Item 2. Management's Discussion and Analysis of Financial Condition and Results


                                 of Operations

The following discussion should be read in conjunction with Globe Life's

Condensed Consolidated Financial Statements and Notes thereto appearing elsewhere in this report.



"Globe Life" and the "Company" refer to Globe Life Inc. and its subsidiaries and
affiliates.


                             Results of Operations

                                                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

[[Image Removed: gl-20200331_g1.jpg]] by segments, which are the insurance product lines of life, supplemental health, and annuities,


                                                and the investment segment 

that supports the product lines. Segments are aligned based on their


                                                common characteristics, 

comparability of the profit margins, and management techniques used to


                                                operate each segment.

                                                Insurance Product Line 

Segments. The insurance product line segments involve the marketing,


                                                underwriting, and 

administration of policies. Each product line is further segmented by the


                                                various distribution 

channels that market the insurance policies. Each distribution channel

[[Image Removed: gl-20200331_g2.jpg]] operates in a niche market offering insurance products designed for that particular market.


                                                Whether analyzing 

profitability of a segment as a whole, or the individual distribution


                                                channels within the 

segment, the measure of profitability used by management is the


                                                underwriting margin, as seen below:
                                                Premium revenue
                                                                              (Policy obligations)
                                                                              (Policy acquisition costs and commissions)
                                                                              Underwriting margin
                                                Investment Segment. The

investment segment involves the management of our capital resources,

[[Image Removed: gl-20200331_g3.jpg]] including investments and the management of corporate debt and liquidity. Our measure of


                                                profitability for the 

investment segment is excess investment income, as seen below:


                                                Net investment income
                                                (Required interest on net policy liabilities)
                                                                              (Financing costs)
                                                                              Excess investment income










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GLOBE LIFE INC.
                       Management's Discussion & Analysis
COVID-19-The Company is closely monitoring the impact of the novel coronavirus
(COVID-19) on the Company's business, distribution channels, employees, and
policyholders. The Company did not incur material claims or significant
disruptions to the business for the three months ended March 31, 2020. However,
we do foresee some adverse impact to near-term sales activity, premium, policy
benefits, invested assets, and regulatory capital, although the full extent to
which COVID-19 impacts financial results remains uncertain as of the date of
this Form 10-Q.

As a Company, we are committed to our employees, agents, customers, vendors, and
shareholders in our resolve to maintain a stable and secure business. The
Company has been taking the necessary steps to ensure the health and safety of
our employees through adherence to the Centers for Disease Control and
Prevention (CDC) and local government work guidelines. In addition, the Company
has converted to virtual sales and recruiting processes to enable our agents to
continue their activities. The Company continues to diligently monitor and
respond to the coronavirus outbreak and is taking every reasonable measure to
make sure customers continue to be served without interruption.








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Table of Contents

GLOBE LIFE INC.
                       Management's Discussion & Analysis
Current Highlights, comparing 2020 with 2019.
•Net income as a return on equity ("ROE") was 9.6% and net operating income as
an ROE, excluding net unrealized gains on the fixed maturity portfolio(1) was
14.1%.
•Total premium increased 4% over the same period in the prior year. Life premium
increased 4% for the period from $624 million in 2019 to $650 million in 2020.
Life underwriting margin increased 5% from $170 million in 2019 to $179 million
in 2020.
•Net investment income increased 1% over the same period in the prior year.
Excess investment income declined 4% below the prior year.
•Total net sales increased 6% over the same period in the prior year from $144
million to $153 million.
•Book value per share increased 13% over the same period in the prior year from
$54.13 to $60.98. Book value per share, excluding net unrealized gains on the
fixed maturity portfolio(1), increased 9% over the prior year from $45.45 to
$49.66.
•In 2020, the Company repurchased 1.6 million Globe Life Inc. common shares at a
total cost of $139 million for an average share price of $85.47.


The following graphs represent net income and net operating income from continuing operations for the three months ended March 31, 2020 and 2019.



   [[Image Removed: gl-20200331_g4.jpg]][[Image Removed: gl-20200331_g5.jpg]]
(1)Net operating income is the consolidated total of segment profits after tax
and as such is considered a non-GAAP measure. It has been used consistently by
Globe Life's management for many years to evaluate the operating performance of
the Company. It differs from net income primarily because it excludes certain
non-operating items such as realized gains and losses and certain significant
and unusual items included in net income. Net income is the most directly
comparable GAAP measure.

