20/02/2025 - Fidelity & Guaranty Life Insurance Co.: 4Q24 Financial Supplement

[X]

Exhibit 99.2

Quarterly Financial Supplement

-----------

Fourth 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. All dollar amounts are presented in millions except for per share amounts.

F&G Annuities & Life, Inc.

Financial Supplement - December 31, 2024

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

Interest and Investment Income and Yield

8

Consolidated Balance Sheets (GAAP)

9

Capitalization

10

Return on Equity Attributable to Common Shareholders

10

Investment Summary

Summary of Invested Assets by Asset Class

11

Credit Quality of Fixed Maturity Securities, Asset-Backed Securities and CLO Securities

12

Product Summary

GAAP Net Reserve Summary

13

Annuity Account Balance Rollforward

13

Annuity Liability Characteristics

14

Top 5 Reinsurers

14

Additional Information

Ratings Overview

15

Shareholder Information

16

Non-GAAP Reconciliations

17

Non-GAAP Measures Definitions

21

2

F&G Annuities & Life, Inc.

Financial Supplement - December 31, 2024

Financial Highlights

Three months ended

Year ended

December 31,

September 30,

June 30,

March 31,

December 31,

December 31,

December 31,

2024

2024

2024

2024

2023

2024

2023

SELECTED CONSOLIDATED STATEMENT OF OPERATIONS DATA

Net earnings (loss) attributable to F&G

$

327

$

(6)

$

203

$

115

$

(299)

$

639

$

(58)

Net earnings (loss) attributable to common shareholders

323

(10)

198

111

(299)

622

(58)

Net earnings (loss) attributable to common shareholders per diluted share ²

2.50

(0.08)

1.55

0.88

(2.41)

4.88

(0.47)

Weighted-average diluted shares outstanding (in millions)

131

124

131

130

124

131

124

RELATED NON-GAAP MEASURES ¹

Adjusted net earnings attributable to common shareholders

143

156

139

108

75

546

335

Adjusted net earnings attributable to common shareholders per diluted

1.12

1.22

1.10

0.86

0.60

4.30

2.68

share ²

Adjusted weighted-average diluted shares outstanding (in millions)

131

131

131

130

125

131

125

Adjusted return on assets attributable to common shareholders

1.06%

1.05%

0.98%

0.87%

0.73%

1.06%

0.73%

Adjusted return on average common shareholder equity, excluding AOCI

10.3%

9.1%

8.4%

7.4%

6.5%

10.3%

6.5%

SELECTED CONSOLIDATED BALANCE SHEET DATA

Total assets

85,040

84,123

78,512

74,434

70,202

85,040

70,202

Total liabilities

80,964

79,648

74,724

70,751

67,099

80,964

67,099

Total equity

4,076

4,475

3,788

3,683

3,103

4,076

3,103

Total equity, excluding AOCI

5,999

5,706

5,741

5,566

5,093

5,999

5,093

Common shares outstanding (in millions)

127

126

126

126

126

127

126

RELATED NON-GAAP MEASURES ¹

Total F&G equity attributable to common shareholders, excluding AOCI

5,624

5,327

5,357

5,179

5,093

5,624

5,093

Book value per common share

29.14

32.51

27.02

26.16

24.63

29.14

24.63

Book value per common share, excluding AOCI

44.28

42.28

42.52

41.10

40.42

44.28

40.42

Assets under management ("AUM")

53,817

52,464

52,208

49,787

49,103

53,817

49,103

Average assets under management ("AAUM") YTD

51,574

50,970

50,181

49,400

46,044

51,574

46,044

AUM before flow reinsurance

65,274

62,875

61,370

58,020

55,928

65,274

55,928

SALES ¹

Indexed annuities ("FIA/RILA")

$

1,797

$

1,847

$

1,648

$

1,437

$

1,142

$

6,729

$

4,699

Fixed rate annuities ("MYGA")

648

1,655

1,475

1,327

1,753

5,105

5,066

Total annuity

2,445

3,502

3,123

2,764

2,895

11,834

9,765

Indexed universal life ("IUL")

41

39

44

42

39

166

156

Funding agreements ("FABN/FHLB")

-

-

915

105

385

1,020

1,256

Pension risk transfer ("PRT")

983

337

338

584

764

2,242

1,976

Gross sales

3,469

3,878

4,420

3,495

4,083

15,262

13,153

Sales attributable to flow reinsurance to third parties

(1,031)

(1,492)

(975)

(1,193)

(1,534)

(4,691)

(3,915)

Net sales

$

2,438

$

2,386

$

3,445

$

2,302

$

2,549

$

10,571

$

9,238

¹ Refer to "Non-GAAP Reconciliations" and "Non-GAAP Measures Definitions" in the additional information section.

