Globe Life (GL) 10-K 26 Feb 10 2009 FY Annual report Financial data

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS (USD $)
In Thousands	Dec. 31, 2009	Dec. 31, 2008
Investments:
Fixed maturities-available for sale, at fair value (amortized cost: 2009-$10,152,070; 2008-$9,609,856)	$9,696,355	$7,817,186
Equity securities, at fair value (cost: 2009-$14,875; 2008-$16,876)	16,722	16,346
Policy loans	384,083	360,431
Other long-term investments	52,428	72,284
Short-term investments	357,599	130,954
Total investments	10,507,187	8,397,201
Cash	231,918	46,400
Accrued investment income	179,132	176,068
Other receivables	197,234	151,684
Deferred acquisition costs and value of insurance purchased	3,457,138	3,395,211
Goodwill	423,519	423,519
Other assets	234,808	180,944
Separate account assets	792,823	758,023
Total assets	16,023,759	13,529,050
Liabilities:
Future policy benefits	9,140,473	8,475,020
Unearned and advance premiums	82,488	85,190
Policy claims and other benefits payable	220,155	236,313
Other policyholders' funds	90,397	89,709
Total policy liabilities	9,533,513	8,886,232
Current and deferred income taxes payable	966,426	419,203
Other liabilities	178,328	215,508
Short-term debt	233,307	403,707
Long-term debt (estimated fair value: 2009-$867,519; 2008-$515,249)	796,050	499,049
Due to affiliates	124,421	124,421
Separate account liabilities	792,823	758,023
Total liabilities	12,624,868	11,306,143
Shareholders' equity:
Preferred stock, par value $1 per share-Authorized 5,000,000 shares; outstanding: -0- in 2009 and in 2008	0	0
Common stock, par value $1 per share-Authorized 320,000,000 shares; outstanding: (2009-83,874,748 issued, less 1,034,022 held in treasury and 2008-85,874,748 issued, less 1,167,101 held in treasury)	83,875	85,875
Additional paid-in capital	441,361	446,065
Accumulated other comprehensive income (loss)	(319,183)	(1,170,417)
Retained earnings	3,228,904	2,928,950
Treasury stock	(36,066)	(67,566)
Total shareholders' equity	3,398,891	2,222,907
Total liabilities and shareholders' equity	$16,023,759	$13,529,050

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)
In Thousands, except Share data	Dec. 31, 2009	Dec. 31, 2008
Fixed maturities-available for sale, amortized cost	$10,152,070	$9,609,856
Equity securities, cost	14,875	16,876
Long-term debt, estimated fair value	$867,519	$515,249
Preferred stock, par value	$1	$1
Preferred stock, Authorized	5,000,000	5,000,000
Preferred stock, outstanding	0	0
Common stock, par value	$1	$1
Common stock, Authorized	320,000,000	320,000,000
Common stock, issued	83,874,748	85,874,748
Common stock, held in treasury	1,034,022	1,167,101

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)
In Thousands, except Per Share data	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Revenue:
Life premium	$1,659,770	$1,616,804	$1,569,964
Health premium	1,017,711	1,127,059	1,236,797
Other premium	9,718	14,393	20,470
Total premium	2,687,199	2,758,256	2,827,231
Net investment income	674,915	671,495	648,826
Realized investment gains (losses)	18,788	(389)	13,961
Other-than-temporary impairments	(181,213)	(107,115)	(11,227)
Portion of impairment loss recognized in other comprehensive income	20,766	0	0
Other income	1,942	4,671	7,906
Total revenue	3,222,397	3,326,918	3,486,697
Benefits and expenses:
Life policyholder benefits	1,094,533	1,073,920	1,039,278
Health policyholder benefits	677,319	759,588	835,101
Other policyholder benefits	40,948	39,407	28,049
Total policyholder benefits	1,812,800	1,872,915	1,902,428
Amortization of deferred acquisition costs	429,253	398,324	391,011
Commissions and premium taxes	131,130	145,981	155,483
Other operating expense	174,089	185,212	173,406
Interest expense	69,932	63,229	67,564
Total benefits and expenses	2,617,204	2,665,661	2,689,892
Income before income taxes	605,193	661,257	796,805
Income taxes	(200,240)	(208,998)	(269,270)
Net income	$404,953	$452,259	$527,535
Basic net income per share	4.88	5.14	5.59
Diluted net income per share	4.88	5.11	5.5
Dividends declared per common share	0.57	0.56	0.52

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $)
In Thousands	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Net income	$404,953	$452,259	$527,535
Unrealized gains (losses) on securities:
Unrealized holding gains (losses) arising during period	1,223,157	(1,808,802)	(305,635)
Reclassification adjustment for (gains) losses on securities included in net income	161,323	107,912	(760)
Reclassification adjustment for other-than-temporarily impaired debt securities for which a portion of the loss was recognized in earnings	(20,766)	0	0
Reclassification adjustment for amortization of (discount) premium	(6,183)	(12,410)	(7,572)
Foreign exchange adjustment on securities marked to market	(18,199)	20,685	(17,141)
Unrealized gains (losses) on securities	1,339,332	(1,692,615)	(331,108)
Unrealized gains (losses), adjustment to deferred acquisition costs	(79,603)	98,893	19,148
Total unrealized investment gains (losses)	1,259,729	(1,593,722)	(311,960)
Less applicable taxes	(440,905)	557,803	109,186
Unrealized gains (losses), net of tax	818,824	(1,035,919)	(202,774)
Foreign exchange adjustments:
Foreign exchange translation adjustments, other than securities	21,833	(31,447)	19,327
Less applicable taxes	(7,642)	13,735	(3,244)
Foreign exchange translation adjustments, other than securities, net of tax	14,191	(17,712)	16,083
Pension adjustments:
Adoption of Supplemental Executive Retirement Plan	0	0	(15,419)
Amortization of pension costs	11,219	3,047	2,692
Experience gain (loss)	16,811	(58,200)	(40,109)
Pension adjustments	28,030	(55,153)	(52,836)
Less applicable taxes	(9,811)	19,305	18,492
Pension adjustments, net of tax	18,219	(35,848)	(34,344)
Other comprehensive income (loss)	851,234	(1,089,479)	(221,035)
Comprehensive income (loss)	$1,256,187	($637,220)	$306,500

