous wording
Annualized health premium in force was $1.40 billion at March 31, 2024, an increase of 5% over $1.33 billion a year earlier.
Current wording
Annualized health premium in force was $1.44 billion at June 30, 2024, an increase of 7% over $1.34 billion a year earlier.
Previous wording
Health net sales related to limited-benefit supplemental health products comprise $40 million, or 73%, of the total health net sales for the three months ended March 31, 2024, compared with $38 million, or 77%, in the same period in the prior year. Medicare Supplement sales make up the remaining $14 million, or 27%, for 2024 compared with $12 million, or 23%, in the same period in the prior year.
Current wording
Health net sales related to limited-benefit supplemental health products comprise $84 million, or 75%, of the total health net sales for the six months ended June 30, 2024, compared with $77 million, or 78%, in the same period in the prior year. Medicare Supplement sales make up the remaining $28 million, or 25%, for 2024 compared with $22 million, or 22%, in the same period in the prior year.
Previous wording
First-year collected premium related to limited-benefit supplemental health products is $37 million, or 73%, of total first-year collected premium for the three months ended March 31, 2024 compared with $30 million, or 70%, in the same period in the prior year. First-year collected premium from Medicare Supplement policies makes up the remaining $14 million, or 27%, for the three months ended March 31, 2024 compared with $13 million, or 30%, in the same period in the prior year.
Current wording
First-year collected premium related to limited-benefit supplemental health products is $77 million, or 72%, of total first-year collected premium for the six months ended June 30, 2024 compared with $64 million, or 71%, in the same period in the prior year. First-year collected premium from Medicare Supplement policies make up the remaining $30 million, or 28%, for the six months ended June 30, 2024 compared with $25 million, or 29%, in the same period in the prior year.
Previous wording
The United American Division consists of non-exclusive independent agencies who may also sell for other companies. The United American Division was Globe Life's largest health agency in terms of health premium income, with sales up 7% from the same period in the prior-year period.
Current wording
The United American Division consists of non-exclusive independent agencies who may also sell for other companies. The United American Division was Globe Life's largest health agency in terms of health premium income, with net sales up 22% from the same period in the prior-year period.
Previous wording
•Globe Life Benefits, which offers group worksite supplemental health insurance through brokers.
Current wording
•Globe Life Group Benefits, which offers group worksite supplemental health insurance through brokers.
Previous wording
The majority of the premium revenue comes from Medicare Supplement. Underwriting margin as a percent of premium for the division for the three months ended March 31, 2024 was 8% compared with 10% in the same period in 2023.
Current wording
The majority of the premium revenue comes from Medicare Supplement. Underwriting margin as a percent of premium for the Division was 10% for the six months ended June 30, 2024 and 2023.
Previous wording
The Family Heritage Division primarily markets limited-benefit supplemental health insurance in non-urban areas. Most of its policies include a cash-back feature, such as a return of premium, where any excess of premiums over claims paid is returned to the policyholder at the end of a specified period stated within the insurance policy. Underwriting margin as a percent of premium was 35% for the three months ended March 31, 2024 compared with 33% in 2023.
Current wording
The Family Heritage Division primarily markets limited-benefit supplemental health insurance in non-urban areas. Most of its policies include a cash-back feature, such as a return of premium, where any excess of premiums over claims paid is returned to the policyholder at the end of a specified period stated within the insurance policy. Underwriting margin as a percent of premium was 35% for the six months ended June 30, 2024 compared with 33% in 2023.
Previous wording
The division experienced a 11% rise in health net sales as compared with the three-month period a year ago, primarily due to improved agent productivity and training. The division will continue to implement incentive and retention programs to further these increases in the number of producing agents.
Current wording
The Division experienced a 9% rise in health net sales as compared with the six-month period a year ago, primarily due to improved agent productivity and training. The Division will continue to implement incentive and retention programs to further these increases in the number of producing agents.
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