  • 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).

3

F&G Annuities & Life, Inc.

Financial Supplement - December 31, 2024

Consolidated Statements of Operations (GAAP)

Three months ended

Year ended

December 31,

September 30,

June 30,

March 31,

December 31,

December 31,

December 31,

2024 ¹

2024 ¹

2024 ¹

2024 ¹

2023

2024 ¹

2023

Revenues

Life insurance premiums and other fees

$

1,149

$

506

$

487

$

718

$

890

$

2,860

$

2,413

Interest and investment income

707

712

684

616

589

2,719

2,211

Owned distribution revenues

20

20

18

23

-

81

-

Recognized gains and (losses), net

(317)

206

(17)

212

133

84

(124)

Total revenues

1,559

1,444

1,172

1,569

1,612

5,744

4,500

Benefits and expenses

Benefits and other changes in policy reserves

927

1,095

608

1,161

1,632

3,791

3,553

Market risk benefit (gains) losses

(105)

71

20

(11)

115

(25)

95

Depreciation and amortization

152

147

147

123

110

569

412

Personnel costs

81

80

69

66

65

296

232

Other operating expenses

54

45

46

58

39

203

146

Interest expense

38

36

28

30

26

132

97

Total benefits and expenses

1,147

1,474

918

1,427

1,987

4,966

4,535

Earnings (loss) before income taxes

412

(30)

254

142

(375)

778

(35)

Income tax expense (benefit)

85

(25)

50

26

(76)

136

23

Net earnings (loss)

327

(5)

204

116

(299)

642

(58)

Less: Non-controlling interests

-

1

1

1

-

3

-

Net earnings (loss) attributable to F&G

327

(6)

203

115

(299)

639

(58)

Less: Preferred stock dividend

4

4

5

4

-

17

-

Net earnings (loss) attributable to F&G common shareholders

$

323

$

(10)

$

198

$

111

$

(299)

$

622

$

(58)

Net earnings (loss) attributable to F&G common shareholders per

common share

Basic

$

2.58

$

(0.08)

$

1.60

$

0.90

$

(2.41)

$

4.98

$

(0.47)

Diluted

$

2.50

$

(0.08)

$

1.55

$

0.88

$

(2.41)

$

4.88

$

(0.47)

Weighted average common shares used in computing net earnings

(loss) per common share

Basic

125

124

124

124

124

125

124

Diluted

131

124

131

130

124

131

124

¹ Reflects majority stake in owned distribution starting in January 2024.

4

F&G Annuities & Life, Inc.

Financial Supplement - December 31, 2024

Adjusted Net Earnings - Management View ¹

Three months ended

Year ended

December 31,

September 30,

June 30,

March 31,

December 31,

December 31,

December 31,

2024

2024

2024

2024

2023

2024

2023

Interest and investment income - fixed income and other

$

513

$

514

$

493

$

475

$

453

$

1,995

$

1,728

Interest and investment income - alternatives (including short term mark-

160

150

167

112

124

589

452

to-market)

Interest and investment income - variable

19

26

6

8

-

59

6

Adjusted interest and investment income

692

690

666

595

577

2,643

2,186

Cost of funds

(407)

(406)

(390)

(362)

(384)

(1,565)

(1,345)

Product margin

285

284

276

233

193

1,078

841

Flow reinsurance fee income

20

22

21

15

23

78

58

Owned distribution margin

12

12

9

13

3

46

11

Operating expenses

(95)

(103)

(97)

(94)

(95)

(389)

(351)

Interest expense

(38)

(36)

(31)

(30)

(26)

(135)

(97)

Income tax (expense) benefit

(37)

(19)

(34)

(25)

(23)

(115)

(127)

Adjusted net earnings

147

160

144

112

75

563

335

Less: Preferred stock dividend

4

4

5

4

-

17

-

Adjusted net earnings attributable to common shareholders

$

143

$

156

$

139

$

108

$

75

$

546

$

335

Adjusted net earnings per common share

Diluted

$

1.12

$

1.22

$

1.10

$

0.86

$

0.60

$

4.30

$

2.68

Weighted average common shares used in computing adjusted net

earnings per common share

Diluted

131

131

131

130

125

131

125

¹ Refer to "Non-GAAP Reconciliations" and "Non-GAAP Measures Definitions" in the additional information section.

5

F&G Annuities & Life, Inc.

