GLOBE LIFE INC.

Previous wording

How Globe Life Views Its Operations. Globe Life Inc. is the holding company for a group of insurance companies that market primarily individual life and supplemental health insurance to lower middle to middle-income households throughout the United States. We view our operations by segments, which are the insurance product lines of life and supplemental health, and the investment segment that supports the product lines.

Current wording

How Globe Life Views Its Operations. Globe Life Inc. is the holding company for a group of insurance companies that market through exclusive, direct-to-consumer and independent distribution channels primarily individual life and supplemental health insurance to lower middle to middle-income households throughout the United States. We view our operations by segments, which are the insurance product lines of life and supplemental health, and the investment segment that supports the product lines.

Previous wording

•Net income as a return on equity (ROE) for the six months ended June 30, 2025 was 18.8% and net operating income as an ROE, excluding accumulated other comprehensive income(1) was 14.4%.

Current wording

•Net income as a return on equity (ROE) for the nine months ended September 30, 2025 was 21.9% and net operating income as an ROE, excluding accumulated other comprehensive income(1) was 16.6%.

Previous wording

•Total premium increased 5% over the same period in the prior year. Life premium increased 3% for the period from $1.62 billion in 2024 to $1.67 billion in 2025.

Current wording

•Total premium increased 5% over the same period in the prior year. Life premium increased 3% for the period from $2.4 billion in 2024 to $2.5 billion in 2025. Health premium increased 8% to $1.1 billion over the prior-year period of $1.0 billion.

Previous wording

•Total net sales increased 6% over the same period in the prior year from $415 million in 2024 to $439 million in 2025. The average producing agent count across all of the exclusive agencies increased 4% over the prior year.

Current wording

•Total net sales increased 6% over the same period in the prior year from $622 million in 2024 to $661 million in 2025. The average producing agent count across all of the exclusive agencies increased 4% over the prior year.

Previous wording

•Book value per share increased 14% over the same period in the prior year from $58.06 to $66.07. Book value per share, excluding accumulated other comprehensive income(1), increased 10% over the prior year from $82.38 in 2024 to $90.26 in 2025.

Current wording

•Book value per share increased 27% over the same period in the prior year from $54.65 to $69.52. Book value per share, excluding accumulated other comprehensive income(1), increased 12% over the prior year from $83.92 in 2024 to $93.63 in 2025.

Previous wording

•For the six months ended June 30, 2025, the Company repurchased 3.3 million shares of Globe Life Inc. common stock at a total cost of $403 million for an average share price of $121.38.

Current wording

•For the nine months ended September 30, 2025, the Company repurchased 4.2 million shares of Globe Life Inc. common stock at a total cost of $515 million for an average share price of $123.97.

Previous wording

The following graphs represent net income and net operating income for the six month periods ended June 30, 2025 and 2024.

Current wording

The following graphs represent net income and net operating income for the nine month periods ended September 30, 2025 and 2024.

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 $(2.0) billion and $(2.2) billion for the six months ended June 30, 2025 and 2024, 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 $(2.0) billion and $(2.5) billion for the nine months ended September 30, 2025 and 2024, 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 $(24.19) and $(24.32) for the six months ended June 30, 2025 and 2024, 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 $(24.11) and $(29.27) for the nine months ended September 30, 2025 and 2024, respectively.

Previous wording

•On a diluted per common share basis, net income per common share for the six months ended June 30, 2025 increased 10% from $5.51 to $6.07.

Current wording

•On a diluted per common share basis, net income per common share for the nine months ended September 30, 2025 increased 21% from $8.93 to $10.77.

Previous wording

•On a diluted per common share basis, net operating income per common share for the six months ended June 30, 2025 increased from $5.76 to $6.34, a 10% increase.

Current wording

•On a diluted per common share basis, net operating income per common share for the nine months ended September 30, 2025 increased from $9.23 to $11.13, a 21% increase.

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 $48 million compared with the prior period, primarily a result of increased premiums and favorable policy obligations as a percent of premium. Excess investment income declined $16 million compared with the prior period, partly due to lower earned yields on commercial mortgage loans, limited partnerships and short term investments. The health segment experienced higher policy obligations anddeclined $11 million inthe first six months of 2025 with $183 million of underwriting margin compared with $194 million in the first six months of 2024.