Net operating income as an ROE, excluding net unrealized gains on the fixed
maturity portfolio, is considered a non-GAAP measure. Management utilizes this
measure to view the business without the effect of the net unrealized gains,
which are primarily attributable to fluctuation in interest rates on the
available-for-sale portfolio. The impact of the adjustment to exclude net
unrealized gains on fixed maturities is $1.2 billion and $969 million for 2020
and 2019, respectively.

Book value per share, excluding net unrealized gains on the fixed maturity
portfolio, is also considered a non-GAAP measure. Management utilizes this
measure to view the book value of the business without the effect of net
unrealized gains, which are primarily attributable to fluctuation in interest
rates on the available for sale portfolio. The impact of the adjustment to
exclude net unrealized gains on fixed maturities is $11.32 and $8.68 for 2020
and 2019, respectively.

Refer to   Analysis of Profitability by Segment   for non-GAAP reconciliation to
GAAP.






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                                GLOBE LIFE INC.
                       Management's Discussion & Analysis
Summary of Operations. Net income declined 11% to $166 million during the three
months ended March 31, 2020, compared with $185 million in the same period in
2019. This decrease was primarily attributed to the recording of a $25 million
after tax provision for credit losses on the available-for-sale fixed
maturities. See further discussion under the caption   Investment    s  . On a
diluted per common share basis, net income per common share for the three months
ended March 31, 2020 declined 8% from $1.65 to $1.52.

Net operating income is the consolidated total of segment profits after-tax and
as such is considered a non-GAAP measure. Net operating income increased 2% to
$189 million for the three months ended March 31, 2020, compared with $185
million for the same period in 2019. On a diluted per common share basis, net
operating income per common share for the three months ended March 31, 2020
increased 5% from $1.64 to $1.73.

Globe Life's operations on a segment-by-segment basis are discussed in depth
below. Net operating income has been used consistently by management for many
years to evaluate the operating performance of the Company, and is a measure
commonly used in the life insurance industry. It differs from net income
primarily because it excludes certain non-operating items such as realized
investment gains and losses, provision for credit losses, and other significant
and unusual items included in net income. Management believes an analysis of net
operating income is important in understanding the profitability and operating
trends of the Company's business. Net income is the most directly comparable
GAAP measure.

                      Analysis of Profitability by Segment
                         (Dollar amounts in thousands)
                                                          Three Months Ended March 31,
                                                 2020            2019           Change          %
Life insurance underwriting margin           $ 178,803       $ 169,839       $   8,964          5
Health insurance underwriting margin            63,465          61,514           1,951          3
Annuity underwriting margin                      2,270           2,416            (146)        (6)
Excess investment income                        62,737          65,555          (2,818)        (4)
Other insurance:
Other income                                       325             241              84         35
Administrative expense                         (63,620)        (59,191)         (4,429)         7
Corporate and other                            (11,687)        (13,202)          1,515        (11)
Pre-tax total                                  232,293         227,172           5,121          2
Applicable taxes                               (43,549)        (42,428)         (1,121)         3
Net operating income                           188,744         184,744           4,000          2
Reconciling items, net of tax:
Realized gain (loss)-investments                 4,548           1,050      

3,498



Realized loss-provision for credit losses      (25,165)              -      

(25,165)


Part D adjustments-discontinued operations           -             (49)             49
Administrative settlements                           -            (400)            400

Legal proceedings                               (2,587)              -          (2,587)

Net income                                   $ 165,540       $ 185,345       $ (19,805)       (11)









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Table of Contents

GLOBE LIFE INC.
                       Management's Discussion & Analysis
In first quarter of 2020, the largest contributor of total underwriting margin
was the life insurance segment and the primary distribution channel was American
Income Life Division. The following tables represent the breakdown of total
underwriting margin by operating segment and distribution channel for the three
months ended March 31, 2020.

[[Image Removed: gl-20200331_g6.jpg]][[Image Removed: gl-20200331_g7.jpg]]



Total premium income rose 4% for the three months ended March 31, 2020 to $930
million. Total net sales increased 6% to $153 million, when compared with the
same period in 2019. Total first-year collected premium was $128 million for the
2020 period, compared with $118 million for the 2019 period.

Life insurance premium income increased 4% to $650 million over the prior year
total of $624 million. Life net sales rose 5% to $111 million for the first
three months of 2020. First-year collected life premium rose 5% to $85 million.
Life underwriting margins, as a percent of premium, increased to 28% in 2020
from 27% in the prior year. Underwriting margin increased to $179 million for
the three months ended March 31, 2020, 5% over the same period in 2019.

