F&g Annuities & Life, Inc. · NYSE:FG
F&g Annuities & Life — Q1 2025 Earnings Presentation
45 slides from F&g Annuities & Life's earnings presentation, May 7, 2025
Slide 1: F&G Investor Update Spring 2025
F&G Investor Update Spring 2025
Slide 2: Disclaimer & Forward-Looking Statements
Disclaimer & Forward-Looking Statements 2F&G Investor Update | Spring 2025 This presentation contains forward-looking statements that are subject to known and unknown risks and uncertainties, many of which are beyond our control. Some of the forward-looking statements can be identified by the use of
Slide 3: Non-GAAP Financial Measures
Non-GAAP Financial Measures 3F&G Investor Update | Spring 2025 Generally Accepted Accounting Principles in the U.S. ("GAAP") is the term used to refer to the standard framework of guidelines for financial accounting. GAAP includes the standards, conventions, and rules accountants follow in recording
Slide 4: Q1 demonstrates F&G's flexibility to respond to changing market conditions
Q1 demonstrates F&G’s flexibility to respond to changing market conditions & navigate near-term headwinds • Managing sales and inforce profitability to optimize our return on capital, resulting in lower MYGA sales • Record AUM driven by continued strong indexed annuity sales • Adjusted return on ass
Slide 5: Perspectives on 1Q25 Performance
Perspectives on 1Q25 Performance 5F&G Investor Update | Spring 2025 Asset growth is driving healthy product margins, supported by strong new business and inforce profitability Flow reinsurance is generating growing fee income and we have flexibility to adjust volumes as market economics change Opera
Slide 6: First Quarter Financial Trends
ANE ($M) and Per Share 1Q24 1Q25 ($M) Per share ($M) Per share Investment income from alternative investments (above) below long-term return expectations 52 $0.40 63 $0.48 Significant (income) expense items2 (2) ($0.01) (16) ($0.12) First Quarter Financial Trends 6F&G Investor Update | Spring 2025 1
Slide 7: F&G Snapshot
F&G Snapshot 7F&G Investor Update | Spring 2025 Retail Annuities • Fixed indexed annuity (FIA) • Registered index-linked annuities (RILA) • Multi-year guaranteed annuity (MYGA) Pension Risk Transfer (PRT) Life Insurance • Indexed universal life (IUL) Funding Agreements • Funding agreement backed not
Slide 8: A Compelling Investment Case For F&G
A Compelling Investment Case For F&G 8F&G Investor Update | Spring 2025 v Track Record of Success We have delivered consistent top line growth and return on assets across varying market cycles v Targeting Large and Growing Markets We have long-standing relationships with multiple distribution channe
Slide 9: We Have Generated Strong Returns Over Time
We Have Generated Strong Returns Over Time 9F&G Investor Update | Spring 2025 1Calculated as adjusted net earnings attributable to common shareholders on a rolling four quarter basis, divided by average F&G equity attributable to common shareholders ex accumulated other comprehensive income (ex AOCI
Slide 10: We Are Driving Toward Our Investor Day Targets
We Are Driving Toward Our Investor Day Targets • Spread-based earnings • Driven by asset growth • Margin expansion through investment margin & scale benefit Retained Sales • Fee-based earnings • Lower marginal cost of capital • Enhances cash flow • Accretive to return on equity Flow Reinsurance • Fe
Slide 11: We Have A Clean & Profitable Inforce Book
We Have A Clean & Profitable Inforce Book 11F&G Investor Update | Spring 2025 Our inforce liabilities are surrender charge protected and our asset and liability cash flows are well matched; our inforce book does not contain problematic legacy business • Our liability profile drives our investment st
Slide 12: We Are Playing In High Growth Markets