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 $142 million compared with the prior period, driven by premium growth in addition to remeasurement gains from the updating of assumptions, including updates to mortality, morbidity, and lapse assumptions. The updates to mortality were the most significant as life segment claims continued to improve adding credibility to the favorable trend. Excess investment income declined $18 million compared with the prior period, asassets grew slightly less than liabilities primarily due to the impact of reinsurance transactions, as well as higher dividend distributions from the insurance companies to the Parent. In addition, we had lower earned yields on commercial mortgage loans, limited partnerships and short term investments The health segment experienced favorable underwriting margin as a result of higher premiums.

Previous wording

In 2025, 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, 2025.

Current wording

In 2025, 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 nine months ended September 30, 2025.

Previous wording

Total premium income rose 5% for the six months ended June 30, 2025 to $2.4 billion. Total net sales increased 6% to $439 million, when compared with 2024. Total first-year collected premium (defined in the following section) increased 3% to $343 million for 2025, compared to $333 million in 2024.

Current wording

Total premium income rose 5% for the nine months ended September 30, 2025 to $3.6 billion. Total net sales increased 6% to $661 million, when compared with 2024. Total first-year collected premium (defined in the following section) increased 3% to $520 million for 2025, compared to $507 million in 2024.

Previous wording

Life insurance premium income increased 3% to $1.67 billion over the prior-year total of $1.62 billion. Life net sales were relatively flat at $303 million for the first six months of 2025 as compared to the year ago period. First-year collected life premium increased 2% to $231 million. Life underwriting margin, as a percent of premium, increased to 41% for 2025 from 39% in 2024. Underwriting margin increased to $677 million in 2025, compared to $629 million in 2024.

Current wording

Life insurance premium income increased 3% to $2.51 billion over the prior-year total of $2.44 billion. Life net sales increased by $454 million for the first nine months of 2025 as compared to the year ago period. First-year collected life premium increased 1% to $347 million. Life underwriting margin, as a percent of premium, increased to 46% for 2025 from 42% in 2024. Underwriting margin increased to $1.2 billion in 2025, compared to $1.0 billion in 2024.

Previous wording

Health insurance premium income increased 8% to $748 million over the prior-year total of $693 million. Health net sales rose 21% to $136 million for the first six months of 2025. First-year collected health premium rose 6% to $113 million. Health underwriting margin, as a percent of premium, was 24% for 2025 and 28% for 2024. Health underwriting margin declined to $183 million for the first six months of 2025, compared to $194 million in 2024.

Current wording

Health insurance premium income increased 8% to $1.1 billion over the prior-year total of $1.0 billion. Health net sales rose 21% to $207 million for the first nine months of 2025. First-year collected health premium rose 5% to $173 million. Health underwriting margin, as a percent of premium, was 26% for 2025 down from 27% in 2024. Health underwriting margin increased to $291 million for the first nine months of 2025, compared to $281 million in 2024.

Previous wording

Excess investment income, the measure of profitability of our investment segment, declined 18% during the first six months of 2025 to $71 million from $87 million in 2024. Excess investment income per common share, reflecting the impact of our share repurchase program, declined 9% to $0.85 from $0.93 when compared with the same period in 2024.

Current wording

Excess investment income, the measure of profitability of our investment segment, declined 15% during the first nine months of 2025 to $108 million from $126 million in 2024. Excess investment income per common share, reflecting the impact of our share repurchase program, declined 7% to $1.29 from $1.38 when compared with the same period in 2024.

Previous wording

Insurance administrative expenses increased 7% in 2025 when compared with the prior-year period. These expenses were 7.2% as a percent of premium during 2025 compared to 7.0% in 2024.

Current wording

Insurance administrative expenses increased 5% primarily due to higher employee costs, which include salaries and other costs in addition to higher information technology expenses in 2025 when compared with the prior-year period. These expenses were 7.2% as a percent of premium for 2025 unchanged from 2024.

Previous wording

For the six months ended June 30, 2025, the Company repurchased 3.3 million shares of Globe Life Inc. common stock at a total cost of $403 million for an average share price of $121.38.

Current wording

For the nine months ended September 30, 2025, the Company repurchased 4.2 million shares of Globe Life Inc. common stock at a total cost of $515 million for an average share price of $123.97.

Previous wording

•Net sales is calculated as annualized premium issued, net of cancellations generally in the first 30 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 one 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.

Current wording

•Net sales is calculated as annualized premium issued, net of cancellations in the first 30 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 one 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 is before cancellations, as cancellations do not contribute to premium income.

Previous wording

Life insurance is the Company's predominant segment. During 2025, life premium represented 69% of total premium and life underwriting margin represented 79% of the total underwriting margin. Additionally, investments supporting the reserves for life products produce the majority of income attributable to the investment segment.