Financial Supplement - December 31, 2024

Adjusted Net Earnings - Significant Income and Expense Items ¹

Significant

Alternatives

Weighted

Each reporting period, we identify significant income and expense items that help explain the trends in our adjusted net earnings, as we believe

Income and

Long-term

Expense

Expected

Average

these items provide further clarity to the financial performance of the business. Those significant income and expense items are reported after

Items

Return (Not

Diluted

taxes ($ and shares in table in millions).

(Reflected in

Reflected in

Shares

Adjusted Net

Adjusted Net

Outstanding

Earnings)

Earnings)

Three months ended

December 31, 2024

Adjusted net earnings of $143 million for the three months ended December 31, 2024 included $138 million of investment income from alternative

investments, $15 million of CLO redemptions and bond prepay income and $7 million of actuarial model refinements and other items. Alternative $160 $170131 investments investment income based on management's long-term expected return of approximately 10% was $170 million.

September 30, 2024

Adjusted net earnings of $156 million for the three months ended September 30, 2024 included $131 million of investment income from alternative

investments, $21 million of CLO redemptions and bond prepay income, and $14 million tax valuation allowance, partially offset by $17 million of $149 $172131 net expense from actuarial assumption updates. Alternative investments investment income based on management's long-term expected return of

approximately 10% was $172 million.

June 30, 2024

Adjusted net earnings of $139 million for the three months ended June 30, 2024 included $145 million of investment income from alternative investments and $4 million of CLO redemptions and bond prepay income, partially offset by $16 million of actuarial model updates and refinements. Alternative investments investment income based on management's long-term expected return of approximately 10% was $165 million.

March 31, 2024

Adjusted net earnings of $108 million for the three months ended March 31, 2024 included $100 million of investment income from alternative investments and $6 million income of CLO redemption gains and bond prepay income. Alternative investments investment income based on management's long-term expected return of approximately 10% was $152 million.

December 31, 2023

Adjusted net earnings of $75 million for the three months ended December 31, 2023 included $110 million of investment income from alternative investments, partially offset by $10 million of one-time fixed asset impairment charge and $9 million actuarial industry assumption updates. Alternative investments investment income based on management's long-term expected return of approximately 10% was $147 million.

$133 $165131

$106 $152130

$91$147125

Year ended

December 31, 2024

Adjusted net earnings of $546 million for the year ended December 31, 2024 included $514 million of investment income from alternative investments and $46 million of CLO redemptions and bond prepay income, and $14 million tax valuation allowance, partially offset by $26 million of net expense from actuarial assumption and model updates and other items. Alternative investments investment income based on management's long-term expected return of approximately 10% was $659 million.

December 31, 2023

Adjusted net earnings of $335 million for the year ended December 31, 2023 included $405 million of investment income from alternative investments and $5 million of bond prepay income, partially offset by $37 million tax valuation allowance, $10 million of one-time fixed asset impairment charge and $9 million actuarial industry assumption updates. Alternative investments investment income based on management's long-term expected return of approximately 10% was $558 million.

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.

$548 $659131

$354 $558125

6

F&G Annuities & Life, Inc.

Financial Supplement - December 31, 2024

Adjusted Return on Assets ¹

Annualized year to date

December 31,

September 30,

June 30,

March 31,

December 31,

2024

2024

2024

2024

2023

Adjusted interest and investment income

$

2,643

$

2,601

$

2,522

$

2,380

$

2,186

Cost of funds

(1,565)

(1,544)

(1,504)

(1,448)

(1,345)

Product margin

1,078

1,057

1,018

932

841

Flow reinsurance fee income

78

77

72

60

58

Owned distribution margin

46

45

44

52

11

Expenses (operating, interest and taxes)

(639)

(625)

(622)

(596)

(575)

Adjusted net earnings

$

563

$

554

$

512

$

448

$

335

Less: Preferred stock dividend

17

17

18

16

-

Adjusted net earnings attributable to common shareholders (A)

$

546

$

537

$

494

$

432

$

335

AAUM YTD (B)

51,574

50,970

50,181

49,400

46,044

December 31,

September 30,

June 30,

March 31,

December 31,

2024

2024

2024

2024

2023

Adjusted interest and investment income

5.12 %

5.10 %

5.03 %

4.82 %

4.75 %

Cost of funds

(3.03)%

(3.03)%

(3.00)%

(2.93)%

(2.92)%

Product margin

2.09 %

2.07 %

2.03 %

1.89 %

1.83 %

Flow reinsurance fee income

0.15 %

0.15 %

0.14 %

0.12 %

0.13 %

Owned distribution margin

0.09 %

0.09 %

0.09 %

0.10 %

0.02 %

Expenses (operating, interest and taxes)