We Are Playing In High Growth Markets 12F&G Investor Update | Spring 2025 The U.S. retirement and middle markets are growing and we are both well established and well positioned for continued growth in our retail channels and institutional markets 14Q24 Quarterly Retirement Market Data, Investment C
Slide 13: With Secular Tailwinds Driving Demand
58 63 71 76 78 80 82 2022 2025 2030 2035 2040 2045 2050 … With Secular Tailwinds Driving Demand 13F&G Investor Update | Spring 2025 We continue to see sustainable demand for our retail fixed annuity products given current environment • U.S. consumers are holding nearly $3 trillion in retail money ma
Slide 14: And We're Winning
… And We’re Winning … 14F&G Investor Update | Spring 2025 1CAGR reflects 2019-2024 annual periods Annual Gross Sales by Retail Channel and Institutional Market ($B) 2019 2020 2021 2022 2023 2024 Funding Agreements Agent PRT Broker Dealer Bank $11.3B $9.6B $4.5B $3.9B FNF and F&G Merger (June 2020) $
Slide 15: While Significantly Diversifying Our Business
50% 18% 3% 18% 11% $2.9B (3 Mos.) … While Significantly Diversifying Our Business 15F&G Investor Update | Spring 2025 Note: Reflects Gross Sales 84% 5% 7% 4% $4.5B FY2024 Sales C h a n n e l P ro d u c t 77% 17% 1% 5% $4.5B FY2020 Sales 1Q25 Sales 50% 19% 2% 18% 11% $2.9B (3 Mos.) Bank Broker Dealer
Slide 16: Our Owned Distribution Track Record
Our Owned Distribution Track Record 16F&G Investor Update | Spring 2025 Our owned distribution strategy is contributing to margin expansion and is a capital light, diversified source of fee-based earnings Portfolio is performing well and creating value • Owned distribution margin driven by seasonali
Slide 17: Our High Quality & Well-Diversified Portfolio
60% NAIC 1 25% NAIC 2 6% LP 3% Other ² 3% Cash ³ 2% NAIC 3 1% NAIC 4/5/6 31% Corporates 22% Structured Securities 16% Private Origination 11% Mortgage Loans 6% Alternatives (LP) 3% Municipal 3% Other ² 3% EMD 3% Cash 1% Prf/Hybrid 1% Gov't & Treasury Our High Quality & Well-Diversified Portfolio1 17
Slide 18: Our Investment Portfolio Key Attributes
Our Investment Portfolio Key Attributes 18 Investment Rationale • Core fixed income: Focus remains high grade public and private securities with strong risk adjusted returns • Structured credit: Provides access to well diversified, high-quality assets across CLOs, CMBS and ABS • Mortgage loans: Supe
Slide 19: 1Q25 Reflects Near-Term Headwinds
46.0 51.6 52.6 49.4 53.9 2023 2024 1Q25 LTM 1Q24 1Q25 335 546 529 108 91 2023 2024 1Q25 LTM 1Q24 1Q25 10.0 12.0 11.3 2.8 2.1 3.2 3.3 3.4 13.2 15.3 14.7 3.5 2.9 2023 2024 1Q25 LTM 1Q24 1Q25 Institutional Markets Retail Channels Net Sales 9.2 10.6 10.5 2.3 2.2 1Q25 Reflects Near-Term Headwinds Gross S
Slide 20: 1Q25 Sales Strong Following A Record 2024
1Q25 Sales Strong Following A Record 2024 Gross Sales ($B) Gross sales across multi-channel new business platform reflect capital allocation to highest returning business in light of market volatility, which resulted in a reduction in MYGA sales in 1Q25 • Gross sales of $2.9B, ↓ 17% from 1Q24 due to
Slide 21: Core Earnings Power Remains Attractive
335 546 529 108 139 156 143 91 2023 2024 1Q25 LTM 1Q24 2Q24 3Q24 4Q24 1Q25 Net earnings (loss) (58) 622 486 111 198 (10) 323 (25) Op Exp (bps) 63 60 58 63 61 62 60 58 ANE per share $2.68 $4.30 $4.17 $0.86 $1.10 $1.22 $1.12 $0.72 Adj. ROA1 0.73% 1.06% 1.00% 0.87% 0.98% 1.05% 1.06% 0.68% Adj. ROE1 6.5
Slide 22: Our Stable and Strong Capital Profile
Our Stable and Strong Capital Profile 22F&G Investor Update | Spring 2025 1Excluding accumulated other comprehensive income (ex AOCI) Total Capitalization ex AOCI1 ($M) 5,223 5,093 5,749 5,969 250 250 1,100 1,760 2,195 2,270 6,323 6,853 8,194 8,489 YE 2022 YE 2023 YE 2024 QE 1Q25 Debt Preferred Stoc