Current wording

Life insurance is the Company's predominant segment. During 2025, life premium represented 69% of total premium and life underwriting margin represented 80% of the total underwriting margin. Additionally, investments supporting the reserves for life products produce the majority of income attributable to the investment segment.

Previous wording

Net policy obligations amounted to 37% of premium for the six months ended June 30, 2025 compared to 39% in the year-ago period.

Current wording

Net policy obligations amounted to 31% of premium for the nine months ended September 30, 2025 compared to 36% in the year-ago period.

Previous wording

(1) Includes a gain of $14 million related to the recapture of reinsurance for six months ended June 30, 2025 as disclosed in Note 1 - Significant Accounting Policies.

Current wording

(1) Includes a gain of $14 million related to the recapture of reinsurance for nine months ended September 30, 2025 as disclosed in Note 1 - Significant Accounting Policies.

Previous wording

Annualized life premium in force was $3.38 billion at June 30, 2025, an increase of 4% over $3.27 billion a year earlier.

Current wording

Annualized life premium in force was $3.40 billion at September 30, 2025, an increase of 3% over $3.29 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 internally generated leads, third-party internet vendor leads and referrals to facilitate sustainable growth. This Division is Globe Life's largest contributor of life premium of any distribution channel at 53% of the Company's June 30, 2025 total life premium. For the six months ended June 30, 2025, the average monthly life premium issued per policy was $59 as compared to $57 for the same period in the prior year. Net sales were $195 million for the six months ended June 30, 2025, up from $192 million in the year-ago period. The underwriting margin, as a percent of premium, was 45% for the six months ended June 30, 2025 and 2024.

Current wording

The American Income Life Division is an exclusive agency that markets to members of labor unions and other affinity groups and continues to diversify its lead sources, utilizing internally generated leads, third-party internet vendor leads and referrals to facilitate sustainable growth. This Division is Globe Life's largest contributor of life premium of any distribution channel at 53% of the Company's September 30, 2025 total life premium. For the nine months ended September 30, 2025, the average monthly life premium issued per policy was $59 as compared to $56 for the same period in the prior year. Net sales were $291 million for the nine months ended September 30, 2025, up from $289 million in the year-ago period. The underwriting margin, as a percent of premium, was 50% for the nine months ended September 30, 2025 and 47% for the same period in the prior year.

Previous wording

The Direct to Consumer Division (DTC) markets adult and juvenile life insurance through a variety of channels, including direct mail, insert media, and digital marketing. The different media channels support and complement one another in the Division's efforts to provide consumer outreach. All three channels work as part of an omnichannel approach. Sales from the internet and inbound phone calls continue to outpace the activity from direct mail. DTC's long-term growth has been fueled by consistent innovation and brand awareness. Additionally, the DTC Division provides valuable support to our agency business through brand impressions and inquiries that lead to sales in our exclusive agency channels. New initiatives are continuously introduced to help increase response rates, issue rates, and create a seamless customer experience. The juvenile insurance market is an important source of sales as well as a vehicle to reach the parents and grandparents of existing juvenile insureds, who are more likely to respond favorably to a direct to consumer solicitation for life coverage on themselves in comparison to the general adult population. Additionally, future offerings to parents and grandparents for adult and juvenile insurance are sources of lower acquisition-cost life insurance sales in the future.

Current wording

The Direct to Consumer Division (DTC) markets adult and juvenile life insurance through a variety of channels, including direct mail, insert media, and digital marketing. The different media channels support and complement one another in the Division's efforts to provide consumer outreach. All three channels work as part of an omnichannel approach. Sales from the internet and inbound phone calls continue to outpace the activity from direct mail. DTC's long-term growth has been fueled by consistent innovation and brand awareness. Additionally, the DTC Division provides valuable support to our agency business through brand impressions and inquiries that lead to sales in our exclusive agency channels. We have implemented new technology to enhance our underwriting process, this has improved the conversion of customer inquiries into sales. New initiatives are continuously introduced to help increase response rates, issue rates, and create a seamless customer experience. The juvenile insurance market is an important source of sales as well as a vehicle to reach the parents and grandparents of existing juvenile insureds, who are more likely to respond favorably to a direct to consumer solicitation for life coverage on themselves in comparison to the general adult population. Additionally, future offerings to parents and grandparents for adult and juvenile insurance are sources of lower acquisition-cost life insurance sales in the future.

