F&g Annuities & Life, Inc. · NYSE:FG
F&g Annuities & Life — Q1 2024 Earnings Presentation
23 slides from F&g Annuities & Life's earnings presentation, May 8, 2024
Slide 1: Quarterly Financial Supplement First Quarter 2024
Quarterly Financial Supplement ——————————— First Quarter 2024 The financial statements and financial exhibits included herein are unaudited. These financial statements and exhibits should be read in conjunction with the Company's periodic reports on Form 10-K, Form 10-Q and Form 8-K as applicable. A
Slide 2: Financial Results contents
Financial Results Financial Highlights 3 Consolidated Statements of Operations (GAAP) 4 Adjusted Net Earnings - Management View 5 Adjusted Net Earnings - Significant Income and Expense Items 6 Adjusted Return on Assets 7 Assets Under Management Rollforward and Average Assets Under Management 8 Inter
Slide 3: Financial Highlights
Financial Highlights Three months ended Year ended March 31, 2024 December 31, 2023 September 30, 2023 June 30, 2023 March 31, 2023 December 31, 2023 SELECTED CONSOLIDATED STATEMENT OF OPERATIONS DATA Net earnings (loss) attributable to F&G $ 115 $ (299) $ 306 $ 130 $ (195) $ (58) Net earnings (loss
Slide 4: Consolidated Statements of Operations (GAAP)
Consolidated Statements of Operations (GAAP) Three months ended Year ended March 31, 2024 ¹ December 31, 2023 September 30, 2023 June 30, 2023 March 31, 2023 December 31, 2023 Revenues Life insurance premiums and other fees $ 718 $ 890 $ 582 $ 576 $ 365 $ 2,413 Interest and investment income 616 589
Slide 5: Adjusted Net Earnings - Management View
Adjusted Net Earnings - Management View ¹ Three months ended Year ended March 31, 2024 December 31, 2023 September 30, 2023 June 30, 2023 March 31, 2023 December 31, 2023 Interest and investment income - fixed income and other $ 475 $ 453 $ 444 $ 423 $ 408 $ 1,728 Interest and investment income - al
Slide 6: Adjusted Net Earnings - Significant Income and Expense Items
Adjusted Net Earnings - Significant Income and Expense Items ¹ Each reporting period, we identify significant income and expense items that help explain the trends in our adjusted net earnings, as we believe these items provide further clarity to the financial performance of the business. Those sign
Slide 7: Adjusted Return on Assets
Adjusted Return on Assets ¹ Annualized year to date March 31, 2024 December 31, 2023 September 30, 2023 June 30, 2023 March 31, 2023 Adjusted interest and investment income $ 2,380 $ 2,186 $ 2,145 $ 2,072 $ 2,072 Cost of funds (1,448) (1,345) (1,281) (1,234) (1,192) Product margin 932 841 864 838 88
Slide 8: Assets Under Management Rollforward and Average Assets Under Management
Assets Under Management Rollforward and Average Assets Under Management ¹ Three months ended Year ended March 31, 2024 December 31, 2023 September 30, 2023 June 30, 2023 March 31, 2023 December 31, 2023 AUM at beginning of period $ 49,103 $ 47,103 $ 46,004 $ 45,311 $ 43,568 $ 43,568 Net new business
Slide 9: Consolidated Balance Sheets (GAAP)
Consolidated Balance Sheets (GAAP) Assets March 31, 2024 ¹ December 31, 2023 September 30, 2023 June 30, 2023 March 31, 2023 Investments Fixed maturity securities available for sale, at fair value, (amortized cost of $45,792), net of allowance for credit losses of $33 at March 31, 2024 $ 42,631 $ 40
Slide 10: Capitalization; Return on Equity
Capitalization ¹ Three months ended March 31, 2024 December 31, 2023 September 30, 2023 June 30, 2023 March 31, 2023 Notes payable $ 1,748 $ 1,754 $ 1,569 $ 1,571 $ 1,572 Net issuance costs (premium) 12 6 (4) (6) (7) Notes payable (aggregate principal amount) (A) $ 1,760 $ 1,760 $ 1,565 $ 1,565 $ 1,
Slide 11: Summary of Invested Assets by Asset Class
Summary of Invested Assets by Asset Class March 31, 2024 December 31, 2023 Amortized Cost Fair Value Percent Amortized Cost Fair Value Percent Fixed maturity securities, available for sale United States Government full faith and credit $ 276 $ 276 — % $ 258 $ 261 1 % United States Government sponsor
