F&G Annuities & Life Reports Second Quarter 2025 Results
F&G Annuities & Life (NYSE: FG) reported second quarter 2025 financial results, with net earnings of $35 million ($0.26 per share), down from $198 million ($1.55 per share) in Q2 2024. Adjusted net earnings were $103 million ($0.77 per share), compared to $139 million ($1.10 per share) in Q2 2024.
The company achieved record assets under management of $69.2 billion, a 13% increase year-over-year, driven by strong retail sales. Gross sales reached $4.1 billion, with record retail channel sales of over $3.6 billion, up 13% from Q2 2024. The investment portfolio maintained strong performance with 97% of fixed maturities being investment grade.
F&G's adjusted ROE excluding AOCI improved to 8.8%, up 40 basis points from 8.4% in Q2 2024. The company returned $35 million to shareholders through common and preferred dividends during the quarter.
[ "Record assets under management of $69.2 billion, up 13% year-over-year", "Record retail channel sales of $3.6 billion, 13% higher than Q2 2024", "Strong investment portfolio with 97% investment-grade fixed maturities", "Adjusted ROE excluding AOCI improved by 40 basis points to 8.8%", "Operating expense to AUM ratio decreased by 5 basis points year-over-year" ]F&G Annuities & Life (NYSE: FG) ha riportato i risultati finanziari del secondo trimestre 2025, con un utile netto di 35 milioni di dollari (0,26 dollari per azione), in calo rispetto ai 198 milioni di dollari (1,55 dollari per azione) del secondo trimestre 2024. L'utile netto rettificato è stato di 103 milioni di dollari (0,77 dollari per azione), rispetto ai 139 milioni di dollari (1,10 dollari per azione) del secondo trimestre 2024.
L'azienda ha raggiunto un record di attività in gestione pari a 69,2 miliardi di dollari, con un aumento del 13% su base annua, trainato da forti vendite al dettaglio. Le vendite lorde hanno raggiunto 4,1 miliardi di dollari, con vendite record nel canale retail oltre i 3,6 miliardi di dollari, in crescita del 13% rispetto al secondo trimestre 2024. Il portafoglio di investimenti ha mantenuto una solida performance con il 97% delle scadenze fisse di grado investment.
Il ROE rettificato escludendo l'AOCI di F&G è migliorato al 8,8%, in aumento di 40 punti base rispetto all'8,4% del secondo trimestre 2024. Durante il trimestre, la società ha restituito 35 milioni di dollari agli azionisti tramite dividendi comuni e privilegiati.
- Record di attività in gestione a 69,2 miliardi di dollari, +13% su base annua
- Vendite record nel canale retail a 3,6 miliardi di dollari, +13% rispetto al Q2 2024
- Portafoglio di investimenti solido con il 97% delle scadenze fisse di grado investment
- ROE rettificato escludendo l'AOCI migliorato di 40 punti base al 8,8%
- Rapporto spese operative su attività in gestione diminuito di 5 punti base su base annua
F&G Annuities & Life (NYSE: FG) informó los resultados financieros del segundo trimestre de 2025, con ganancias netas de 35 millones de dólares (0,26 dólares por acción), una disminución respecto a los 198 millones de dólares (1,55 dólares por acción) en el segundo trimestre de 2024. Las ganancias netas ajustadas fueron de 103 millones de dólares (0,77 dólares por acción), comparado con 139 millones de dólares (1,10 dólares por acción) en el segundo trimestre de 2024.
La compañía alcanzó un récord de activos bajo gestión de 69,2 mil millones de dólares, un aumento del 13% interanual, impulsado por fuertes ventas minoristas. Las ventas brutas alcanzaron 4,1 mil millones de dólares, con ventas récord en el canal minorista de más de 3,6 mil millones de dólares, un 13% más que en el segundo trimestre de 2024. La cartera de inversiones mantuvo un sólido desempeño con el 97% de los vencimientos fijos de grado de inversión.