Previous wording

DTC net sales declined 5% to $56 million for the six months ended June 30, 2025, compared to $59 million for the same period in the prior year. This decline is due primarily to an intentional reduction of direct mail and print insert marketing activity because of the impact of inflation on postage, paper and online advertising costs. We reported higher net sales in the second quarter of 2025, which were up 24% from the first quarter of the year, resulting from our initiatives noted above. While total year to date sales have declined compared to the prior year, the focus has been on improving profitability and improving underwriting margin. DTC’s underwriting margin was $133.2 million and 27% as a percent of premium for the six months ended June 30, 2025 compared to $122.4 million and 25% as a percent of premium for the same period in 2024. For the six months ended June 30, 2025, the average monthly life premium issued for DTC adults was $17 as compared to $15 for the same period in the prior year.

Current wording

DTC net sales were flat at $83 million for the nine months ended September 30, 2025, compared to the year-ago period. We have seen net sales trending up the last two quarters and noted a 13% increase for the three months ended September 30, 2025 compared to the prior year three months ended. We have been focused on improving profitability and improving underwriting margin in this division. DTC’s underwriting margin was $246.9 million and 34% as a percent of premium for the nine months ended September 30, 2025 compared to $210.7 million and 28% as a percent of premium for the same period in 2024. For the nine months ended September 30, 2025, the average monthly life premium issued for DTC adults was $17 as compared to $15 for the same period in the prior year.

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 Division are expected to support increased sales. Underwriting margin and premium were up 6% from the year ago period at $65 million and $193 million respectively. The underwriting margin as a percent of premium was flat for the six months ended June 30, 2025, at 34% compared to the year-ago period. For the six months ended June 30, 2025, the average monthly life premium per policy issued rose slightly compared to the prior year to $44 from $43.

Current wording

The Liberty National Division is an exclusive agency that markets individual life insurance to middle-income household and worksite customers. Recent investments in new sales technologies as well as recent growth in agency middle management within the Division are expected to support increased sales. Underwriting margin rose 27% from the year ago period to $136 million and premium increased 5% to $292 million. The underwriting margin as a percent of premium increased for the nine months ended September 30, 2025, to 46% compared to 38% in year-ago period. For the nine months ended September 30, 2025, the average monthly life premium per policy issued rose slightly compared to the prior year to $44 from $43.

Previous wording

Below is the average producing agent count for the six months ended June 30, 2025 and 2024 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 nine months ended September 30, 2025 and 2024 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 Liberty National Division's average producing agent count increased when compared with the prior-year comparable period. This Division continues to execute a long-term plan to grow through expansion from small-town markets in the Southeast to more densely populated areas with larger pools of potential agent recruits and customers in the communities, regions, and cities the Liberty National Division serves. Expansion of this Division’s presence in larger geographic cities, with less penetrated areas will help create long-term sustainable agency growth. Additionally, the Division continues to help improve the ability of agents to develop new worksite marketing business. A CRM platform and enhanced analytical capabilities have helped the agents develop additional worksite marketing opportunities and improve the productivity of agents selling in the individual life market. As the Division gains momentum in its sales and recruiting initiatives, advances in technology and use of the CRM platform, it anticipates continued growth in recruiting activity, average producing agent count, and net sales.

Current wording

The Liberty National Division's average producing agent count increased when compared with the prior-year comparable period. This Division continues to execute a long-term plan to grow through expansion from small-town markets in the Southeast to more densely populated areas with larger pools of potential agent recruits and customers. Expansion of this Division’s presence in larger geographic cities, with less penetrated areas will help create long-term sustainable agency growth. Additionally, the Division continues to help improve the ability of agents to develop new worksite business. A CRM platform and enhanced analytical capabilities have helped the agents develop additional worksite marketing opportunities and improve the productivity of agents selling in the individual life market. As the Division gains momentum in its sales and recruiting initiatives, advances in technology and use of the CRM platform, it anticipates continued growth in recruiting activity, average producing agent count, and net sales.

Previous wording

The Other agency distribution channels primarily include non-exclusive independent agencies selling primarily life insurance. The Other distribution channels contributed $101 million of life premium income, or 6% of Globe Life's total life premium income in the six months ended June 30, 2025, and contributed 2% 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 $151 million of life premium income, or 6% of Globe Life's total life premium income in the nine months ended September 30, 2025, and contributed 2% of net sales for the period.

Previous wording

Health insurance sold by the Company primarily includes Medicare Supplement insurance as well as retiree health insurance, accident coverage, and other limited-benefit supplemental health products such as cancer, critical illness, heart disease, intensive care, and other health products.

Current wording

Health insurance sold by the Company primarily includes Medicare Supplement insurance as well as retiree health insurance, accident coverage, and other limited-benefit supplemental health products such as cancer, critical illness, heart disease, accident, intensive care, and other health products.

