F&G Annuities & Life Reports First Quarter 2025 Results
Des Moines, Iowa - (May 7, 2025) - 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 first quarter ended March 31, 2025.
Net loss attributable to common shareholders (net loss) for the first quarter of $25 million, or $0.20 per diluted share (per share), compared to net earnings of $111 million, or $0.88 per share, for the first quarter of 2024. Net loss for the first quarter included $105 million of net unfavorable mark-to-market effects and $11 million of other unfavorable items; all of which are excluded from adjusted net earnings. Net earnings for the first quarter of 2024 included $17 million of net favorable mark-to-market effects and $14 million of other unfavorable items; all of which are excluded from adjusted net earnings.
Adjusted net earnings attributable to common shareholders (adjusted net earnings) for the first quarter of
$91 million, or $0.72 per share, compared to $108 million, or $0.86 per share, for the first quarter of 2024. Adjusted net earnings include significant income and expense items and alternative investment portfolio returns from short-term mark-to-market movement that differ from long-term return expectations. Please see the "First Quarter 2025 Results" and "Non-GAAP Measures and Other Information" sections for further explanation.
First Quarter 2025 Summary
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Record assets under management despite near-term pressures, driven by continued strong indexed annuity sales: F&G achieved record assets under management before flow reinsurance of $67.4 billion at the end of the first quarter, an increase of 16% over the first quarter of 2024. This included retained AUM of $54.5 billion. F&G's gross sales were $2.9 billion and net sales were $2.2 billion for the first quarter
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Excellent credit performance in the investment portfolio: As we expected, the investment portfolio is performing well, with 96% of fixed maturities being investment grade. Our portfolio is conservatively positioned to perform under various economic scenarios and well matched to our liability profile. Credit-related impairments have remained low and stable, averaging 6 basis points over the past five years and 2 basis points in the first quarter
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Lower adjusted return on assets (ROA), due to near-term headwinds as well as short-term fluctuations in investment income from alternative investments: Adjusted ROA of 68 basis points in the first quarter; adjusted ROA of 100 basis points over the last twelve months (LTM), down 6 basis points from 106 basis points in the fourth quarter 2024 LTM
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Growing adjusted return on equity (ROE), excluding AOCI: Adjusted ROE excluding AOCI was 9.7% for the first quarter, up 2.3% as compared to 7.4% in the first quarter of 2024
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On track to achieve our Investor Day targets: We continue to make strong progress toward the medium-term targets set out at our 2023 Investor Day
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Continued focus on organic growth and return of capital to shareholders: F&G returned $30 million of capital to shareholders from common and preferred dividends in the first quarter
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Completed public offering of common stock: On March 24, 2025, F&G completed the public offering of 8 million shares of common stock, with net proceeds of nearly $269 million to be used for general corporate purposes including the support of organic growth opportunities. Fidelity National Financial, Inc., F&G's majority stockholder, purchased 4.5 million shares and held an ownership stake in F&G of approximately 82% as of March 31, 2025
Chris Blunt, Chief Executive Officer, commented, "Despite some near-term headwinds, F&G's solid foundation is underpinned by a conservatively positioned investment portfolio and the ability to optimize our capital allocation to secure the highest returning business, which positions us to succeed in an uncertain economy. We achieved record
AUM before flow reinsurance of $67.4 billion, an increase of 16% from the year ago first quarter, driven by strong indexed annuity sales. Additionally, our equity offering in March provides us with the flexibility to take advantage of both opportunities to further grow the business given the strong secular tailwinds that exist as well as providing additional capital should the environment turn increasingly challenging. Overall, the credit quality of our portfolio remains high with 96% of our fixed maturities being investment grade combined with credit related impairments remaining well below our pricing assumptions over the past five years and current quarter. We remain confident that we will deliver on our medium-term Investor Day targets, to grow AUM and expand returns, in the coming years."