Statement Of Shareholders Equit

Statement Of Shareholders Equity And Other Comprehensive Income (USD $)
In Thousands	Preferred Stock	Common Stock	Additional Paid-in Capital	Accumulated Other Comprehensive Income (Loss)	Retained Earnings	Treasury Stock	Total
Beginning Balance at Dec. 31, 2006	$0	$99,875	$492,333	$140,097	$2,827,287	($100,399)	$3,459,193
Comprehensive income (loss)				(221,035)	527,535		306,500
Common dividends declared ($0.57 a share in 2009, $0.56 a share in 2008 and $0.52 a share in 2007)					(48,810)		(48,810)
Acquisition of treasury stock						(451,791)	(451,791)
Stock-based compensation			7,479			627	8,106
Exercise of stock options			6,460		(13,385)	56,021	49,096
Retirement of treasury stock		(5,000)	(25,044)		(291,808)	321,852	0
Adoption of accounting guidance surrounding uncertain tax positions					2,333		2,333
Ending Balance at Dec. 31, 2007	0	94,875	481,228	(80,938)	3,003,152	(173,690)	3,324,627
Comprehensive income (loss)				(1,089,479)	452,259		(637,220)
Common dividends declared ($0.57 a share in 2009, $0.56 a share in 2008 and $0.52 a share in 2007)					(48,678)		(48,678)
Acquisition of treasury stock						(455,736)	(455,736)
Stock-based compensation			7,324			3,499	10,823
Exercise of stock options			3,618		(11,856)	37,329	29,091
Retirement of treasury stock		(9,000)	(46,105)		(465,927)	521,032	0
Ending Balance at Dec. 31, 2008	0	85,875	446,065	(1,170,417)	2,928,950	(67,566)	2,222,907
Comprehensive income (loss)				851,234	404,953		1,256,187
Common dividends declared ($0.57 a share in 2009, $0.56 a share in 2008 and $0.52 a share in 2007)					(47,182)		(47,182)
Acquisition of treasury stock						(47,564)	(47,564)
Stock-based compensation			5,419			4,441	9,860
Exercise of stock options			253		(435)	4,865	4,683
Retirement of treasury stock		(2,000)	(10,376)		(57,382)	69,758	0
Ending Balance at Dec. 31, 2009	$0	$83,875	$441,361	($319,183)	$3,228,904	($36,066)	$3,398,891

1_Statement Of Shareholders Equ

Statement Of Shareholders Equity And Other Comprehensive Income (Parenthetical) (USD $)
	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Common dividends declared, a share	0.57	0.56	0.52

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
In Thousands	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Net income	$404,953	$452,259	$527,535
Adjustments to reconcile net income to cash provided from operations:
Increase in future policy benefits	533,466	429,256	412,751
Increase (decrease) in other policy benefits	(18,172)	(21,922)	11,078
Deferral of policy acquisition costs	(560,120)	(549,004)	(566,396)
Amortization of deferred policy acquisition costs	429,253	398,324	391,011
Change in current and deferred income taxes	108,052	57,316	94,009
Realized (gains) losses on sale of investments and properties	141,659	107,504	(2,734)
Change in other receivables	(43,471)	(60,205)	(13,515)
Pension contributions	(14,000)	(52,238)	(12,000)
Other, net	(5,507)	(30,679)	8,258
Cash provided from operations	976,113	730,611	849,997
Investments sold or matured:
Fixed maturities available for sale-sold	900,417	123,659	313,576
Fixed maturities available for sale-matured, called, and repaid	760,858	580,580	1,345,794
Equity securities	1,138	0	19,332
Other long-term investments	7,167	16,933	7,425
Total investments sold or matured	1,669,580	721,172	1,686,127
Acquisition of investments:
Fixed maturities-available for sale	(2,311,455)	(1,091,462)	(2,063,648)
Other long-term investments	(43)	(10,284)	(4,694)
Total investments acquired	(2,311,498)	(1,101,746)	(2,068,342)
Net increase in policy loans	(23,652)	(16,082)	(15,458)
Net (increase) decrease in short-term investments	(226,645)	(19,734)	45,451
Net change in payable or receivable for securities	(13,829)	17,935	(57,810)
Additions to properties	(6,499)	(9,800)	(24,162)
Sales of properties	0	786	6,089
Investments in low-income housing interests	(24,556)	(24,779)	(27,369)
Acquisition of DMAD (Note 1)	0	0	(47,122)
Cash used for investment activities	(937,099)	(432,248)	(502,596)
Cash provided from (used for) financing activities:
Issuance of common stock	4,430	25,473	42,636
Cash dividends paid to shareholders	(46,615)	(48,802)	(49,581)
Issuance of 9 1/4% Senior Notes	296,308	0	0
Repayment of 8 1/4% Senior Debentures	(99,451)	0	0
Net borrowing (repayment) of commercial paper	(70,928)	102,178	32,322
Excess tax benefit from stock option exercises	253	3,618	6,460
Acquisition of treasury stock	(47,564)	(455,736)	(451,791)
Net receipts (payments) from deposit product operations	112,005	112,011	73,200
Cash provided from (used for) financing activities	148,438	(261,258)	(346,754)
Effect of foreign exchange rate changes on cash	(1,934)	(10,803)	2,735
Increase (decrease) in cash	185,518	26,302	3,382
Cash at beginning of year	46,400	20,098	16,716
Cash at end of year	$231,918	$46,400	$20,098

Significant Accounting Policies

Significant Accounting Policies
	12 Months Ended Dec. 31, 2009 USD / shares
Significant Accounting Policies	Note 1Significant Accounting Policies Business:Torchmark Corporation (Torchmark or alternatively, the Company) through its subsidiaries provides a variety of life and health insurance products and annuities to a broad base of customers. Basis of Presentation:The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), under guidance issued by the Financial Accounting Standards Board (FASB). The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Principles of Consolidation:The consolidated financial statements include the results of Torchmark and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. Torchmark accounts for its variable interest entities under accounting guidance which clarifies the definition of a variable interest and the instructions for consolidating variable interest entities (VIEs). Primary beneficiaries only are required to consolidate VIEs. Therefore, a company may have voting control of a VIE, but if it is not the primary beneficiary of the VIE, it is not permitted to consolidate the VIE. The trust that is liable for Torchmarks Trust Preferred Securities meets the definition of a VIE. However, Torchmark is not the primary beneficiary of this entity because its interest is not variable. Therefore, Torchmark is not permitted to consolidate its interest, even though it owns 100% of the voting equity of the trust and guarantees its performance. For this reason, Torchmark reports its 7.1% Junior Subordinated Debentures due to the trust as Due to affiliates each period at its carrying value. However, Torchmark views the Trust Preferred Securities as it does any other debt offering and consolidates the trust in its segment analysis because GAAP requires that the segment analysis be reported as management views its operations and financial condition. Investments:Torchmark classifies all of its fixed-maturity investments, which include bonds and redeemable preferred stocks, as available for sale. Investments classified as available for sale are carried at fair value with unrealized gains and losses, net of deferred taxes, reflected directly in accumulated other comprehensive income. Investments in equity securities, which include common and nonredeemable preferred stocks, are reported at fair value with unrealized gains and losses, net of deferred taxes, reflected directly in accumulated other comprehensive income. Policy loans are carried at unpaid principal balances. Mortgage loans, included in Other long-term investments, are carried at amortized cost. Investments in real estate, included in Other long-term investments, are reported at cost less allowances for depreciation. Depreciation is calculated on the straight line method. Short-term investments in