El ROE ajustado de F&G excluyendo AOCI mejoró a 8,8%, aumentando 40 puntos básicos desde el 8,4% en el segundo trimestre de 2024. La compañía devolvió 35 millones de dólares a los accionistas a través de dividendos comunes y preferentes durante el trimestre.
- Récord de activos bajo gestión de 69,2 mil millones de dólares, +13% interanual
- Ventas récord en el canal minorista de 3,6 mil millones de dólares, 13% más que en el Q2 2024
- Cartera de inversiones sólida con 97% de vencimientos fijos de grado de inversión
- ROE ajustado excluyendo AOCI mejoró 40 puntos básicos a 8,8%
- Ratio de gastos operativos sobre activos bajo gestión disminuyó 5 puntos básicos interanual
F&G Annuities & Life (NYSE: FG)는 2025년 2분기 재무 결과를 발표했으며, 순이익은 3,500만 달러(주당 0.26달러)로 2024년 2분기의 1억 9,800만 달러(주당 1.55달러)에서 감소했습니다. 조정 순이익은 1억 300만 달러(주당 0.77달러)로 2024년 2분기의 1억 3,900만 달러(주당 1.10달러)와 비교됩니다.
회사는 강력한 소매 판매에 힘입어 전년 대비 13% 증가한 692억 달러의 운용자산 기록을 달성했습니다. 총 판매액은 41억 달러에 달했으며, 소매 채널 판매는 36억 달러를 넘어 2024년 2분기 대비 13% 증가한 기록을 세웠습니다. 투자 포트폴리오는 97%가 투자 등급인 고정 만기 자산으로 견고한 성과를 유지했습니다.
F&G의 AOCI를 제외한 조정 자기자본이익률(ROE)은 8.8%로 개선되어 2024년 2분기의 8.4%보다 40 베이시스 포인트 상승했습니다. 회사는 분기 동안 보통주 및 우선주 배당금을 통해 3,500만 달러를 주주에게 환원했습니다.
- 전년 대비 13% 증가한 692억 달러의 운용자산 기록
- 2024년 2분기 대비 13% 증가한 36억 달러의 소매 채널 판매 기록
- 97%가 투자 등급인 고정 만기 자산으로 구성된 강력한 투자 포트폴리오
- AOCI를 제외한 조정 ROE가 40 베이시스 포인트 상승하여 8.8% 기록
- 전년 대비 운용자산 대비 영업비용 비율 5 베이시스 포인트 감소
F&G Annuities & Life (NYSE: FG) a annoncé ses résultats financiers du deuxième trimestre 2025, avec un bénéfice net de 35 millions de dollars (0,26 dollar par action), en baisse par rapport à 198 millions de dollars (1,55 dollar par action) au T2 2024. Le bénéfice net ajusté s'est élevé à 103 millions de dollars (0,77 dollar par action), contre 139 millions de dollars (1,10 dollar par action) au T2 2024.
L'entreprise a atteint un record d'actifs sous gestion de 69,2 milliards de dollars, soit une hausse de 13 % en glissement annuel, portée par de solides ventes au détail. Les ventes brutes ont atteint 4,1 milliards de dollars, avec des ventes record dans le canal de détail de plus de 3,6 milliards de dollars, en hausse de 13 % par rapport au T2 2024. Le portefeuille d'investissement a maintenu une solide performance avec 97 % des échéances fixes classées investment grade.
Le ROE ajusté de F&G hors AOCI s'est amélioré à 8,8 %, en hausse de 40 points de base par rapport à 8,4 % au T2 2024. La société a reversé 35 millions de dollars aux actionnaires sous forme de dividendes ordinaires et privilégiés au cours du trimestre.
