( [ K L E L W
ANNUITIES & LIFE, INC.
4 X D U W H U O \ ) L Q D Q F L D O
6 X S S O H P H Q W
6 H F R Q G 4 X D U W H U
7 K H I L Q D Q F L D O V W D W H P H Q W V D Q G I L Q D Q F L D O H [ K
7 K H V H I L Q D Q F L D O V W D W H P H Q W V D Q G H [ K L E L W V V
& R P S D Q \ V S H U L R G L F U H S R U W V R Q ) R U P . ) R
$ O O G R O O D U D P R X Q W V D U H S U H V H Q W H G L Q P L O O L
Financial Highlights 3
Financial Results
Adjusted Net Earnings - Management View 5
Consolidated Statements of Operations (GAAP) 4
Adjusted Return on Assets 7
Adjusted Net Earnings - Significant Income and Expense Items 6
Interest and Investment Income and Yield 8
Assets Under Management Rollforward and Average Assets Under Management 8
Capitalization 10
Consolidated Balance Sheets (GAAP) 9
Return on Equity Attributable to Common Shareholders 10
Summary of Invested Assets by Asset Class 11
Investment Summary
Credit Quality of Fixed Maturity Securities, Asset-Backed Securities and Collateral Loan Obligations and Loan-Backed Private Originations 12
GAAP Net Reserve Summary 13
Product Summary
Annuity Liability Characteristics 14
Annuity Account Balance Rollforward 13
Top 5 Reinsurers 14
Ratings Overview 15
Additional Information
Non-GAAP Reconciliations 17
Shareholder Information 16
Non-GAAP Measures Definitions 21
Financial Highlights
|
Three months ended |
Six months ended |
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|
June 30, |
March 31, |
December 31, September 30, |
June 30, |
June 30, June 30, |
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|
2025 |
2025 |
2024 2024 |
2024 |
2025 2024 |
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|
SELECTED CONSOLIDATED STATEMENT OF OPERATIONS DATA |
||||||
|
Net earnings (loss) attributable to F&G |
$ 40 |
$ (21) |
$ 327 $ (6) |
$ 203 |
$ 19 |
$ 318 |
|
Net earnings (loss) attributable to common shareholders |
35 |
(25) |
323 (10) |
198 |
10 |
309 |
|
Net earnings (loss) attributable to common shareholders per diluted share ² |
0.26 |
(0.20) |
2.50 (0.08) |
1.55 |
0.08 |
2.45 |
|
Weighted-average diluted shares outstanding (in millions) RELATED NON-GAAP MEASURES ¹ |
134 |
126 |
131 124 |
131 |
131 |
130 |
|
Adjusted net earnings attributable to common shareholders |
103 |
91 |
143 156 |
139 |
194 |
247 |
|
Adjusted net earnings attributable to common shareholders per diluted share ² |
0.77 |
0.72 |
1.12 1.22 |
1.10 |
1.48 |
1.97 |
|
Adjusted weighted-average diluted shares outstanding (in millions) |
134 |
132 |
131 131 |
131 |
131 |
130 |
|
Adjusted return on assets attributable to common shareholders |
0.71% |
0.68% |
1.06% 1.05% |
0.98% |
0.71% |
0.98% |
|
Adjusted return on average common shareholder equity, excluding AOCI |
8.8% |
9.7% |
10.3% 9.1% |
8.4% |
8.8% |
8.4% |
|
SELECTED CONSOLIDATED BALANCE SHEET DATA |
||||||
|
Total assets |
91,816 |
88,007 |
84,931 84,123 |
78,368 |
91,816 |
78,368 |
|
Total liabilities |
87,259 |
83,522 |
80,855 79,648 |
74,580 |
87,259 |
74,580 |
|
Total equity |
4,557 |
4,485 |
4,076 4,475 |
3,788 |
4,557 |
3,788 |
|
Total equity, excluding AOCI |
6,227 |
6,219 |
5,999 5,706 |
5,741 |
6,227 |
5,741 |
|
Common shares outstanding (in millions) |
135 |
135 |
127 126 |
126 |
135 |
126 |
|
RELATED NON-GAAP MEASURES ¹ |
||||||
|
Total F&G equity attributable to common shareholders, excluding AOCI |
5,858 |
5,847 |
5,624 5,327 |
5,357 |
5,858 |
5,357 |
|
Book value per common share |
31.02 |
30.47 |
29.14 32.51 |
27.02 |
31.02 |
27.02 |
|
Book value per common share, excluding AOCI |
43.39 |
43.31 |
44.28 42.28 |
42.52 |
43.39 |
42.52 |
|
Assets under management ("AUM") |
55,565 |
54,546 |
53,817 52,464 |
52,208 |
55,565 |
52,208 |
|
Average assets under management ("AAUM") YTD |
54,521 |
53,877 |
51,574 50,970 |
50,181 |
54,521 |
50,181 |
|
AUM before flow reinsurance SALES ¹ |
69,161 |
67,398 |
65,274 62,875 |
61,370 |
69,161 |
61,370 |
|
Indexed annuities ("FIA/RILA") |
$ 1,701 |
$ 1,461 |
$ 1,797 $ 1,847 |
$ 1,648 |
$ 3,162 |
$ 3,085 |
|
Fixed rate annuities ("MYGA") |
1,907 |
562 |
648 1,655 |
1,475 |
2,469 |
2,802 |
|
Total annuity |
3,608 |
2,023 |
2,445 3,502 |
3,123 |
5,631 |
5,887 |
|
Indexed universal life ("IUL") |
53 |
43 |
41 39 |
44 |
96 |
86 |
|
Funding agreements ("FABN/FHLB") |
- |
525 |
- - |
915 |
525 |
1,020 |
|
Pension risk transfer ("PRT") |
445 |
311 |
983 337 |
338 |
756 |
922 |
|
Gross sales |
4,106 |
2,902 |
3,469 3,878 |
4,420 |
7,008 |
7,915 |
|
Sales attributable to flow reinsurance to third parties |
(1,362) |
(721) |
(1,031) (1,492) |
(975) |
(2,083) |
(2,168) |
|
Net sales |
$ 2,744 |
$ 2,181 |
$ 2,438 $ 2,386 |
$ 3,445 |
$ 4,925 |
$ 5,747 |
¹ Refer to "Non-GAAP Reconciliations" and "Non-GAAP Measures Definitions" in the additional information section.
² Beginning in 2024, diluted share count reflects the effect of 5 million common shares issuable upon the conversion of the FNF 6.875% Series A Mandatory Convertible Preferred Stock, par value $0.001 par value per share, when their effect was dilutive. For time periods when dilutive, the weighted average number of diluted shares includes assumed issuance of common shares upon conversion of the preferred stock, as well as the preferred stock dividends are not deducted from net earnings (loss) or adjusted net earnings (loss).