Health insurance premium income increased 5% to $280 million over the prior year
total of $267 million. Health net sales rose 9% to $42 million for the first
three months of 2020. First-year collected health premium rose 15% to $43
million. Health underwriting margins, as a percent of premium, were 23% in both
periods. Underwriting margin increased to $63 million for the first three months
of 2020, 3% over the same period in 2019.

Excess investment income, the measure of profitability of our investment
segment, declined 4% during the first three months of 2020 to $63 million from
$66 million in the same period in 2019. Excess investment income per common
share, reflecting the impact of our share repurchase program, declined 2% to
$0.57 from $0.58 in the same period last year.

Insurance administrative expenses increased 7.5% in 2020 when compared with the
prior year period. These expenses were 6.8% as a percent of premium during the
first three months of 2020 compared with 6.6% a year earlier. The increase in
administrative expenses was primarily due to an increase in investments in
information technology and pension costs.

For the three months ended March 31, 2020, the Company repurchased 1.6 million Globe Life Inc. shares at a total cost of $139 million for an average share price of $85.47.








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Table of Contents

GLOBE LIFE INC.
                       Management's Discussion & Analysis

A discussion of each of Globe Life's segments follows. The following discussions are presented in the manner we view our operations, as described in Note 9-Business Segments.



We use three statistical measures as indicators of premium growth and sales over
the near term: "annualized premium in force," "net sales," and "first-year
collected premium."
•Annualized premium in force is defined as the premium income that would be
received over the following twelve months at any given date on all active
policies if those policies remain in force throughout the twelve-month period.
Annualized premium in force is an indicator of potential growth in premium
revenue.
•Net sales is annualized premium issued (gross premium that would be received
during the policies' first year in force and assuming that none of the policies
lapsed or terminated), net of cancellations in the first thirty days after
issue, except in the case of our Direct to Consumer Division, where net sales is
annualized premium issued at the time the first full premium is paid after any
introductory offer period has expired. We believe that net sales is a better
indicator of the rate of premium growth as compared with annualized premium
issued.
•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.

COVID 19-Once COVID-19 was recognized as an immediately disruptive issue to our
country and the Company, our incident response team and crisis management team,
which includes members of executive management, took action and ultimately
guided the Company into a smooth transition of working remotely. Within a very
short time, the Company was able to transition those employees whose jobs did
not require them to be in the office, over 70 percent of the Company's total
workforce, to working remotely. The Company has continued to operate at nearly
full capacity while taking the necessary steps to ensure the health and safety
of our employees through adherence to the CDC and local government work
guidelines.

With over 12,000 exclusive agents in the field, the Company was presented with a
challenge to move from face-to-face sales presentations in customers' homes and
businesses to a virtual sales process. The Company's agencies also had to move
from in-person recruiting and training of new agents to virtual processes. While
not without its challenges, the Company's exclusive agency divisions have been
able to quickly pivot and continue to write new business and hire new agents due
in part to new and updated information technology systems that we have put in
place over the last several years. While our exclusive agencies had to make
significant changes to their distribution processes as a result of COVID-19, our
Direct to Consumer Division has been able to meet an increased demand for our
products through its internet and inbound phone call channels.

While it is difficult to predict sales activity during this uncertain
environment, the Company is expecting sales to be down for the full year.
However, due to the strength of the Company's policies in force, we still expect
our total premiums to grow around 3% to 4% for the full year. Furthermore, while
we may see decreased sales over the next several months, we are pleased with the
willingness of our agents and employees to quickly respond to the crisis. See
further discussion of the distribution channels below for   Life   and
  Health  .








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  Table of Contents
                                GLOBE LIFE INC.
                       Management's Discussion & Analysis
                                 LIFE INSURANCE

Life insurance is the Company's predominant segment, with first quarter 2020
life premium representing 70% of total premium and life underwriting margin
representing 73% of the total. Additionally, investments supporting the reserves
for life products produce the majority of excess investment income attributable
to the investment segment.

The following table presents the summary of results of life insurance. Further discussion of the results by distribution channel is included below.



                                 Life Insurance
                               Summary of Results
                         (Dollar amounts in thousands)
                                                                  Three Months Ended March 31,                                                                              Increase
                                                        2020                                                                2019                                           (Decrease)
                                        Amount                     % of Premium             Amount             % of Premium            Amount            %
Premium and policy charges         $     649,630                            100          $ 624,289                      100          $ 25,341            4

Policy obligations                       421,670                             65            409,692                       66            11,978            3
Required interest on reserves           (171,205)                           (27)          (163,662)                     (26)           (7,543)           5
Net policy obligations                   250,465                             38            246,030                       40             4,435            2
Commissions, premium taxes, and
non-deferred acquisition expenses         53,936                              8             50,106                        8             3,830           

8


Amortization of acquisition costs        166,426                             26            158,314                       25             8,112            5
Total expense                            470,827                             72            454,450                       73            16,377            4
Insurance underwriting margin      $     178,803                             28          $ 169,839                       27          $  8,964            5





The following table presents Globe Life's life insurance premium by distribution
channel.

