F&G Annuities & Life Reports Fourth Quarter and Full Year 2024 Results

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

DES MOINES, Iowa , Feb. 20, 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 fourth quarter and twelve months (full year) ended December 31, 2024 . Net earnings attributable to common shareholders  for the fourth quarter were $323 million , or $2.50 per diluted share (per share), compared to a net loss of $299 million , or $2.41 per share, for the fourth quarter of 2023. Full year net earnings attributable to common shareholders of $622 million , or $4.88 per share, compared to a net loss of $58 million , or $0.47 per share, for the year ended December 31, 2023 . Net earnings or losses attributable to common shareholders include mark-to-market effects and non-recurring items; all of which are excluded from adjusted net earnings attributable to common shareholders. Adjusted net earnings attributable to common shareholders (adjusted net earnings)  for the fourth quarter were $143 million , or $1.12 per share, compared to $75 million , or $0.60 per share, for the fourth quarter of 2023. Full year adjusted net earnings of $546 million , or $4.30 per share, compared to $335 million , or $2.68 per share, for the year ended December 31, 2023 . Company Highlights Chris Blunt , Chief Executive Officer, commented, "We reported record gross sales of $15.3 billion for the full year 2024, a 16% increase over 2023. Notably, gross sales have more than tripled since 2020. During 2024, we achieved record full year retail channel and pension risk transfer sales due to favorable market conditions and secular demand for our products that is poised to persist. Lastly, we continue to execute our capital light, strategic initiatives through utilizing flow reinsurance and growing our owned distribution business which, taken together, offer F&G a higher return earnings stream. We enter 2025 with strong momentum and I am excited with the opportunities to further grow AUM before flow reinsurance and adjusted net earnings."   Fourth Quarter 2024 Results Profitable gross sales  were $3.5 billion for the fourth quarter, a decrease of 15% from the near record fourth quarter of 2023; this reflects our decision to allocate capital to the highest returning business, specifically indexed annuity sales and record pension risk transfer sales, resulting in a reduction in MYGA sales and funding agreements. Retail channel sales  were $2.5 billion for the fourth quarter, a decrease of 17% from the fourth quarter of 2023; this reflects our decision to allocate capital to indexed annuity sales given the ongoing favorable economic conditions and strong demand for retirement savings products, resulting in a reduction in MYGA sales. Institutional market sales reflect $1.0 billion of record pension risk transfer volume for the fourth quarter, compared to $1.1 billion of pension risk transfer and funding agreements in fourth quarter of 2023. Institutional sales are opportunistic and volumes vary quarter to quarter. Net sales were nearly $2.5 billion for the fourth quarter, in line with the fourth quarter of 2023. Record AUM before flow reinsurance was $65.3 billion as of December 31, 2024 , an increase of 17% over $55.9 billion as of December 31 , 2023.  This included record AUM of $53.8 billion as of December 31, 2024 , an increase of 10% over $49.1 billion as of December 31 , 2023.  A rollforward of AUM can be found in the "Non-GAAP Measures and Other Information" section of this release. Adjusted net earnings were $143 million , or $1.12 per share, in the fourth quarter, compared to $75 million , or $0.60 per share for the fourth quarter of 2023. 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, margin diversification from accretive flow reinsurance fees and owned distribution margin, disciplined expense management and higher interest expense due to planned capital market activity. Full Year 2024 Results Record gross sales were $15.3 billion for the full year, an increase of 16% over $13.2 billion for the full year 2023, driven by record retail channel and robust institutional market sales. Record profitable Retail channel sales  were $12.0 billion for the full year, an increase of 20% over $10.0 billion for the full year 2023, driven by growth across our agent, bank and broker dealer channels. Robust Institutional market sales  were $3.3 billion for the full year, comprised of a record $2.3 billion pension risk transfer and $1.0 billion funding agreements, compared to $3.2 billion for the full year 2023, comprised of $2.0 billion pension risk transfer and $1.2 billion funding agreements. Record net sales  retained were $10.6 billion for the full year, compared to $9.2 billion for full year 2023. Record AUM before flow reinsurance was $65.3 billion as of December 31, 2024 , an increase of 17% over $55.9 billion as of December 31, 2023 . This included record AUM of $53.8 billion as of December 31, 2024 , an increase of 10% over $49.1 billion as of December 31, 2023 . A rollforward of AUM can be found in the "Non-GAAP Measures and Other Information" section of this release. Adjusted net earnings for the full year of $546 million , or $4.30 per share, compared to $335 million , or $2.68 per share for the full year 2023. 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, adjusted net earnings reflect asset growth, margin diversification from accretive flow reinsurance fees and owned distribution margin, disciplined expense management and higher interest expense due to planned capital market activity. Capital and Liquidity Highlights Total F&G equity attributable to common shareholders, excluding AOCI, was $5.6 billion , or $44.28 per share, as of December 31, 2024 . This reflects an increase of $3.86 per share, or 10%, during the full year, as compared to $40.42 per share as of December 31, 2023 , including the net increase of $2.00 per share, or 5%, during the current quarter as shown below.   F&G has successfully completed the following capital markets activity in the fourth quarter of 2024 and early first quarter of 2025, as expected. Debt to capitalization ratio, excluding AOCI, is approximately 27.5% on a pro forma basis, reflecting current debt outstanding of $2.3 billion . We remain committed to our long-term target of approximately 25% and expect that our balance sheet will naturally delever as a result of near-term growth in total equity, excluding AOCI. F&G has returned capital to shareholders from common and preferred dividends of $32 million and $125 million for the fourth quarter and full year 2024, respectively, as compared to $26 million and $101 million for the fourth quarter and full year 2023, respectively. The Company continues to have a strong and stable capital position with an estimated statutory company action level risk-based capital (RBC) ratio for our primary operating subsidiary of over 410% as of December 31, 2024 , above our 400% target. F&G maintains strong capitalization and financial flexibility across all of our statutory balance sheets, including our offshore entities, which are conservatively managed to the most stringent capital requirements of our regulators and four rating agencies. 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 fourth quarter and full year 2024 results on Friday, February 21, 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 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; 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 to download multimedia: https://www.prnewswire.com/news-releases/fg-annuities--life-reports-fourth-quarter-and-full-year-2024-results-302381725.html SOURCE F&G Annuities & Life, Inc.

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