Consolidated Statements of Operations (GAAP)
|
Revenues |
Three months ended June 30, March 31, December 31, September 30, 2025 2025 2024 2024 |
June 30, 2024 |
Six months ended June 30, June 30, 2025 2024 |
|
|
Life insurance premiums and other fees |
$ 608 $ 489 $ 1,149 $ 506 |
$ 487 |
$ 1,097 |
$ 1,205 |
|
Interest and investment income |
682 666 707 712 |
684 |
1,348 |
1,300 |
|
Owned distribution revenues |
23 16 20 20 |
18 |
39 |
41 |
|
Recognized gains and (losses), net |
51 (263) (317) 206 |
(17) |
(212) 195 |
|
|
Total revenues |
1,364 908 1,559 1,444 |
1,172 |
2,272 |
2,741 |
|
Benefits and expenses |
||||
|
Benefits and other changes in policy reserves |
993 524 927 1,095 |
608 |
1,517 |
1,769 |
|
Market risk benefit (gains) losses |
(4) 109 (105) 71 |
20 |
105 |
9 |
|
Depreciation and amortization |
158 153 152 147 |
147 |
311 |
270 |
|
Personnel costs |
77 67 81 80 |
69 |
144 |
135 |
|
Other operating expenses |
42 41 54 45 |
46 |
83 |
104 |
|
Interest expense |
41 40 38 36 |
28 |
81 |
58 |
|
Total benefits and expenses |
1,307 934 1,147 1,474 |
918 |
2,241 |
2,345 |
|
Earnings (loss) before income taxes |
57 (26) 412 (30) |
254 |
31 |
396 |
|
Income tax expense (benefit) |
15 (5) 85 (25) |
50 |
10 |
76 |
|
Net earnings (loss) |
42 (21) 327 (5) |
204 |
21 |
320 |
|
Less: Non-controlling interests |
2 - - 1 |
1 |
2 |
2 |
|
Net earnings (loss) attributable to F&G |
40 (21) 327 (6) |
203 |
19 |
318 |
|
Less: Preferred stock dividend |
5 4 4 4 |
5 |
9 |
9 |
|
Net earnings (loss) attributable to F&G common shareholders |
$ 35 $ (25) $ 323 $ (10) |
$ 198 |
$ 10 $ 309 |
|
|
Net earnings (loss) attributable to F&G common shareholders per common share |
||||
|
Basic |
$ 0.26 $ (0.20) $ 2.58 $ (0.08) |
$ 1.60 |
$ 0.08 |
$ 2.49 |
|
Diluted Weighted average common shares used in computing net earnings (loss) per common share |
$ 0.26 $ (0.20) $ 2.50 $ (0.08) |
$ 1.55 |
$ 0.08 |
$ 2.45 |
|
Basic |
133 126 125 124 |
124 |
130 |
124 |
|
Diluted |
134 126 131 124 |
131 |
131 |
130 |
.
Adjusted Net Earnings - Management View ¹
|
June 30, 2025 |
Three months ended March 31, December 31, September 30, 2025 2024 2024 |
June 30, 2024 |
Six months ended June 30, June 30, 2025 2024 |
||
|
Interest and investment income - fixed income and other |
$ 518 |
$ 509 $ 513 $ 514 |
$ 493 |
$ 1,027 |
$ 968 |
|
Interest and investment income - alternatives (including short term mark-to-market) |
148 |
137 160 150 |
167 |
285 |
279 |
|
Interest and investment income - variable |
6 |
19 19 26 |
6 |
25 |
14 |
|
Adjusted interest and investment income |
672 |
665 692 690 |
666 |
1,337 |
1,261 |
|
Cost of funds ² |
(426) |
(428) (400) (395) |
(378) |
(854) (733) |
|
|
Product margin |
246 |
237 292 295 |
288 |
483 |
528 |
|
Flow reinsurance fee income ² |
14 |
13 13 11 |
9 |
27 |
17 |
|
Owned distribution margin |
14 |
7 12 12 |
9 |
21 |
22 |
|
Operating expenses |
(91) |
(96) (95) (103) |
(97) |
(187) (191) |
|
|
Interest expense |
(41) |
(41) (38) (36) |
(31) |
(82) (61) |
|
|
Income tax (expense) benefit |
(34) |
(25) (37) (19) |
(34) |
(59) (59) |
|
|
Adjusted net earnings |
108 |
95 147 160 |
144 |
203 |
256 |
|
Less: Preferred stock dividend |
5 |
4 4 4 |
5 |
9 |
9 |
|
Adjusted net earnings attributable to common shareholders |
$ 103 |
$ 91 $ 143 $ 156 |
$ 139 |
$ 194 |
$ 247 |
|
Adjusted net earnings per common share |
|||||
|
Diluted |
$ 0.77 |
$ 0.72 $ 1.12 $ 1.22 |
$ 1.10 |
$ 1.48 |
$ 1.97 |
|
Weighted average common shares used in computing adjusted net earnings per common share |
|||||
|
Diluted |
134 |
132 131 131 |
131 |
131 |
130 |
¹ Refer to "Non-GAAP Reconciliations" and "Non-GAAP Measures Definitions" in the additional information section.
² Periods prior to March 31, 2025 have been recast to reflect updated definitions for cost of funds and flow reinsurance fee income to better align amortization and reimbursement of acquisition costs.
Adjusted Net Earnings - Significant Income and Expense Items ¹ ²
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 significant income and expense items are reported after taxes.
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 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 expected return of approximately 10%.
December 31, 2024
Adjusted net earnings of $143 million for the three months ended December 31, 2024 included income from $7 million of actuarial model refinements and other items. Investment income from alternative investments was $32 million below management's long-term expected return of approximately 10%.
September 30, 2024
Adjusted net earnings of $156 million for the three months ended September 30, 2024 included net expense from $17 million of actuarial assumption updates; partially offset by income from a $14 million tax valuation allowance. Investment income from alternative investments was $41 million below management's long-term expected return of approximately 10%.
June 30, 2024
Adjusted net earnings of $139 million for the three months ended June 30, 2024 included expense from $16 million of actuarial model updates and refinements. Investment income from alternative investments was $20 million below management's long-term expected return of approximately 10%.
Six months ended
June 30, 2025
Adjusted net earnings of $194 million for the six months ended June 30, 2025 included income from a $16 million reinsurance true-up adjustment. Investment income from alternative investments was $146 million below management's long-term expected return of approximately 10%.
June 30, 2024
Adjusted net earnings of $247 million for the six months ended June 30, 2024 included expense from $16 million of actuarial model updates and refinements; partially offset by $2 million of other income items. Investment income from alternative investments was $72 million below management's long-term expected return of approximately 10%.
¹ Refer to Reconciliation of net earnings (loss) to adjusted net earnings attributable to common shareholders on page 17 and Adjusted Net Earnings - Management View on page 5. ² Periods prior to March 31, 2025 have been recast to remove CLO redemption and bond prepayment income from significant income and expense items.
Adjusted Return on Assets ¹
Annualized year to date
|
June 30, 2025 |
March 31, 2025 |
December 31, 2024 |
September 30, 2024 |
June 30, 2024 |
|
|
Adjusted interest and investment income |
$ 2,674 |
$ 2,660 |
$ 2,643 |
$ 2,601 |
$ 2,522 |
|
Cost of funds ² |
(1,708) |
(1,712) |
(1,528) |
(1,504) |
(1,466) |
|
Product margin |
966 |
948 |
1,115 |
1,097 |
1,056 |
|
Flow reinsurance fee income ² |
54 |
52 |
41 |
37 |
34 |
|
Owned distribution margin |
42 |
28 |
46 |
45 |
44 |
|
Expenses (operating, interest and taxes) |
(656) |
(648) |
(639) |
(625) |
(622) |
|
Adjusted net earnings |
$ 406 |
$ 380 |
$ 563 |
$ 554 |
$ 512 |
|
Less: Preferred stock dividend |
18 |
16 |
17 |
17 |
18 |
|
Adjusted net earnings attributable to common shareholders (A) |
$ 388 |
$ 364 |
$ 546 |
$ 537 |
$ 494 |
|
AAUM YTD (B) |
54,521 |
53,877 |
51,574 |
50,970 |
50,181 |
|
June 30, 2025 |
March 31, 2025 |
December 31, 2024 |
September 30, 2024 |
June 30, 2024 |
|
|
Adjusted interest and investment income |
4.90 % |
4.94 % |
5.12 % |
5.10 % |
5.03 % |
|
Cost of funds ² |
(3.13)% |
(3.18)% |
(2.96)% |
(2.95)% |
(2.92)% |
|
Product margin |
1.77 % |
1.76 % |
2.16 % |
2.15 % |
2.11 % |
|
Flow reinsurance fee income ² |
0.10 % |
0.10 % |
0.08 % |
0.07 % |
0.06 % |
|
Owned distribution margin |
0.08 % |
0.05 % |
0.09 % |
0.09 % |
0.09 % |
|
Expenses (operating, interest and taxes) |
(1.21)% |
(1.20)% |
(1.24)% |
(1.23)% |
(1.24)% |
|
Adjusted return on assets |
0.74 % |
0.71 % |
1.09 % |
1.08 % |
1.02 % |
|
Less: Preferred stock dividend |
0.03 % |
0.03 % |
0.03 % |
0.03 % |
0.04 % |
|
Adjusted return on assets attributable to common shareholders (A/B) |
0.71 % |
0.68 % |
1.06 % |
1.05 % |
0.98 % |
¹ Refer to "Non-GAAP Reconciliations" and "Non-GAAP Measures Definitions" in the additional information section.
