F&g Annuities & Life, Inc. · NYSE:FG
F&g Annuities & Life — Q2 2025 Earnings Presentation
44 slides from F&g Annuities & Life's earnings presentation, Aug 7, 2025
Slide 1: F&G Investor Update
F&G Investor Update Summer 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: Executing To Deliver Shareholder Value
Executing To Deliver Shareholder Value Strong 2Q25 performance; regained momentum heading into 2H25 $4.1B $2.7B $69.2B $55.6B 2Q25 2Q25 AUM before flow Assets Under Gross Sales Net Sales reinsurance1 Management (AUM)1 ↑ 41% vs. 1Q25 ↑ 23% vs. 1Q25 ↑ 13% YoY ↑ 7% YoY 0.92% 8.8% $65M $5.9B LTM 2Q25 1H
Slide 5: Second Quarter Financial Trends
Second Quarter Financial Trends Financial Trends – As Reported Other Considerations – Quarterly ($M) – except per share and percentages Quarterly Year-to-Date ANE ($M) and Per Share 2Q24 2Q25 Per Per 2Q24 2Q25 1H24 1H25 ($M) ($M) share share Gross sales $4,420 $4,106 $7,915 $7,008 Investment income
Slide 6: 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 7: 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 8: 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 9: 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 10: 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 11: We Compete In Very Large Markets
We Compete In Very Large 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 $5.3T Indexed annuities provide alternative with upside potential
Slide 12: … With Secular Tailwinds Driving Demand
… With Secular Tailwinds Driving Demand U.S. Money Market Fund Assets ($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 $3 trillion in retail 6.8 7.0 5.9 mone
Slide 13: … And We're Winning …
… And We’re Winning … Annual Gross Sales by Retail Channel and Institutional Market ($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 14: … While Significantly Diversifying Our Business
… While Significantly Diversifying Our Business FY2020 Sales FY2024 Sales 1H25 Sales 4% 15% 11% 7% Agent 5% 7% Channel 7% Bank 5% 46% Broker Dealer $4.5B 5% $15.3B $7.0B 49% Funding Agreements (6 Mos.) Pension Risk Transfer (PRT) 28% 84% 27% 1% 5% 11% 15% Indexed Annuities (FIA/RILA) 17% 8% Product
Slide 15: Our Owned Distribution Track Record
Our Owned Distribution Track Record Our owned distribution strategy is contributing to margin expansion and is a capital light, diversified source of fee-based earnings Portfolio is performing well and creating value Life Network Life • Owned distribution margin driven by seasonality, timing of Mark
Slide 16: Our High Quality & Well-Diversified Portfolio
Our High Quality & Well-Diversified Portfolio1 Portfolio conservatively positioned & well-matched to Investment Portfolio by Asset Class liability profile 29% Corporates • Fixed income is 97% investment grade 24% Structured Securities 17% Private Origination • Credit related impairments averaging 6
Slide 17: Our Investment Portfolio Key Attributes
Our Investment Portfolio Key Attributes Investment Rationale Fixed Income1,2 (ex. Structured, Mortgage Loan & Private Origination) • Core fixed income: Focus remains high grade public and private securities with strong risk adjusted returns 80% Corporates • Structured credit: Provides access to well
Slide 18: Regained Momentum Heading Into 2H25
Regained Momentum Heading Into 2H25 Gross Sales ($B) Common Adjusted Net Earnings (ANE) ($M) Opportunistic (MYGA and Funding agreements) Core (Indexed annuities, IUL and PRT) 2024 VPY: 16% (11%) VPY 546 15.3 493 13.2 14.4 6.1 5.3 7.9 7.0 335 6.4 247 9.2 9.1 3.8 3.0 194 6.8 4.1 4.0 2023 2024 2Q25 1H2
Slide 19: 2Q25 One Of Our Best Sales Quarters In History
2Q25 One Of Our Best Sales Quarters In History Gross Sales ($B) Gross sales strong across multi-channel new business Opportunistic (MYGA and Funding agreements) platform; we continue to prioritize pricing discipline and Core (Indexed annuities, IUL and PRT) capital allocation to highest return oppor
Slide 20: Core Earnings Power Remains Attractive
Core Earnings Power Remains Attractive Common Adjusted Net Earnings (ANE) ($M) F&G expects steady and growing adjusted net earnings over time • 2Q25 ANE vs. 2Q24 reflects alternatives mark-to-market 546 493 fluctuations and significant items, as well as: 335 • asset growth, 139 156 143 91 103 • high
