F&G Annuities & Life (FG) investor relations material

Executive summary

• Net earnings attributable to common shareholders reached $244 million ($1.78 per diluted share) for Q1 2026, reversing a net loss of $25 million in Q1 2025, driven by favorable mark-to-market effects and strong sales.

• Adjusted net earnings were $110 million ($0.82 per share), up from $91 million year-over-year, reflecting asset growth and disciplined expense management.

• Achieved record gross AUM of $74.5 billion before reinsurance in Q1 2026, up 11% year-over-year, with retained AUM at $56.4 billion.

• Gross sales reached $3.2 billion, with core sales of $2.0 billion and opportunistic sales of $1.2 billion, reflecting strong demand for retirement savings products.

• Transitioning to a more fee-based, higher margin, and less capital-intensive business model, with a strategic review of the owned distribution business underway.

Financial highlights

• Total revenues rose to $1.19 billion from $908 million year-over-year, with interest and investment income at $723 million.

• Adjusted net earnings per diluted share for Q1 2026 was $0.82, with adjusted ROE (ex-AOCI) at 8.4% and adjusted ROA at 0.76%.

• Book value per share (ex-AOCI) grew to $46.51, up 5% sequentially and 70% since 2020.

• Operating expense to AUM before reinsurance improved to 48 bps, down from 60 bps at end of 2024, with a target of 45 bps by year-end 2027.

• Returned $67 million to shareholders in Q1 2026 via dividends and share repurchases, including $29 million in share repurchases; new $100 million repurchase program authorized.

Outlook and guidance

• Management expects continued AUM growth with an optimized sales mix, targeting 50% AUM growth and adjusted ROE (ex-AOCI) of 13–14% over the medium term.

• Fee-based earnings are expected to reach 25% of adjusted net earnings by 2028.

• Pension risk transfer pipeline remains robust, with annual sales expected between $1.5 billion and $2 billion.

• Multi-Year Guaranteed Annuity sales expected to moderate due to the current rate environment.

• Macroeconomic uncertainty and market volatility are expected to persist, impacting sales and investment returns.