² Periods prior to March 31, 2025 have been recast to reflect updated definitions for cost of funds and flow reinsurance fee income to better align amortization and reimbursement of acquisition costs.
Assets Under Management Rollforward and Average Assets Under Management ¹
|
Three months ended |
Six months ended |
|||||||
|
June 30, |
March 31, |
December 31, |
September 30, |
June 30, |
June 30, |
June 30, |
||
|
2025 |
2025 |
2024 |
2024 |
2024 |
2025 |
2024 |
||
|
AUM at beginning of period |
$ 54,546 |
$ 53,817 |
$ 52,464 |
$ 52,208 |
$ 49,787 |
$ 53,817 |
$ 49,103 |
|
|
Net new business asset flows |
1,763 |
1,790 |
2,270 |
1,726 |
3,057 |
3,553 |
5,173 |
|
|
Net flow reinsurance to third parties |
(744) |
(1,395) |
(1,046) |
(1,248) |
(930) |
(2,139) |
(2,337) |
|
|
Net capital transaction proceeds (disbursements) |
- |
334 |
129 |
(222) |
294 |
334 |
269 |
|
|
AUM at end of period |
$ 55,565 |
$ 54,546 |
$ 53,817 |
$ 52,464 |
$ 52,208 |
$ 55,565 |
$ 52,208 |
|
|
AAUM YTD |
$ 54,521 |
$ 53,877 |
$ 51,574 |
$ 50,970 |
$ 50,181 |
$ 54,521 |
$ 50,181 |
|
|
AUM before flow reinsurance |
$ 69,161 |
$ 67,398 |
$ 65,274 |
$ 62,875 |
$ 61,370 |
$ 69,161 |
$ 61,370 |
|
|
Interest and Investment Income and Yield ¹ |
||||||||
|
Three months ended |
Six months ended |
|||||||
|
June 30, |
March 31, |
December 31, |
September 30, |
June 30, |
June 30, |
June 30, |
||
|
2025 |
2025 |
2024 |
2024 |
2024 |
2025 |
2024 |
||
|
Adjusted interest and investment income ² |
$ 672 |
$ 665 |
$ 692 |
$ 690 |
$ 666 |
$ 1,337 |
$ 1,261 |
|
|
AAUM QTD |
55,170 |
53,877 |
53,307 |
52,661 |
50,864 |
54,521 |
50,181 |
|
|
Yield on AAUM |
4.87 % |
4.94 % |
5.19 % |
5.24 % |
5.24 % |
4.90 % |
5.03 % |
|
|
Less: Alternatives investment income (including short term mark-to-market) ³ |
148 |
137 |
160 |
150 |
167 |
285 |
279 |
|
Less: Variable investment income ⁴ |
6 |
19 |
19 |
26 |
6 |
25 |
14 |
|
Fixed income and other net investment income ² ⁵ |
$ 518 |
$ 509 |
$ 513 |
$ 514 |
$ 493 |
$ 1,027 |
$ 968 |
|
AAUM QTD, excluding alternative investments |
45,259 |
44,971 |
44,739 |
44,100 |
42,509 |
45,107 |
42,162 |
|
Yield on AAUM, excluding alternative investments and variable investment income |
4.58 % |
4.53 % |
4.59 % |
4.66 % |
4.64 % |
4.55 % |
4.59 % |
¹ Refer to "Non-GAAP Reconciliations" and "Non-GAAP Measures Definitions" in the additional information section. ² Reflects interest and investment income on an adjusted net earnings basis.
³ Comprised of alternative investment income, which includes mark-to-market movement that is reflected in adjusted net earnings, from limited partnerships and limited liability corporations classified as investments in unconsolidated affiliates and non-direct lending and direct lending securitizations classified as fixed maturity securities.
⁴ Includes significant, non-recurring interest and investment income items, which could include call and tender income, commercial loan obligation redemption gains and other miscellaneous investment income.
⁵ Includes interest and investment income from fixed maturity securities (excluding certain asset backed securities considered alternative investments), mortgage loans, equity securities, short-term investments, and long-term investments.
|
Consolidated Balance Sheets (GAAP) |
|||||
|
Assets |
June 30, 2025 |
March 31, 2025 |
December 31, 2024 |
September 30, 2024 |
June 30, 2024 |
|
Investments |
|||||
|
Fixed maturity securities available for sale, at fair value, (amortized cost of $53,157), net of allowance for credit losses of $97 at June 30, 2025 |
$ 50,193 |
$ 47,909 |
$ 46,317 |
$ 46,909 |
$ 43,826 |
|
Preferred securities, at fair value |
249 |
253 |
270 |
289 |
332 |
|
Equity securities, at fair value |
92 |
101 |
145 |
146 |
147 |
|
Derivative investments |
931 |
702 |
792 |
1,401 |
1,032 |
|
Mortgage loans, net of allowance for credit losses of $75 at June 30, 2025 |
6,940 |
6,366 |
5,926 |
5,626 |
5,439 |
|
Investments in unconsolidated affiliates (certain investments at fair value of $272 at June 30, 2025) |
4,301 |
4,127 |
3,565 |
3,666 |
3,705 |
|
Other long-term investments |
998 |
587 |
580 |
581 |
574 |
|
Policy loans |
125 |
115 |
104 |
94 |
86 |
|
Short-term investments |
760 |
549 |
2,410 |
681 |
421 |
|
Total investments |
$ 64,589 |
$ 60,709 |
$ 60,109 |
$ 59,393 |
$ 55,562 |
|
Cash and cash equivalents |
1,884 |
3,293 |
2,264 |
3,539 |
3,526 |
|
Reinsurance recoverable, net of allowance for credit losses of $18 at June 30, 2025 |
15,777 |
14,746 |
13,369 |
12,404 |
11,031 |
|
Goodwill |
2,179 |
2,179 |
2,179 |
2,179 |
2,017 |
|
Prepaid expenses and other assets (certain assets held at fair value of $18 million at June 30, 2025) |
967 |
904 |
950 |
942 |
839 |
|
Other intangible assets, net |
5,943 |
5,721 |
5,572 |
5,349 |
4,952 |
|
Market risk benefits asset |
213 |
187 |
189 |
134 |
103 |
|
Income taxes receivable |
6 |
- |
- |
2 |
11 |
|
Deferred tax asset, net |
258 |
268 |
299 |
181 |
327 |
|
Total assets Liabilities and Equity |
$ 91,816 |
$ 88,007 |
$ 84,931 |
$ 84,123 |
$ 78,368 |
|
Contractholder funds |
$ 59,813 |
$ 57,823 |
$ 56,404 |
$ 55,468 |
$ 53,602 |
|
Future policy benefits |
9,463 |
9,065 |
8,749 |
8,268 |
7,636 |
|
Market risk benefits liability |
711 |
635 |
549 |
603 |
459 |
|
Accounts payable and accrued liabilities |
2,568 |
2,314 |
2,219 |
3,257 |
2,328 |
|
Income taxes payable |
- |
9 |
5 |
- |
- |
|
Notes payable |
2,235 |
2,234 |
2,171 |
2,038 |
2,038 |
|
Funds withheld for reinsurance liabilities |
12,469 |
11,442 |
10,758 |
10,014 |
8,517 |
|
Total liabilities |
$ 87,259 |
$ 83,522 |
$ 80,855 |
$ 79,648 |
$ 74,580 |
Equity
Preferred stock $0.001 par value; authorized 25,000,000 shares as of June 30, 2025; outstanding and issued shares of 5,000,000 as of June 30, 2025
-
-
-
-
-
Common stock $0.001 par value; authorized 500,000,000 shares as of June 30, 2025; outstanding and issued shares of 134,653,564 and 135,863,553 as of June 30, 2025, respectively
- - - - -
Additional paid-in-capital 3,747 3,741 3,464 3,456 3,449
Retained earnings 2,394 2,389 2,440 2,145 2,182
Accumulated other comprehensive income (loss) ("AOCI") (1,670) (1,734) (1,923) (1,231) (1,953)
Total F&G Annuities & Life, Inc. shareholders' equity $ 4,438 $ 4,363 $ 3,951 $ 4,346 $ 3,654
Treasury stock, at cost (1,209,989 shares as of June 30, 2025) (33) (33) (30) (24) (24)
Total equity $ 4,557 $ 4,485 $ 4,076 $ 4,475 $ 3,788
Non-controlling interests 119 122 125 129 134
Total liabilities and equity $ 91,816 $ 88,007 $ 84,931 $ 84,123 $ 78,368
.