Statutory Accounting

Statutory Accounting
	12 Months Ended Dec. 31, 2009 USD / shares
Statutory Accounting	Note 2Statutory Accounting Life insurance subsidiaries of Torchmark are required to file statutory financial statements with state insurance regulatory authorities. Accounting principles used to prepare these statutory financial statements differ from GAAP. Consolidated net income and shareholders equity (capital and surplus) on a statutory basis for the insurance subsidiaries were as follows: Net Income Year Ended December 31, ShareholdersEquity At December31, 2009 2008 2007 2009 2008 Life insurance subsidiaries $ 274,734 $ 350,263 $ 428,287 $ 1,428,178 $ 1,219,978 The excess, if any, of shareholders equity of the insurance subsidiaries on a GAAP basis over that determined on a statutory basis is not available for distribution to Torchmark without regulatory approval. More information on the restrictions on the payment of dividends can be found in Note 11Shareholders Equity. Torchmarks statutory financial statements are presented on the basis of accounting practices prescribed by the insurance department of the state of domicile of each insurance subsidiary. All states have adopted the National Association of Insurance Commissioners (NAIC) statutory accounting practices (NAIC SAP) as the basis for statutory accounting. However, certain states have retained the prescribed practices of their respective insurance code or administrative code which can differ from NAIC SAP. There are no significant differences between NAIC SAP and the accounting practices prescribed by the states of domicile for Torchmarks life insurance companies that affect statutory surplus.

Investments

Investments
	12 Months Ended Dec. 31, 2009 USD / shares
Investments	Note 3Investments Portfolio Composition: A summary of fixed maturities available for sale and equity securities by cost or amortized cost and estimated fair value at December 31, 2009 and 2008 is as follows: Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Amount per the Balance Sheet % of Total Fixed Maturities 2009: Fixed maturities available for sale: Bonds: U.S. Government direct obligations and agencies $ 16,438 $ 577 $ -0- $ 17,015 $ 17,015 -0- % Government-sponsored enterprises 83,378 -0- (5,859 ) 77,519 77,519 1 GNMAs 9,707 1,261 -0- 10,968 10,968 -0- States, municipalities, and political subdivisions 1,030,354 4,792 (30,381 ) 1,004,765 1,004,765 11 Foreign governments 21,459 1,018 (10 ) 22,467 22,467 -0- Corporates 7,468,411 233,884 (432,958 ) 7,269,337 7,269,337 75 Residential mortgage-backed securities 10,549 769 -0- 11,318 11,318 -0- Commercial mortgage-backed securities 1,803 4 -0- 1,807 1,807 -0- Collateralized debt obligations 54,551 253 (36,767 ) 18,037 18,037 -0- Asset-backed securities 38,969 1,480 (1,016 ) 39,433 39,433 -0- Redeemable preferred stocks 1,416,451 23,043 (215,805 ) 1,223,689 1,223,689 13 Total fixed maturities 10,152,070 267,081 (722,796 ) 9,696,355 9,696,355 100 % Equity securities: Common stocks: Banks and insurance companies 776 213 (42 ) 947 947 Industrial and all others -0- 2 -0- 2 2 Non-redeemable preferred stocks 14,099 1,719 (45 ) 15,773 15,773 Total equity securities 14,875 1,934 (87 ) 16,722 16,722 Total fixed maturities and equity securities $ 10,166,945 $ 269,015 $ (722,883 ) $ 9,713,077 $ 9,713,077 Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Amount per the Balance Sheet % of Total Fixed Maturities 2008: Fixed maturities available for sale: Bonds: U.S. Government direct obligations and agencies $ 14,976 $ 606 $ -0- $ 15,582 $ 15,582 -0- % Government-sponsored enterprises 202,293 1,086 (8,830 ) 194,549 194,549 3 GNMAs 11,896 940 -0- 12,836 12,836 -0- States, municipalities, and political subdivisions 260,760 661 (44,441 ) 216,980 216,980 3 Foreign governments 8,200

Deferred Acquisition Costs and

Deferred Acquisition Costs and Value of Insurance Purchased
	12 Months Ended Dec. 31, 2009 USD / shares
Deferred Acquisition Costs and Value of Insurance Purchased	Note 4Deferred Acquisition Costs and Value of Insurance Purchased An analysis of deferred acquisition costs and the value of insurance purchased is as follows: 2009 2008 2007 Deferred Acquisition Costs Value of Insurance Purchased Deferred Acquisition Costs Value of Insurance Purchased Deferred Acquisition Costs Value of Insurance Purchased Balance at beginning of year $ 3,339,880 $ 55,331 $ 3,097,554 $ 61,497 $ 2,890,651 $ 65,191 Additions: Deferred during period: Commissions 311,136 -0- 295,594 -0- 300,422 -0- Other expenses 248,984 -0- 253,410 -0- 265,974 -0- Total deferred 560,120 -0- 549,004 -0- 566,396 -0- Foreign exchange adjustment 10,617 46 -0- -0- 8,593 83 Adjustment attributable to unrealized investment losses(1) -0- -0- 98,892 -0- 19,148 -0- Total additions 570,737 46 647,896 -0- 594,137 83 Deductions: Amortized during period(2) (423,741 ) (5,512 ) (392,232 ) (6,092 ) (387,234 ) (3,777 ) Foreign exchange adjustment -0- -0- (13,338 ) (74 ) -0- -0- Adjustment attributable to unrealized investment gains(1) (79,603 ) -0- -0- -0- -0- -0- Total deductions (503,344 ) (5,512 ) (405,570 ) (6,166 ) (387,234 ) (3,777 ) Balance at end of year $ 3,407,273 $ 49,865 $ 3,339,880 $ 55,331 $ 3,097,554 $ 61,497 (1) Represents amounts pertaining to investments relating to universal life-type products. (2) Amortization includes $2.5 million, $7.5 million, and $2.3 million in 2009, 2008, and 2007, respectively, from unlocking adjustments due to actuarial assumption revisions related to Torchmarks variable annuity business. The amount of interest accrued on the unamortized balance of value of insurance purchased was $2.1 million, $3.2 million, and $3.6 million for the years ended December 31, 2009, 2008, and 2007, respectively. The average interest rates used for the years ended December 31, 2009, 2008, and 2007 were 4.0%, 5.5%, and 5.7%, respectively. The estimated amortization, net of interest accrued, on the unamortized balance at December31, 2009 during each of the next five years is: 2010, $4.9million; 2011, $4.4million; 2012, $4.0 million; 2013, $3.6million; and 2014, $3.3million. In the event of lapses or early withdrawals in excess of those assumed, deferred acquisition costs and the value of insurance purchased may not be recoverable.