Slide 23: We Are Achieving Higher Ratings Over Time
2020 2021 2022 2023 2024 We Are Achieving Higher Ratings Over Time 23F&G Investor Update | Spring 2025 Upgraded to ‘A-’ FNF Merger Completed F&G Partial Spinoff $2.4B Market Cap Launched Flow Reinsurance Launched Owned Distribution F&G at 03/31/2025 $4.9B Market Cap Upgraded to ‘A-’ Upgraded to ‘Baa
Slide 24: Our Capitalization Supports Growth & Dividend
Our Capitalization Supports Growth & Dividend 24F&G Investor Update | Spring 2025 F&G’s capital allocation priorities focus on deploying capital to best maximize shareholder value through both continued investment in our business and generation of distributable cash for return of capital to sharehol
Slide 25: Appendix – Investments
APPENDIX Appendix – Investments 25F&G Investor Update | Spring 2025
Slide 26: Structured Credit – Why We Like It
12% Royalty Streams 11% Net Asset Value Lending 8% Lender Finance 8% Consumer Loans 7% Home Improvement 6% Residential Solar 5% Manufactured Housing 5% Aviation 5% Whole Business 4% Towers 29% All Other (< Top 10) Structured Credit – Why We Like It 26 Investment Rationale • Collateralized loan oblig
Slide 27: Portfolio Spotlight: CLO
Portfolio Spotlight: CLO 27 Highly diversified portfolio with ample par subordination • Blackstone’s broad & deep understanding of the asset class, and ability to perform loan level underwriting, distinguishes F&G’s portfolio from its peers F&G CLO Portfolio Composition – % Fair Value Note: GAAP Fai
Slide 28: Our CLO Portfolio: Look Through Analysis
Our CLO Portfolio: Look Through Analysis 28 Portfolio focused on high quality CLO securities backed by highly diversified pool of loans Note: GAAP Fair Values as of 3/31/2025 IndustriesCompaniesCLO Managers 85 CLO managers 1,900 Companies 32 Industries 8.1% 4.2% 3.0% 3.0% 3.0% 3.0% 2.8% 2.7% 2.6% 2.
Slide 29: U.S. CLO Impairment Frontier
U.S. CLO Impairment Frontier 29 CLO debt is well insulated from higher defaults and lower recovery rates • BBB CLOs can withstand an annualized default of 9% (that would have to occur every year) assuming a 62% average long- term loan recovery rate U.S. CLO Impairment Frontier (First-Loss Scenarios
Slide 30: Portfolio Spotlight: Real Estate Debt
Portfolio Spotlight: Real Estate Debt 30 Blackstone Real Estate Debt Strategies (BREDS) has assembled a high-quality portfolio with diversified exposure across asset classes and properties Note: GAAP Fair Values as of 3/31/2025 34% CMBS 31% RML 15% CML 15% RMBS 5% NNN $11B Duration 3.8 years Quality
Slide 31: Portfolio Spotlight: CMBS & RMBS
Portfolio Spotlight: CMBS & RMBS 31 Note: GAAP Fair Values as of 3/31/2025 By Asset Type By Property Type By NAIC Rating 32% 31% 14% 11% 7% 5% 1Q25 SASB RMBS CRE CLOs Conduit (Below A) Conduit (A or above) Agency 58% 11% 9% 9% 6% 4% 3% 1Q25 Multifamily Industrial Office Other Hotel Retail Defeased 8
Slide 32: Portfolio Spotlight: CMBS
Portfolio Spotlight: CMBS 32 Prudent asset selection has led to more multifamily exposure and less retail vs. Conduit CMBS market averages Portfolio Construction Comparison1 Note: GAAP Fair Values as of 3/31/2025 1BAML Conduit Data as of 4/1/2025 39% 6% 14% 24% Multifamily Retail F&G Post-Crisis Con
Slide 33: Portfolio Spotlight: CMLs
Portfolio Spotlight: CMLs 33 Investment Rationale • Our Commercial Mortgage Loan (CML) portfolio is low risk, low leveraged and well diversified • All first mortgage loans, with average loan-to-value of ~60% • 70 holdings, with average loan size of $29M • 1.4% of CML portfolio loans have a DSCR <1x
Slide 34: Blackstone Related Important Disclosures