                                 Life Insurance
                        Premium by Distribution Channel
                         (Dollar amounts in thousands)
                                                                  Three Months Ended March 31,                                                                             Increase
                                                          2020                                                            2019                                            (Decrease)
                                           Amount                    % of Total             Amount            % of Total            Amount             %
American Income                       $     302,852                          47          $ 281,767                    45          $ 21,085              7
Direct to Consumer                          220,043                          34            217,559                    35             2,484              1
Liberty National                             72,868                          11             70,717                    11             2,151              3
Other                                        53,867                           8             54,246                     9              (379)            (1)
Total                                 $     649,630                         100          $ 624,289                   100          $ 25,341              4


Annualized life premium in force was $2.6 billion at March 31, 2020, an increase of 4% over $2.5 billion a year earlier.









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Globe Life Inc.
                       Management's Discussion & Analysis

An analysis of life net sales, an indicator of new business production, by distribution channel is presented below.


                                 Life Insurance
                       Net Sales by Distribution Channel
                         (Dollar amounts in thousands)
                                                                  Three Months Ended March 31,                                                                            Increase
                                                          2020                                                            2019                                           (Decrease)
                                           Amount                    % of Total             Amount            % of Total            Amount            %
American Income                       $      62,869                          57          $  57,551                    54          $ 5,318              9
Direct to Consumer                           32,547                          29             32,447                    31              100              -
Liberty National                             12,488                          11             12,259                    12              229              2
Other                                         2,709                           3              3,083                     3             (374)           (12)
Total                                 $     110,613                         100          $ 105,340                   100          $ 5,273              5




First-year collected life premium by distribution channel is presented in the
table below.

                                 Life Insurance
              First-Year Collected Premium by Distribution Channel
                         (Dollar amounts in thousands)
                                                              Three Months Ended March 31,                                                                         Increase
                                                      2020                                                        2019                                            (Decrease)
                                          Amount              % of Total            Amount            % of Total            Amount             %
American Income                      $     50,669                     60          $ 47,476                    58          $ 3,193               7
Direct to Consumer                         21,094                     25            21,256                    26             (162)             (1)
Liberty National                           10,666                     12             9,394                    12            1,272              14
Other                                       2,652                      3             2,958                     4             (306)            (10)
Total                                $     85,081                    100          $ 81,084                   100          $ 3,997               5


A discussion of life operations by distribution channel follows.



The American Income Life Division markets to members of labor unions and
continues to diversify its lead sources by building relationships with other
affinity groups, utilizing third-party internet vendor leads, and obtaining
referrals to ensure sustainable growth. This division is Globe Life's largest
contributor to life premium of any distribution channel at 47% of the Company's
2020 year-to-date total. Net sales increased 9% to $63 million in 2020 over the
2019 total of $58 million. The underwriting margin, as a percent of premium, was
33% for the three months ended March 31, 2019, same a year-ago quarter.

Subsequent to quarter end, the division has seen a decrease in net sales as
compared to the year-ago quarter as a result of COVID-19 restrictions; however,
the level of sales has improved in recent weeks as agents have adapted to the
new virtual sales process. This demonstrates a strength of having our agency
comprised of independent business owners who are motivated to search out and
adopt new ways of doing business. As a result of COVID-19, net sales may be
lower in the remainder of 2020 as compared to the same periods in 2019. In
addition, due to higher mortality from the pandemic, the underwriting margin as
a percent of premium, is also likely to be slightly lower.








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                                Globe Life Inc.
                       Management's Discussion & Analysis

Below is the average producing agent count at the end of the period for American
Income. The average producing agent is based on the actual count at the end of
each week during the year.
                         At March 31,                           Change
                      2020           2019        Amount        %
American Income        7,630        6,865         765          11



American Income Life continues to focus on growing and strengthening the agency
force, specifically through additional agency office openings and emphasis on
middle-management growth. In addition to offering financial incentives and
training opportunities, the agency has made considerable investments in
information technology, including launching a lead mapping and customer
relationship management (CRM) tool for the agency force. We anticipate this tool
will help enhance agent productivity and agent retention.

