F&G Annuities & Life, Inc. · NYSE:FG
F&G Annuities & Life — Investor Presentation (2025)
45 slides from F&G Annuities & Life's investor presentation, Jul 22, 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 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 terms such as “believes”, “expects
Slide 3: Non-GAAP Financial Measures
Non-GAAP Financial Measures 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 and summarizing transactions and i
Slide 4: Resilience Despite Near-Term Headwinds
Resilience Despite Near-Term Headwinds 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
Slide 5: Perspectives on 1Q25 Performance
Perspectives on 1Q25 Performance Although we gave up spread in 1Q25, we believe much of that was short term in nature; our operating performance continues to be strong and our underlying spread-based and fee-based businesses are stable and predictable over time, with sources of quarterly earnings vo
Slide 6: First Quarter Financial Trends
First Quarter Financial Trends Financial Trends – As Reported Other Considerations – Quarterly ($M) - except per share and percentages Full Year Quarterly ANE ($M) and Per Share 1Q24 1Q25 Per Per 2023 2024 1Q24 1Q25 ($M) ($M) share share Gross sales $13,153 $15,262 $3,495 $2,902 Investment income fr
Slide 7: F&G Snapshot
F&G Snapshot Our Product Lines Five Distinct Distribution Channels / Markets Retail Annuities Retail Channels • Fixed indexed annuity (FIA) • Independent insurance agents (IMOs) • Registered index-linked annuities (RILA) • Broker Dealers • Multi-year guaranteed annuity (MYGA) • Banks Pension Risk Tr
Slide 8: A Compelling Investment Case For F&G
A Compelling Investment Case For F&G v Targeting Large and Growing Markets Superior Ecosystem F&G is a nationwide leader in the large markets we We have long-standing relationships with multiple play in, and we expect demographic trends will distribution channels, an investment edge, and a track pro
Slide 9: We Have Generated Strong Returns Over Time
We Have Generated Strong Returns Over Time Strong earnings generation combined with balanced capital allocation have been driving sustainable ROE expansion and BVPS growth since 2020 acquisition by FNF Adjusted Return on Equity (ROE) ex AOCI1 Book Value Per Share (BVPS) ex AOCI2 Cumulative period fr
Slide 10: We Are Driving Toward Our Investor Day Targets
We Are Driving Toward Our Investor Day Targets We remain focused on delivering margin expansion through our retained business, as well as diversifying sources of earnings through accretive flow reinsurance and owned distribution Retained Sales Flow Reinsurance Owned Distribution • Spread-based earni
Slide 11: We Have A Clean & Profitable Inforce Book
We Have A Clean & Profitable Inforce Book 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 strategy • Retail fixed annuities are
Slide 12: We Are Playing In High Growth Markets
We Are Playing In High Growth Markets 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 Mutual Fund 401(k) Assets1 $5.3T Registered index linked annuities (RILAs) provide alter
Slide 13: … With Secular Tailwinds Driving Demand
… With Secular Tailwinds Driving Demand U.S. Money Market Fund Assets ($Trillions)1 We continue to see sustainable demand for our retail Retail only fixed annuity products given current environment Institutional only Combined • U.S. consumers are holding nearly $3 trillion in retail 6.8 7.0 5.9 mone
Slide 14: … And We’re Winning …
… And We’re Winning … Annual Gross Sales by Retail Channel and Institutional Market ($B) $15.3B +31% CAGR1 $13.2B PRT $11.3B Funding Agreements $9.6B FNF and F&G Merger Bank (June 2020) Broker Dealer $4.5B $3.9B Agent 2019 2020 2021 2022 2023 2024 1CAGR reflects 2019-2024 annual periods F&G Investor
Slide 15: … While Significantly Diversifying Our Business
… While Significantly Diversifying Our Business FY2020 Sales FY2024 Sales 1Q25 Sales 4% 15% 11% 7% Agent 5% Channel 7% Bank 18% 46% Broker Dealer $4.5B 5% $15.3B $2.9B 50% Funding Agreements 3% (3 Mos.) Pension Risk Transfer (PRT) 84% 27% 18% 1% 5% 11% 15% Indexed Annuities (FIA/RILA) 17% Product Mu