Blackstone Related Important Disclosures 34 This document (together with any attachments, appendices, and related materials, the “Materials”) is provided for informational due diligence purposes only and is not, and may not be relied on in any manner as legal, tax, investment, accounting or other ad
Slide 35: Appendix – Finance
APPENDIX 35F&G Investor Update | Spring 2025 Appendix – Finance
Slide 36: BVPS Reflects Equity Offering – QoQ
BVPS Reflects Equity Offering – QoQ 36F&G Investor Update | Spring 2025 BVPS ex AOCI of $43.31, ↓ 2% vs. $44.28 YE 2024 reflects effect of equity offering • ($0.63) per share decrease from common stock offering in March • $0.59 per share increase due to underlying business performance • ($0.15) per
Slide 37: BVPS Growth from Business Performance – YoY
BVPS Growth from Business Performance – YoY 37 BVPS ex. AOCI1 – 3/31/2024 to 3/31/2025 $41.10 $44.51 $43.12 $43.31 3.41 (0.97) (0.42) 0.19 $39.00 $40.00 $41.00 $42.00 $43.00 $44.00 $45.00 QE 1Q24 ANE & Other 1Q25 Before MTM & Capital Actions Return of Capital Common stock offering 1Q25 Before MTM MT
Slide 38: Non-GAAP Measure Reconciliations
Non-GAAP Measure Reconciliations 38F&G Investor Update | Spring 2025 1Periods prior to 1Q25 have been recast to remove bond prepay/CLO redemptions from significant items ($M) Year ended Three months ended 2023 2024 1Q24 2Q24 3Q24 4Q24 1Q25 Net earnings (loss) attributable to common shareholders ($58
Slide 39: ANE – Significant Items
ANE – Significant Items1 39F&G Investor Update | Spring 2025 Three months ended March 31, 2025 Adjusted net earnings of $91 million for the three months ended March 31, 2025 included income from a $16 million reinsurance true-up adjustment. Investment income from alternative investments was $63 mill
Slide 40: Non-GAAP Financial Measures and Definitions
Non-GAAP Financial Measures and Definitions 40F&G Investor Update | Spring 2025 The following represents the definitions of non-GAAP financial measures used by F&G Adjusted Net Earnings attributable to common shareholders Adjusted net earnings attributable to common shareholders is a non-GAAP econom
Slide 41: Non-GAAP Financial Measures and Definitions
Non-GAAP Financial Measures and Definitions 41F&G Investor Update | Spring 2025 Adjusted Net Earnings attributable to common shareholders per Diluted Share Adjusted net earnings attributable to common shareholders per diluted share is calculated as adjusted net earnings plus preferred stock dividend
Slide 42: Non-GAAP Financial Measures and Definitions
Non-GAAP Financial Measures and Definitions 42F&G Investor Update | Spring 2025 Adjusted Weighted Average Diluted Shares Outstanding Adjusted weighted average diluted shares outstanding is the same as weighted average diluted shares outstanding except for periods in which our preferred stocks are ca
Slide 43: Non-GAAP Financial Measures and Definitions
Non-GAAP Financial Measures and Definitions 43F&G Investor Update | Spring 2025 AUM before Flow Reinsurance AUM before Flow Reinsurance is comprised of AUM plus flow reinsured assets, including certain block reinsured assets that have the characteristics of flow reinsured assets. Management consider
Slide 44: Non-GAAP Financial Measures and Definitions
Non-GAAP Financial Measures and Definitions 44F&G Investor Update | Spring 2025 Sales Annuity, IUL, funding agreement and non-life contingent PRT sales are not derived from any specific GAAP income statement accounts or line items and should not be viewed as a substitute for any financial measure de
Slide 45: Non-GAAP Financial Measures and Definitions
Non-GAAP Financial Measures and Definitions 45F&G Investor Update | Spring 2025 Total F&G Equity attributable to common shareholders, excluding AOCI Total F&G equity attributable to common shareholder, excluding AOCI is based on total F&G Annuities & Life, Inc. shareholders' equity excluding the eff