The Direct to Consumer Division offers adult and juvenile life insurance through
a variety of marketing approaches, including direct mailings, insert media, and
electronic media. In recent years, electronic media production has grown rapidly
as management has aggressively increased marketing activities related to
internet and mobile technology as well as focused on driving traffic to our
inbound call center. The different approaches support and complement one another
in the division's efforts to reach the consumer. The Direct to Consumer
Division'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.

While the juvenile market is an important source of sales, it also is a vehicle
to reach the parents and grandparents of juvenile policyholders, who are more
likely to respond favorably to a Direct to Consumer solicitation for life
coverage on themselves than is the general adult population. Also, both juvenile
policyholders and their parents are low acquisition-cost targets for sales of
additional coverage over time. Direct to Consumer Division's underwriting
margin, as a percent of premium, was 17% for the three months ended March 31,
2020, same as the year-ago quarter.

Subsequent to quarter-end, the Company saw an increased interest in our life
insurance products through our internet and inbound phone channels. This
increase may correlate with the COVID-19 pandemic response. Our continued
investments in technology have allowed us to successfully serve the higher
demands for our products through the digital self-serve and phone channels. If
this level of activity continues as a result of COVID-19 response, net sales may
be higher in the remainder of 2020 as compared to the same quarters in 2019.
Additionally, due to expected higher claims from COVID-19, we likely will see a
decrease in our underwriting margin as a percent of premium as a result of
increased policyholder claims relating to the pandemic.

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 will help
continue this growth. The underwriting margin as a percent of premium was 26%
for the three months ended March 31, 2020, up from 25% during the same quarter a
year ago. The increase is primarily attributable to lower policy obligations
during the three months ended March 31, 2020 compared with higher than normal
policy obligations during the same quarter a year ago.

Subsequent to quarter-end, the division has seen a decrease in net sales as
compared to the year ago quarter as a result of COVID-19 restrictions. Although
we are seeing an increase in individual sales and the agencies in the field are
quickly adapting to the virtual sales process, it has been challenging to obtain
new worksite sales as small businesses have been adversely affected by the
pandemic. As a result of COVID-19, net sales may be lower in the remainder of
2020 as compared to the same periods in 2019. In addition, due to higher
mortality from the pandemic, the underwriting margin as a percent of premium is
also likely to be lower.








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Table of Contents


                                Globe Life Inc.
                       Management's Discussion & Analysis

Below is the average producing agent count at the end of the period for Liberty
National Division.
                            At March 31,                           Change
                         2020           2019        Amount        %
Liberty National          2,648        2,179         469          22



The Liberty National Division average producing agency count increased 22% since
prior year. We continue to execute our long-term plan to grow this agency
through expansion from small-town markets in the Southeast to more densely
populated areas with larger pools of potential agent recruits and customers.
Continued expansion of this agency's presence into more heavily populated,
less-penetrated areas will help create long-term agency growth. Systems that
have been put in place, including the addition of a customer relationship
management (CRM) platform and enhanced analytical capabilities, have helped the
agents develop additional worksite marketing opportunities as well as improve
the productivity of agents selling in the individual market.

The Other Agencies distribution channels primarily include non-exclusive
independent agencies selling predominantly life insurance. The Other Agencies
contributed $54 million of life premium income, or 8% of Globe Life's total
premium income in the three months ended March 31, 2020, and contributed 3% of
net sales for the period.

                                HEALTH INSURANCE

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



Health premium accounted for 30% of our total premium in 2020, while the health
underwriting margin accounted for 26% of total underwriting margin, reflective
of the lower underwriting margin as a percent of premium for health compared
with life insurance. As noted under the caption   Life     I    nsurance  , the
Company has emphasized life insurance sales relative to health due to life's
superior profitability and its greater contribution to excess investment income.

The following table presents underwriting margin data for health insurance.



                                Health Insurance
                               Summary of Results
                         (Dollar amounts in thousands)
                                                                   Three Months Ended March 31,                                                                          Increase
                                                           2020                                                            2019                                         (Decrease)
                                                                          % of                                    % of
                                             Amount                     Premium              Amount             Premium             Amount            %
Premium and policy charges              $     280,205                        100          $ 266,684                  100          $ 13,521            5

Policy obligations                            178,711                         64            170,017                   64             8,694            5
Required interest on reserves                 (22,510)                        (8)           (21,496)                  (8)           (1,014)           5
Net policy obligations                        156,201                         56            148,521                   56             7,680            5
Commissions, premium taxes, and
non-deferred acquisition expenses              24,995                          9             23,352                    9             1,643            7
Amortization of acquisition costs              35,544                         12             33,297                   12             2,247            7
Total expense                                 216,740                         77            205,170                   77            11,570            6
Insurance underwriting margin           $      63,465                         23          $  61,514                   23          $  1,951            3









