F&G Investor Update
Spring 2025
Non-GAAP Financial Measures
Generally Accepted Accounting Principles in the U.S. ("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 financial measures may not be comparable to similarly titled measures of other organizations because other organizations may not calculate such non-GAAP financial 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 financial measures should be considered in context with the Company's 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.
Resilience Despite Near-Term Headwinds
Q1 demonstrates F&G's flexibility to respond to changing market conditions & navigate near-term headwinds
-
Managing sales and inforce profitability to optimize our return on capital, resulting in lower MYGA sales
-
Record AUM driven by continued strong indexed annuity sales
-
Adjusted return on assets (ROA) pressured by near-term headwinds; we continue our progress toward Investor Day targets
$2.9B
1Q25
Gross Sales
↓ 17% YoY
1.00%
LTM 1Q25
Adjusted ROA2
↓ 6 bps vs. LTM 4Q24
$2.2B
1Q25
Net Sales
↓ 4% YoY
9.7%
1Q25
Adjusted ROE2
↑ 2.3% YoY
$67.4B
AUM before flow
reinsurance1
↑ 16% YoY
$30M
1Q25 Capital Return to Shareholders
$54.5B
Assets Under Management (AUM)1
↑ 9% YoY
$4.9B
Market Capitalization1
1As of 3/31/2025
2Attributable to common shareholders; metrics refer to return on assets (ROA) and adjusted return on equity ex AOCI (ROE) based on reported adjusted net earnings
Perspectives on 1Q25 Performance
Although we gave up spread in 1Q25, we believe much of that was short term in nature; our operating performance continues to be strong and our underlying spread-based and fee-based businesses are stable and predictable over time, with sources of quarterly earnings volatility viewed as generally temporary
Asset growth is driving healthy product margins, supported by strong new business and inforce profitability
Flow reinsurance is generating growing fee income and we have flexibility to adjust volumes as market economics change
Operating expense improvement of 5 basis points in 1Q25 vs. 1Q24, as we grow variable costs in line with sales and AUM and hold fixed costs to high single digit growth
Near-term headwinds drove margin compression:
-
excess cash from CLO prepayments,
-
lower surrender fee income from slowed terminations, and
-
timing effect of inforce pricing actions during precipitous fluctuations in interest rates
Owned distribution margin was relatively weaker than 1Q24 due to slowed terminations and one-time growth investments by one of our distribution companies
Interest expense is higher than 1Q24, in line with our capital markets activity over the past year
| Attention: This is an excerpt of the original content. To continue reading it, access the original document here. |
Attachments
Disclaimer
F&G Annuities & Life Inc. published this content on May 08, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 07, 2025 at 22:41 UTC.