Slide 21: Our Stable and Strong Capital Profile
Our Stable and Strong Capital Profile Total Capitalization ex AOCI1 ($M) Solid F&G capitalization; debt-to-capitalization ratio managed to long term target of 25% Debt Preferred Stock • In 1H25, completed common stock offering with net Total Equity ex. AOCI 8,497 proceeds of $269M to support future
Slide 22: Book Value Per Share Growth – QTD
Book Value Per Share Growth – QTD BVPS ex. AOCI1 – 3/31/2025 to 6/30/2025 BVPS ex AOCI of $43.39 reflects $44.50 effect of MTM movements $44.30 • $0.62 per share increase due to $44.10 $43.93 underlying business performance 0.62 (0.18) $43.90 $43.75 (0.36) $43.70 • ($0.18) per share decrease for $43
Slide 23: 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 24: Appendix – Investments
Appendix – Investments APPENDIX
Slide 25: Overview Of Structured Portfolio
Overview Of Structured Portfolio Investment Rationale CMBS by Property Type • Collateralized loan obligation (CLO) portfolio well diversified 40% Multifamily across industry, issuer and manager; focus on investment 17% Industrial grade with ample par subordination 15% Office • Commercial mortgage-ba
Slide 26: 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 Value1 Market Value Cre
Slide 27: 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 4.8% Issuer 1 0.6% Industry 1 11.6% Manager 2 4.6% Issuer 2 0.5% Industry 2 11.1% Manager 3 3.5% Issuer 3 0.4% Industry 3 1
Slide 28: 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 9.1% (that would have to occur every year) assuming a 62.3% average long- term loan recovery rate U.S. CLO Impairment Frontier (First-Loss Scenarios
Slide 29: 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 $12.5B 3.6 Real estate portfolio years 32% CMBS 30% CML $13B 17% RMBS 15% RML Weighted Avera
Slide 30: Portfolio Spotlight: CMBS & RMBS
Portfolio Spotlight: CMBS & RMBS By Asset Type By Property Type By NAIC Rating 4% 2% 3% 6% 3% 4% 6% 9% 9% 8% 17% 10% 12% 32% 84% 59% 32% 2Q25 2Q25 2Q25 RMBS Multifamily 1 SASB 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 31: 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 40% $4.1B 87% CMBS portfolio Investment grade (NRSRO) 24% 14% Credit focus Quality 5% A- 1.4 NRSRO ra
Slide 32: Portfolio Spotlight: CMLs
Portfolio Spotlight: CMLs By State By Loan-To-Value % 23% CA 15% FL 6% NY 53% LTV 60% to 70% 6% TX 35% LTV 50% to 60% $2B 5% NJ $2B 11% LTV < 50% 5% GA 1% LTV > 70% 4% CT 36% Other By Underlying Property Type Investment Rationale 50% Multifamily 25% Industrial • Our Commercial Mortgage Loan (CML) po
Slide 33: Portfolio Spotlight: Alternative LPs
Portfolio Spotlight: Alternative LPs Alternative LPs – Historical Performance • Alternative LPs NAV of $2.9B or 6% of total portfolio; generating positive annual returns 37.3% • The Alternative LPs portfolio is well-diversified by underlying Average = 13% asset type, vintage year and geography Avera
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 | Summer 2025 35
Slide 36: 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 6/30/2025 FNF Merger Institutional Completed Markets $4.3B Market Cap • Scaling business to generate (PRT & FABN) F&G Partial Spinoff
Slide 37: Non-GAAP Measure Reconciliations
Non-GAAP Measure Reconciliations Year ended Three months ended Six months ended ($M) 2023 2024 2Q24 3Q24 4Q24 1Q25 2Q25 1H24 1H25 Net earnings (loss) attributable to common shareholders ($58) $622 $198 ($10) $323 ($25) $35 $309 $10 Recognized (gains) and losses, net 214 27 (18) 46 (33) 29 79 14 108
Slide 38: ANE – Significant Items
ANE – Significant Items1 Three months ended June 30, 2025 Adjusted net earnings of $103 million for the three months ended June 30, 2025. Investment income from alternative investments was $83 million below management's long-term expected return of approximately 10%. March 31, 2025 Adjusted net earn
Slide 39: 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 40: 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 41: 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 42: 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 43: 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 44: 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