- Record d'actifs sous gestion à 69,2 milliards de dollars, en hausse de 13 % en glissement annuel
- Ventes record dans le canal de détail à 3,6 milliards de dollars, 13 % de plus qu'au T2 2024
- Portefeuille d'investissement solide avec 97 % d'échéances fixes investment grade
- ROE ajusté hors AOCI amélioré de 40 points de base à 8,8 %
- Ratio des frais d'exploitation sur actifs sous gestion diminué de 5 points de base en glissement annuel
F&G Annuities & Life (NYSE: FG) meldete die Finanzergebnisse für das zweite Quartal 2025 mit einem Nettogewinn von 35 Millionen US-Dollar (0,26 US-Dollar je Aktie), gegenüber 198 Millionen US-Dollar (1,55 US-Dollar je Aktie) im zweiten Quartal 2024. Das bereinigte Nettoergebnis betrug 103 Millionen US-Dollar (0,77 US-Dollar je Aktie), im Vergleich zu 139 Millionen US-Dollar (1,10 US-Dollar je Aktie) im zweiten Quartal 2024.
Das Unternehmen erreichte ein Rekordvermögen unter Verwaltung von 69,2 Milliarden US-Dollar, ein Anstieg von 13 % im Jahresvergleich, angetrieben durch starke Einzelhandelsverkäufe. Die Bruttoverkäufe erreichten 4,1 Milliarden US-Dollar, mit rekordverdächtigen Einzelhandelskanalverkäufen von über 3,6 Milliarden US-Dollar, 13 % mehr als im zweiten Quartal 2024. Das Anlageportfolio zeigte eine starke Performance mit 97 % der festverzinslichen Wertpapiere in Investment-Grade.
Die bereinigte Eigenkapitalrendite (ROE) von F&G ohne AOCI verbesserte sich auf 8,8 %, ein Anstieg um 40 Basispunkte gegenüber 8,4 % im zweiten Quartal 2024. Das Unternehmen zahlte den Aktionären während des Quartals 35 Millionen US-Dollar in Form von Dividenden auf Stamm- und Vorzugsaktien zurück.
- Rekordvermögen unter Verwaltung von 69,2 Milliarden US-Dollar, 13 % höher als im Vorjahr
- Rekord-Einzelhandelskanalverkäufe von 3,6 Milliarden US-Dollar, 13 % mehr als im Q2 2024
- Starkes Anlageportfolio mit 97 % Investment-Grade-Festverzinslichen Wertpapieren
- Bereinigte ROE ohne AOCI um 40 Basispunkte auf 8,8 % verbessert
- Verhältnis der Betriebskosten zum verwalteten Vermögen um 5 Basispunkte im Jahresvergleich gesunken
- None.
- Net earnings declined to $35 million from $198 million in Q2 2024
- Adjusted net earnings decreased to $103 million from $139 million in Q2 2024
- Net sales declined to $2.7 billion from $3.4 billion in Q2 2024
- $49 million of net unfavorable mark-to-market effects in Q2 2025
Insights
F&G reports mixed Q2 results with record AUM but lower earnings compared to 2024, driven by unfavorable mark-to-market effects.
F&G's Q2 2025 results reveal a significant earnings decline with net earnings at
The company's adjusted net earnings, which exclude these market fluctuations, were
On the positive side, F&G delivered
The adjusted return on assets (ROA) was
Book value per common share excluding AOCI was
This quarter's results demonstrate F&G's strong sales momentum and AUM growth, but the significant earnings decline highlights the company's sensitivity to market fluctuations despite its high-quality investment portfolio.