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Globe Life Inc.
                       Management's Discussion & Analysis

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



                                Health Insurance
                        Premium by Distribution Channel
                         (Dollar amounts in thousands)
                                                               Three Months Ended March 31,                                                                             Increase
                                                       2020                                                            2019                                            (Decrease)
                                        Amount                    % of Total             Amount            % of Total            Amount             %
United American                    $     110,059                          39          $ 102,905                    38          $  7,154              7
Family Heritage                           76,983                          28             71,264                    27             5,719              8
Liberty National                          47,640                          17             48,156                    18              (516)            (1)
American Income                           25,727                           9             24,099                     9             1,628              7
Direct to Consumer                        19,796                           7             20,260                     8              (464)            (2)
Total                              $     280,205                         100          $ 266,684                   100          $ 13,521              5



Of total health premium ($280 million), premium from limited-benefit plans
comprise $144 million, or 51%, for 2020 compared with $136 million in the same
period in the prior year. Premium from Medicare Supplement products comprises
the remaining 49% or $136 million for 2020 compared with $131 million in the
same period in the prior year.

Annualized health premium in force at March 31, 2020 increased 6% to $1.1 billion over the prior year total.

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

Health Insurance
                       Net Sales by Distribution Channel
                         (Dollar amounts in thousands)

                                                                Three Months Ended March 31,                                                                      Increase
                                                        2020                                                       2019                                          (Decrease)
                                             Amount              % of Total           Amount            % of Total           Amount            %
United American                         $     14,464                    35          $ 14,894                   39          $  (430)           (3)
Family Heritage                               16,281                    39            13,030                   34            3,251            25
Liberty National                               5,943                    14             5,565                   14              378             7
American Income                                4,752                    11             3,899                   10              853            22
Direct to Consumer                               590                     1             1,145                    3             (555)          (48)
Total                                   $     42,030                   100          $ 38,533                  100          $ 3,497             9



Of total net sales ($42 million), sales of limited-benefit plans comprise $27
million, or 64% of the total for 2020, compared with $23 million in the same
period in the prior year. Medicare Supplement sales make up the remaining 36% or
$15 million for 2020, compared with $16 million in the same period in the prior
year.







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Table of Contents

Globe Life Inc.
                       Management's Discussion & Analysis

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

Health Insurance
              First-Year Collected Premium by Distribution Channel
                         (Dollar amounts in thousands)

                                                                Three Months Ended March 31,                                                                      Increase
                                                        2020                                                       2019                                          (Decrease)
                                             Amount              % of Total           Amount            % of Total           Amount            %
United American                         $     19,005                    44          $ 16,084                   43          $ 2,921            18
Family Heritage                               13,446                    31            11,936                   32            1,510            13
Liberty National                               5,286                    12             4,601                   12              685            15
American Income                                4,507                    11             3,758                   10              749            20
Direct to Consumer                               767                     2             1,023                    3             (256)          (25)
Total                                   $     43,011                   100          $ 37,402                  100          $ 5,609            15



First-year collected premium related to limited-benefit plans comprises $23
million, or 54% of total first-year collected premium, for 2020 compared with
$20 million in the same period in the prior year. First-year collected premium
from Medicare Supplement policies makes up the remaining 46% or $20 million for
2020 compared with $17 million in the same period in the prior year.

A discussion of health operations by distribution channel follows.
The United American Independent Agency consists of non-exclusive independent
agencies who may also sell for other companies. The United American Independent
Agency was Globe Life's largest health agency in terms of health premium income.
This division is also Globe Life's largest producer of Medicare Supplement
insurance. The United American Independent Agency represents 79% of all Medicare
Supplement premium and 96% of Medicare Supplement net sales. For the period
ended March 31, 2020, Medicare Supplement premium in this agency rose 7% to $108
million in 2020 over the prior period balance of $100 million. Medicare
Supplement net sales declined 3% to $14 million in 2020 from the prior year
period, primarily as a result of a decrease in group sales. Underwriting margin
as a percent of premium was 14%, down from 15% for the period ended March 31,
2019. This decrease was primarily due to higher policy obligations and
amortization of deferred acquisition costs as a percentage of premium in the
current period versus the year-ago period.
Subsequent to quarter-end, the individual Medicare Supplement net sales
decreased from the prior year. Accordingly, due to the COVID-19 pandemic, this
agency may also see reduced sales during the remainder of the year.







