Globe Life – NAIC Filings Analysis

Author: Viceroy Research Published on: May 23, 2024 Published in: Globe Life NYSE:GL

May 23, 2024 – Viceroy’s deep-dive research into SEC and NAIC filings has found how Globe Life, through financial shenanigans and a full financial guarantee, have transformed AIL’s agent loan receivable balances into short-term investments on Liberty National’s balance sheet. Globe Life and Liberty National have been making increasing short-term loans to “plug the gap” of these unrecoverable balances.

1. AIL originates agent commission receivables when it makes advances to agents on policies written which Globe Life refers to as “agent debit balances”.

2. AIL granted all rights, title, and interest in agent loans receivables to AILIC Receivables Ltd, who are funded by revolving loans from Liberty National and Globe Life Inc

3. Liberty National reports these loans, secured by agent debit balances, as short-term investments in the same line item as cash on its NAIC balance sheet.

We emphasize that this reclassification of agent loans is separate to the $125m of agent receivables sold by AIL to a Globe Life’s captive Bermudan offshore reinsurer: TMK Re, Ltd (TMK) identified in our preliminary report.

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