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Globe Life Inc. Investor Update 4th Quarter 2025
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Notice to Recipient This presentation is confidential and for your information only and is not intended to be distributed to or reviewed by anyone other than you. This presentation does not constitute an offer to sell or a solicitation of an offer to buy securities, nor shall there be any sale of securities in any jurisdiction in which any offer, solicitation or sale would be unlawful prior to registration or qualification of such securities under the securities laws of any such jurisdiction. Where to Find More Information. Globe Life Inc. (Globe Life or the “Company”) has filed a registration statement (including a prospectus) with the SEC. Any offering would be made by means of a prospectus supplement and related prospectus. Before you invest in any securities of Globe Life, you should read any prospectus supplement, the related prospectus, the documents incorporated by reference therein and the other documents Globe Life has filed with the SEC for more complete information about Globe Life and any offering. You may get these documents for free by visiting EDGAR on the SEC website at www.sec.gov. Forward-Looking Statements. Statements in this presentation that are not historical are forward-looking statements made based on current market, business and regulatory expectations and involve risks, uncertainties and assumptions that could cause actual results to vary materially from those indicated. Some of the forward-looking statements can be identified by the use of forward-looking words such as “believes,” “expects,” “may,” “will,” “should,” “seeks,” “approximately,” “intends,” “plans,” “estimates,” or “anticipates” or the negative of those words or other comparable terminology. Forward-looking statements involve inherent risks and uncertainties. For a discussion of factors that could cause actual results to differ from these forward-looking statements, please see the discussion under the headings “Cautionary Statements” and “Risk Factors” contained in the Company’s most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q filed with the SEC, as well as any subsequent filings the Company may make from time to time. You are cautioned not to place undue influence on these forward-looking statements, which speak only as of their dates. Globe Life specifically disclaims any obligation to update or revise any forward-looking statement because of new information, future developments or otherwise, except as required by law. No Independent Verification. This presentation has been prepared for informational purposes only from information supplied by the Company. Financial Presentation. The preparation of financial statements requires management to make estimates and assumptions that impact the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the statutory financial statements and the reported amounts of revenues and expenses during the reporting periods. Financial information provided throughout this presentation is prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) unless otherwise specified as having been prepared in accordance with statutory accounting principles. Non-GAAP Financial Measures. This presentation contains certain non-GAAP financial measures that differ from the comparable GAAP measures. Globe Life’s definitions of non-GAAP measures may differ from non-GAAP financial measures used by other companies. The presentation of this financial information, which is not prepared under any comprehensive set of accounting rules or principles, is not intended to be considered in isolation of, or as a substitute for, the financial information prepared and presented in accordance with GAAP. Please see the appendix of this presentation for reconciliations to the most directly comparable GAAP financial measures and related information. Note: Numbers may not sum due to rounding in the presentation. YTD data as of 12/31/25. 2
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Globe Life Works to Make Tomorrow Better 3 How We Generate Earnings: Strong, Consistent, Underwriting Income % While Globe Life benefits from consistent investment income, the majority of pretax operating income comes from insurance underwriting margins. Given the products we offer, underwriting margins are not impacted by fluctuations in interest rates or equity markets. $ Our Cash Flow Strength: 17.2 Million In-Force Policies Earnings generated from Globe Life’s large and highly-persistent in-force block of business provides strong, consistent dividends from our insurance subsidiaries resulting in stable Parent excess cash flow which is available to return to shareholders. Over 90% of our premium revenue is produced from policies sold in prior years, reinforcing long-term stability regardless of economic cycles. Who We Serve: Lower-Income and Middle-Income Households We focus on the lower to middle-income market, which is the largest segment of the population, is significantly underserved, and offers substantial growth opportunities. We believe our ability to serve and focus on this market gives us a distinct competitive advantage. How We Distribute: Exclusive Agencies and DTC Channels We distribute our products across individual and worksite markets primarily through exclusive agencies and direct to consumer channels, enabling cost efficiency and allowing us to focus on growing and serving our customers in this target market without competing on price, product features and commissions. What We Offer: Basic Life and Health Protection Globe Life provides affordable low face basic protection life and health insurance products that are appropriate for our market and easy for our customers and agents to understand. We have a vast amount of data and over 60 years of experience that helps us appropriately underwrite and market these products to the households we serve.