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                                Globe Life Inc.
                       Management's Discussion & Analysis

The Family Heritage Division primarily markets limited-benefit supplemental
health insurance in non-urban areas. Most of their 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 25%
for the period ended March 31, 2020, same as the year-ago quarter.
Subsequent to quarter-end, the division has seen a decrease in net sales as
compared to the year ago quarter as a result of COVID-19 restrictions. While it
has been a challenge at this division to move from in-home sales to virtual
sales, we are encouraged by the motivation of the agency owners to adopt this
new way of doing business. As the shelter-in-place restrictions ease over the
course of the next few months, we expect to see net sales toward the end of the
year return to normal levels. However, for the full year, net sales in 2020 may
be lower than the same periods in 2019. Additionally, we are expecting to see
increased health claims which likely will cause a lower underwriting margin as a
percent of premium.
Below is the average producing agent count at the end of the period for Family
Heritage.
                         At March 31,                           Change
                      2020           2019        Amount        %
Family Heritage        1,227        1,002         225          22



The Liberty National Division represented 17% of all Globe Life health premium
income as of March 31, 2020. The Liberty National Division markets
limited-benefit supplemental health products consisting primarily of critical
illness insurance. Much of this health business is now generated through
worksite marketing. In 2020, health premium at Liberty National Division
declined 1% to $48 million from the prior year period. The slight decline in
health premium is primarily attributable to the runoff of a block of
discontinued Medicare Supplement policies previously sold by the agency. As
discussed in the Liberty National Division life section above, this division has
seen decreased net sales across both life and health as result of the COVID-19
response. For the remainder of 2020, we expect health net sales to decrease
compared with prior-year periods.

Other distribution. While some of the Company's other distribution channels
market health products, their main emphasis is on life insurance. On a combined
basis, they accounted for 16% of health premium in 2020 and 17% in 2019. The
American Income Life Division primarily markets accident plans. The Direct to
Consumer Division markets primarily Medicare Supplements to employer or
union-sponsored groups. The Direct to Consumer Division added $1 million of
Medicare Supplement net sales as of March 31, 2020 and 2019.

                                   ANNUITIES

Annuities represent an insignificant part of our business and are not expected to be an important part of our marketing strategy going forward.


                                  INVESTMENTS

We manage our capital resources including investments, debt, and cash flow
through the investment segment. Excess investment income represents the profit
margin attributable to investment operations and is the measure that we use to
evaluate the performance of the investment segment as described in Note
9-Business Segments. It is defined as net investment income less both the
required interest on net insurance policy liabilities and the interest cost
associated with capital funding or "financing costs."

Management also views excess investment income per diluted common share as an
important and useful measure to evaluate the performance of the investment
segment. It is defined as excess investment income divided by the total diluted
weighted average shares outstanding, representing the contribution by the
investment segment to the consolidated earnings per share of the Company. Since
implementing our share repurchase program in 1986, we have used $8.0 billion of
excess cash flow at the Parent Company to repurchase Globe Life Inc. common
shares after determining that the repurchases provided a greater risk adjusted
after-tax return than other investment alternatives. If we had not used this
excess cash to repurchase shares, but had instead invested it in
interest-bearing assets, we would have earned more investment income and had
more shares outstanding. As excess






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Globe Life Inc.
                       Management's Discussion & Analysis

investment income per diluted common share incorporates all capital resources, we view excess investment income per diluted share as a useful measure to evaluate the investment segment.

Excess Investment Income. The following table summarizes Globe Life's investment income, excess investment income, and excess investment income per diluted common share.



                      Analysis of Excess Investment Income
           (Dollar amounts in thousands, except for per share data)
                                                             Three Months Ended                                          Increase
                                                                  March 31,                                             (Decrease)
                                                         2020                  2019                Amount                 %
Net investment income                               $    228,991          $    226,673          $   2,318                     1
Interest on net insurance policy liabilities:
Interest on reserves                                    (204,171)             (196,278)            (7,893)                    4
Interest on deferred acquisition costs                    58,725                56,438              2,287                     4
Net required interest                                   (145,446)             (139,840)            (5,606)                    4
Financing costs                                          (20,808)              (21,278)               470                    (2)
Excess investment income                            $     62,737          $     65,555          $  (2,818)                   (4)

Excess investment income per diluted share $ 0.57 $

       0.58          $   (0.01)                   (2)

Mean invested assets (at amortized cost)            $ 17,472,498          $ 16,780,373          $ 692,125                     4
Average net insurance policy liabilities(1)           10,277,692             9,942,946            334,746                     3

Average debt and preferred securities (at amortized cost)

                                                  1,720,755             1,656,543             64,212                     4


(1)Net of deferred acquisition costs, excluding the associated unrealized gains and losses thereon.