Future Policy Benefit Reserves

Future Policy Benefit Reserves
	12 Months Ended Dec. 31, 2009 USD / shares
Future Policy Benefit Reserves	Note 5Future Policy Benefit Reserves A summary of the assumptions used in determining the liability for future policy benefits at December31, 2009 is as follows: Individual Life Insurance Interest assumptions: Years of Issue Interest Rates Percentof Liability 1917-2009 2.5%to5.5% 13% 1985-2009 6.0% 30 1986-1992 7.0%gradedto6.0% 9 1954-2000 8.0%gradedto6.0% 11 1951-1985 8.5%gradedto6.0% 4 1984-2009 6.75% 2 2000-2009 7.0% 18 1984-2009 Interest Sensitive 13 100% Mortality assumptions: For individual life, the mortality tables used are various statutory mortality tables and modifications of: 1950-54 Select and Ultimate Table 1954-58 Industrial Experience Table 1955-60 Ordinary Experience Table 1965-70 Select and Ultimate Table 1955-60 Inter-Company Table 1970 United States Life Table 1975-80 Select and Ultimate Table X-18 Ultimate Table 2001 Valuation Basic Table Withdrawal assumptions: Withdrawal assumptions are based on Torchmarks experience. Individual Health Insurance Interest assumptions: Years of Issue Interest Rates Percentof Liability 1955-2009 2.5% to 4.5% 2% 1993-2009 6.0% 62 1986-1992 7.0% graded to 6.0% 24 1955-2000 8.0% graded to 6.0% 7 1951-1986 8.5%gradedto6.0% 1 2001-2007 7.0% 4 100% Morbidity assumptions: For individual health, the morbidity assumptions are based on either Torchmarks experience or the assumptions used in calculating statutory reserves. Termination assumptions: Termination assumptions are based on Torchmarks experience. Overall Interest Assumptions: The overall average interest assumption for determining the liability for future life and health insurance benefits in 2009 was 6.1%.

Liability for Unpaid Health Cla

Liability for Unpaid Health Claims
	12 Months Ended Dec. 31, 2009 USD / shares
Liability for Unpaid Health Claims	Note 6Liability for Unpaid Health Claims Activity in the liability for unpaid health claims is summarized as follows: Year Ended December 31, 2009 2008 2007 Balance at beginning of year $ 119,855 $ 149,200 $ 145,793 Incurred related to: Current year 674,710 716,821 786,120 Prior years (19,487 ) (23,894 ) (1,448 ) Total incurred 655,223 692,927 784,672 Paid related to: Current year 583,127 604,721 651,765 Prior years 87,605 117,551 129,500 Total paid 670,732 722,272 781,265 Balance at end of year $ 104,346 $ 119,855 $ 149,200 At the end of each period, the liability for unpaid health claims includes an estimate of claims incurred but not yet reported to the Company. Such estimates are updated regularly based upon the Companys most recent claims data with recognition of emerging experience trends. Because of the nature of the Companys health business, the payment lags are relatively short and most claims are fully paid within a year from the time incurred. Fluctuations in claims experience can lead to either over- or under-estimation of the liability for any given year. The difference between the estimate made at the end of the prior period and the actual experience during the period is reflected above under the caption Incurred related to: Prior years. Claims paid in 2007 but incurred in 2006 and prior years were settled in 2007 for just $1.4 million less than anticipated in the Companys estimate prepared for 2006 year-end reporting. However, claims paid in 2008 but incurred in 2007 and prior years were settled in 2008 for $23.9 million less than anticipated in the Companys estimates at year-end 2007. Likewise, claims paid in 2009 but incurred in 2008 and prior years were settled in 2009 for $19.5 million less than what was anticipated at 2008 year-end. The most significant components of these favorable variances were in Torchmarks UA Independent, UA Branch, and Medicare Part D distribution channels. During 2007, the Independent and Branch channels experienced a relatively high level of paid claims which resulted in an increased claim liability estimate at December 31, 2007. During 2008 and 2009, paid health claims have trended downwards and were settled more favorably than the original estimates. This resulted in reduced estimates of the claim liability for 2008 versus 2007, and again for 2009 versus 2008. The Companys estimates at each point in time have reflected the emerging data and trends. In the Medicare Part D channel, the Company is required to estimate claim discounts that will be received from drug manufacturers. In each of the years 2008 and 2009, the discounts from the drug manufacturers received in the current year but related to prior year claims were higher than anticipated when the claim liability was determined. The liability for unpaid health claims is included with Policy claims and oth

Supplemental Disclosures of Cas

Supplemental Disclosures of Cash Flow Information
	12 Months Ended Dec. 31, 2009 USD / shares
Supplemental Disclosures of Cash Flow Information	Note 7Supplemental Disclosures of Cash Flow Information The following table summarizes Torchmarks noncash transactions, which are not reflected on the Consolidated Statements of Cash Flows: Year Ended December 31, 2009 2008 2007 Stock-based compensation not involving cash $ 9,860 $ 10,823 $ 8,106 Commitments for low-income housing interests 50,789 25,751 3,696 Capitalized investment income 7,345 7,772 -0- The following table summarizes certain amounts paid during the period: Year Ended December 31, 2009 2008 2007 Interest paid $ 71,288 $ 62,671 $ 67,098 Income taxes paid 87,376 161,348 170,528

Income Taxes

Income Taxes
	12 Months Ended Dec. 31, 2009 USD / shares
Income Taxes	Note 8Income Taxes Torchmark and its subsidiaries file a life-nonlife consolidated Federal income tax return. The components of income taxes were as follows: YearEndedDecember31, 2009 2008 2007 Income tax expense $ 200,240 $ 208,998 $ 269,270 Shareholders equity: Other comprehensive income (loss) 458,358 (590,843 ) (124,434 ) Adoption of accounting guidance surrounding uncertain tax positions -0- -0- (2,333 ) Tax basis compensation expense (from the exercise of stock options) in excess of amounts recognized for financial reporting purposes (253 ) (3,618 ) (6,460 ) $ 658,345 $ (385,463 ) $ 136,043 Income tax expense consists of: Year Ended December 31, 2009 2008 2007 Current income tax expense $ 159,861 $ 148,277 $ 180,322 Deferred income tax expense 40,379 60,721 88,948 $ 200,240 $ 208,998 $ 269,270 In 2009, 2008, and 2007, deferred income tax expense was incurred because of certain differences between net income before income taxes as reported on the Consolidated Statements of Operations and taxable income as reported on Torchmarks income tax returns. As explained in Note 1Significant Accounting Policies, these differences caused the financial statement book values of some assets and liabilities to be different from their respective tax bases. The effective income tax rate differed from the expected 35% rate as shown below: Year Ended December 31, 2009 % 2008 % 2007 % Expected income taxes $ 211,818 35.0 % $ 231,440 35.0 % $ 278,882 35.0 % Increase (reduction) in income taxes resulting from: Tax-exempt investment income (4,133 ) (.7 ) (4,503 ) (.7 ) (3,908 ) (.5 ) Tax settlements (3,062 ) (.5 ) (12,643 ) (1.9 ) (615 ) (.1 ) Low income housing investments (6,038 ) (1.0 ) (5,129 ) (.8 ) (4,701 ) (.6 ) Other 1,655 .3 (167 ) -0- (388 ) -0- Income tax expense $ 200,240 33.1 % $ 208,998 31.6 % $ 269,270 33.8 % The tax effects of temporary differences that gave rise to significant portions of the deferred tax assets and deferred tax liabilities are presented below: December 31, 2009 2008 Deferred tax assets: Fixed maturity investments $ 75,448 $ 36,764 Carryover of nonlife losses 24,541 15,058 Unrealized losses 180,028 637,221 Other assets and other liabilities 33,621 9,416 Total gross deferred tax assets 313,638 698,459 Deferred tax liabilities: Employee and agent compensation 50,773 44,698 Deferred acquisition costs