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United American Medicare Supplement Coverage 3,355 Independent Agents $673M Premium Group Worksite Supplemental Health Coverage Direct to Consumer Individual Life Insurance $1.1B Premium Supplemental Health Insurance Juvenile and Senior Life Coverage American Income Life Individual Life Insurance Supplemental Health Insurance 11,699 Agents $1.9B Premium Liberty National Individual Life Insurance Supplemental Health Insurance 3,965 Agents $581M Premium Family Heritage Life 1,640 Agents $475M Premium Supplemental Limited-Benefit Health Insurance 3 Exclusive Agencies Totaling Over 17,300 Agents Goal: Surpass 28,000 exclusive agents and $1.4B in annual sales by 2030. Premiums excludes ‘Other’ category, which is $187M in premium income ended 12/31/25. Sales exclude ‘Other’ category, which is $7M as of 12/31/25. Quarterly average producing agent count as of end of period 12/31/25, except for United American which is actual count at end of period 12/31/24. Consistent long-term growth driven by proven distribution channels. Our Diversified Distribution Channels Offer Basic Protection Products 4 $119M Total Sales $155M Total Sales $413M Total Sales $132M Total Sales $123M Total Sales
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$675 $1,162 $1,130 $1,193 $1,353 $1,509 2020 2021 2022 2023 2024 2025 $272 $352 $377 $378 $372 $390 2020 2021 2022 2023 2024 2025 $484 $522 $531 $544 $595 $615 2020 2021 2022 2023 2024 2025 69% 31%Life Segment Health Segment Stable Sales and Profitable Growth in millions Source: Company financials. 1 See the Appendix for sales by distribution. 2 Underwriting Margin for 2021-2025 post Long-Duration Targeted Improvement (LDTI) accounting change. 3 2020, 2021, and 2022 results were impacted by the pandemic. $178 $184 $191 $224 $245 $333 2020 2021 2022 2023 2024 2025 Net Sales by Distribution Channel1 Underwriting Margins2,3 Net Sales by Distribution Channel1 Underwriting Margins2,3 31% of LTM Premium Income69% of LTM Premium Income AIL DTC LN Other AIL DTC LN FH UA 5
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Conservative Investment Strategy Results in Strong Investment Income with a Resilient, Dependable Yield Source: Company financials. 1 Based on fair value as of 12/31/25. •Conservative “Hold-to-Maturity” Investment Strategy. •Consistent growth of investment income with approximately 4% CAGR for both 5 and 10-year periods. •Longer-dated fixed maturity securities (average maturity of approximately 20 years) that more closely match the long- term nature of the Company’s fixed policy liabilities. Strong, reliable underwriting cash flows allow fixed income securities to be held to maturity. •Broad diversification across sectors with limited exposure to higher-risk assets, including derivatives, equities, and asset- backed securities. •Consistent quality and yield with a 5.29% effective annual yield rate (as of December 31, 2025) and an average rating of A- for the total fixed maturity portfolio. Investment Portfolio by Type Total Invested Assets1: $20.5 billion Fixed Maturities 85.9% Other Long-Term Investments 8.9% Policy Loans 3.6% Short Term Investments 1.5% Fixed Maturities by Type Fixed Maturities1: $17.6 billion Corporates 80.6% States, Municipalities, and Political Subdivisions 16.4% U.S. Government 2.2% Other Asset-Backed Securities 0.6% Foreign Governments 0.2% Fixed Maturities by Rating1 AAA 5% AA 17% A 33% BBB+ 17% BBB 20% BBB- 5% Below IG 3% 6
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$3,814 $4,095 $4,310 $4,456 $4,666 $4,890 2020 2021 2022 2023 2024 2025 $6.88 $9.63 $9.71 $10.65 $12.37 $14.52 2020 2021 2022 2023 2024 2025 2026P Source: Company financials. 1 2021-2025 data post LDTI 2 This is a non-GAAP financial measure. See the reconciliation of non-GAAP financial measures in the Appendix. 3 2020, 2021, and 2022 results were impacted by the pandemic 4 See the Appendix for 2015-2025 data and growth. 5 2022-2025 data post LDTI 6 YTD Premium Income1,4 5-Year CAGR 5.1% and 10-Year CAGR 5.0% Net Operating Income per Share 5-Year CAGR 16.1% and 10-Year CAGR 13.4% Consistent Premium Income Growth, Effective Cost Control, and Strong Underwriting Margins Drive Earnings and EPS Growth1 In Millions 13.5% 12.3% 14.8% 14.7% 15.1% 16.0% 2020 2021 2022 2023 2024 2025 Net Operating Income as ROE2,4,5 7 $14.95– $15.65 Net Operating Income1,2,3 2020 2021 2022 2023 2024 2025 $738 $994 $961 $1,027 $1,109 $1,198 Administrative Expenses as Percentage of Premiums 2020 2021 2022 2023 2024 2025 6.6% 6.6% 6.9% 6.8% 7.3% 7.3%
