F&G Annuities & Life Inc (FG) reported a notable surge in its Q3 2024 earnings, with adjusted earnings per share (EPS) amounting to $1.06, surpassing the same quarter last year's EPS of $0.631. This impressive performance can be attributed to several key factors:
- Increase in Gross Sales: F&G experienced a significant surge in gross sales, which rose by 47% to $4.4 billion during Q2 2024, driven primarily by record retail channel sales and robust institutional market sales2. This substantial growth in sales contributed significantly to the company's improved financial performance.
- Record Level of Gross Sales: The company achieved a record level of gross sales, which was bolstered by strong demand for annuity products. This demand was fueled by investors seeking to lock in current rates, resulting in a 36% increase in total annuity sales compared to the previous year3.
- Increase in Funding Agreements Sales: F&G also witnessed a notable rise in funding agreements sales. These agreements involve issuing bonds backed by an insurance policy, which are then invested in the general account. The spread between the invested interest rate and the rate paid on the notes represents a key source of income for the company2.
- Effective Capital Deployment: F&G's strategic capital deployment played a crucial role in enhancing its investment portfolio and generating higher returns. The company's focus on effective capital allocation likely contributed to the improved investment income and, subsequently, to the increased earnings4.
In summary, F&G's Q3 earnings surge can be attributed to a combination of factors, including increased gross sales, record-level gross sales, rise in funding agreements sales, and effective capital deployment. These elements, either directly or indirectly, contributed to the company's improved financial performance during the quarter.
4/13/2025 09:47am