Excess investment income declined 4% compared with the year-ago period, while on a per diluted common share basis it declined 2% from the prior year-ago period.



Net investment income for the three months ended March 31, 2020 was $229 million
or 1% greater than the year ago period. Mean invested assets increased 4% during
the first three months of 2020 over the same period last year. The effective
annual yield rate earned on the fixed maturity portfolio was 5.39% in the first
three months of 2020, compared with 5.53% a year earlier. Growth in net
investment income has been negatively impacted in recent periods primarily by
reinvesting the proceeds from dispositions at yield rates less than what we
earned on these bonds prior to disposition. As a result, growth in net
investment income has been slower than the growth in mean invested assets. While
the Company may see a higher turnover rate of fixed maturity assets of 2% to 4%
in 2020 due to calls of highly-rated municipal securities, we expect that the
average annual turnover of fixed maturity assets during the next five years will
be less than 2% of the portfolio and will not have a material negative impact on
net investment income.

Should the current low interest rate environment continue, the growth of the
Company's net investment income will be negatively impacted primarily due to the
investment of new money at rates less than the average portfolio yield rate.
While net investment income would grow, it would continue to grow at rates less
than the growth in mean invested assets. For 2020, we currently anticipate the
average new money yield on our fixed maturity acquisitions to be approximately
100 basis points lower than the rate applicable to our 2019 acquisitions.

Should interest rates, especially long-term rates, rise, Globe Life's net
investment income would benefit due to higher interest rates on new purchases.
While such a rise in interest rates could adversely affect the fair value of the
fixed maturities portfolio, we could withstand an increase in interest rates of
approximately 75 to 80 basis points before the net unrealized gains on our fixed
maturity portfolio as of March 31, 2020 would be eliminated. Should interest
rates increase further, we would not be concerned with potential interest rate
driven unrealized losses in our fixed maturity portfolio because we have the
intent and, more importantly, the ability to hold our fixed maturities to
maturity.






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  Table of Contents
                                Globe Life Inc.
                       Management's Discussion & Analysis


Required interest on net insurance policy liabilities reduces net investment
income, as it is the amount of net investment income considered by management
necessary to "fund" required interest on net insurance policy liabilities, which
is the net of the benefit reserve liability and the deferred acquisition cost
asset. As such, it is removed from the investment segment and applied to the
insurance segments to offset the effect of the required interest from the
insurance segments. As discussed in Note 9-Business Segments, management regards
this as a more meaningful analysis of the investment and insurance segments.
Required interest is based on the actuarial interest assumptions used in
discounting the benefit reserve liability and the amortization of deferred
acquisition costs for our insurance policies in force.

The great majority of our life and health insurance policies are fixed interest
rate protection policies, not investment products, and are accounted for under
current accounting guidance for long-duration insurance products which mandate
that interest rate assumptions for a particular block of business be "locked in"
for the life of that block of business. Each calendar year, we set the discount
rate to be used to calculate the benefit reserve liability and the amortization
of the deferred acquisition cost asset for all insurance policies issued that
year. That rate is based on the new money yields that we expect to earn on cash
flow received in the future from policies of that issue year, and cannot be
changed. The discount rate used for policies issued in the current year has no
impact on the in force policies issued in prior years as the rates of all prior
issue years are also locked in. As such, the overall discount rate for the
entire in force block of 5.7% is a weighted average of the discount rates being
used from all issue years. Changes in the overall weighted-average discount rate
over time are caused by changes in the mix of the reserves and the deferred
acquisition cost asset by issue year on the entire block of in force business.
Business issued in the current year has very little impact on the overall
weighted-average discount rate due to the size of our in force business.

Since actuarial discount rates are locked in for life on essentially all of our
business, benefit reserves and deferred acquisition costs are not affected by
interest rate fluctuations unless a loss recognition event occurs. Due to the
strength of our underwriting margins, we do not expect an extended low interest
rate environment to cause a loss recognition event.

Required interest on net insurance policy liabilities increased $6 million, or
4%, to $145 million, greater than the 3% growth in average net interest-bearing
insurance policy liabilities.

Financing costs for the investment segment consist primarily of interest on our
various debt instruments. The table below presents the components of financing
costs and reconciles interest expense per the   Condensed Consolidated
Statements of Operations  .

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