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$466 $438 $454 $448 $480 $486 $479 $407 $460 $693 $803 $425 $378 $398 $421 $448 $466 $450 $359 $416 $455 $890 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Source: Company financials. 1 The increase is due to an extraordinary dividend. Excess cash flow is after our subsidiaries have made substantial investments during the year to issue new insurance policies, implement new technologies, enhance operational capabilities, and modernize existing information technology as well as to acquire new long-duration assets to fund their future cash needs. Excess Cash Flows (after debt service and other parent expenses, but before shareholder dividends) Dividends from Subsidiaries Consistent Excess Cash Flows in millions 1 Cash Flows from Subsidiary Dividends Dividends from Subsidiaries 5-Year CAGR 10.6% and 10-Year CAGR 5.6% 8
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Source: Company financials. 1 We took the opportunity to increase share repurchases given the favorable market conditions with share prices below our book value per share. Strong Share Repurchases and Shareholder Dividends in millions The Parent has a long history of returning excess cash generated by our operations to our shareholders, primarily through the form of share repurchases. 9 $359 $311 $325 $372 $350 $380 $455 $335 $380 $946 $685 $67 $67 $69 $71 $74 $78 $80 $81 $84 $85 $86 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Shareholder Dividends Share Repurchases Share Repurchases and Shareholder Dividends 1 $535- $585 $85- $90 2026P $458$443 $424 $464 $535 $416 $1,031 $771 $426 $378 $394 $620- $675
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309% 315% 321% 314% 316% 300-320% 2020 2021 2022 2023 2024 2025P Capital Structure and Balance Sheet in millions The Parent maintains multiple sources of liquidity and maintains levels of capital at both the Parent and its insurance subsidiaries that appropriately reflects the risk profile of our operations. 10 $550 $400 $250 $450 $125 $325 $250 2027 2028 2030 2032 2034 2057 2061 Source: Company financials. 1 Additional long-term debt capacity to reach 30% debt cap. 2 From 2025 statutory earnings. 3 Par amount outstanding. 4 $150 million par value is held by insurance subsidiaries that eliminates in consolidation. 5 2022-2025 data post LDTI. 6 Ratings are not a recommendation to buy, sell, or hold securities and may be subject to revision or withdrawal at any time. Commercial Paper $305 FHLB Borrowings $0 Total Short-Term Debt $305 Senior Notes $1,631 Junior Subordinated Debentures $441 Term Loan $249 Total Long-Term Debt $2,321 Parent Liquidity $80 Bank Credit Facility $579 P-Cap Facility $500 Additional Long-Term Debt Capacity 1 $695 Estimated Excess Cash Flow in 2026 2 $625-675 Debt at Book Value as of 12/31/2025 Diversified Sources of Liquidity as of 12/31/2025 Credit Ratings6 Debt Maturity Profile Excluding Commercial Paper and FHLB Borrowings3 Stable Risk-Based Capital Ratio Financial Strength A1 Stable AA- Stable AA- Positive A Stable Long-Term Debt Rating Baa1 Stable A Stable A- Positive BBB+ Stable 25.6% 25.6% 23.6% 22.6% 27.2% 25.3% 2020 2021 2022 2023 2024 2025 Historical Debt / Capitalization and Short-Term Debt (excl. AOCI5) 4
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Appendix
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Selected Financial Metrics 12 Total Invested Assets at Amortized Cost, Net 1,2 $ In Billions Net Investment Income 2 $ in millions $13.8 $14.8 $15.8 $16.6 $17.3 $18.4 $19.3 $20.0 $20.7 $21.2 $21.7 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 $774 $807 $848 $883 $910 $927 $952 $992 $1,057 $1,136 $1,130 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Compound Annual Growth Rate 5-Year 3.4% 10-Year 4.6% Compound Annual Growth Rate 5-Year 4.0% 10-Year 3.9% Source: Company financials. 1 Presented net of the allowance for Current Expected Credit Losses (CECL). 2 5-Year Compound Annual Growth Rate is calculated based on 2020-2025 annual data and 10-Year Compound Annual Growth Rate is calculated based on 2015-2025 annual data.