Slide 12: Credit Quality of Fixed Maturity Securities
Credit Quality of Fixed Maturity Securities March 31, 2024 NRSRO Rating NAIC Designation Fair Value Percent AAA/AA/A 1 $ 27,470 64 % BBB 2 13,196 31 % BB 3 1,552 4 % B 4 221 1 % CCC 5 82 — % CC and lower 6 110 — % Total $ 42,631 100 % Credit Quality of Asset-Backed Securities March 31, 2024 NRSRO Ra
Slide 13: GAAP Net Reserve Summary; Annuity Account Balance Rollforward
GAAP Net Reserve Summary Year ended March 31, 2024 December 31, 2023 September 30, 2023 June 30, 2023 March 31, 2023 December 31, 2023 Indexed annuities $ 28,741 $ 27,792 $ 26,642 $ 26,501 $ 25,749 $ 27,792 Fixed rate annuities 5,876 5,924 6,028 6,053 5,955 5,924 Single premium immediate annuity and
Slide 14: Annuity Liability Characteristics; Top 5 Reinsurers
Annuity Liability Characteristics Fixed Rate Annuities Account Value Indexed Annuities Account Value Surrender Charge Percentages: March 31, 2024 No surrender charge $ 332 $ 2,237 0.0% < 2.0% 10 493 2.0% < 4.0% 45 1,334 4.0% < 6.0% 860 2,871 6.0% < 8.0% 1,547 4,918 8.0% < 10.0% 2,888 9,868 10.0% or
Slide 15: Ratings Overview
Ratings Overview A.M. Best S&P Fitch Moody's Holding Company and Security Ratings F&G Annuities & Life, Inc. Issuer Credit / Default Rating Not Rated BBB- BBB Ba1 Outlook Stable Stable Stable Senior Unsecured Notes Not Rated BBB- BBB- Not Rated CF Bermuda Holdings Limited Issuer Credit / Default Rat
Slide 16: Shareholder Information
Shareholder Information NYSE: FG Common Stock Information High Low Close 2023 First Quarter $ 24.41 $ 15.56 $ 18.12 Second Quarter 24.78 14.93 24.78 Third Quarter 30.76 23.06 28.06 Fourth Quarter 48.14 26.12 46.00 2024 First Quarter 47.54 35.99 40.55 History of Quarterly Cash Dividend to Common Shar
Slide 17: Non-GAAP Reconciliations
Non-GAAP Reconciliations Three months ended Year ended March 31, 2024 December 31, 2023 September 30, 2023 June 30, 2023 March 31, 2023 December 31, 2023 Reconciliation of net earnings (loss) to adjusted net earnings attributable to common shareholders ¹ Net earnings (loss) attributable to common sh
Slide 18: Non-GAAP Reconciliations (continued)
Non-GAAP Reconciliations (continued) Three months ended Year ended March 31, 2024 December 31, 2023 September 30, 2023 June 30, 2023 March 31, 2023 December 31, 2023 Reconciliation of interest and investment income to adjusted interest and investment income US GAAP interest and investment income $ 6
Slide 19: Non-GAAP Reconciliations (continued)
Non-GAAP Reconciliations (continued) Three months ended Year ended March 31, 2024 December 31, 2023 September 30, 2023 June 30, 2023 March 31, 2023 December 31, 2023 Composition of flow reinsurance margin Reclass of fee income from cost of funds 15 23 27 5 3 58 Flow reinsurance margin $ 15 $ 23 $ 27
Slide 20: Non-GAAP Reconciliations (continued)
Non-GAAP Reconciliations (continued) Three months ended Year ended March 31, 2024 December 31, 2023 September 30, 2023 June 30, 2023 March 31, 2023 December 31, 2023 Reconciliation of income tax (expense) benefit to non-GAAP income tax (expense) benefit US GAAP income tax (expense) benefit $ (26) $
Slide 21: Non-GAAP Measures Definitions
Non-GAAP Measures Definitions Non-GAAP Measures Generally Accepted Accounting Principles ("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 transactio
Slide 22: Non-GAAP Measures Definitions (continued)
Non-GAAP Measures Definitions (continued) 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 d
Slide 23: Non-GAAP Measures Definitions (continued)
Non-GAAP Measures Definitions (continued) Book Value per Common Share, excluding AOCI Book value per Common share, excluding AOCI is calculated as total F&G equity attributable to common shareholders divided by the total number of shares of common stock outstanding. Management considers this to be a