(1.24)%

(1.23)%

(1.24)%

(1.21)%

(1.25)%

Adjusted return on assets

1.09 %

1.08 %

1.02 %

0.90 %

0.73 %

Less: Preferred stock dividend

0.03 %

0.03 %

0.04 %

0.03 %

- %

Adjusted return on assets attributable to common shareholders (A/B)

1.06 %

1.05 %

0.98 %

0.87 %

0.73 %

¹ Refer to "Non-GAAP Reconciliations" and "Non-GAAP Measures Definitions" in the additional information section.

7

F&G Annuities & Life, Inc.

Financial Supplement - December 31, 2024

Assets Under Management Rollforward and Average Assets Under Management ¹

Three months ended

Year ended

December 31,

September 30,

June 30,

March 31,

December 31,

December 31,

December 31,

2024

2024

2024

2024

2023

2024

2023

AUM at beginning of period

$

52,464

$

52,208

$

49,787

$

49,103

$

47,103

$

49,103

$

43,568

Net new business asset flows

2,270

1,726

3,057

2,116

3,165

9,169

9,104

Net flow reinsurance to third parties

(1,046)

(1,248)

(930)

(1,407)

(1,352)

(4,631)

(3,961)

Net capital transaction proceeds (disbursements)

129

(222)

294

(25)

187

176

392

AUM at end of period

$

53,817

$

52,464

$

52,208

$

49,787

$

49,103

$

53,817

$

49,103

AAUM YTD

$

51,574

$

50,970

$

50,181

$

49,400

$

46,044

$

51,574

$

46,044

AUM before flow reinsurance

$

65,274

$

62,875

$

61,370

$

58,020

$

55,928

$

65,274

$

55,928

Interest and Investment Income and Yield ¹

Three months ended

December 31,

September 30,

June 30,

March 31,

December 31,

2024

2024

2024

2024

2023

Adjusted interest and investment income ²

$

692

$

690

$

666

$

595

$

577

AAUM QTD

53,307

52,661

50,864

49,400

48,028

Yield on AAUM

5.19 %

5.24 %

5.24 %

4.82 %

4.80 %

Less: Alternatives investment income (including short term mark-to-

160

150

167

112

124

market) ³

Less: Variable investment income ⁴

19

26

6

8

-

Fixed income and other net investment income ² ⁵

$

513

$

514

$

493

$

475

$

453

AAUM QTD, excluding alternative investments

44,739

44,100

42,509

41,670

40,634

Yield on AAUM, excluding alternative investments and variable investment

4.59 %

4.66 %

4.64 %

4.56 %

4.46 %

income

Year ended

December 31,

December 31,

2024

2023

$

2,643

$

2,186

51,574

46,044

5.12 %

4.75 %

589

452

596

$ 1,995 $ 1,728

43,305 39,081

4.61 % 4.42 %

  • 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.

8

F&G Annuities & Life, Inc.

Financial Supplement - December 31, 2024

Consolidated Balance Sheets (GAAP)

Assets

December 31,

September 30,

June 30,

March 31,

December 31,

2024 ¹

2024 ¹

2024 ¹

2024 ¹

2023

Investments

Fixed maturity securities available for sale, at fair value, (amortized cost of $49,729), net of allowance for

$

46,317

$

46,909

$

43,826

$

42,631

$

40,419

credit losses of $62 at December 31, 2024

Preferred securities, at fair value

270

289

332

381

469

Equity securities, at fair value

145

146

147

138

137

Derivative investments

792

1,401

1,032

1,024

797

Mortgage loans, net of allowance for credit losses of $70 at December 31, 2024

5,926

5,626

5,439

5,440

5,336

Investments in unconsolidated affiliates (certain investments at fair value of $272 at December 31, 2024)

3,565

3,666

3,705

3,367

3,071

Other long-term investments

580

581

574

556

537

Policy loans

104

94

86

78

71

Short-term investments

2,410

681

421

263

1,452

Total investments

$

60,109

$

59,393

$

55,562

$

53,878

$

52,289

Cash and cash equivalents

2,264

3,539

3,526

2,372

1,563

Reinsurance recoverable, net of allowance for credit losses of $20 at December 31, 2024

13,369

12,404

11,031

10,112

8,960

Goodwill

2,179

2,179

2,017

2,017

1,749

Prepaid expenses and other assets (certain assets held at fair value of $11 million at December 31, 2024)

