F&G Annuities & Life Prices Common Stock Offering

Rhea-AI Summary

F&G Annuities & Life (NYSE: FG) has announced the pricing of a public offering of 8,000,000 shares of common stock at $35.00 per share. The company has granted underwriters a 30-day option to purchase up to an additional 1,200,000 shares.

Fidelity National Financial, F&G's majority stockholder, has committed to purchase 4,500,000 shares at $33.60 per share. The offering is expected to close on March 24, 2025. F&G plans to use the net proceeds for general corporate purposes, including supporting organic growth opportunities.

BofA Securities and J.P. Morgan Securities are serving as joint book-running managers for the offering, which is being conducted pursuant to an SEC-registered prospectus.

Positive

• Majority stockholder Fidelity National Financial shows confidence by purchasing 4.5M shares
• Potential capital raise of approximately $280M (before expenses) from 8M shares
• Additional funding secured for organic growth opportunities

Negative

• Stock offering will dilute existing shareholders
• Shares sold at $35.00 to public while major stockholder gets preferential price of $33.60

Insights

Financial Analyst

F&G Annuities & Life's $280 million common stock offering (8 million shares at $35.00) represents a strategic capital raise with mixed implications for investors.

The 4% discount from the current $36.44 trading price is relatively standard for secondary offerings. What's particularly noteworthy is Fidelity National Financial's commitment to purchase 4.5 million shares (56% of the offering) at the underwriter price of $33.60, signaling strong confidence from the majority stockholder.

This offering will cause approximately 5% dilution to existing shareholders based on F&G's $5.42 billion market capitalization. However, the capital injection should strengthen F&G's balance sheet and support their stated organic growth objectives in the insurance sector.

The vague description of using proceeds for "general corporate purposes, including the support of organic growth opportunities" provides visibility into specific strategic initiatives. Insurance companies typically require substantial capital reserves to support new business writing and maintain competitive positions with rating agencies.

While the dilution creates a near-term negative, FNF's significant participation limits downside pressure, and the additional capital could enhance F&G's competitive positioning in the annuity and life insurance markets if deployed effectively. The timing suggests management sees attractive growth opportunities in the current market environment.

DES MOINES, Iowa, March 20, 2025 /PRNewswire/ -- F&G Annuities & Life, Inc. (NYSE: FG) ("F&G") today announced that it priced a public offering of 8,000,000 shares of its common stock at a price to the public of $35.00 per share. In connection with the offering, F&G has granted the underwriters a 30-day option to purchase up to an additional 1,200,000 shares of F&G's common stock. Fidelity National Financial, Inc., F&G's majority-stockholder, has agreed to purchase 4,500,000 shares in the offering from the underwriters at the price per share paid by the underwriters of $33.60 per share. The offering is expected to close on March 24, 2025, subject to satisfaction of customary closing conditions.

F&G intends to use the net proceeds of this offering for general corporate purposes, including the support of organic growth opportunities.

BofA Securities, Inc. and J.P. Morgan Securities LLC are acting as joint book-running managers for the offering.

The public offering is being made pursuant to a registration statement (including a prospectus, as supplemented) that F&G has filed with the U.S. Securities and Exchange Commission (the "SEC"). Copies of the registration statement may be accessed through the SEC's website at www.sec.gov. A copy of the prospectus (as supplemented), when available, may be obtained by contacting BofA Securities, Inc. toll-free at 1-800-294-1322 or J.P. Morgan Securities LLC collect at 1-212-834-4533.

This press release does not constitute an offer to sell, or a solicitation of an offer to buy, any security and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale would be unlawful. The offering of these securities may be made only by means of a prospectus (as supplemented) relating to this offering.

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.

Forward-Looking Statements

This press release contains forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements that are not related to present facts or current conditions or that are not historical facts, as well as statements that address activities, events, or developments that F&G anticipates will or may occur in the future, including, but not limited to, such things as the anticipated timing and closing of the offering, the use of net proceeds from the offering and other such matters. You can identify forward-looking statements by words such as "believe," "expect," "anticipate," "intend," "plan," "estimate," "predict," "project," "seek," "outlook," "future," "will," "would," "should," "could," "may," "can have," "likely" and similar terms. Forward-looking statements include statements based on management's current expectations and assumptions about future events. Forward-looking statements are subject to known and unknown risks and uncertainties, many of which are beyond F&G's control, that could cause actual results to differ materially from those in or implied by the forward-looking statements. Factors that may cause such differences include the risks and uncertainties described in F&G's Annual Report on Form 10-K for the year ended December 31, 2024 and the other reports and filings F&G makes with the SEC. These forward-looking statements speak only as of the date of this press release. F&G disclaims any obligation to update or revise any forward-looking statement, whether as a result of new information, future developments, changes in assumptions or otherwise.

Contact:
Lisa Foxworthy-Parker
SVP of Investor & External Relations
515.330.3307
Investor.relations@fglife.com

View original content:https://www.prnewswire.com/news-releases/fg-annuities--life-prices-common-stock-offering-302407593.html

SOURCE F&G Annuities & Life, Inc.

FAQ

How many shares is F&G (FG) offering in its March 2025 public offering?

F&G is offering 8,000,000 shares of common stock, with an additional 30-day option for underwriters to purchase up to 1,200,000 more shares.

What is the price per share for F&G's (FG) March 2025 stock offering?

The public offering price is $35.00 per share, while Fidelity National Financial will purchase shares at $33.60 per share.

How many shares is Fidelity National Financial purchasing in F&G's (FG) offering?

Fidelity National Financial, F&G's majority stockholder, has agreed to purchase 4,500,000 shares at $33.60 per share.

When will F&G's (FG) March 2025 stock offering close?

The offering is expected to close on March 24, 2025, subject to customary closing conditions.

How will F&G (FG) use the proceeds from its March 2025 stock offering?

F&G intends to use the net proceeds for general corporate purposes, including supporting organic growth opportunities.