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$4.13 $4.49 $4.82 $6.13 $6.75 $6.88 $9.63 $9.71 $10.65 $12.37 $14.52 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026P $4.16 $4.49 $12.22 $6.09 $6.83 $6.82 $9.99 $9.04 $10.07 $11.94 $14.07 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Selected Financial Metrics (Cont’d) 13 Net Operating Income Per Share from Continuing Operations1,2,3,5,6 Net Income Per Share1,2,4, 6 Compound Annual Growth Rate 5-Year 16.1% 10-Year 13.4% Compound Annual Growth Rate 5-Year 15.6% 10-Year 13.0% $14.95– $15.65 Source: Company financials. 1 The Company’s financial results were negatively impacted by estimated incurred net life claims, as a result of COVID-19, of $67 million (Y 2020), $140 million (Y 2021). 2 2021-2025 data post LDTI. 3 Net operating income for 2016 and after reflects the impact of new accounting guidance implemented on a prospective basis at the beginning of 2016 relating to excess tax benefits on equity compensation. 4 On December 22, 2017, tax legislation was signed into law which revised the corporate income tax rate from 35% to 21% effective January 1, 2018, among other modifications. 5 Net operating income per share is a non-GAAP measure. 6 5-Year Compound Annual Growth Rate is calculated based on 2020-2025 annual data and 10-Year Compound Annual Growth Rate is calculated based on 2015-2025 annual data. 7YTD
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Selected Financial Metrics (Cont’d) 14 Net Operating Income as ROE1,2,3 (excludes net unrealized gains on fixed maturities/AOCI1) Source: Company financials. Note: 2022-2025 data post LDT I. 2020, 2021, and 2022 results were impacted by the pandemic. 1Excl: AOCI for 2022 - 2025 2 On December 22, 2017, tax legislation was signed into law which revised the corporate income tax rate from 35% to 21% effective January 1, 2018, among other modifications 3 Net operating income per share is a non-GAAP measure. Net Income as ROE 2 14.5% 14.6% 14.3% 14.6% 14.5% 13.5% 12.3% 14.8% 14.7% 15.1% 16.0% 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 11.9% 12.0% 28.2% 12.3% 11.6% 9.5% 8.8% 29.2% 23.2% 21.7% 20.9% 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
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Selected Financial Metrics (Cont’d) 15 Book Value Per Share1,3 (excludes net unrealized gains on fixed maturities/AOCI) Source: Company financials. Book value per share as presented above is 2022-2025 data post LDTI . 1Excl: AOCI for 2022 - 2025 2 On December 22, 2017, tax legislation was signed into law which revised the corporate income tax rate from 35% to 21% effective January 1, 2018, among other modifications. 3 Book Value per share excluding net unrealized gains on fixed maturities/AOCI is a non-GAAP measure. Book Value Per Share2 $30.09 $32.13 $39.77 $44.32 $48.26 $53.12 $58.50 $68.35 $76.21 $86.40 $96.16 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 $32.71 $37.76 $52.95 $48.11 $66.02 $83.19 $85.97 $40.05 $47.10 $62.50 $74.17 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Compound Annual Growth Rate 5-Year 12.6% 10-Year 12.3% Compound Annual Growth Rate 5-Year -2.3% 10-Year 8.5%
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Selected Financial Metrics (Cont’d)$ in millions 16 $3,732 $3,886 $4,680 $4,989 $5,332 $5,600 $5,881 $6,740 $7,259 $7,335 $7,746 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 $4,056 $4,567 $6,231 $5,415 $7,294 $8,771 $8,643 $3,950 $4,487 $5,306 $5,975 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Shareholders’ Equity 1,2 (excludes net unrealized gains on fixed maturities/AOCI1) Shareholders’ Equity2 Source: Company financials. Note: 2022-2025 data post LDTI. 2020, 2021, and 2022 results were impacted by the pandemic . 1Excl: AOCI for 2022 - 2025 2 On December 22, 2017, tax legislation was signed into law which revised the corporate income tax rate from 35% to 21% effective January 1, 2018, among other modifications
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6,590 6,874 6,959 6,936 7,631 9,642 9,530 9,243 11,131 11,926 11,699 1,539 1,781 2,112 2,172 2,534 2,705 2,724 2,946 3,387 3,743 3,965 877 947 1,026 1,129 1,228 1,452 1,194 1,334 1,368 1,512 1,640 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 American Income Liberty National Family Heritage Selected Financial Metrics (Cont’d) 17 Compound Annual Growth Rate 5-Year 4.6% 10-Year 6.7% Producing Agent Count Trending (Based on 4Q average) 9,006 9,602 10,097 10,237 11,393 13,799 13,448 13,523 15,886 17,181 17,304 Source: Company financials. The Average Weekly Producing Agents is based on the actual count at the end of each week during the last quarter of the period. Total agent count exclude Non-Captive agents. 5-Year Compound Annual Growth Rate is calculated based on 2020-2025 data, 10-Year Compound Annual Growth Rate is calculated based on 2015-2025 data.