Net earnings attributable to common shareholders (net earnings) for the second quarter of
Adjusted net earnings attributable to common shareholders (adjusted net earnings) for the second quarter of
Second Quarter 2025 Highlights
- Record assets under management, driven by record retail sales: F&G achieved record assets under management before flow reinsurance of
$69.2 billion 13% over the second quarter of 2024. This included retained AUM of$55.6 billion $4.1 billion $2.7 billion - Excellent credit performance in the investment portfolio: The investment portfolio is performing well, with
97% of fixed maturities being investment grade. It is well matched to our liability profile and diversified across asset types. Credit-related impairments have remained low and stable, averaging 6 basis points over the past five years and remained below pricing assumptions through the first half of 2025 - Reported adjusted return on assets (ROA) includes short-term fluctuations in investment income from alternative investments: Adjusted ROA of 71 basis points in the second quarter; adjusted ROA of 92 basis points over the last twelve months (LTM), as compared to 91 basis points in the second quarter 2024 LTM; reflects growing contributions from flow reinsurance and owned distribution
- Growing adjusted return on equity (ROE) ex AOCI: Adjusted ROE excluding AOCI (including short-term fluctuations in investment income from alternative investments) was
8.8% for the second quarter, up 40 bps as compared to8.4% in the second quarter of 2024 - 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
- Continued focus on organic growth and return of capital to shareholders: F&G returned
$35 million
Chris Blunt, F&G's Chief Executive Officer, said, "We grew AUM before flow reinsurance to
Mr. Blunt continued, "F&G benefits from both spread-based and fee-based earnings, including our flow reinsurance, middle market life insurance and owned distribution strategies which leverage our position as one of the industry's largest distributors of annuities and life insurance. We remain confident that we will deliver on our medium-term Investor Day targets as we move further toward a more fee-based, higher margin and less capital intensive business model."
Summary Financial Results1 | ||||||
(In millions, except per share data) | Three Months Ended | Six Months Ended | ||||
June 30, 2025 | June 30, 2024 | 2025 | 2024 | |||
Gross sales | $ 4,106 | $ 4,420 | $ 7,008 | $ 7,915 | ||
Net sales | $ 2,744 | $ 3,445 | $ 4,925 | $ 5,747 | ||
Assets under management (AUM) | $ 55,565 | $ 52,208 | $ 55,565 | $ 52,208 | ||
Average assets under management (AAUM) YTD | $ 54,521 | $ 50,181 | $ 54,521 | $ 50,181 | ||
AUM before flow reinsurance | $ 69,161 | $ 61,370 | $ 69,161 | $ 61,370 | ||
Adjusted return on assets | 0.71 % | 0.98 % | 0.71 % | 0.98 % | ||
Adjusted return on average equity (ex. AOCI) | 8.8 % | 8.4 % | 8.8 % | 8.4 % | ||
Net earnings (loss) | $ 35 | $ 198 | $ 10 | $ 309 | ||
Net earnings (loss) per share | $ 0.26 | $ 1.55 | $ 0.08 | $ 2.45 | ||
Adjusted net earnings | $ 103 | $ 139 | $ 194 | $ 247 | ||
Adjusted net earnings per share | $ 0.77 | $ 1.10 | $ 1.48 | $ 1.97 | ||
Book value per common share | $ 31.02 | $ 27.02 | $ 31.02 | $ 27.02 | ||
Book value per common share, excluding AOCI | $ 43.39 | $ 42.52 | $ 43.39 | $ 42.52 | ||
1See definition of non-GAAP measures below |
Second Quarter 2025 Results
Record AUM before flow reinsurance was
Gross sales were
Record retail channel sales were more than
Institutional market sales were
Net sales were
Adjusted net earnings of
- Adjusted net earnings of
$103 million $0.77 $83 million $0.62 10% - Adjusted net earnings of
$139 million $1.10 $16 million $0.12 $20 million $0.15 10%
As compared to the prior year quarter, adjusted net earnings reflect asset growth, higher fees from accretive flow reinsurance, higher owned distribution margin and disciplined expense management driving scale benefit; partially offset by higher interest expense on debt.