Postretirement Benefits

Postretirement Benefits
	12 Months Ended Dec. 31, 2009 USD / shares
Postretirement Benefits	Note 9Postretirement Benefits Pension Plans:Torchmark has noncontributory retirement benefit plans and contributory savings plans which cover substantially all employees. There are also two nonqualified, noncontributory supplemental benefit pension plans which cover a limited number of employees. The total cost of these retirement plans charged to operations was as follows: Year Ended December 31, DefinedContribution Plans DefinedBenefit Pension Plans 2009 $ 3,511 $ 17,912 2008 2,988 8,918 2007 2,925 7,621 Torchmark accrues expense for the defined contribution plans based on a percentage of the employees contributions. The plans are funded by the employee contributions and a Torchmark contribution equal to the amount of accrued expense. Plan contributions are both mandatory and discretionary, depending on the terms of the plan. Cost for the defined benefit pension plans has been calculated on the projected unit credit actuarial cost method. All plan measurements for the defined benefit plans are as of December 31 of the respective year. The defined benefit pension plans covering the majority of employees are funded. Contributions are made to funded pension plans subject to minimums required by regulation and maximums allowed for tax purposes. Defined benefit plan contributions were $15 million in 2009, $63 million in 2008, and $13million in 2007. Torchmark estimates as of December 31, 2009 that it will contribute an amount not to exceed $20 million to these plans in 2010. The actual amount of contribution may be different from this estimate. In January, 2007, Torchmark approved and implemented a new Supplemental Executive Retirement Plan (SERP), which provides to a limited number of executives an additional supplemental defined pension benefit. The supplemental benefit is based on the participants qualified plan benefit without consideration to the regulatory limits on compensation and benefit payments applicable to qualified plans, except that eligible compensation is capped at $1 million. The SERP is unfunded. However, life insurance policies on the lives of plan participants were established during 2009 for this plan with an unaffiliated insurance carrier. The premiums for this coverage paid in 2009 were $11 million. Because this plan is unqualified, the policyholder value of these policies is not included as defined benefit plan assets but as assets of the Company. The liability for this SERP at December 31, 2009 was $32million and was $28 million a year earlier. Subsequent to December 31, 2009, the Company contributed an additional $21million into a Rabbi Trust for this plan. The other supplemental benefit pension plan is limited to a very select group of employees and was closed as of December 31, 1994. It provides the full benefits that an employee would have otherwise received from a defined benefit plan in the absence of the limitation on benefits payable under a qualified plan. This plan is unfunded. Liability for this closed plan was $4 million at December 31, 2009 and $5million at December 31, 2008. Pension cost for both supplemental defined benefit

Debt

Debt
	12 Months Ended Dec. 31, 2009 USD / shares
Debt	Note 10Debt The following table presents information about the terms and outstanding balances of Torchmarks debt. Selected Information about Debt Issues As of December 31, 2009 2008 Instrument Annual Percentage Rate Issue Date Periodic Interest Payments Due Outstanding Principle (Par Value) Outstanding Principle (BookValue) Outstanding Principle (FairValue) Outstanding Principle (BookValue) Notes, due 5/15/23(1)(2) 7.875 % 5/93 5/1511/15 $ 165,612 $ 163,119 $ 166,478 $ 163,019 Notes, due 8/1/13(1)(2) 7.375 % 7/93 2/18/1 94,050 93,585 102,586 93,479 Senior Notes, due 6/15/16(1)(8) 6.375 % 6/06 6/1512/15 250,000 247,104 255,318 246,754 Senior Notes, due 6/15/19(1)(8) 9.250 % 6/09 6/1512/15 300,000 296,423 343,137 -0- Issue Expenses(3) -0- (4,181 ) -0- (4,203 ) Subtotal long-term debt 809,662 796,050 867,519 499,049 Senior Debentures, due 8/15/09(1)(2) (9) 8.250 % 8/89 2/158/15 -0- -0- -0- 99,471 Junior Subordinated Debentures due 6/1/46(4)(5) 7.100 % 6/06 quarterly(6) 123,711 123,711 120,000 (7) 123,711 Total funded debt 933,373 919,761 987,519 722,231 Commercial Paper(9) 233,381 233,307 233,307 304,236 $ 1,166,754 $ 1,153,068 $ 1,220,826 $ 1,026,467 (1) All securities other than the Junior Subordinated Debentures have equal priority with one another. (2) Not callable. (3) Unamortized issue expenses related to Trust Preferred Securities. (4) Junior Subordinated Debentures are classified as Due to affiliates and are junior to other securities in priority of payment. (5) Earliest call date is June 1, 2011. (6) Quarterly payments on the first day of March, June, Sept., and Dec. (7) Fair value of Trust Preferred Securities. (8) Callable subject to make-whole premium. (9) Classified as short-term debt. Senior debentures due 2009 were classified as short-term debt in 2008. The amount of debt that becomes due during each of the next five years is: 2010$233 million; 2011$0; 2012$0; 2013$94 million; 2014$0 and thereafter$839 million. Funded debt:During 2006, Torchmark established Torchmark Capital Trust III (Trust III) to facilitate the public offering of 4.8 million shares of $25 par value Trust Preferred Securities. Trust III completed the offering on June 8, 2006 for total proceeds of $120 million. It then exchanged $3.7 million of its common stock and the $120 million of proceeds from the offering for $123.7 million of Torchmark Junior Subordinated Debentures, due June 1, 2046. Trust III pays quarterly dividends