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Selected Financial Metrics (Cont’d)$ in millions 18 $198 $210 $223 $224 $238 $253 $291 $317 $323 $382 $394 $164 $150 $136 $126 $126 $165 $149 $126 $116 $106 $112 $36 $40 $47 $49 $54 $55 $71 $78 $95 $98 $99 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 American Income Direct to Consumer Liberty National Other $484 $522 Life Segment Net Sales by Distribution Channels Compound Annual Growth Rate 5-Year 4.9% 10-Year 4.1% Source: Company financials. $412 $416 $413 $430 $531 $544 $595 $412 $615
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Selected Financial Metrics (Cont’d)$ in millions 19 $50 $51 $57 $60 $66 $71 $73 $83 $96 $106 $120 $72 $56 $61 $70 $79 $62 $64 $59 $72 $80 $154 $18 $20 $20 $22 $25 $23 $27 $29 $33 $33 $33 $12 $13 $14 $14 $18 $19 $18 $18 $18 $21 $19 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Family Heritage United American Liberty National American Income Direct to Consumer Supplemental Health Segment Net Sales by Distribution Channels Compound Annual Growth Rate 5-Year 13.3% 10-Year 7.9% Source: Company financials. $333 $145 $158 $172 $191 $191 $224 $245 $156 $178 $184
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Selected Financial Metrics (Cont’d)$ in millions 20 $2,073 $2,189 $2,307 $2,407 $2,518 $2,673 $2,894 $3,028 $3,137 $3,261 $3,363 $926 $948 $976 $1,015 $1,077 $1,141 $1,201 $1,282 $1,319 $1,405 $1,527 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Health Life Premium Income by Life & Health1 Compound Annual Growth Rate 5-Year 5.1% 10-Year 5.0% Source: Company financials. Excludes Medicare Part D 1 Premium income for 2021-2025 post LDTI $2,999 $3,137 $3,283 $3,422 $3,595 $3,814 $4,095 $4,310 $4,456 $4,666 $4,890
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Long-Tenured and Experienced Management 21 Frank M. Svoboda Co-Chairman & Co-Chief Executive Officer 22 years with Globe Life 39 years relevant experience J. Matthew Darden Co-Chairman & Co-Chief Executive Officer 11 years with Globe Life 31 years relevant experience Michael C. Majors Executive Vice President & Chief Strategy Officer 32 years with Globe Life 40 years relevant experience Thomas P. Kalmbach Executive Vice President & Chief Financial Officer 7 years with Globe Life 36 years relevant experience
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22 Disciplined Approach to Governance and Risk Management Integrated Risk Management Policies • Enterprise Risk Management Committee, chaired by the Company’s Chief Risk Officer and composed of senior management, is overseen by the Board of Directors • Each of Globe Life’s insurance subsidiaries has a Subsidiary Risk Committee to establish and implement risk management procedures, including the establishment of a separate actuarial governance committee with oversight over actuarial models and assumptions • Globe Life’s risk policies are focused on balance sheet, liquidity and operational risk Corporate Governance Practices • Annual Board and Committee evaluations, including periodic individual director evaluations • Policies prohibiting hedging and providing for clawbacks • Strong mix of diversity and experience on Board of Directors. Of the 10 independent Board members, 50% are women and 30% identify as ethnic minorities • Succession planning and leadership development for the Board, Board leadership, executive officers and senior management positions Sustainability • Board oversees sustainability and receives periodic reports from the Sustainability Committee • Sustainability Committee and our internal working group are responsible for setting the Company’s sustainability agenda, pursuant to a charter adopted by the Board of Directors • Business practices designed to further good corporate citizenship and focus on fiscal management Committed to a corporate culture that aligns day-to-day decision making with risk awareness and helps assure that the Company’s long-term initiatives are consistent with its risk appetite