Capitalization ¹
|
Three months ended |
|||||
|
June 30, 2025 |
March 31, 2025 |
December 31, 2024 |
September 30, 2024 |
June 30, 2024 |
|
|
Notes payable |
$ 2,235 |
$ 2,234 |
$ 2,171 |
$ 2,038 |
$ 2,038 |
|
Net issuance costs (premium) |
35 |
36 |
24 |
22 |
22 |
|
Notes payable (aggregate principal amount) (A) |
$ 2,270 |
$ 2,270 |
$ 2,195 |
$ 2,060 |
$ 2,060 |
|
Total equity |
4,557 |
4,485 |
4,076 |
4,475 |
3,788 |
|
Less: AOCI |
(1,670) |
(1,734) |
(1,923) |
(1,231) |
(1,953) |
|
Total equity, excluding AOCI |
$ 6,227 |
$ 6,219 |
$ 5,999 |
$ 5,706 |
$ 5,741 |
|
Total Capitalization, excluding AOCI (B) |
$ 8,497 |
$ 8,489 |
$ 8,194 |
$ 7,766 |
$ 7,801 |
|
Debt-to-Capitalization, excluding AOCI (A/B) |
26.7 % |
26.7 % |
26.8 % |
26.5 % |
26.4 % |
|
Return on Equity Attributable to Common Shareholders ¹ |
|||||
|
Twelve months ended |
|||||
|
June 30, |
March 31, |
December 31, |
September 30, |
June 30, |
|
|
2025 |
2025 |
2024 |
2024 |
2024 |
|
|
Net earnings (loss) attributable to common shareholders - rolling four quarters (C) |
$ 323 |
$ 486 |
$ 622 |
$ - |
$ 316 |
|
Adjusted net earnings attributable to common shareholders - rolling four quarters (D) |
493 |
529 |
546 |
478 |
442 |
|
Average F&G equity attributable to common shareholders - 5 point average (E) |
3,901 |
3,722 |
3,520 |
3,254 |
2,939 |
|
Less: Average AOCI - 5 point average |
(1,702) |
(1,745) |
(1,796) |
(2,020) |
(2,295) |
|
Average F&G equity attributable to common shareholders, excluding AOCI - 5 point average (F) |
$ 5,603 |
$ 5,467 |
$ 5,316 |
$ 5,274 |
$ 5,234 |
|
Return on average common shareholder equity (C/E) |
8.3 % |
13.1 % |
17.7 % |
- % |
10.8 % |
|
Adjusted return on average common shareholder equity, excluding AOCI (D/F) |
8.8 % |
9.7 % |
10.3 % |
9.1 % |
8.4 % |
|
¹ Refer to "Non-GAAP Reconciliations" and "Non-GAAP Measures Definitions" in the additional information section. |
|||||
|
Amortized Cost |
Fair Value |
Percent |
||||
|
United States Government full faith and credit |
$ 323 |
$ 325 |
1 % |
$ 160 |
$ 158 |
- % |
|
United States Government sponsored entities |
93 |
92 |
- % |
98 |
95 |
- % |
|
United States municipalities, states and territories |
1,540 |
1,310 |
2 % |
1,592 |
1,346 |
2 % |
|
Foreign Governments |
263 |
222 |
- % |
231 |
186 |
- % |
|
Corporate securities: |
||||||
|
Finance, insurance and real estate |
9,028 |
8,509 |
13 % |
9,284 |
8,611 |
14 % |
|
Manufacturing, construction and mining |
1,382 |
1,241 |
2 % |
1,299 |
1,139 |
2 % |
|
Utilities, energy and related sectors |
3,727 |
3,234 |
5 % |
3,498 |
2,971 |
5 % |
|
Wholesale/retail trade |
3,733 |
3,299 |
5 % |
3,694 |
3,210 |
5 % |
|
Services, media and other |
5,644 |
4,854 |
8 % |
5,402 |
4,547 |
8 % |
|
Hybrid securities |
588 |
566 |
1 % |
604 |
581 |
1 % |
|
Non-agency residential mortgage-backed securities |
2,885 |
2,862 |
5 % |
2,763 |
2,693 |
5 % |
|
Commercial mortgage-backed securities ² |
5,486 |
5,340 |
8 % |
5,327 |
5,131 |
9 % |
|
Asset-backed securities ² |
7,511 |
7,314 |
11 % |
10,478 |
10,270 |
17 % |
|
Collateral loan obligations and loan-backed private originations ² |
10,954 |
11,025 |
17 % |
5,299 |
5,379 |
9 % |
|
Total fixed maturity securities, available for sale |
$ 53,157 |
$ 50,193 |
78 % |
$ 49,729 |
$ 46,317 |
77 % |
|
Equity securities |
412 |
341 |
1 % |
468 |
415 |
1 % |
|
Limited partnerships: |
||||||
|
Private equity |
1,938 |
1,938 |
3 % |
1,830 |
1,830 |
3 % |
|
Real assets |
730 |
734 |
1 % |
444 |
437 |
1 % |
|
Credit |
1,355 |
1,355 |
2 % |
1,021 |
1,021 |
2 % |
|
Limited partnerships |
4,023 |
4,027 |
6 % |
3,295 |
3,288 |
6 % |
|
Commercial mortgage loans |
3,068 |
2,827 |
4 % |
2,705 |
2,404 |
4 % |
|
Residential mortgage loans |
3,872 |
3,632 |
6 % |
3,221 |
2,916 |
5 % |
|
Other (primarily derivatives, company owned life insurance and unconsolidated owned distribution investments) |
2,301 |
2,328 |
4 % |
1,771 |
1,753 |
3 % |
|
Short term investments |
760 |
760 |
1 % |
2,410 |
2,410 |
4 % |
|
Total investments ¹ |
$ 67,593 |
$ 64,108 |
100 % |
$ 63,599 |
$ 59,503 |
100 % |
Summary of Invested Assets by Asset Class
Fixed maturity securities, available for sale
June 30, 2025 December 31, 2024
Amortized Cost Fair Value Percent
¹ Asset duration of 4.7 years and 4.9 years vs. liability duration of 4.9 years and 5.8 years for the periods ending June 30, 2025 and December 31, 2024, respectively.
