F&G Annuities & Life Reports Second Quarter 2025 Results

About this update from F&g Annuities & Life, Inc.

DES MOINES, Iowa , Aug. 6, 2025 /PRNewswire/ -- F&G Annuities & Life, Inc. (NYSE: FG) (F&G or the Company) a leading provider of insurance solutions serving retail annuity and life customers and institutional clients, today reported financial results for the second quarter ended June 30, 2025 . Net earnings attributable to common shareholders (net earnings) for the second quarter  of $35 million , or $0.26 per diluted share (per share), compared to $198 million , or $1.55 per share, for the second quarter of 2024.  Net earnings for the second quarter included $49 million of net unfavorable mark-to-market effects and $19 million of other unfavorable items; all of which are excluded from adjusted net earnings.  Net earnings for the second quarter of 2024 included $70 million of net favorable mark-to-market effects and $11 million of other unfavorable items; all of which are excluded from adjusted net earnings. Adjusted net earnings attributable to common shareholders (adjusted net earnings) for the second quarter  of $103 million , or $0.77 per share, compared to $139 million , or $1.10 per share, for the second quarter of 2024.  Adjusted net earnings include significant income and expense items and alternative investment portfolio returns from short-term mark-to-market movement that differ from long-term return expectations. Please see the "Second Quarter 2025 Results" and "Non-GAAP Measures and Other Information" sections for further explanation. Second Quarter 2025 Highlights Chris Blunt , F&G's Chief Executive Officer, said, "We grew AUM before flow reinsurance to $69.2 billion at the end of the second quarter, an increase of 13% from second quarter 2024, driven by strong sales.  Our business is benefiting from increased scale, as our ratio of operating expense to AUM before flow reinsurance has decreased by 5 basis points from the second quarter of 2024, and we expect further improvement in the second half of the year.  Our high quality investment portfolio is performing well and credit related impairments remain below our pricing assumption. Overall, we have had tremendous growth since FNF acquired F&G in June 2020 , with a cumulative 58% increase in book value per share excluding AOCI since year-end 2020, to $43.39 at the end of the second quarter." Mr. Blunt continued, "F&G benefits from both spread-based and fee-based earnings, including our flow reinsurance, middle market life insurance and owned distribution strategies which leverage our position as one of the industry's largest distributors of annuities and life insurance.  We remain confident that we will deliver on our medium-term Investor Day targets as we move further toward a more fee-based, higher margin and less capital intensive business model." Second Quarter 2025 Results Record AUM before flow reinsurance was $69.2 billion , an increase of 13% over $61.4 billion at the end of the second quarter 2024.  This included retained AUM of $55.6 billion , an increase of 7% over $52.2 billion at the end of the second quarter 2024.  A rollforward of AUM can be found in the "Non-GAAP Measures and Other Information" section of this release. Gross sales were $4.1 billion , one of our best sales quarters in history, driven by record retail channel sales and strong pension risk transfer sales; our all-time record of $4.4 billion was in the second quarter of 2024. Record retail channel sales were more than $3.6 billion , 13% higher than the second quarter of 2024; this reflects one of our best quarters for indexed annuities, as well as a record quarter for both indexed universal life and multiyear guaranteed annuity sales. Institutional market sales were $0.5 billion of pension risk transfer sales, compared to $1.2 billion in the second quarter of 2024 with $0.9 billion of funding agreements and $0.3 billion of pension risk transfer sales.  Institutional sales are opportunistic and volumes vary quarter to quarter. Net sales were $2.7 billion , compared to $3.4 billion in the second quarter of 2024; this reflects third party flow reinsurance at varying ceded amounts in line with capital targets. Adjusted net earnings of $103 million , or $0.77 per share, compared to $139 million , or $1.10 per share for the second quarter of 2024.  Adjusted net earnings include significant income and expense items and alternative investment portfolio returns from short-term mark-to-market movement that differ from long-term return expectations. As compared to the prior year quarter, adjusted net earnings reflect asset growth, higher fees from accretive flow reinsurance, higher owned distribution margin and disciplined expense management driving scale benefit; partially offset by higher interest expense on debt. Capital and Liquidity Highlights Total F&G equity attributable to common shareholders, excluding AOCI,  was $5.9 billion , or $43.39 per share, as of June 30 , 2025.  