1,059

942

983

980

931

Other intangible assets, net

5,572

5,349

4,952

4,612

4,207

Market risk benefits asset

189

134

103

95

88

Income taxes receivable

-

2

11

23

27

Deferred tax asset, net

299

181

327

345

388

Total assets

$

85,040

$

84,123

$

78,512

$

74,434

$

70,202

Liabilities and Equity

Contractholder funds

$

56,404

$

55,468

$

53,602

$

50,875

$

48,798

Future policy benefits

8,749

8,268

7,636

7,441

7,050

Market risk benefits liability

549

603

459

425

403

Accounts payable and accrued liabilities

2,219

3,291

2,328

2,237

2,011

Income taxes payable

5

-

-

-

-

Notes payable

2,171

2,038

2,038

1,748

1,754

Funds withheld for reinsurance liabilities

10,867

9,980

8,661

8,025

7,083

Total liabilities

$

80,964

$

79,648

$

74,724

$

70,751

$

67,099

Equity

Preferred stock $0.001 par value; authorized 25,000,000 shares as of December 31, 2024; outstanding and

-

-

-

-

-

issued shares of 5,000,000 as of December 31, 2024

Common stock $0.001 par value; authorized 500,000,000 shares as of December 31, 2024; outstanding and

-

-

-

-

-

issued shares of 126,792,844 and 127,952,143 as of December 31, 2024, respectively

Additional paid-in-capital

3,464

3,456

3,449

3,442

3,185

Retained earnings

2,440

2,145

2,182

2,011

1,926

Accumulated other comprehensive income (loss) ("AOCI")

(1,923)

(1,231)

(1,953)

(1,883)

(1,990)

Treasury stock, at cost (1,159,299 shares as of December 31, 2024)

(30)

(24)

(24)

(24)

(18)

Total F&G Annuities & Life, Inc. shareholders' equity

$

3,951

$

4,346

$

3,654

$

3,546

$

3,103

Non-controlling interests

125

129

134

137

-

Total equity

$

4,076

$

4,475

$

3,788

$

3,683

$

3,103

Total liabilities and equity

$

85,040

$

84,123

$

78,512

$

74,434

$

70,202

¹ Reflects majority stake in owned distribution starting in January 2024.

9

F&G Annuities & Life, Inc.

Financial Supplement - December 31, 2024

Capitalization ¹

Three months ended

December 31,

September 30,

June 30,

March 31,

December 31,

2024

2024

2024

2024

2023

Notes payable

$

2,171

$

2,038

$

2,038

$

1,748

$

1,754

Net issuance costs (premium)

24

22

22

12

6

Notes payable (aggregate principal amount) (A)

$

2,195

$

2,060

$

2,060

$

1,760

$

1,760

Total equity

4,076

4,475

3,788

3,683

3,103

Less: AOCI

(1,923)

(1,231)

(1,953)

(1,883)

(1,990)

Total equity, excluding AOCI

$

5,999

$

5,706

$

5,741

$

5,566

$

5,093

Total Capitalization, excluding AOCI (B)

$

8,194

$

7,766

$

7,801

$

7,326

$

6,853

Debt-to-Capitalization, excluding AOCI (A/B)

26.8 %

26.5 %

26.4 %

24.0 %

25.7 %

Return on Equity Attributable to Common Shareholders ¹

Twelve months ended

December 31,

September 30,

June 30,

March 31,

December 31,

2024

2024

2024

2024

2023

Net earnings (loss) attributable to common shareholders - rolling four quarters (C)

$

622

$

-

$

316

$

248

$

(58)

Adjusted net earnings attributable to common shareholders - rolling four quarters (D)

546

478

442

382

335

Average F&G equity attributable to common shareholders - 5 point average (E)

3,520

3,254

2,939

2,755

2,577

Less: Average AOCI - 5 point average

(1,796)

(2,020)

(2,295)

(2,414)

(2,601)

Average F&G equity attributable to common shareholders, excluding AOCI - 5 point average (F)

$

5,316

$

5,274

$

5,234

$

5,169

$

5,178

Return on average common shareholder equity (C/E)

17.7 %

- %

10.8 %

9.0 %

(2.3)%

Adjusted return on average common shareholder equity, excluding AOCI (D/F)

10.3 %

9.1 %

8.4 %

7.4 %

6.5 %

¹ Refer to "Non-GAAP Reconciliations" and "Non-GAAP Measures Definitions" in the additional information section.

10

Disclaimer

F&G Annuities & Life Inc. published this content on February 20, 2025, and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on February 20, 2025 at 22:44:43.352.

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