² Reflects classifications consistent with the NAIC Bond Project, effective 1/1/2025; for further details on our structured credit portfolio, including CLOs, CMBS and ABS, and private origination portfolio see F&G's Spring 2025 Investor Presentation
Credit Quality of Fixed Maturity Securities
June 30, 2025
|
NRSRO Rating |
NAIC Designation |
Fair Value |
Percent |
|
AAA/AA/A |
1 |
$ 32,035 |
64 % |
|
BBB |
2 |
15,998 |
32 % |
|
BB |
3 |
1,571 |
3 % |
|
B |
4 |
395 |
1 % |
|
CCC |
5 |
78 |
- % |
|
CC and lower |
6 |
116 |
- % |
|
Total |
$ 50,193 |
100 % |
|
|
Credit Quality of Asset-Backed Securities |
June 30, 2025 |
||
|
NRSRO Rating |
NAIC Designation |
Fair Value Percent |
|
|
AAA/AA/A |
1 |
$ 5,556 76 % |
|
|
BBB |
2 |
1,512 21 % |
|
|
BB |
3 |
177 2 % |
|
|
B |
4 |
7 - % |
|
|
CCC |
5 |
7 - % |
|
|
CC and lower |
6 |
55 1 % |
|
|
Total |
$ 7,314 100 % |
||
|
Credit Quality of Collateral Loan Obligations |
and Loan-Backed Private Originations |
||
|
June 30, 2025 |
|||
|
NRSRO Rating |
NAIC Designation |
Fair Value |
Percent |
|
AAA/AA/A |
1 |
$ 8,072 |
73 % |
|
BBB |
2 |
1,876 |
17 % |
|
BB |
3 |
852 |
8 % |
|
B |
4 |
187 |
2 % |
|
CCC |
5 |
- |
- % |
|
CC and lower |
6 |
38 |
- % |
|
Total |
$ 11,025 |
100 % |
|
|
GAAP Net Reserve Summary |
|||||||
|
Six months ended |
|||||||
|
June 30, |
March 31, |
December 31, |
September 30, |
June 30, |
June 30, |
June 30, |
|
|
2025 |
2025 |
2024 |
2024 |
2024 |
2025 |
2024 |
|
|
Indexed annuities |
$ 30,878 |
$ 30,326 |
$ 30,141 |
$ 30,239 |
$ 29,439 |
$ 30,878 |
$ 29,439 |
|
Fixed rate annuities |
6,661 |
5,880 |
6,434 |
6,508 |
6,044 |
6,661 |
6,044 |
|
Single premium immediate annuity and other |
1,549 |
1,562 |
1,564 |
1,660 |
1,606 |
1,549 |
1,606 |
|
Indexed universal and other life |
3,053 |
2,899 |
2,813 |
2,795 |
2,624 |
3,053 |
2,624 |
|
Funding agreements |
5,284 |
5,737 |
5,315 |
5,325 |
6,071 |
5,284 |
6,071 |
|
Pension risk transfer |
6,785 |
6,373 |
6,066 |
5,408 |
4,882 |
6,785 |
4,882 |
|
Total product reserves |
$ 54,210 |
$ 52,777 |
$ 52,333 |
$ 51,935 |
$ 50,666 |
$ 54,210 |
$ 50,666 |
|
Annuity Account Balance Rollforward ¹ |
|||||||
|
Three months ended |
Six months ended |
||||||
|
June 30, |
March 31, |
December 31, |
September 30, |
June 30, |
June 30, |
June 30, |
|
|
2025 |
2025 |
2024 |
2024 |
2024 |
2025 |
2024 |
|
|
Annuity balances at beginning of period: |
$ 35,281 |
$ 35,553 |
$ 35,103 |
$ 34,371 |
$ 33,545 |
$ 35,553 |
$ 32,967 |
|
Net deposits |
|||||||
|
Indexed annuities |
1,298 |
1,070 |
1,380 |
1,381 |
1,680 |
2,368 |
3,067 |
|
Fixed rate annuities |
1,075 |
204 |
65 |
629 |
446 |
1,279 |
581 |
|
Total net deposits |
2,373 |
1,274 |
1,445 |
2,010 |
2,126 |
3,647 |
3,648 |
|
Surrenders, withdrawals, deaths, etc. |
|||||||
|
Indexed annuities |
(1,109) |
(968) |
(1,151) |
(1,264) |
(1,101) |
(2,077) |
(1,905) |
|
Fixed rate annuities |
(374) |
(159) |
(211) |
(249) |
(376) |
(533) |
(681) |
|
Total surrenders, withdrawals, deaths, etc. |
(1,483) |
(1,127) |
(1,362) |
(1,513) |
(1,477) |
(2,610) |
(2,586) |
|
Net flows |
890 |
147 |
83 |
497 |
649 |
1,037 |
1,062 |
|
Premium and interest bonuses |
28 |
26 |
28 |
23 |
25 |
54 |
47 |
|
Fixed interest credited and index credits |
216 |
253 |
394 |
258 |
201 |
469 |
390 |
|
Guaranteed product rider fees |
(56) |
(51) |
(55) |
(46) |
(49) |
(107) |
(95) |
|
Ceded inforce reinsurance transactions |
- |
(647) |
- |
- |
- |
(647) |
- |
|
Account balance at end of period |
$ 36,359 |
$ 35,281 |
$ 35,553 |
$ 35,103 |
$ 34,371 |
$ 36,359 |
$ 34,371 |
¹ The rollforward reflects the vested account balance of our indexed annuities and fixed rate annuities, net of reinsurance.
Annuity Liability Characteristics
Fixed Rate Annuities Account Value
Indexed Annuities Account Value
Surrender Charge Percentages: June 30, 2025
|
No surrender charge |
$ 384 |
$ 2,401 |
|
0.0% < 2.0% |
21 |
410 |
|
2.0% < 4.0% |
391 |
1,626 |
|
4.0% < 6.0% |
749 |
3,452 |
|
6.0% < 8.0% |
2,101 |
5,355 |
|
8.0% < 10.0% |
2,730 |
9,817 |
|
10.0% or greater |
- |
6,922 |
$ 6,376 $ 29,983
Fixed Rate Annuities Account Value
Indexed Annuities Account Value
Credited Rate (Including Bonus Interest) vs. Ultimate Minimum Guaranteed Rate Differential: June 30, 2025
|
No differential |
$ 398 |
$ 1,201 |
|
0.0% - 1.0% |
44 |
967 |
|
1.0% - 2.0% |
1,130 |
592 |
|
2.0% - 3.0% |
1,221 |
442 |
|
3.0% - 4.0% |
828 |
505 |
|
4.0% - 5.0% |
2,400 |
21 |
|
5.0% - 6.0% |
355 |
- |
|
Allocated to index strategies |
- |
26,255 |
|
$ 6,376 |
$ 29,983 |
|
|
Top 5 Reinsurers |
June 30, 2025 |
|
|
Financial Strength Rating |
Recoverable ¹
Parent Company/Principal Reinsurers Reinsurance
AM Best S&P Fitch Moody's
|
Aspida Life Re Ltd. $ 8,379 |
A- |
- |
- |
- |
|
Somerset Reinsurance Ltd. 4,028 |
A- |
BBB+ |
- |
- |
|
Everlake 1,844 |
A |
- |
- |
- |
|
Wilton Reassurance Co. 1,049 |
A+ |
- |
A- |
- |
|
Security Life of Denver 75 |
- |
- |
A- |
A3 |
|
¹ Reinsurance recoverables do not include unearned ceded premiums that would be recovered in the event of early termination of certain traditional life policies. '-' indicates not rated |
|
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 |
Baa3 |
|
Outlook |
Stable |
Stable |
Stable |
|
|
Senior Unsecured Notes |
Not Rated |
BBB- |
BBB- |
Baa3 |
|
Junior Subordinated Notes |
Not Rated |
BB |
BB |
Ba1 |
|
CF Bermuda Holdings Limited |
||||
|
Issuer Credit / Default Rating |
Not Rated |
BBB- |
BBB |
Baa3 |
|
Outlook |
Stable |
Stable |
Stable |
|
|
Fidelity & Guaranty Life Holdings, Inc. |
||||
|
Issuer Credit / Default Rating |
BBB |
BBB- |
BBB |
Not Rated |
|
Outlook |
Stable |
Stable |
Stable |
|
Operating Subsidiary Ratings
Fidelity & Guaranty Life Insurance Company
|
Financial Strength Rating |
A |
A- |
A- |
A3 |
|
Outlook |
Stable |
Stable |
Stable |
Stable |
|
Fidelity & Guaranty Life Insurance Company of New York |
||||
|
Financial Strength Rating |
A |
A- |
A- |
Not Rated |
|
Outlook |