Capital and Liquidity Highlights
Total F&G equity attributable to common shareholders, excluding AOCI, was
Book value per common share excluding AOCI as of March 31, 2025 | $ | 43.31 |
Adjusted net earnings and other | 0.62 | |
Book value per common share excluding AOCI, before capital actions & mark-to-market | $ | 43.93 |
Capital actions | (0.18) | |
Book value per common share excluding AOCI, before mark-to-market | $ | 43.75 |
Mark-to-market movement | (0.36) | |
Book value per common share excluding AOCI as of June 30, 2025 | $ | 43.39 |
During the second quarter, F&G has returned capital to shareholders from common and preferred dividends of
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 second quarter 2025 results on Thursday, August 7, 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
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).
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 | June 30, 2025 | December 31, 2024 | ||
Investments | ||||
Fixed maturity securities available for sale, at fair value, (amortized | $ 50,193 | $ 46,317 | ||
Preferred securities, at fair value | 249 | 270 | ||
Equity securities, at fair value | 92 | 145 | ||
Derivative investments | 931 | 792 | ||
Mortgage loans, net of allowance for credit losses of | 6,940 | 5,926 | ||
Investments in unconsolidated affiliates (certain investments at fair | 4,301 | 3,565 | ||
Other long-term investments | 998 | 580 | ||
Policy loans | 125 | 104 | ||
Short-term investments | 760 | 2,410 | ||
Total investments | $ 64,589 | $ 60,109 | ||
Cash and cash equivalents | 1,884 | 2,264 | ||
Reinsurance recoverable, net of allowance for credit losses of | 15,777 | 13,369 | ||
Goodwill | 2,179 | 2,179 | ||
Prepaid expenses and other assets (certain assets held at fair value of | 967 | 950 | ||
Other intangible assets, net | 5,943 | 5,572 | ||
Market risk benefits asset | 213 | 189 | ||
Income taxes receivable | 6 | — | ||
Deferred tax asset, net | 258 | 299 | ||
Total assets | $ 91,816 | $ 84,931 | ||
Liabilities and Equity | ||||
Contractholder funds | $ 59,813 | $ 56,404 | ||
Future policy benefits | 9,463 | 8,749 | ||
Market risk benefits liability | 711 | 549 | ||
Accounts payable and accrued liabilities | 2,568 | 2,219 | ||
Income taxes payable | — | 5 | ||
Notes payable | 2,235 | 2,171 | ||
Funds withheld for reinsurance liabilities | 12,469 | 10,758 | ||
Total liabilities | $ 87,259 | $ 80,855 | ||
Equity | ||||
Preferred stock | — | — | ||
Common stock | — | — | ||
Additional paid-in-capital | 3,747 | 3,464 | ||
Retained earnings | 2,394 | 2,440 | ||
Accumulated other comprehensive income (loss) ("AOCI") | (1,670) | (1,923) | ||
Treasury stock, at cost (1,209,989 shares as of June 30, 2025) | (33) | (30) | ||
Total F&G Annuities & Life, Inc. shareholders' equity | $ 4,438 | $ 3,951 | ||
Non-controlling interests | 119 | 125 | ||
Total equity | $ 4,557 | $ 4,076 | ||
Total liabilities and equity | $ 91,816 | $ 84,931 | ||
F&G ANNUITIES & LIFE, INC. CONSOLIDATED STATEMENTS OF OPERATIONS SECOND QUARTER INFORMATION (In millions, except per share data) (Unaudited) | |||||||||
Three months ended | Six months ended | ||||||||
June 30, 2025 | June 30, 2024 | June 30, 2025 | June 30, 2024 | ||||||
Revenues | |||||||||
Life insurance premiums and other fees | $ 608 | $ 487 | $ 1,097 | $ 1,205 | |||||
Interest and investment income | 682 | 684 | 1,348 | 1,300 | |||||
Owned distribution revenues | 23 | 18 | 39 | 41 | |||||