Shareholders' Equity

Shareholders' Equity
	12 Months Ended Dec. 31, 2009 USD / shares
Shareholders' Equity	Note 11Shareholders Equity Share Data: A summary of preferred and common share activity is as follows: Preferred Stock Common Stock Issued Treasury Stock Issued Treasury Stock 2007: Balance at January 1, 2007 -0- -0- 99,874,748 (1,760,121 ) Grants of restricted stock 10,000 Issuance of common stock due to exercise of stock options 967,227 Treasury stock acquired (6,916,439 ) Retirement of treasury stock (5,000,000 ) 5,000,000 Balance at December 31, 2007 -0- -0- 94,874,748 (2,699,333 ) 2008: Grants of restricted stock -0- -0- 54,382 Issuance of common stock due to exercise of stock options 602,550 Treasury stock acquired (8,124,700 ) Retirement of treasury stock (9,000,000 ) 9,000,000 Balance at December 31, 2008 -0- -0- 85,874,748 (1,167,101 ) 2009: Grants of restricted stock 76,707 Issuance of common stock due to exercise of stock options 126,172 Treasury stock acquired (2,069,800 ) Retirement of treasury stock (2,000,000 ) 2,000,000 Balance at December 31, 2009 -0- -0- 83,874,748 (1,034,022 ) Acquisition of Common Shares:Torchmark shares are acquired from time to time through open market purchases under the Torchmark stock repurchase program when it is believed to be the best use of Torchmarks excess cash flows. Torchmark suspended its share repurchase program indefinitely during the first quarter of 2009. Share repurchases under this program were 2.1 million shares at a cost of $47 million in 2009, 7.6 million shares at a cost of $427 million in 2008, and 6.1 million shares at a cost of $402 million in 2007. When stock options are exercised, proceeds from the exercises are generally used to repurchase approximately the number of shares available with those funds in order to reduce dilution. Shares repurchased for dilution purposes were 20 thousand shares at a cost of $869 thousand in 2009, 487 thousand shares at a cost of $29 million in 2008, and 767 thousand shares at a cost of $50million in 2007. Retirement of Treasury Stock:Torchmark retired 2 million shares of treasury stock in December, 2009, 9 million in 2008, and 5 million in 2007. Restrictions:Restrictions exist on the flow of funds to Torchmark from its insurance subsidiaries. Statutory regulations require life insurance subsidiaries to maintain certain minimum amounts of capital and surplus. Dividends from insurance subsidiaries of Torchmark are limited to the greater of prior year statutory net gain from operations not including realized capital gains on an annual noncumulative basis, or 10% of prior year surplus, in the absence of special regulatory approval. Additionally, insurance company distributions are generally not permitted in excess of statutory surplus. Subsidiaries are also subject to certain minimum capital requirem

Stock-Based Compensation

Stock-Based Compensation
	12 Months Ended Dec. 31, 2009 USD / shares
Stock-Based Compensation	Note 12Stock-Based Compensation Certain employees, directors, and consultants have been granted fixed equity options to buy shares of Torchmark stock at the market value of the stock on the date of grant, under the provisions of the Torchmark stock option plans. The options are exercisable during the period commencing from the date they vest until expiring according to the terms of the grant. Options generally expire the earlier of employee termination or option contract term, which ranges from seven to eleven years. Employee and consultant stock options generally vest one-half in two years and one-half in three years. Formula-based director grants generally vest in six months. Stock options awarded in connection with compensation deferrals by certain directors and executives generally vest over a range of six to ten years. All options vest immediately upon the attainment of age 65, subject to a minimum vesting period of one year for employees or six months for directors. Torchmark generally issues shares for the exercise of stock options from treasury stock. The Company generally uses the proceeds from option exercises to buy shares of Torchmark common stock in the open market to reduce the dilution from option exercises. Shareholders approved a new stock compensation plan in April, 2007, the Torchmark Corporation 2007 Long-Term Compensation Plan (2007 Plan), authorizing a total of 3,250,000 shares for potential grant. Of this total, a maximum of 250,000 shares may be granted as restricted stock. All shares available for grant under previous plans were no longer available for grant under the 2007 Plan. An analysis of shares available for grant is as follows: Available for Grant 2009 2008 2007 Balance at January 1 2,136,806 3,136,000 465,224 Adoption of 2007 Plan -0- -0- 3,250,000 Cancelled on termination of prior plans -0- -0- (36,812 ) Expired and forfeited during year* 25,000 8,000 15,300 Options granted during year (928,850 ) (949,750 ) (547,712 ) Restricted stock and restricted stock units granted during year (83,263 ) (57,444 ) (10,000 ) Balance at December 31 1,149,693 2,136,806 3,136,000 * Options expired and forfeited are limited to shares in the 2007 Plan, as no shares are available from previous plans. A summary of stock compensation activity for each of the years in the three years ended December31, 2009 is presented below: 2009 2008 2007 Stock-based compensation expense recognized* $ 9,860 $ 10,823 $ 8,106 Tax benefit recognized 3,451 3,788 2,837 Weighted-average grant-date fair value of options granted 5.50 8.87 12.58 Intrinsic value of options exercised 1,088 10,700 19,924 Cash received from options exercised 4,431 25,472 42,635 Actual tax benefit received from exercises 381 3,745 6,973 *No stock-based compensation expense was capitalized in any period. An analysis of option activity for eac

Business Segments

Business Segments
	12 Months Ended Dec. 31, 2009 USD / shares
Business Segments	Note 13Business Segments Torchmarks reportable segments are based on the insurance product lines it markets and administers: life insurance, health insurance, and annuities. These major product lines are set out as reportable segments because of the common characteristics of products within these categories, comparability of margins, and the similarity in regulatory environment and management techniques. There is also an investment segment which manages the investment portfolio, debt, and cash flow for the insurance segments and the corporate function. Torchmarks chief operating decision maker evaluates the overall performance of the operations of the Company in accordance with these segments. Life insurance products include traditional and interest-sensitive whole life insurance as well as term life insurance. Health products are generally guaranteed-renewable and include Medicare Supplement, Medicare Part D, cancer, accident, long-term care, and limited-benefit hospital and surgical coverages. Annuities include both fixed-benefit and variable contracts. Variable contracts allow policyholders to choose from a variety of mutual funds in which to direct their deposits. Torchmark markets its insurance products through a number of distribution channels, each of which sells the products of one or more of Torchmarks insurance segments. The tables below present segment premium revenue by each of Torchmarks marketing groups. Torchmark Corporation Premium Income By Distribution Channel For the Year 2009 Life Health Annuity Total Distribution Channel Amount % of Total Amount % of Total Amount % of Total Amount % of Total United American Independent $ 28,498 2 $ 326,442 32 $ 541 6 $ 355,481 13 Liberty National Exclusive 298,485 18 388,522 38 687,007 25 American Income Exclusive 507,899 31 75,097 7 582,996 22 Direct Response 536,878 32 46,555 5 583,433 22 Medicare Part D 183,586 18 183,586 7 Other 288,010 17 9,177 94 297,187 11 $ 1,659,770 100 $ 1,020,202 100 $ 9,718 100 $ 2,689,690 100 For the Year 2008 Life Health Annuity Total Distribution Channel Amount % of Total Amount % of Total Amount % of Total Amount % of Total United American Independent $ 31,855 2 $ 356,853 32 $ 622 4 $ 389,330 14 Liberty National Exclusive 304,262 19 475,905 42 780,167 28 American Income Exclusive 473,784 29 73,423 6 547,207 20 Direct Response 511,165 32 45,123 4 556,288 20 Medicare Part D 175,633 16 175,633 7 Other 295,738 18 13,771 96 309,509 11 $ 1,616,804 100 $ 1,126,937 100 $ 14,393 100 $ 2,758,134 100

