F&G Annuities & Life (FG) Q1 2025 earnings summary

Executive summary

• Reported a net loss attributable to common shareholders of $25 million ($0.20 per share) for Q1 2025, primarily due to $105 million in unfavorable mark-to-market effects and $11 million in other unfavorable items, all excluded from adjusted net earnings.

• Adjusted net earnings were $91 million ($0.72 per share), down from $108 million ($0.86 per share) in Q1 2024, reflecting margin compression, lower owned distribution margin, and higher interest expense, partially offset by asset growth and disciplined expense management.

• Achieved record assets under management (AUM) before flow reinsurance of $67.4 billion as of March 31, 2025, up 16% year-over-year, driven by strong indexed annuity sales.

• Completed a public offering of 8 million shares, raising $269 million for general corporate purposes and organic growth support.

• Business remains diversified across retail and institutional channels, with a focus on margin expansion, capital-light flow reinsurance, and owned distribution.

Financial highlights

• Gross sales were $2.9 billion, down 17% year-over-year due to lower MYGA/MIGA sales; excluding MYGA/MIGA, gross sales rose 5%.

• Net sales were $2.2 billion, down 4% year-over-year.

• Book value per share (excluding AOCI) was $43.31, up 5% year-over-year.

• Adjusted ROA was 0.68% for Q1 2025, with last 12 months adjusted ROA at 1.00%, down 6 bps sequentially.

• Adjusted ROE (ex-AOCI) was 9.7%, up 2.3% year-over-year.

Outlook and guidance

• Management remains confident in achieving medium-term Investor Day targets for AUM growth and return expansion, supported by asset growth, higher fee income from flow reinsurance, and disciplined expense management.

• Expects continued growth in fixed index annuity, RILA, and pension risk transfer sales, with MYGA/MIGA expected to remain volatile.

• Focus remains on optimizing return on capital, pricing discipline, and capital allocation to highest-return opportunities.