Recognized gains and (losses), net | 51 | (17) | (212) | 195 | |||||
Total revenues | 1,364 | 1,172 | 2,272 | 2,741 | |||||
Benefits and expenses | |||||||||
Benefits and other changes in policy reserves | 993 | 608 | 1,517 | 1,769 | |||||
Market risk benefit (gains) losses | (4) | 20 | 105 | 9 | |||||
Depreciation and amortization | 158 | 147 | 311 | 270 | |||||
Personnel costs | 77 | 69 | 144 | 135 | |||||
Other operating expenses | 42 | 46 | 83 | 104 | |||||
Interest expense | 41 | 28 | 81 | 58 | |||||
Total benefits and expenses | 1,307 | 918 | 2,241 | 2,345 | |||||
Earnings (loss) before income taxes | 57 | 254 | 31 | 396 | |||||
Income tax expense (benefit) | 15 | 50 | 10 | 76 | |||||
Net earnings (loss) | 42 | 204 | 21 | 320 | |||||
Less: Non-controlling interests | 2 | 1 | 2 | 2 | |||||
Net earnings (loss) attributable to F&G | 40 | 203 | 19 | 318 | |||||
Less: Preferred stock dividend | 5 | 5 | 9 | 9 | |||||
Net earnings (loss) attributable to F&G common shareholders | $ 35 | $ 198 | $ 10 | $ 309 | |||||
Net earnings (loss) attributable to F&G common shareholders per common share | |||||||||
Basic | $ 0.26 | $ 1.60 | $ 0.08 | $ 2.49 | |||||
Diluted | $ 0.26 | $ 1.55 | $ 0.08 | $ 2.45 | |||||
Weighted average common shares used in computing net earnings (loss) per common share | |||||||||
Basic | 133 | 124 | 130 | 124 | |||||
Diluted | 134 | 131 | 131 | 130 | |||||
Non-GAAP Measures and Other Information | |||||||||
RECONCILIATION OF NET EARNINGS (LOSS) TO ADJUSTED NET EARNINGS (LOSS) | |||||||||
Three months ended | Six months ended | ||||||||
(In millions) | June 30, 2025 | June 30, 2024 | June 30, 2025 | June 30, 2024 | |||||
Reconciliation of net earnings (loss) to adjusted net | |||||||||
Net earnings (loss) attributable to common shareholders | $ 35 | $ 198 | $ 10 | $ 309 | |||||
Non-GAAP adjustments | |||||||||
Recognized (gains) and losses, net | |||||||||
Net realized and unrealized (gains) losses on fixed | 12 | (37) | 27 | (85) | |||||
Change in allowance for expected credit losses | 19 | 21 | 41 | 22 | |||||
Change in fair value of reinsurance related embedded | 61 | (10) | 102 | 8 | |||||
Change in fair value of other derivatives and embedded | (13) | 8 | (62) | 69 | |||||
Recognized (gains) losses, net | 79 | (18) | 108 | 14 | |||||
Market related liability adjustments | (16) | (71) | 87 | (126) | |||||
Purchase price amortization | 18 | 19 | 33 | 41 | |||||
Transaction costs, other and non-recurring items | 8 | (3) | 9 | (3) | |||||
Non-controlling interest | (2) | (2) | (4) | (5) | |||||
Income taxes adjustment | (19) | 16 | (49) | 17 | |||||
Adjusted net earnings attributable to common | $ 103 | $ 139 | $ 194 | $ 247 | |||||
1See definition of non-GAAP measures below |
- Adjusted net earnings of
$103 million $0.77 $83 million $0.62 10% - Adjusted net earnings of
$139 million $1.10 $16 million $0.12 $20 million $0.15 10% - Adjusted net earnings of
$194 million $1.48 $16 million $0.12 $146 million $1.11 10% - Adjusted net earnings of
$247 million $1.97 $16 million $0.12 $2 million $0.02 $72 million $0.56 10%
RECONCILIATION OF TOTAL EQUITY, TOTAL EQUITY EXCLUDING ACCUMULATED OTHER COMPREHENSIVE INCOME (AOCI), BOOK VALUE PER SHARE AND BOOK VALUE PER SHARE EXCLUDING AOCI | ||||||
Three months ended | ||||||
(In millions) | June 30, 2025 | March 31, 2025 | December 31, 2024 | |||
Total F&G Annuities & Life, Inc. shareholders' equity | 4,438 | 4,363 | 3,951 | |||
Less: Preferred stock | 250 | 250 | 250 | |||