Summary Financial Results1
(In millions, except per share data)
Three Months Ended
March 31, 2025
March 31, 2024
Gross sales
$ 2,902
$ 3,495
Net sales
$ 2,181
$ 2,302
Assets under management (AUM)
$ 54,546
$ 49,787
Average assets under management (AAUM) YTD
$ 53,877
$ 49,400
AUM before flow reinsurance
$ 67,398
$ 58,020
Adjusted return on assets
0.68 %
0.87 %
Net earnings (loss)
$ (25)
$ 111
Net earnings (loss) per share
$ (0.20)
$ 0.88
Adjusted net earnings
$ 91
$ 108
Adjusted net earnings per share
$ 0.72
$ 0.86
Book value per common share
$ 30.47
$ 26.16
Book value per common share, excluding AOCI
$ 43.31
$ 41.10
First Quarter 2025 Results
Record AUM before flow reinsurance was $67.4 billion as of March 31, 2025, an increase of 16% over $58.0 billion as of March 31, 2024. This included retained AUM of $54.5 billion as of March 31, 2025, an increase of 9% over $49.8 billion as of March 31, 2024. A rollforward of AUM can be found in the "Non-GAAP Measures and Other Information" section of this release.
Profitable gross sales were $2.9 billion for the first quarter, a decrease of 17% from the first quarter of 2024; this reflects our decision to allocate capital to the highest returning business, specifically indexed annuity sales and pension risk transfer sales, resulting in a reduction in MYGA sales.
Retail channel sales were $2.1 billion for the first quarter, a decrease of 25% from the first quarter of 2024; 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. Indexed annuity sales were $1.5 billion and indexed universal life sales were $43 million in the first quarter, both in line with the first quarter of 2024. Fixed indexed annuities continue to be our largest contributor to indexed annuity sales, although our registered index-linked annuity product is gaining traction and building momentum.
Institutional market sales were $0.8 billion for the first quarter, an increase of 14% over $0.7 billion in the first quarter of 2024. The first quarter was comprised of $0.5 billion of funding agreements and $0.3 billion of pension risk transfer sales, whereas the first quarter of 2024 was comprised of $0.1 billion of funding agreements and $0.6 billion of pension risk transfer sales. Institutional sales are opportunistic and volumes vary quarter to quarter.
Net sales were $2.2 billion for the first quarter, compared to $2.3 billion in the first quarter of 2024.
1See definition of non-GAAP measures below
Adjusted net earnings were $91 million, or $0.72 per share, in the first quarter, compared to $108 million, or $0.86 per share for the first quarter of 2024. Adjusted net earnings include significant income and expense items and alternative investment portfolio returns from short-term mark-to-market movement that differ from long-term return expectations.
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Adjusted net earnings of $91 million, or $0.72 per share, for the first quarter of 2025 include $16 million, or $0.12 per share, of income from a reinsurance true-up adjustment. Investment income from alternative investments was $63 million, or $0.48 per share, below management's long-term expected return of approximately 10%
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Adjusted net earnings of $108 million, or $0.86 per share, for the first quarter of 2024 included $2 million, or $0.01 per share, of other income items. Investment income from alternative investments was
$52 million, or $0.40 per share, below management's long-term expected return of approximately 10%
As compared to the prior year quarter, adjusted net earnings reflect margin compression due to near-term headwinds, lower owned distribution margin and higher interest expense in line with our capital market activity; partially offset by asset growth, higher income from accretive flow reinsurance fees and disciplined expense management.
Capital and Liquidity Highlights
Total F&G equity attributable to common shareholders, excluding AOCI, was $5.8 billion, or $43.31 per share, as of March 31, 2025. This reflects a decrease of $0.97 per share, or 2%, during the quarter, including $0.78 per share net decrease for mark-to-market movements, $0.63 per share decrease from effects of the common equity offering and $0.15 per share decrease from capital actions; partially offset by $0.59 per share increase from adjusted net earnings and other.
