GLOBE LIFE INC.

A discussion of life operations by distribution channel follows.

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 by 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 54% of the Company's March 31, 2026 total life premium. For the three months ended March 31, 2026, life premium was $459 million an increase of 5% when compared with the year ago period. For the three months ended March 31, 2026, the average monthly life premium issued per policy was $62 as compared to $59 for the same period in the prior year. Net sales were $101 million for the three months ended March 31, 2026, up from $99 million in the year-ago period. The underwriting margin, as a percent of premium, was 46% for the three months ended March 31, 2026 and 45% for the same period in the prior year.

The average producing agent count decreased 4% over the year-ago period driven by lower retention of new agents. While long term sales growth in this Division, and our other exclusive agencies is generally tied to expansion of the agency force, short-term declines in agent count provides an opportunity for improved sales productivity among veteran agents as they focus additional time on sales activities.

Below is the average producing agent count as of the indicated periods 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.

American Income Life continues to focus on growing and strengthening the agency force, with particular emphasis on strengthening agency middle-management growth. The Division has made considerable investments in both financial incentives and agent training, as well as in information technology. A customer relationship management (CRM) tool equips agents with intuitive dashboards to drive productivity across lead distribution, business conservation, and new agent recruiting. The Division also continues to enhance technology enabling the agency force to recruit, sell and train virtually. This has benefited our agents as a vast majority of sales are now generated through virtual presentations. We find this flexibility to be enticing for new recruits as well as a driver of retention in our agency force.

The Direct to Consumer Division ("DTC") markets adult and juvenile life insurance across multiple channels including direct mail, insert media, and digital marketing using an integrated omnichannel approach where each channel supports and amplifies the others. Digital channels, including internet sales and inbound phone calls, continue to outpace direct mail in activity and growth.

DTC's long-term growth has been driven by consistent innovation and strong brand awareness. The Division also plays a valuable supporting role for our agency business, generating brand impressions, consumer inquiries and sales leads that convert into sales across our exclusive agency channels. Recent technology investments have meaningfully enhanced the underwriting process, improving the conversion of customer inquiries into sales, while new initiatives are continuously introduced to increase response rates, improve issue rates, and deliver a seamless customer experience.

The juvenile insurance market remains an important channel, though growth has slowed over recent quarters. It continues to serve as a valuable gateway for reaching the parents and grandparents of existing juvenile policyholders. These parents and grandparents have shown a higher likelihood of responding to direct-to-consumer life insurance offers compared to the general adult population, making future outreach to them a lower-cost opportunity to drive both adult and juvenile insurance sales.

DTC net sales increased 8% to $27 million for the three months ended March 31, 2026, compared to the year-ago period. This increase is the result of new underwriting tools and improved conversion of customer inquiries into sales, without incurring incremental underwriting risk. The Division has remained focused on improving profitability and underwriting margin improvement. DTC’s underwriting margin grew to $73.6 million or 30% of premium, for the three months ended March 31, 2026, compared to $64.2 million, or 26% of premium for the same period in 2025.

For the three months ended March 31, 2026, the average monthly life premium issued for DTC adults increased to $19 as compared to $17 for the same period in the prior year.

The Liberty National Division is an exclusive agency serving middle-income households and worksite customers with individual life insurance products. Recent investments in new sales technologies, combined with growth in agency middle management, are expected to drive continued sales momentum. Underwriting margin rose 11% from the year ago period to $35 million and premium increased 4% to $100 million. The underwriting margin as a percent of premium increased for the three months ended March 31, 2026, to 35%, compared to 33% in year-ago period. For the three months ended March 31, 2026, the average monthly life premium per policy issued increased compared to the prior year to $48 from $44.

Below is the average producing agent count for the three months ended March 31, 2026 and 2025 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.

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. The Division is also focused on expanding worksite business development capabilities among its agents. A CRM platform and enhanced analytical tools have strengthened worksite marketing efforts and improved productivity across the individual life market. As Liberty National continues to build momentum through technology adoption and recruiting initiatives, it anticipates sustained growth in recruiting activity, average producing agent count, and net sales.

The Other agency distribution channels primarily include non-exclusive independent agencies selling primarily life insurance. The Other distribution channels contributed $50 million of life premium income, or 6% of Globe Life's total life premium income in the three months ended March 31, 2026, and contributed 2% of net sales for the period. Life underwriting margin for Other agency distribution increased in the first quarter of 2025 due to the recapture of an unaffiliated reinsurance treaty, this non-recurring transaction led to an elevated underwriting margin as of March 31, 2025.

HEALTH INSURANCE

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.

Health premium accounted for 33% of our total premium in 2026, while the health underwriting margin accounted for 21% of total underwriting margin. Health underwriting margin increased to $95 million compared to $85 million in the prior year. The Company continues to value the life insurance segment due to life’s long-term profitability and its greater contribution to excess investment income, and the health segment, as it provides a significant contribution to return on equity, as it does not require a substantial amount of up-front capital.

The following table presents underwriting margin data for health insurance.

Summary of Results

Net policy obligations amounted to 56% of premium for the three months ended March 31, 2026 compared to 55% in the year ago period.

The table below summarizes health underwriting margin by distribution channel.

Underwriting Margin by Distribution Channel

Globe Life markets supplemental health insurance products through a number of distribution channels. The following table is an analysis of our health premium by distribution channel.

Premium by Distribution Channel

Premiums from Medicare Supplement products totaled $191 million, or 46%, for the three months ended March 31, 2026, compared to $162 million, or 44%, in the same period in the prior year. Premiums primarily related to limited-benefit supplemental health products comprise $226 million, or 54%, of the total health premiums for the three months ended March 31, 2026, compared with $208 million, or 56%, in the same period in the prior year.

Annualized health premium in force was $1.72 billion at March 31, 2026, an increase of 14% over $1.51 billion a year earlier.

Presented below is a table of health net sales by distribution channel.

Net Sales by Distribution Channel

Health net sales related to limited-benefit supplemental health products and other health products comprise $76 million, or 72%, of the total health net sales for the three months ended March 31, 2026, compared with $48 million, or 72%, in the same period in the prior year. Medicare Supplement sales make up the remaining $30 million, or 28%, for 2026, compared to $19 million, or 28%, in the same period in the prior year.

The following table presents health insurance first-year collected premium by distribution channel.

First-Year Collected Premium by Distribution Channel

First-year collected premium related to limited-benefit supplemental health products and other health products is $52 million, or 65%, of total first-year collected premium for the three months ended March 31, 2026, compared with $38 million, or 69%, in the same period in the prior year. First-year collected premium from Medicare Supplement policies make up the remaining $28 million, or 35%, for the three months ended March 31, 2026, compared to $17 million, or 31%, in the same period in the prior year.