Total F&G equity attributable to common shareholders | 4,188 | 4,113 | 3,701 | |||
Less: AOCI | (1,670) | (1,734) | (1,923) | |||
Total F&G equity attributable to common shareholders, excluding AOCI | $ 5,858 | $ 5,847 | $ 5,624 | |||
Common shares outstanding | 135 | 135 | 127 | |||
Book value per common share | $ 31.02 | $ 30.47 | $ 29.14 | |||
Book value per common share, excluding AOCI | $ 43.39 | $ 43.31 | $ 44.28 | |||
ASSETS UNDER MANAGEMENT (AUM) ROLLFORWARD, AVERAGE ASSETS UNDER MANAGEMENT (AAUM) AND AUM BEFORE FLOW REINSURANCE | ||||||
Three months ended | ||||||
(In millions) | June 30, | March 31, | December 31, 2024 | |||
AUM at beginning of period | $ 54,546 | $ 53,817 | $ 52,464 | |||
Net new business asset flows | 1,763 | 1,790 | 2,270 | |||
Net flow reinsurance to third parties | (744) | (1,395) | (1,046) | |||
Net capital transaction proceeds (disbursements) | — | 334 | 129 | |||
AUM at end of period¹ | $ 55,565 | $ 54,546 | $ 53,817 | |||
AAUM YTD¹ | $ 54,521 | $ 53,877 | $ 51,574 | |||
AUM before flow reinsurance | $ 69,161 | $ 67,398 | $ 65,274 | |||
SALES HIGHLIGHTS | |||||||||
Three months ended | Six months ended | ||||||||
June 30, 2025 | June 30, 2024 | June 30, 2025 | June 30, 2024 | ||||||
Indexed annuities ("FIA/RILA") | $ 1,701 | $ 1,648 | $ 3,162 | $ 3,085 | |||||
Fixed rate annuities ("MYGA") | 1,907 | 1,475 | 2,469 | 2,802 | |||||
Total annuity | 3,608 | 3,123 | 5,631 | 5,887 | |||||
Indexed universal life ("IUL") | 53 | 44 | 96 | 86 | |||||
Funding agreements ("FABN/FHLB") | — | 915 | 525 | 1,020 | |||||
Pension risk transfer ("PRT") | 445 | 338 | 756 | 922 | |||||
Gross sales(1) | 4,106 | 4,420 | 7,008 | 7,915 | |||||
Sales attributable to flow reinsurance to third parties | (1,362) | (975) | (2,083) | (2,168) | |||||
Net sales(1) | $ 2,744 | $ 3,445 | $ 4,925 | $ 5,747 | |||||
1See definition of non-GAAP measures below |
DEFINITIONS | |||||||
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: | |||||||
(i) 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; | |||||||
(ii) 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; | |||||||
(iii) 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); | |||||||
(iv) Transaction costs: the impacts related to acquisition, integration and merger related items; | |||||||
(v) Other and "non-recurring," "infrequent" or "unusual items": Other adjustments include removing any charges associated with | |||||||
(vi) 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 | |||||||
(vii) 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. | |||||||
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: | |||||||
(i) total invested assets at amortized cost, excluding investments in unconsolidated affiliates, owned distribution and derivatives; | |||||||
(ii) investments in unconsolidated affiliates at carrying value; | |||||||
(iii) related party loans and investments; | |||||||
(iv) accrued investment income; | |||||||
(v) the net payable/receivable for the purchase/sale of investments; and | |||||||
(vi) 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. | |||||||
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. | |||||||
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. | |||||||
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. | |||||||
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. | |||||||
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SOURCE F&G Annuities & Life, Inc.
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