Book value per common share excluding AOCI as of December 31, 2024 $ 44.28
Book value per common share excluding AOCI, after effect of common stock offering $ 43.65
Common stock offering (0.63)
Book value per common share excluding AOCI, before capital actions & mark-to-market $ 44.24
Adjusted net earnings and other 0.59
Book value per common share excluding AOCI, before mark-to-market $ 44.09
Capital actions (0.15)
Mark-to-market movement (0.78)
Book value per common share excluding AOCI as of March 31, 2025 $ 43.31
F&G has successfully completed the following capital markets activity in the first quarter of 2025, as we expected.
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In January, F&G issued $375 million of junior subordinated notes with net proceeds to be used for general corporate purposes, including the repayment of debt
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In February, F&G fully redeemed its $300 million of outstanding senior notes due in May of 2025
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In March, F&G completed the public offering of 8 million shares of common stock, with net proceeds of nearly $269 million to be used for general corporate purposes including the support of organic growth opportunities. Fidelity National Financial, Inc., F&G's majority stockholder, purchased 4.5 million shares and held an ownership stake in F&G of approximately 82% as of March 31, 2025
Our debt-to-capitalization ratio, excluding AOCI, was 26.7% as of March 31, 2025. 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.
During the first quarter, F&G has returned capital to shareholders from common and preferred dividends of $30 million, as compared to $26 million in the first quarter of 2024.
Earnings Conference Call
Members of F&G's senior management team will host a conference call with the investment community to discuss F&G's first quarter 2025 results on Thursday, May 8, 2025, beginning at 9:00 a.m. Eastern Time. The conference call will be broadcast live over F&G's Investor Relations website at investors.fglife.com. A replay will also be available at the same location.
About F&G
F&G is committed to helping Americans turn their aspirations into reality. F&G is a leading provider of insurance solutions serving retail annuity and life customers and institutional clients and is headquartered in Des Moines, Iowa. For more information, please visit fglife.com.
Use of Non-GAAP Financial Information
Generally Accepted Accounting Principles (GAAP) is the term used to refer to the standard framework of guidelines for financial accounting. GAAP includes the standards, conventions, and rules accountants follow in recording and summarizing transactions and in the preparation of financial statements. In addition to reporting financial results in accordance with GAAP, this presentation includes non-GAAP financial measures, which the Company believes are useful to help investors better understand its financial performance, competitive position and prospects for the future. Management believes these non-GAAP financial measures may be useful in certain instances to provide additional meaningful comparisons between current results and results in prior operating periods. Our non-GAAP financial measures may not be comparable to similarly titled measures of other organizations because other organizations may not calculate such non-GAAP measures in the same manner as we do. The presentation of this financial information is not intended to be considered in isolation of or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. By disclosing these non-GAAP financial measures, the Company believes it offers investors a greater understanding of, and an enhanced level of transparency into, the means by which the Company's management operates the Company. Any non-GAAP measures should be considered in context with the GAAP financial presentation and should not be considered in isolation or as a substitute for GAAP net earnings, net earnings attributable to common shareholders, or any other measures derived in accordance with GAAP as measures of operating performance or liquidity. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measures are provided within.