Stable |
Stable |
Stable |
|
|
F&G Life Re Ltd |
||||
|
Financial Strength Rating |
Not Rated |
A- |
A- |
A3 |
|
Outlook |
Stable |
Stable |
Stable |
|
|
F&G Cayman Re Ltd |
||||
|
Financial Strength Rating |
Not Rated |
Not Rated |
A- |
Not Rated |
|
Outlook |
Stable |
|
Shareholder Information NYSE: FG |
||||||
|
History of Quarterly Common Stock Price |
High Low Close |
|||||
|
2024 |
||||||
|
First Quarter |
$ 47.54 $ 35.99 $ 40.55 |
|||||
|
Second Quarter |
42.76 35.11 38.05 |
|||||
|
Third Quarter |
45.69 37.08 44.72 |
|||||
|
Fourth Quarter |
48.76 40.10 41.44 |
|||||
|
2025 |
||||||
|
First Quarter |
47.04 34.70 36.05 |
|||||
|
Second Quarter |
36.88 30.17 31.98 |
|||||
|
History of Quarterly Cash Dividend to Common Shareholders |
Ex-Dividend Date |
Record Date Payable Date Amount per Share |
||||
|
2024 |
||||||
|
First Quarter |
3/14/2024 |
3/15/2024 |
3/29/2024 |
$ |
0.21 |
|
|
Second Quarter |
6/13/2024 |
6/14/2024 |
6/28/2024 |
$ |
0.21 |
|
|
Third Quarter |
9/13/2024 |
9/16/2024 |
9/30/2024 |
$ |
0.21 |
|
|
Fourth Quarter |
12/16/2024 |
12/17/2024 |
12/31/2024 |
$ |
0.22 |
|
|
2025 |
||||||
|
First Quarter |
3/14/2025 |
3/17/2025 |
3/31/2025 |
$ |
0.22 |
|
|
Second Quarter |
6/13/2025 |
6/16/2025 |
6/30/2025 |
$ |
0.22 |
|
|
Corporate Headquarters |
Research Analyst Coverage |
|||||
|
F&G Annuities & Life, Inc. 801 Grand Avenue, Suite 2600 Des Moines, IA 50309 |
Wes Carmichael Autonomous Research (646) 561-6250 |
|||||
|
Investor Contact |
||||||
|
Lisa Foxworthy-Parker SVP, Investor and External Relations Investor.relations@fglife.com (515) 330-3307 |
Alex Scott Barclays Capital, Inc. (212) 526-1561 |
|||||
|
Transfer Agent Continental Stock Transfer and Trust Company 1 State Street, 30th Floor New York, NY 10004 Phone: (212) 509-4000 |
John Barnidge Piper Sandler Companies (312) 281-3412 |
|||||
Non-GAAP Reconciliations
|
Reconciliation of net earnings (loss) to adjusted net earnings attributable to common shareholders ¹ |
June 30, 2025 |
Three months ended March 31, December 31, September 30, 2025 2024 2024 |
June 30, 2024 |
Six months ended June 30, June 30, 2025 2024 |
|
|
Net earnings (loss) attributable to common shareholders |
$ 35 |
$ (25) $ 323 $ (10) |
$ 198 |
$ 10 |
$ 309 |
|
Non-GAAP adjustments |
|||||
|
Recognized (gains) and losses, net |
|||||
|
Net realized and unrealized (gains) losses on fixed maturity available-for-sale securities, equity securities and other invested assets |
12 |
15 24 (15) |
(37) |
27 (85) |
|
|
Change in allowance for expected credit losses |
19 |
22 - 10 |
21 |
41 |
22 |
|
Change in fair value of reinsurance related embedded derivatives |
61 |
41 (153) 178 |
(10) |
102 |
8 |
|
Change in fair value of other derivatives and embedded derivatives |
(13) |
(49) 96 (127) |
8 |
(62) 69 |
|
|
Recognized (gains) losses, net |
79 |
29 (33) 46 |
(18) |
108 |
14 |
|
Market related liability adjustments |
(16) |
103 (233) 145 |
(71) |
87 (126) |
|
|
Purchase price amortization |
18 |
15 21 22 |
19 |
33 |
41 |
|
Transaction costs, other and non-recurring items |
8 |
1 19 - |
(3) |
9 (3) |
|
|
Non-controlling interest |
(2) |
(2) (2) (3) |
(2) |
(4) (5) |
|
|
Income taxes adjustment |
(19) |
(30) 48 (44) |
16 |
(49) 17 |
|
|
Adjusted net earnings attributable to common shareholders ¹ |
$ 103 |
$ 91 $ 143 $ 156 |
$ 139 |
$ 194 $ 247 |
|
¹ Refer to Adjusted Net Earnings - Significant Income and Expense Items on page 6.
|
Reconciliation of interest and investment income to adjusted interest and investment income |
June 30, 2025 |
Three months ended March 31, December 31, September 30, 2025 2024 2024 |
June 30, 2024 |
Six months ended June 30, June 30, 2025 2024 |
|||
|
US GAAP interest and investment income |
$ 682 |
$ 666 |
$ 707 |
$ 712 |
$ 684 |
$ 1,348 |
$ 1,300 |
|
Adjustments |
|||||||
|
Recognized (gains) losses, net |
(5) |
1 |
(10) |
(16) |
(16) |
(4) (33) |
|
|
Reclass of dividend income to owned distribution margin |
(5) |
(2) |
(5) |
(6) |
(2) |
(7) (6) |
|
|
Total adjustments to arrive at adjusted interest and investment income |
(10) |
(1) |
(15) |
(22) |
(18) |
(11) (39) |
|
|
Adjusted interest and investment income Reconciliation of benefits and expenses to cost of funds |
$ 672 |
$ 665 |
$ 692 |
$ 690 |
$ 666 |
$ 1,337 $ 1,261 |
|
|
US GAAP life insurance premiums and other fees |
608 |
489 |
1,149 |
506 |
487 |
1,097 |
1,205 |
|
US GAAP recognized gains and (losses), net |
51 |
(263) |
(317) |
206 |
(17) |
(212) 195 |
|
|
US GAAP benefits and other changes in policy reserves |
(993) |
(524) |
(927) |
(1,095) |
(608) |
(1,517) (1,769) |
|
|
US GAAP market risk benefit gains (losses) |
4 |
(109) |
105 |
(71) |
(20) |
(105) (9) |
|
|
US GAAP depreciation and amortization |
(158) |
(153) |
(152) |
(147) |
(147) |
(311) (270) |
|
|
US GAAP line items subtotal |
$ (488) |
$ (560) |
$ (142) |
$ (601) |
$ (305) |
$ (1,048) $ (648) |
|
|
Adjustments |
|||||||
|
Recognized (gains) losses, net |
82 |
33 |
(24) |
61 |
(3) |
115 |
42 |
|
Market related liability adjustments |
(16) |
103 |
(233) |
145 |
(71) |
87 (126) |
|
|
Purchase price amortization |
15 |
14 |
16 |
15 |
14 |
29 |
27 |
|
Reclass of acquisition expenses from operating expenses |
(5) |
(5) |
(4) |
(4) |
(4) |
(10) (11) |
|
|
Reclass of fee income to flow reinsurance fee income |
(14) |
(13) |
(13) |
(11) |
(9) |
(27) (17) |
|
|
Total adjustments to arrive at cost of funds |
62 |
132 |
(258) |
206 |
(73) |
194 (85) |
|
|
Cost of funds ¹ Composition of flow reinsurance fee income |
$ (426) |
$ (428) |
$ (400) |
$ (395) |
$ (378) |
$ (854) $ (733) |
|
|
Reclass of fee income from cost of funds |
14 |
13 |
13 |
11 |
9 |
27 |
17 |
|
Flow reinsurance fee income ¹ |
$ 14 |
$ 13 |
$ 13 |
$ 11 |
$ 9 |
$ 27 $ 17 |
|
¹ Periods prior to March 31, 2025 have been recast to reflect updated definitions for cost of funds and flow reinsurance fee income to better align amortization and reimbursement of acquisition costs.