This reflects an increase of $0.08 per share during the quarter, including $0.62 per share increase from adjusted net earnings and other; partially offset by $0.36 per share net decrease for mark-to-market movements and $0.18 per share decrease from capital actions. During the second quarter, F&G has returned capital to shareholders from common and preferred dividends of $35 million , as compared to $32 million in the second quarter of 2024. Earnings Conference Call Members of F&G's senior management team will host a conference call with the investment community to discuss F&G's second quarter 2025 results on Thursday, August 7, 2025 , beginning at 9:00 a.m. Eastern Time .  The conference call will be broadcast live over F&G's Investor Relations website at investors.fglife.com.  A replay will also be available at the same location. About F&G F&G is committed to helping Americans turn their aspirations into reality. F&G is a leading provider of insurance solutions serving retail annuity and life customers and institutional clients and is headquartered in Des Moines, Iowa . For more information, please visit fglife.com. Use of Non-GAAP Financial Information 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 transactions and in the preparation of financial statements. In addition to reporting financial results in accordance with GAAP, this presentation includes non-GAAP financial measures, which the Company believes are useful to help investors better understand its financial performance, competitive position and prospects for the future. Management believes these non-GAAP financial measures may be useful in certain instances to provide additional meaningful comparisons between current results and results in prior operating periods. Our non-GAAP financial measures may not be comparable to similarly titled measures of other organizations because other organizations may not calculate such non-GAAP measures in the same manner as we do. The presentation of this financial information is not intended to be considered in isolation of or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. By disclosing these non-GAAP financial measures, the Company believes it offers investors a greater understanding of, and an enhanced level of transparency into, the means by which the Company's management operates the Company. Any non-GAAP measures should be considered in context with the GAAP financial presentation and should not be considered in isolation or as a substitute for GAAP net earnings, net earnings attributable to common shareholders, or any other measures derived in accordance with GAAP as measures of operating performance or liquidity. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measures are provided within. Forward-Looking Statements and Risk Factors This press release 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", "may", "will", "could", "seeks", "intends", "plans", "estimates", "anticipates" or other comparable terms. Statements that are not historical facts, including statements regarding our expectations, hopes, intentions or strategies regarding the future are forward-looking statements. Forward-looking statements are based on management's beliefs, as well as assumptions made by, and information currently available to, management. Because such statements are based on expectations as to future financial and operating results and are not statements of fact, actual results may differ materially from those projected. We undertake no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise. The risks and uncertainties which forward-looking statements are subject to include, but are not limited to: general economic conditions and other factors, including prevailing interest and unemployment rate levels and stock and credit market performance; consumer spending; government spending; the volatility and strength of the capital markets; investor and consumer confidence; foreign currency exchange rates; commodity prices; inflation levels; changes in trade policy; tariffs and trade sanctions on goods; trade wars; supply chain disruptions; natural disasters, public health crises, international tensions and conflicts, geopolitical events, terrorist acts, labor strikes, political crisis, accidents and other events; concentration in certain states for distribution of our products; the impact of interest rate fluctuations; equity market volatility or disruption; the impact of credit risk of our counterparties; changes in our assumptions and estimates regarding amortization of our deferred acquisition costs, deferred sales inducements and value of business acquired balances; regulatory changes or actions, including those relating to regulation of financial services affecting (among other things) underwriting of insurance products and regulation of the sale, underwriting and pricing of products and minimum capitalization and statutory reserve requirements for insurance companies, or the ability of our insurance subsidiaries to make cash distributions to us; and other factors discussed in "Risk Factors" and other sections of F&G's Form 10-K and other filings with the Securities and Exchange Commission (SEC). CONTACT: Lisa Foxworthy-Parker SVP of Investor & External Relations [email protected] 515.330.3307               View original content: https://www.prnewswire.com/news-releases/fg-annuities--life-reports-second-quarter-2025-results-302523507.html SOURCE F&G Annuities & Life, Inc.

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