Forward-Looking Statements and Risk Factors
This press release contains forward-looking statements that are subject to known and unknown risks and uncertainties, many of which are beyond our control. Some of the forward-looking statements can be identified by the use of terms such as "believes", "expects", "may", "will", "could", "seeks", "intends", "plans", "estimates", "anticipates" or other comparable terms. Statements that are not historical facts, including statements regarding our expectations, hopes, intentions or strategies regarding the future are forward-looking statements. Forward-looking statements are based on management's beliefs, as well as assumptions made by, and information currently available to, management. Because such statements are based on expectations as to future financial and operating results and are not statements of fact, actual results may differ materially from those projected. We undertake no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise. The risks and uncertainties which forward-looking statements are subject to include, but are not limited to: general economic conditions and other factors, including prevailing interest and unemployment rate levels and stock and credit market performance; consumer spending; government spending; the volatility and strength of the capital markets; investor and consumer confidence; foreign currency exchange rates; commodity prices; inflation levels; changes in trade policy; tariffs and trade sanctions on goods; trade wars; supply chain disruptions; natural disasters, public health crises, international tensions and conflicts, geopolitical events, terrorist acts, labor strikes, political crisis, accidents and other events; concentration in certain states for distribution of our products; the impact of interest rate fluctuations; equity market volatility or disruption; the impact of credit risk of our counterparties; changes in our assumptions and estimates regarding amortization of our deferred acquisition costs, deferred sales inducements and value of business acquired balances; regulatory changes or actions, including those relating to regulation of financial services affecting (among other things) underwriting of insurance products and regulation of the sale, underwriting and pricing of products and minimum capitalization and statutory reserve requirements for insurance companies, or the ability of our insurance subsidiaries to make cash distributions to us; and other factors discussed in "Risk Factors" and other sections of F&G's Form 10-K and other filings with the Securities and Exchange Commission (SEC).
SOURCE: F&G Annuities & Life, Inc. CONTACT:
Lisa Foxworthy-Parker
SVP of Investor & External Relations Investor.relations@fglife.com 515.330.3307
F&G ANNUITIES & LIFE, INC. CONSOLIDATED BALANCE SHEETS
(In millions, except per share data) (Unaudited)
Assets March 31, 2025 December 31, 2024
Investments
Fixed maturity securities available for sale, at fair value, (amortized cost of $51,026), net of allowance for credit losses of $80 at March 31, 2025
$ 47,909 $ 46,317
Preferred securities, at fair value 253 270
Equity securities, at fair value 101 145
Derivative investments 702 792
Mortgage loans, net of allowance for credit losses of $73 at March 31, 2025 6,366 5,926
Investments in unconsolidated affiliates (certain investments at fair value of $272 at March 31, 2025)
4,127
3,565
Other long-term investments 587 580
Policy loans 115 104
Short-term investments 549 2,410
Total investments $ 60,709 $ 60,109
Cash and cash equivalents 3,293 2,264
Reinsurance recoverable, net of allowance for credit losses of $20 at March 31, 2025
14,746
13,369
Goodwill 2,179 2,179
Prepaid expenses and other assets (certain assets held at fair value of $11 million at March 31, 2025)
904
950
Other intangible assets, net 5,721 5,572
Market risk benefits asset 187 189
Deferred tax asset, net 268 299
Total assets $ 88,007 $ 84,931
Liabilities and Equity
Contractholder funds $ 57,823 $ 56,404
Future policy benefits 9,065 8,749
Market risk benefits liability 635 549
Accounts payable and accrued liabilities 2,314 2,219 Income taxes payable 9 5
Notes payable 2,234 2,171
Funds withheld for reinsurance liabilities 11,442 10,758
Total liabilities $ 83,522 $ 80,855
Equity
- -
Preferred stock $0.001 par value; authorized 25,000,000 shares as of March 31, 2025; outstanding and issued shares of 5,000,000 as of March 31, 2025
Common stock $0.001 par value; authorized 500,000,000 shares as of March 31, 2025;
outstanding and issued shares of 134,707,419 and 135,917,408 as of March 31, 2025, - - respectively
Additional paid-in-capital 3,741 3,464
Retained earnings 2,389 2,440
Accumulated other comprehensive income (loss) ("AOCI") (1,734) (1,923)
Treasury stock, at cost (1,209,989 shares as of March 31, 2025) (33) (30) Total F&G Annuities & Life, Inc. shareholders' equity $ 4,363 $ 3,951
Non-controlling interests 122 125
Total equity $ 4,485 $ 4,076
Total liabilities and equity
$
88,007 $
84,931
Attachments
Disclaimer
F&G Annuities & Life Inc. published this content on May 07, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 07, 2025 at 22:43 UTC.
