F&G Annuities & Life Inc Reports Record AUM, Strong Sales Amidst Market Volatility.

F&G Annuities & Life Inc reported record AUM of $67.4 billion, a 16% increase YoY, and maintained a high-quality investment portfolio with 96% of fixed maturities being investment grade. Indexed annuity sales remained strong at $1.5 billion, and the company successfully completed a public offering of 8 million shares of common stock, raising approximately $269 million. However, gross sales decreased by 17% compared to the previous year, primarily due to lower MIGA sales, and adjusted net earnings were $91 million, down from $108 million in the same period last year.

F&G Annuities & Life Inc, a leading provider of annuities and life insurance products, has released its Form 10-Q report for the first quarter of 2025. The report provides a comprehensive overview of the company's financial performance and operational highlights, reflecting the challenges and strategic decisions made in a volatile market environment.

Financial Highlights
Total Revenues: $908 million, reflecting a decrease from $1,569 million in the prior year period, primarily due to lower life insurance premiums and recognized gains. Net Earnings (Loss) Attributable to F&G Common Shareholders: $(25) million, compared to $111 million in the prior year period, impacted by market risk benefit losses and lower recognized gains. Adjusted Net Earnings Attributable to Common Shareholders: $91 million, including income from a $16 million reinsurance true-up adjustment, despite investment income from alternative investments being below management’s long-term expected return. Interest and Investment Income: $666 million, an increase from $616 million in the prior year period, driven by invested asset growth. Market Risk Benefit (Gains) Losses: $109 million, reflecting unfavorable market-related movements and actual policyholder behavior compared to expectations [1].

Business Highlights
Revenue Segments: The company operates in three distinct retail channels: agent-based Independent Marketing Organizations (IMOs), banks, and broker-dealers. Additionally, it has expanded into two institutional markets, offering Funding Agreement Backed Notes (FABN) and pension risk transfer (PRT) solutions. Sales Units: Indexed annuity sales were slightly higher for the three months ended March 31, 2025, compared to the same period in 2024, while fixed rate annuity (MYGA) sales were lower. This reflects the company's strategic decision to allocate capital to indexed annuity sales due to favorable economic conditions [1].

Future Outlook: The company anticipates that macroeconomic factors such as consumer spending, business investment, and capital market volatility will continue to drive uncertainty and instability, potentially impacting operations in fiscal year 2025. The aging U.S. population is expected to increase demand for indexed annuity and indexed universal life products [1].

Operational Strategy: The company continues to leverage its strategic partnership with Blackstone ISG-I Advisors LLC to enhance its spread-based capabilities and expand its owned distribution strategy, which includes majority and minority ownership stakes in several IMOs [1].

Market Conditions: The company is closely monitoring market conditions, including interest rates and consumer behavior, to adjust its product offerings and pricing strategies accordingly. It is also focused on managing the cost of hedging and interest rates credited to policyholders [1].

F&G Annuities & Life Inc also announced a quarterly cash dividend of $0.22 per common share, payable on June 30, 2025, to stockholders of record as of June 16, 2025 [2].

References:
[1] https://www.tradingview.com/news/tradingview:a938e7cea0c47:0-f-g-annuities-life-inc-sec-10-q-report/
[2] https://www.marketscreener.com/quote/stock/F-G-ANNUITIES-LIFE-INC-147174651/news/F-G-Annuities-Life-Inc-Declares-Quarterly-Cash-Dividend-Payable-on-June-30-2025-49878289/