|
Reconciliation of owned distribution revenues to owned distribution margin |
June 30, 2025 |
Three months ended March 31, December 31, September 30, 2025 2024 2024 |
June 30, 2024 |
Six months ended June 30, June 30, 2025 2024 |
|||
|
US GAAP owned distribution revenues |
$ 23 |
$ 16 |
$ 20 |
$ 20 |
$ 18 |
$ 39 |
$ 41 |
|
US GAAP non-controlling interest |
(2) |
- |
- |
(1) |
(1) |
(2) (2) |
|
|
US GAAP line items subtotal |
21 |
16 |
20 |
19 |
17 |
37 |
39 |
|
Adjustments |
|||||||
|
Non-controlling interest |
(2) |
(2) |
(2) |
(3) |
(2) |
(4) (5) |
|
|
Reclass of owned distribution dividend income from interest and investment income |
5 |
2 |
5 |
6 |
2 |
7 |
6 |
|
Reclass of owned distribution expenses from operating expenses |
(10) |
(9) |
(11) |
(10) |
(8) |
(19) (18) |
|
|
Total adjustments to arrive at owned distribution margin |
(7) |
(9) |
(8) |
(7) |
(8) |
(16) (17) |
|
|
Owned distribution margin |
$ 14 |
$ 7 |
$ 12 |
$ 12 |
$ 9 |
$ 21 $ 22 |
|
|
Reconciliation of operating expenses |
|||||||
|
US GAAP personnel costs |
$ (77) |
$ (67) |
$ (81) |
$ (80) |
$ (69) |
$ (144) $ (135) |
|
|
US GAAP other operating expenses |
(42) |
(41) |
(54) |
(45) |
(46) |
(83) (104) |
|
|
US GAAP line items subtotal |
(119) |
(108) |
(135) |
(125) |
(115) |
(227) (239) |
|
|
Adjustments |
|||||||
|
Recognized (gains) losses, net |
2 |
(5) |
1 |
1 |
1 |
(3) 5 |
|
|
Purchase price amortization |
3 |
1 |
5 |
7 |
5 |
4 |
14 |
|
Transaction costs, other and non-recurring items |
8 |
2 |
19 |
- |
- |
10 |
- |
|
Reclass of acquisition expenses to cost of funds |
5 |
5 |
4 |
4 |
4 |
10 |
11 |
|
Reclass of expenses to owned distribution margin |
10 |
9 |
11 |
10 |
8 |
19 |
18 |
|
Total adjustments to arrive at operating expenses |
28 |
12 |
40 |
22 |
18 |
40 |
48 |
|
Operating expenses |
$ (91) |
$ (96) |
$ (95) |
$ (103) |
$ (97) |
$ (187) $ (191) |
|
|
Reconciliation of interest expense |
|||||||
|
US GAAP interest expense |
$ (41) |
$ (40) |
$ (38) |
$ (36) |
$ (28) |
$ (81) $ (58) |
|
|
US GAAP line items subtotal |
(41) |
(40) |
(38) |
(36) |
(28) |
(81) (58) |
|
|
Adjustments |
|||||||
|
Transaction costs, other and non-recurring items |
- |
(1) |
- |
- |
(3) |
(1) (3) |
|
|
Total adjustments to arrive at interest expense |
- |
(1) |
- |
- |
(3) |
(1) (3) |
|
|
Interest expense |
$ (41) |
$ (41) |
$ (38) |
$ (36) |
$ (31) |
$ (82) $ (61) |
|
|
Reconciliation of income tax (expense) benefit to non-GAAP income tax (expense) benefit |
June 30, 2025 |
Three months ended March 31, December 31, September 30, 2025 2024 2024 |
June 30, 2024 |
Six months ended June 30, June 30, 2025 2024 |
|||
|
US GAAP income tax (expense) benefit |
$ (15) |
$ 5 |
$ (85) |
$ 25 |
$ (50) |
$ (10) $ (76) |
|
|
Adjustments |
|||||||
|
Income taxes on non-GAAP adjustments |
(19) |
(30) |
48 |
(44) |
16 |
(49) 17 |
|
|
Total adjustments to arrive at adjusted income tax (expense) benefit |
(19) |
(30) |
48 |
(44) |
16 |
(49) 17 |
|
|
Adjusted income tax (expense) benefit |
$ (34) |
$ (25) |
$ (37) |
$ (19) |
$ (34) |
$ (59) $ (59) |
|
|
Reconciliation of total investments to AUM |
June 30, 2025 |
March 31, 2025 |
December 31, 2024 |
September 30, 2024 |
June 30, 2024 |
Six months ended June 30, June 30, 2025 2024 |
|
|
US GAAP total investments |
$ 64,589 |
$ 60,709 |
$ 60,109 |
$ 59,393 |
$ 55,562 |
$ 64,589 |
$ 55,562 |
|
US GAAP cash and cash equivalents |
1,884 |
3,293 |
2,264 |
3,539 |
3,526 |
1,884 |
3,526 |
|
Less: US GAAP derivative investments |
931 |
702 |
792 |
1,401 |
1,032 |
931 |
1,032 |
|
US GAAP line items subtotal |
65,542 |
63,300 |
61,581 |
61,531 |
58,056 |
65,542 |
58,056 |
|
Adjustments |
|||||||
|
Reinsurance assets ceded adjustment |
(12,325) |
(11,578) |
(10,836) |
(9,838) |
(8,602) |
(12,325) (8,602) |
|
|
Unrealized (gains)/losses and allowances adjustment |
2,960 |
3,113 |
3,412 |
2,102 |
3,414 |
2,960 |
3,414 |
|
Owned distribution investments adjustment |
(303) |
(297) |
(300) |
(314) |
(381) |
(303) (381) |
|
|
Reclass from prepaid expenses and other assets ¹ |
759 |
706 |
742 |
770 |
666 |
759 |
666 |
|
Reclass from accounts payable and accrued liabilities ² |
(1,068) |
(698) |
(782) |
(1,787) |
(945) |
(1,068) (945) |
|
|
Total adjustments to arrive at AUM |
(9,977) |
(8,754) |
(7,764) |
(9,067) |
(5,848) |
(9,977) (5,848) |
|
|
AUM |
55,565 |
54,546 |
53,817 |
52,464 |
52,208 |
55,565 |
52,208 |
|
Flow reinsurance |
13,596 |
12,852 |
11,457 |
10,411 |
9,162 |
13,596 |
9,162 |
|
AUM before flow reinsurance Reconciliation of total F&G Annuities & Life, Inc. shareholders' equity to total F&G equity attributable to common shareholders, excluding AOCI |
$ 69,161 |
$ 67,398 |
$ 65,274 |
$ 62,875 |
$ 61,370 |
$ 69,161 |
$ 61,370 |
|
Total F&G Annuities & Life, Inc. shareholders' equity |
$ 4,438 |
$ 4,363 |
$ 3,951 |
$ 4,346 |
$ 3,654 |
$ 4,438 |
$ 3,654 |
|
Less: Preferred stock |
250 |
250 |
250 |
250 |
250 |
250 |
250 |
|
Total F&G equity attributable to common shareholders |
4,188 |
4,113 |
3,701 |
4,096 |
3,404 |
4,188 |
3,404 |
|
Less: AOCI |
(1,670) |
(1,734) |
(1,923) |
(1,231) |
(1,953) |
(1,670) (1,953) |
|
|
Total F&G equity attributable to common shareholders, excluding AOCI |
$ 5,858 |
$ 5,847 |
$ 5,624 |
$ 5,327 |
$ 5,357 |
$ 5,858 |
$ 5,357 |
¹ Includes accrued investment income, receivable for sale of investments and low income housing tax credit assets ² Includes derivative collateral and payable for purchase of investments
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 transactions and in the preparation of financial statements. In addition to reporting financial results in accordance with GAAP, this document 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.