Slide 16: Our Owned Distribution Track Record
Our Owned Distribution Track Record Our owned distribution strategy is contributing to margin expansion and is a capital light, diversified source of fee-based earnings Portfolio is performing well and creating value Life Network Life • Owned distribution margin driven by seasonality, timing of Mark
Slide 17: Our High Quality & Well-Diversified Portfolio
Our High Quality & Well-Diversified Portfolio1 Portfolio conservatively positioned & well-matched to Investment Portfolio by Asset Class liability profile 31% Corporates • Fixed income is 96% investment grade 22% Structured Securities 16% Private Origination • Modest credit-related impairments of 6
Slide 18: Our Investment Portfolio Key Attributes
Our Investment Portfolio Key Attributes Investment Rationale Fixed Income1,2 (ex. Structured, Mortgage Loan & Private Origination) • Core fixed income: Focus remains high grade public and private securities with strong risk adjusted returns 81% Corporates • Structured credit: Provides access to well
Slide 19: 1Q25 Reflects Near-Term Headwinds
1Q25 Reflects Near-Term Headwinds Gross Sales ($B) Common Adjusted Net Earnings (ANE) ($M) Institutional Markets Retail Channels 2024 VPY: 16% (17%) VPY 15.3 14.7 546 529 13.2 3.3 3.4 3.2 335 12.0 3.5 2.9 10.0 11.3 2.8 2.1 108 91 2023 2024 1Q25 1Q24 1Q25 LTM Net Sales 9.2 10.6 10.5 2.3 2.2 2023 2024
Slide 20: 1Q25 Sales Strong Following A Record 2024
1Q25 Sales Strong Following A Record 2024 Gross Sales ($B) Gross sales across multi-channel new business platform MYGA (Retail) reflect capital allocation to highest returning business in light PRT & Funding agreements (Institutional) of market volatility, which resulted in a reduction in MYGA Index
Slide 21: Core Earnings Power Remains Attractive
Core Earnings Power Remains Attractive Common Adjusted Net Earnings (ANE) ($M) F&G expects steady and growing adjusted net earnings over time • 1Q25 ANE vs. 1Q24 reflects alternatives mark-to-market 546 529 fluctuations and significant items, as well as: 335 • asset growth, 108 139 156 143 91 • high
Slide 22: Our Stable and Strong Capital Profile
Our Stable and Strong Capital Profile Total Capitalization ex AOCI1 ($M) Solid F&G capitalization; debt-to-capitalization ratio managed to long term target of 25% Debt Preferred Stock • In 1Q25, issued junior subordinated notes, fully redeemed Total Equity ex. AOCI 8,489 senior notes, and completed
Slide 23: We Are Achieving Higher Ratings Over Time
We Are Achieving Higher Ratings Over Time F&G’s Recent History F&G has received multiple ratings upgrades over time, reflecting our Launched upward trajectory F&G at 03/31/2025 FNF Merger Institutional Completed Markets $4.9B Market Cap • Scaling business to generate (PRT & FABN) F&G Partial Spinoff
Slide 24: Our Capitalization Supports Growth & Dividend
Our Capitalization Supports Growth & Dividend 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 shareholders • F&G has flexibility to adjust
Slide 25: Appendix – Investments
Appendix – Investments APPENDIX F&G Investor Update | Spring 2025 25
Slide 26: Structured Credit – Why We Like It
Structured Credit – Why We Like It Investment Rationale CMBS by Property Type • Collateralized loan obligation (CLO) portfolio well diversified 39% Multifamily across industry, issuer and manager; focus on investment 16% Industrial grade with ample par subordination 13% Office • Commercial mortgage-
Slide 27: Portfolio Spotlight: CLO
Portfolio Spotlight: CLO 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 Market Value Cred
Slide 28: Our CLO Portfolio: Look Through Analysis
Our CLO Portfolio: Look Through Analysis Portfolio focused on high quality CLO securities backed by highly diversified pool of loans CLO Managers Companies Industries Manager 1 8.1% Issuer 1 1.8% Industry 1 12.3% Manager 2 4.2% Issuer 2 0.8% Industry 2 10.9% Manager 3 3.0% Issuer 3 0.8% Industry 3 1
Slide 29: U.S. CLO Impairment Frontier