Commitments and Contingencies

Commitments and Contingencies
	12 Months Ended Dec. 31, 2009 USD / shares
Commitments and Contingencies	Note 14Commitments and Contingencies Reinsurance:Insurance affiliates of Torchmark reinsure that portion of insurance risk which is in excess of their retention limits. Retention limits for ordinary life insurance range up to $2.0 million per life. Life insurance ceded represented .9% of total life insurance in force at December 31, 2009. Insurance ceded on life and accident and health products represented .4% of premium income for 2009. Torchmark would be liable for the reinsured risks ceded to other companies to the extent that such reinsuring companies are unable to meet their obligations. Insurance affiliates also assume insurance risks of other companies. Life reinsurance assumed represented 1.3% of life insurance in force at December 31, 2009 and reinsurance assumed on life and accident and health products represented .7% of premium income for 2009. Leases:Torchmark leases office space and office equipment under a variety of operating lease arrangements. Rental expense for operating leases was $4.9 million in 2009, $5.1 million in 2008, and $6.0 million in 2007. Future minimum rental commitments required under operating leases having remaining noncancelable lease terms in excess of one year at December 31, 2009 were as follows: 2010, $4.1 million; 2011, $2.5 million; 2012, $2.1 million; 2013, $1.9 million; 2014, $1.1 million; and in the aggregate, $16.6 million. Low-Income Housing Tax Credit Interests:As described in Note 1, Torchmark has invested $169 million in entities which provide certain tax benefits. As of December 31, 2009, Torchmark remained obligated under these commitments for $38 million, of which $28 million is due in 2010, $7 million in 2011, and $3 million in 2012. Concentrations of Credit Risk:Torchmark maintains a diversified investment portfolio with limited concentration in any given issuer. At December 31, 2009, the investment portfolio, at fair value, consisted of the following: Investment-grade corporate securities 76 % Securities of state and municipal governments 10 Below-investment-grade securities 6 Policy loans, which are secured by the underlying insurance policy values 4 Short-term investments, which generally mature within one month 3 Other fixed maturities, equity securities, mortgages, real estate, and other long-term investments 1 100 % As of December 31, 2009, securities of state and municipal governments represented 10% of invested assets at fair value. Such investments are made throughout the U.S. At year-end 2009, 5% or more of the state and municipal bond portfolio at fair value was invested in securities issued within the following states: Texas (31%), Washington (8%), Illinois (7%), Ohio (6%), Alabama (6%), and Pennsylvania (5%). Otherwise, there was no significant concentration within any given state. Corporate debt and equity investments are made in a wide range of industries. Below are the ten largest industry concentrations held in the corporate portfolio at December 31, 2009, based on fair value: Insurance carriers 19 % Banks 17 Electric utilities 14 Oil and gas e

Related Party Transactions

Related Party Transactions
	12 Months Ended Dec. 31, 2009 USD / shares
Related Party Transactions	Note 15Related Party Transactions First Command.Lamar C. Smith, a director of Torchmark, served as Chief Executive Officer of First Command Financial Services, Inc. (First Command), a corporation 100% owned by the First Command Employee Stock Ownership Plan (First Command ESOP) until May 1, 2007 and thereafter as Chairman of First Command Bank, a subsidiary of First Command, until his retirement from First Command September 30, 2007. Mr. Smith was a beneficiary of the First Command ESOP although he had no ability to vote the stock of First Command that is held by the First Command ESOP, which is independently trusteed. First Command receives commissions as the Military Agency distribution system for selling certain life insurance products offered by Torchmarks insurance subsidiaries. These commissions were $45.3 million in 2007. Torchmark has in place a coinsurance agreement with First Commands life subsidiary whereby Torchmark cedes back to First Command approximately 3% of the new life insurance business sold by First Command on behalf of Torchmarks insurance subsidiaries. Under the terms of this agreement, First Command pays Torchmark a maintenance expense allowance equal to 5.5% of all premium collected and an issue allowance of 2.9% of first year premium collected. Torchmark is also reimbursed for actual commissions, premium taxes, and claims paid on the business ceded to First Command. Also under the agreement, Torchmark provides First Command certain administrative, accounting, and investment management services. Premium ceded was $2.7 million in 2007. Baxley.William J. Baxley is a partner in the law firm of Baxley, Dillard, Dauphin, McKnight James which performs legal services for Torchmark and certain of its subsidiaries. In 1997, Mr. Baxley was loaned $668 thousand on an unsecured basis at a rate of 6.02%. Repayments are made in the form of legal services at customary rates and are applied against the outstanding balance, amortizing the loan with interest over its remaining term. In October, 2001, the terms of the loan were revised and an additional amount of $395 thousand was loaned to Baxley. The interest rate was revised to 5.6% and the term of the loan was extended until July, 2013. The loan is being repaid in accordance with its amortization schedule and all payments are current. At December 31, 2009 and 2008, the outstanding balance of this loan was $296 thousand and $371 thousand, respectively. Additionally, Torchmark has loaned Mr. Baxleys wife $883 thousand secured by a mortgage on a building sold to her in 1997. Prior to 2006, interest was charged at a rate of 7.7%. This loan was originally due to be repaid in 2007 with a balloon payment, but in January, 2006, the outstanding balance of $734 thousand was refinanced and extended until January of 2023. The interest rate was revised to 5.5%. Scheduled cash payments are made to amortize the loan. At December 31, 2009 and 2008, the outstanding balance of this loan was $620 thousand and $651 thousand, respectively. Torchmark also holds funds on behalf of Mr. Baxley as a part of an agreement established in 2006. Interest is paid to Baxley based on a variabl