Previous wording

Health premium accounted for 31% of our total premium in 2025, while the health underwriting margin accounted for 21% of total underwriting margin. Health underwriting margin declined to $183 million compared to $194 million in the prior year. While 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, the health business provides a significant contribution to return on equity as it does not require a substantial amount of up-front capital.

Current wording

Health premium accounted for 31% of our total premium in 2025, while the health underwriting margin accounted for 20% of total underwriting margin. Health underwriting margin increased to $291 million compared to $281 million in the prior year. While the Company continues to emphasize life insurance sales relative to health, due to life’s long-term profitability and its greater contribution to excess investment income, the health business provides a significant contribution to return on equity as it does not require a substantial amount of up-front capital.

Previous wording

Net policy obligations amounted to 55% of premium for the six months ended June 30, 2025 compared to 51% in the year ago period.

Current wording

Net policy obligations amounted to 53% of premium for the nine months ended September 30, 2025 compared to 52% in the year ago period.

Previous wording

Premiums related to limited-benefit supplemental health products comprise $417 million, or 56%, of the total health premiums for the six months ended June 30, 2025, compared with $388 million, or 56%, in the same period in the prior year. Premium from Medicare Supplement products comprises the remaining $331 million, or 44%, for the six months ended June 30, 2025, compared to $305 million, or 44%, in the same period in the prior year.

Current wording

Premiums related to limited-benefit supplemental health products comprise $632 million, or 56%, of the total health premiums for the nine months ended September 30, 2025, compared with $586 million, or 56%, in the same period in the prior year. Premium from Medicare Supplement products comprises the remaining $502 million, or 44%, for the nine months ended September 30, 2025, compared to $461 million, or 44%, in the same period in the prior year.

Previous wording

Annualized health premium in force was $1.54 billion at June 30, 2025, an increase of 7% over $1.44 billion a year earlier.

Current wording

Annualized health premium in force was $1.58 billion at September 30, 2025, an increase of 8% over $1.45 billion a year earlier.

Previous wording

Health net sales related to limited-benefit supplemental health products comprise $101 million, or 74%, of the total health net sales for the six months ended June 30, 2025, compared with $84 million, or 75%, in the same period in the prior year. Medicare Supplement sales make up the remaining $35 million, or 26%, for 2025 compared to $28 million, or 25%, in the same period in the prior year.

Current wording

Health net sales related to limited-benefit supplemental health products comprise $155 million, or 75%, of the total health net sales for the nine months ended September 30, 2025, compared with $130 million, or 76%, in the same period in the prior year. Medicare Supplement sales make up the remaining $52 million, or 25%, for 2025 compared to $41 million, or 24%, in the same period in the prior year.

Previous wording

First-year collected premium related to limited-benefit supplemental health products is $77.2 million, or 69%, of total first-year collected premium for the six months ended June 30, 2025 compared with $76.9 million, or 72%, in the same period in the prior year. First-year collected premium from Medicare Supplement policies make up the remaining $35.3 million, or 31%, for the six months ended June 30, 2025 compared to $29.8 million, or 28%, in the same period in the prior year.

Current wording

First-year collected premium related to limited-benefit supplemental health products is $118.3 million, or 69%, of total first-year collected premium for the nine months ended September 30, 2025 compared with $118.6 million, or 72%, in the same period in the prior year. First-year collected premium from Medicare Supplement policies make up the remaining $54.4 million, or 31%, for the nine months ended September 30, 2025 compared to $46.1 million, or 28%, 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 net sales up 53% from the same period in the prior year.

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 55% from the same period in the prior year.

Previous wording

The majority of the premium revenue comes from Medicare Supplement. Underwriting margin as a percent of premium for the Division was 4% for the six months ended June 30, 2025 and 10% for the same period in 2024. The decline in underwriting margin as a percent of premium when compared to prior year is primarily attributableto increased claims utilization during the current year from Medicare Supplement. We adjust premium rates based upon an annual review of utilization and claim cost trends and submit revisions for approval to the insurance department regulators, and if approved, the new premium rates generally become effective in the following year.

Current wording

The majority of the premium revenue comes from Medicare Supplement. Underwriting margin as a percent of premium for the Division was 6% for the nine months ended September 30, 2025 and 10% for the same period in 2024. The decline in underwriting margin as a percent of premium when compared to prior year is primarily attributableto increased claims utilization during the current year from Medicare Supplement. We adjust premium rates based upon an annual review of utilization and claim cost trends and submit revisions for approval to the insurance department regulators and the new premium rates generally become effective in the following year.