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Non-GAAP Financial Information 23 Source: Company financials. Net operating income, a non-GAAP financial measure, has been used consistently by Globe Life’s 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 and certain 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. ($ in millions, except per share amounts. Shares outstanding amounts in thousands ) 2020 LDTI 2021 LDTI 2022 LDTI 2023 LDTI 2024 LDTI 2025 Life Insurance Underwriting Margin $675 $1,162 $1,130 $1,193 $1,353 $1,509 Health Insurance Underwriting Margin $272 $352 $377 $378 $372 $390 Total Underwriting Margin $947 $1,514 $1,507 $1,571 $1,725 $1,899 Other Insurance: Other Income & Annuity $10 $11 $12 $9 $8 $9 Administrative Expense ($251) ($272) ($299) ($301) ($342) ($356) Underwriting Income $707 $1,254 $1,219 $1,279 $1,390 $1,553 Excess Investment Income $244 $97 $105 $130 $164 $138 Corporate and Other ($10) ($93) ($102) ($113) ($139) ($155) Pre-Tax Operating Income $941 $1,257 $1,222 $1,296 $1,415 $1,536 Income Tax ($180) ($245) ($238) ($250) ($273) ($295) Stock Compensation Expense, Net of Tax ($23) ($18) ($23) ($20) ($33) ($43) Net Operating Income $738 $994 $961 $1,027 $1,109 $1,198 Reconciling Items, Net of Tax: Realized Gains (Losses) ($2) $54 ($60) ($52) ($19) ($22) Realized Loss-Redemption of Debt ($1) ($7) $0 $0 $0 $0 Other ($3) ($9) ($6) ($4) ($19) ($15) Net Income $732 $1,031 $894 $971 $1,071 $1,161 Per Share: Weighted Average Diluted Shares Outstanding 107,225 103,170 98,985 96,364 89,661 82,525 Net Operating Income $6.88 $9.63 $9.71 $10.65 $12.37 $14.52 Reconciling Items, Net of Tax: Realized Gains (Losses) ($0.02) $0.53 ($0.61) ($0.54) ($0.21) ($0.27) Realized Loss-Redemption of Debt ($0.00) ($0.07) $0.00 $0.00 $0.00 $0.00 Other ($0.03) ($0.09) ($0.06) ($0.04) ($0.21) ($0.18) Net Income $6.82 $9.99 $9.04 $10.07 $11.94 $14.07 Twelve Months Ended December 31,
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Non-GAAP Financial Information (Cont’d) 24 Source: Company financials. Shareholders’ equity, excluding net unrealized gains on fixed maturities, and book value per share, excluding net unrealized gains on fixed maturities, are non-GAAP measures that are utilized by management to view the business without the effect of unrealized gains or losses which are primarily attributable to fluctuation in interest rates associated with the available-for-sale portfolio. Management views the business in this manner because the Company does not intend to sell and it is likely that management will not be required to sell the fixed maturities prior to their anticipated recovery, and meaningful trends can more easily be identified without the fluctuations. 1 Excl: AOCI for 2022-2025 ($ in millions, except per share amounts. Shares outstanding amounts in thousands ) 2020 2021 LDTI 2022 LDTI 2023 LDTI 2024 LDTI 2025 Net Operating Income as ROE (excl. net unrealized gains on fixed maturities/AOCI¹) 13.5% 12.3% 14.8% 14.7% 15.1% 16.0% Shareholders’ Equity $8,771 $8,643 $3,950 $4,487 $5,306 $5,975 Impact of Adjustment to Exclude Net Unrealized Gains on Fixed Maturities/AOCI1 ($3,171) ($2,762) $2,790 $2,772 $2,030 $1,771 Shareholders’ Equity (excl. net unrealized gains on fixed maturities/AOCI 1) $5,600 $5,881 $6,740 $7,259 $7,335 $7,746 Per Share: Diluted Shares Outstanding 105,429 100,535 98,615 95,254 84,895 80,550 Book Value Per Share $83.19 $85.97 $40.05 $47.10 $62.50 $74.17 Impact of Adjustment to Exclude Net Unrealized Gains on Fixed Maturities/AOCI1 ($30.07) ($27.47) $28.30 $29.11 $23.90 $21.99 Book Value Per Share (excl. net unrealized gains on fixed maturities/AOCI 1) $53.12 $58.50 $68.35 $76.21 $86.40 $96.16 Twelve Months Ended December 31,