F&G Annuities & Life, Inc. 7.95

What they do

Through subsidiaries including Fidelity & Guaranty Life Insurance Company and FGL NY Insurance, F&G markets fixed indexed annuities, registered index-linked annuities, multi-year guarantee annuities, pension risk transfer solutions, indexed universal life insurance and institutional funding agreements. It serves roughly 778,000 policyholders and about 145,000 pension plan participants. Earnings are spread-based from fixed annuities and PRT, plus fee-based earnings from flow reinsurance, middle market life insurance, owned distribution and a reinsurance sidecar launched in August 2025.

Revenue drivers

• Fixed annuities (including MYGAs) — Spread-based earnings from a $56.8 billion inforce block with liability duration of about 5 years; the base of the insurance spread business.
• Indexed annuities (FIAs and RILAs) — Retail products sold through three retail channels under four carrier brands; part of gross sales that rose from $4.5 billion in 2020 to $14.6 billion in 2025.
• Pension risk transfer — Institutional institutional market serving about 145,000 plan participants receiving pension payments from F&G; spread-based like the fixed annuity book.
• Fee-based businesses — Flow reinsurance, middle market life insurance, owned distribution and the August 2025 reinsurance sidecar; management describes these as becoming a larger, higher-margin, more capital-light share of earnings.

Recent performance

Annual revenue was $5.73 billion in 2025, essentially flat versus $5.74 billion in 2024. Net income fell to $248 million in 2025 from $642 million in 2024, and diluted EPS fell to $1.88 from $4.88. For full-year 2025 the company reported net earnings attributable to F&G of $265 million, adjusted net earnings attributable to common shareholders of $482 million, and adjusted ROA of 87 basis points. Quarterly revenue was $1.19 billion in Q1 2026 and $1.42 billion in Q2 2026, down from $1.76 billion in Q4 2025. Operating cash flow was $4.68 billion in 2025 versus $6.00 billion in 2024.

Strategy

Management says it is balancing growth of the spread-based annuity and PRT business with expansion of fee-based, capital-light earnings from flow reinsurance, middle market life, owned distribution and the August 2025 reinsurance sidecar. It emphasizes pricing discipline and allocating capital to the highest-return opportunities. As of December 31, 2025, FGL Insurance's estimated U.S. RBC ratio was approximately 430%, above the stated target of at least 400%. GAAP equity stood at $4.8 billion, or $6.0 billion of common shareholders' equity excluding AOCI. Sales expansion has been supported by ratings upgrades since the FNF acquisition, including A- from S&P and Fitch, A3 from Moody's and A from A.M. Best.

Risks

• Alternative investment return shortfall — Investment income from alternative investments was $278 million below management's long-term expected return of approximately 10% in 2025, which pressured adjusted earnings.
• Interest rate and spread compression — The company cites the impact of interest rate fluctuations and equity market volatility as risks to its spread-based annuity and PRT earnings.
• Credit quality of the investment portfolio — 96% of fixed maturity securities were NAIC 1 or NAIC 2 at year-end 2025, leaving credit market volatility, counterparty credit risk and impairment assumptions as stated risk factors.
• Reserve and assumption accuracy — The company identifies the accuracy of management's reserving assumptions and changes in valuation and impairment estimates as risks affecting results.

Outlook

The company targets maintaining FGL Insurance's RBC ratio at or above 400%, having ended 2025 at approximately 430%. It describes its inforce block of $56.8 billion as profitable and growing, and continues to build fee-based earnings while growing spread-based business with pricing discipline. Aside from these stated priorities and capital targets, the provided materials do not include specific forward guidance figures.