AM Best has affirmed the Financial Strength Rating (FSR) A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of "a+" (Excellent) of the key life/health subsidiaries of Globe Life Inc. (Globe Life) (headquartered in McKinney, TX) (NYSE:GL). Concurrently, AM Best has affirmed the Long-Term ICR of "bbb+" (Good) of Globe Life. AM Best also has affirmed the associated Short- and Long-Term Issue Credit Ratings (Short-Term IR; Long-Term IR) on the debt and indicative Long-Term IRs on the securities of Globe Life. The outlook of these Credit Ratings (ratings) is stable. (See below for a detailed listing of these companies and ratings).

The ratings reflect Globe Life's balance sheet strength, which AM Best assesses as strong, as well as its very strong operating performance, favorable business profile and appropriate enterprise risk management (ERM).

Globe Life's ratings also reflect the group's relatively low level of risk-adjusted capitalization, as measured by Best's Capital Adequacy Ratio (BCAR), compared with the level of similarly rated peers. Statutory capital and surplus remained virtually flat during 2020; capital growth typically is hampered by dividends to its parent company. The overall credit quality of the group's bond portfolio is good, with over 95% of the portfolio in investment grade securities. However, more than half of the bond portfolio is made up of NAIC 2 bonds and below investment grade bonds have increased year over year. The group's high allocation to NAIC 2 bonds makes the investment portfolio more susceptible to an increase in below investment grade bonds with any potential downward credit migration. The group has moderate financial leverage and strong interest coverage ratios, which are within the guidelines for its current ratings.

Globe Life has a history of very strong operating performance with stable and relatively flat pre-tax earnings. However, an increase in realized losses due to the sale of an energy asset during 2020 led to a decrease in overall year-end statutory net income. Globe Life's return on equity is significantly higher than its peers and overall insurance industry averages. Despite the pandemic, Globe Life increased its agent force, which contributed to increased sales over the year.

Globe Life is a conservatively managed company whose business profile benefits from its diversified distribution platform and its niche businesses, which provide life and supplemental health insurance products to the middle class and retired individuals.

With a formal ERM program in place, Globe Life has identified roles and responsibilities within the governance structure as well as a formal risk appetite statement. The company's ERM committee is chaired by the company's chief risk officer. AM Best believes that the group's ERM program is appropriate given its risk profile.

The FSR of A (Excellent) and the Long-Term ICRs of "a+" (Excellent) have been affirmed with stable outlooks for the following life/health subsidiaries of Globe Life Inc.:

American Income Life Insurance Company
Globe Life and Accident Insurance Company
Liberty National Life Insurance Company
United American Insurance Company
Globe Life Insurance Company of New York
National Income Life Insurance Company
Family Heritage Life Insurance Company of America

The following Short-Term IR has been affirmed:

Globe Life, Inc. —

-- AMB-1 (Outstanding) on commercial paper

The following Long-Term IRs have been affirmed with stable outlooks:

Globe Life, Inc.—

-- "bbb+" (Good) on $300 million 3.80% senior unsecured notes, due 2022

-- "bbb+" (Good) on $200 million 7.875% senior unsecured notes, due 2023

-- "bbb+" (Good) on $550 million 4.55% senior unsecured notes, due 2028

-- "bbb+" (Good) on $400 million 2.15% senior unsecured, due 2030

-- "bbb-" (Good) on $325 million 4.25% junior subordinated debentures, due 2061

The following indicative Long-Term IRs available under the shelf registration have been affirmed with stable outlooks:

Globe Life, Inc. —

-- "bbb+" (Good) on senior unsecured debt

-- "bbb" (Good) on subordinated debt

-- "bbb-" (Good) on preferred stock

This press release relates to Credit Ratings that have been published on AM Best's website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best's Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best's Credit Ratings, Best's Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best's Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

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