The following represents the definitions of non-GAAP 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 financial performance each period. Adjusted net earnings attributable to common shareholders is calculated by adjusting net earnings (loss) attributable to common shareholders to eliminate:
-
Recognized (gains) and losses, net: the impact of net investment gains/losses, including changes in allowance for expected credit losses and other than temporary impairment ("OTTI") losses, recognized in operations; and the effects of changes in fair value of the reinsurance related embedded derivative and other derivatives, including interest rate swaps and forwards;
-
Market related liability adjustments: the impacts related to changes in the fair value, including both realized and unrealized gains and losses, of index product related derivatives and embedded derivatives, net of hedging cost; the impact of initial pension risk transfer deferred profit liability losses, including amortization from previously deferred pension risk transfer deferred profit liability losses; and the changes in the fair value of market risk benefits by deferring current period changes and amortizing that amount over the life of the market risk benefit;
-
Purchase price amortization: the impacts related to the amortization of certain intangibles (internally developed software, trademarks and value of distribution asset and the change in fair value of liabilities recognized as a result of acquisition activities);
-
Transaction costs: the impacts related to acquisition, integration and merger related items;
-
Other and "non-recurring," "infrequent" or "unusual items": Other adjustments include removing any charges associated with U.S. guaranty fund assessments as these charges neither relate to the ordinary course of the Company's business nor reflect the Company's underlying business performance, but result from external situations not controlled by the Company. Further, Management excludes certain items determined to be "non-recurring," "infrequent" or "unusual" from adjusted net earnings when incurred if it is determined these expenses are not a reflection of the core business and when the nature of the item is such that it is not reasonably likely to recur within two years and/or there was not a similar item in the preceding two years;
-
Non-controlling interest on non-GAAP adjustments: the portion of the non-GAAP adjustments attributable to the equity interest of entities that F&G does not wholly own; and
-
Income taxes: the income tax impact related to the above-mentioned adjustments is measured using an effective tax rate, as appropriate by tax jurisdiction.
While these adjustments are an integral part of the overall performance of F&G, market conditions and/or the non-operating nature of these items can overshadow the underlying performance of the core business. Accordingly, management considers this to be a useful measure internally and to investors and analysts in analyzing the trends of our operations. Adjusted net earnings should not be used as a substitute for net earnings (loss). However, we believe the adjustments made to net earnings (loss) in order to derive adjusted net earnings provide an understanding of our overall results of operations.
Non-GAAP Measures Definitions (continued)
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 net earnings attributable to common shareholders or adjusted net earnings attributable to common shareholders, but not both, or there is a net earnings loss attributable to common shareholders on a GAAP basis, but positive adjusted net earnings attributable to common shareholders using the non-GAAP measure. The above exceptions are made to include relevant diluted shares when dilution occurs and exclude relevant diluted shares when dilution does not occur for adjusted net earnings attributable to common shareholders.
Management considers this non-GAAP financial measure to be useful internally and for investors and analysts to assess the level of return driven by the Company that is available to common shareholders.
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 dilution). This sum is then divided by the adjusted weighted-average diluted shares outstanding.
Management considers this non-GAAP financial measure to be useful internally and for investors and analysts to assess the level of return driven by the Company that is available to common shareholders.
Adjusted Return on Assets attributable to Common Shareholders
Adjusted return on assets attributable to common shareholders is calculated by dividing year-to-date annualized adjusted net earnings attributable to common shareholders by year-to-date AAUM. Return on assets is comprised of net investment income, less cost of funds, flow reinsurance fee income, owned distribution margin and less expenses (including operating expenses, interest expense and income taxes) consistent with our adjusted net earnings definition and related adjustments. Cost of funds includes liability costs related to cost of crediting as well as other liability costs. Management considers this non-GAAP financial measure to be useful internally and to investors and analysts when assessing financial performance and profitability earned on AAUM.
Adjusted Return on Average Common Shareholder Equity, excluding AOCI
Adjusted return on average common shareholder equity is calculated by dividing the rolling four quarters adjusted net earnings attributable to common shareholders, by total average F&G equity attributable to common shareholders, excluding AOCI. Average equity attributable to common shareholders, excluding AOCI for the twelve month rolling period is the average of 5 points throughout the period. Since AOCI fluctuates from quarter to quarter due to unrealized changes in the fair value of available for sale investments, changes in instrument-specific credit risk for market risk benefits and discount rate assumption changes for the future policy benefits, management considers this non-GAAP financial measure to be a useful internally and for investors and analysts to assess the level return driven by the Company's adjusted earnings.
Assets Under Management (AUM)
AUM is comprised of the following components and is reported net of reinsurance assets ceded in accordance with GAAP:
-
total invested assets at amortized cost, excluding investments in unconsolidated affiliates, owned distribution and derivatives;
-
investments in unconsolidated affiliates at carrying value;
-
related party loans and investments;
-
accrued investment income;
-
the net payable/receivable for the purchase/sale of investments; and
-
cash and cash equivalents excluding derivative collateral at the end of the period.
Management considers this non-GAAP financial measure to be useful internally and to investors and analysts when assessing the size of our investment portfolio that is retained.
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 be useful internally and to investors and analysts when assessing the size of our investment portfolio including reinsured assets.
F&G Annuities & Life, Inc.
Financial Supplement - June 30, 2025
Non-GAAP Measures Definitions (continued)
Average Assets Under Management (AAUM) (Quarterly and YTD)
AAUM is calculated as AUM at the beginning of the period and the end of each month in the period, divided by the total number of months in the period plus one. Management considers this non-GAAP financial measure to be useful internally and to investors and analysts when assessing the rate of return on retained assets.
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 useful measure internally and for investors and analysts to assess the capital position of the Company.
Return on Average F&G common shareholder Equity, excluding AOCI
Return on average F&G common shareholder equity, excluding AOCI is calculated by dividing the rolling four quarters net earnings (loss) attributable to common shareholders, by total average F&G equity attributable to common shareholders, excluding AOCI. Average F&G equity attributable to common shareholders, excluding AOCI for the twelve month rolling period is the average of 5 points throughout the period. Since AOCI fluctuates from quarter to quarter due to unrealized changes in the fair value of available for sale investments, changes in instrument-specific credit risk for market risk benefits and discount rate assumption changes for the future policy benefits, management considers this non-GAAP financial measure to be useful internally and for investors and analysts to assess the level of return driven by the Company that is available to common shareholders.
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. Sales from these products are recorded as deposit liabilities (i.e., contractholder funds) within the Company's consolidated financial statements in accordance with GAAP. Life contingent PRT sales are recorded as premiums in revenues within the consolidated financial statements. Management believes that presentation of sales, as measured for management purposes, enhances the understanding of our business and helps depict longer term trends that may not be apparent in the results of operations due to the timing of sales and revenue recognition.
Total Capitalization, excluding AOCI
Total capitalization, excluding AOCI is based on total equity excluding the effect of AOCI and the total aggregate principal amount of debt. Since AOCI fluctuates from quarter to quarter due to unrealized changes in the fair value of available for sale investments, changes in instrument-specific credit risk for market risk benefits and discount rate assumption changes for the future policy benefits, management considers this non-GAAP financial measure to provide useful supplemental information internally and to investors and analysts to help assess the capital position of the Company.
Debt-to-Capitalization Ratio, excluding AOCI
Debt-to-capitalization ratio is computed by dividing total aggregate principal amount of debt by total capitalization (total debt plus total equity, excluding AOCI). Management considers this non-GAAP financial measure to be useful internally and to investors and analysts when assessing its capital position.
Total Equity, excluding AOCI
Total equity, excluding AOCI is based on total equity excluding the effect of AOCI. Since AOCI fluctuates from quarter to quarter due to unrealized changes in the fair value of available for sale investments, changes in instrument-specific credit risk for market risk benefits and discount rate assumption changes for the future policy benefits, management considers this non-GAAP financial measure to provide useful supplemental information internally and to investors and analysts assessing the level of earned equity on total equity.
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, including additional paid-in-capital. Since AOCI fluctuates from quarter to quarter due to unrealized changes in the fair value of available for sale investments, changes in instrument-specific credit risk for market risk benefits and discount rate assumption changes for the future policy benefits, management considers this non-GAAP financial measure to be useful internally and for investors and analysts to assess the level of return driven by the Company that is available to common shareholders.
Yield on AAUM
Yield on AAUM is calculated by dividing annualized GAAP net investment income by AAUM. Management considers this non-GAAP financial measure to be useful internally and to investors and analysts when assessing the level of return earned on AAUM.
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F&G Annuities & Life Inc. published this content on August 06, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on August 06, 2025 at 21:10 UTC.