Selected Quarterly Data

Selected Quarterly Data (Unaudited)
	12 Months Ended Dec. 31, 2009 USD / shares
Selected Quarterly Data (Unaudited)	Note 16Selected Quarterly Data (Unaudited) The following is a summary of quarterly results for the two years ended December 31, 2009. The information is unaudited but includes all adjustments (consisting of normal accruals) which management considers necessary for a fair presentation of the results of operations for these periods. Three Months Ended March31, June30, September30, December31, 2009: Premium and policy charges $ 686,485 $ 681,541 $ 657,770 $ 661,403 Net investment income 169,043 167,354 169,608 168,910 Realized investment gains(losses) (46,295 ) (29,629 ) (42,975 ) (22,760 ) Total revenues 809,638 819,734 784,854 808,171 Policy benefits 477,614 464,335 435,332 435,519 Amortization of acquisition expenses 114,668 104,205 104,967 105,413 Pretax income 126,296 160,407 147,057 171,433 Net income 76,706 114,118 100,800 113,329 Basic net income per common share* 0.91 1.38 1.22 1.37 Diluted net income per common share* 0.91 1.38 1.22 1.36 2008: Premium and policy charges $ 710,593 $ 699,404 $ 678,597 $ 669,662 Net investment income 166,903 167,826 169,034 167,732 Realized investment gains(losses) (6,964 ) (7,698 ) (95,221 ) 2,379 Total revenues 872,433 860,492 753,352 840,641 Policy benefits 494,401 481,398 451,236 445,880 Amortization of acquisition expenses 98,638 97,634 101,429 100,623 Pretax income 178,430 184,606 105,631 192,590 Net income 118,173 133,726 63,151 137,209 Basic net income per common share* 1.30 1.49 0.73 1.61 Diluted net income per common share* 1.29 1.47 0.72 1.61 * Basic and diluted net income per share by quarter may not add to per share income on a year-to-date basis due to share weighting and rounding.

SCHEDULE II. CONDENSED FINANCIA

SCHEDULE II. CONDENSED FINANCIAL INFORMATION OF REGISTRANT
	12 Months Ended Dec. 31, 2009 USD / shares
SCHEDULE II. CONDENSED FINANCIAL INFORMATION OF REGISTRANT	TORCHMARK CORPORATION (PARENT COMPANY) SCHEDULE II. CONDENSED FINANCIAL INFORMATION OF REGISTRANT CONDENSED BALANCE SHEETS (Amounts in thousands) December 31, 2009 2008 Assets: Investments: Long-term investments $ 1,390 $ 1,371 Short-term investments 155,342 25,553 Total investments 156,732 26,924 Cash -0- 749 Investment in affiliates 4,384,023 3,317,597 Due from affiliates 77,170 11,617 Taxes receivable 45,001 62,901 Other assets 2,885 27,535 Total assets $ 4,665,811 $ 3,447,323 Liabilities and shareholders equity: Liabilities: Short-term debt $ 233,307 $ 403,707 Long-term debt 796,050 499,049 Due to affiliates 138,081 185,479 Other liabilities 99,482 136,181 Total liabilities 1,266,920 1,224,416 Shareholders equity: Preferred stock 351 351 Common stock 83,875 85,875 Additional paid-in capital 791,872 796,576 Accumulated other comprehensive income (319,183 ) (1,170,417 ) Retained earnings 3,228,904 2,928,950 Treasury stock (386,928 ) (418,428 ) Total shareholders equity 3,398,891 2,222,907 Total liabilities and shareholders equity $ 4,665,811 $ 3,447,323 See Notes to Condensed Financial Statements and accompanying Report of Independent Registered Public Accounting Firm. TORCHMARK CORPORATION (PARENT COMPANY) SCHEDULE II. CONDENSED FINANCIAL INFORMATION OF REGISTRANT (continued) CONDENSED STATEMENTS OF OPERATIONS (Amounts in thousands) Year Ended December 31, 2009 2008 2007 Net investment income $ 17,374 $ 19,752 $ 23,716 Realized investment gains (losses) (1 ) -0- 131 Total revenue 17,373 19,752 23,847 General operating expenses 18,119 22,636 17,582 Reimbursements from affiliates (5,973 ) (9,374 ) 14 Interest expense 71,687 65,643 68,549 Total expenses 83,833 78,905 86,145 Operating income (loss) before income taxes and equity in earnings of affiliates (66,460 ) (59,153 ) (62,298 ) Income taxes 19,773 20,231 22,425 Net operating loss before equity in earnings of affiliates (46,687 ) (38,922 ) (39,873 ) Equity in earnings of affiliates 451,640 491,181 567,408 Net income $ 404,953 $ 452,259 $ 527,535 See Notes to Condensed Financial Statements and accompanying Report of Independent Registered Public Accounting Firm. TORCHMARK CORPORATION (PARENT

SCHEDULE IV. REINSURANCE

SCHEDULE IV. REINSURANCE (CONSOLIDATED)
	12 Months Ended Dec. 31, 2009 USD / shares
SCHEDULE IV. REINSURANCE (CONSOLIDATED)	TORCHMARK CORPORATION SCHEDULE IV. REINSURANCE (CONSOLIDATED) (Amounts in thousands) Gross Amount Ceded to Other Companies(1) Assumed from Other Companies Net Amount Percentage of Amount Assumed to Net For the Year Ended December 31, 2009: Life insurance in force $ 150,626,705 $ 1,341,635 $ 1,898,360 $ 151,183,430 1.3 % Premiums:(2) Life insurance $ 1,603,355 $ 7,349 $ 18,172 $ 1,614,178 1.1 % Health insurance 1,020,467 2,756 -0- 1,017,711 0 % Total premium $ 2,623,822 $ 10,105 $ 18,172 $ 2,631,889 .7 % For the Year Ended December 31, 2008: Life insurance in force $ 145,812,859 $ 1,392,150 $ 1,966,917 $ 146,387,626 1.3 % Premiums:(2) Life insurance $ 1,554,831 $ 7,598 $ 18,693 $ 1,565,926 1.2 % Health insurance 1,130,932 3,872 -0- 1,127,060 0 % Total premium $ 2,685,763 $ 11,470 $ 18,693 $ 2,692,986 .7 % For the Year Ended December 31, 2007: Life insurance in force $ 143,316,407 $ 1,495,095 $ 2,033,069 $ 143,854,381 1.4 % Premiums:(2) Life insurance $ 1,505,784 $ 7,651 $ 19,500 $ 1,517,633 1.3 % Health insurance 1,241,471 4,676 -0- 1,236,795 0 % Total premium $ 2,747,255 $ 12,327 $ 19,500 $ 2,754,428 .7 % (1) No amounts have been netted against ceded premium (2) Excludes policy charges of $45,592, $52,331, and $54,365, in each of the years 2009, 2008, and 2007, respectively.

Document Information

Document Information
	12 Months Ended Dec. 31, 2009 USD / shares
Document Type	10-K
Amendment Flag	false
Document Period End Date	2009-12-31

Entity Information

Entity Information (USD $)
	12 Months Ended Dec. 31, 2009	Feb. 15, 2010	Jun. 30, 2009
Trading Symbol	TMK
Entity Registrant Name	TORCHMARK CORP
Entity Central Index Key	0000320335
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		82,841,526
Entity Public Float			$3,064,495,696