U.S. CLO Impairment Frontier 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 amo
Slide 30: Portfolio Spotlight: Real Estate Debt
Portfolio Spotlight: Real Estate Debt Blackstone Real Estate Debt Strategies (BREDS) has assembled a high-quality portfolio with diversified exposure across asset classes and properties Market Value Duration $11.4B 3.8 Real estate portfolio years 34% CMBS 31% RML $11B 15% CML 15% RMBS Weighted Avera
Slide 31: Portfolio Spotlight: CMBS & RMBS
Portfolio Spotlight: CMBS & RMBS By Asset Type By Property Type By NAIC Rating 5% 3% 3% 7% 4% 4% 6% 9% 11% 9% 14% 9% 11% 31% 84% 58% 32% 1Q25 1Q25 1Q25 SASB Multifamily 1 RMBS Industrial Office 2 CRE CLOs Conduit (Below A) Other 3 Hotel Conduit (A or above) Retail 4/5/6 Agency Defeased Note: GAAP Fa
Slide 32: Portfolio Spotlight: CMBS
Portfolio Spotlight: CMBS Prudent asset selection has led to more multifamily exposure and less retail vs. Conduit CMBS market averages Portfolio Construction Comparison1 Market Value Credit Quality 39% $3.9B 89% CMBS portfolio Investment grade (NRSRO) 24% 14% Credit focus Quality 6% A- 1.4 NRSRO ra
Slide 33: Portfolio Spotlight: CMLs
Portfolio Spotlight: CMLs By State By Loan-To-Value % 24% CA 12% FL 7% NY 55% LTV 60% to 70% 6% TX 33% LTV 50% to 60% $2B 5% NJ $2B 11% LTV < 50% 5% GA 1% LTV > 70% 4% CT 37% Other By Underlying Property Type Investment Rationale 49% Multifamily 26% Industrial • Our Commercial Mortgage Loan (CML) po
Slide 34: Blackstone Related Important Disclosures
Blackstone Related Important Disclosures 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 advic
Slide 35: Appendix – Finance
Appendix – Finance APPENDIX F&G Investor Update | Spring 2025 35
Slide 36: BVPS Reflects Equity Offering – QoQ
BVPS Reflects Equity Offering – QoQ BVPS ex. AOCI1 – 12/31/2024 to 03/31/2025 BVPS ex AOCI of $43.31, ↓ 2% vs. $44.50 $44.28 YE 2024 reflects effect of $44.28 (0.63) 0.59 $44.24 (0.15) $44.30 $44.09 equity offering (0.78) $44.10 • ($0.63) per share decrease from $43.90 $43.70 $43.65 common stock off
Slide 37: BVPS Growth from Business Performance – YoY
BVPS Growth from Business Performance – YoY BVPS ex. AOCI1 – 3/31/2024 to 3/31/2025 BVPS ex AOCI of $43.31, ↑ 5% vs. $41.10 QE 1Q24 $45.00 3.41 $44.51 (0.97) • $3.41 per share increase due to $44.00 (0.42) 0.19 underlying business performance $43.12 $43.31 $43.00 • ($1.39) per share decrease for $42
Slide 38: Non-GAAP Measure Reconciliations
Non-GAAP Measure Reconciliations Year ended Three months ended ($M) 2023 2024 1Q24 2Q24 3Q24 4Q24 1Q25 Net earnings (loss) attributable to common shareholders ($58) $622 $111 $198 ($10) $323 ($25) Recognized (gains) and losses, net 214 27 32 (18) 46 (33) 29 Market related liability adjustments 258 (
Slide 39: ANE – Significant Items
ANE – Significant Items1 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 million below management’s long-term exp
Slide 40: Non-GAAP Financial Measures and Definitions
Non-GAAP Financial Measures and Definitions 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 economic measure we use to evaluate financ
Slide 41: Non-GAAP Financial Measures and Definitions
Non-GAAP Financial Measures and Definitions 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 (if the preferred stock has created
Slide 42: Non-GAAP Financial Measures and Definitions
Non-GAAP Financial Measures and Definitions 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 calculated to be dilutive to either ne
Slide 43: Non-GAAP Financial Measures and Definitions
Non-GAAP Financial Measures and Definitions 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 considers this non-GAAP financial measure to
Slide 44: Non-GAAP Financial Measures and Definitions
Non-GAAP Financial Measures and Definitions 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 determined in accordance with GAAP. Sa
Slide 45: Non-GAAP Financial Measures and Definitions
Non-GAAP Financial Measures and Definitions 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 effect of AOCI and preferred stocks, in