F&G Annuities & Life (FG) Q2 2024 earnings summary

Executive summary

• Achieved record gross sales of $4.4 billion in Q2 2024, up 47% year-over-year, with strong growth in both retail and institutional channels; 1H24 gross sales were $7.9 billion, up 25% year-over-year.

• Net earnings attributable to common shareholders for Q2 2024 were $198 million ($1.55 per diluted share), up from $130 million ($1.04 per share) in Q2 2023, driven by record sales and investment returns.

• Assets under management (AUM) reached $52.2 billion as of June 30, 2024, up 13% year-over-year; AUM before flow reinsurance was $61.4 billion, up 21%.

• Adjusted return on assets (ROA) for 1H24 was 1.30%, above the 1.10% baseline; adjusted ROE for 1H24 was 12%, a 2% increase year-over-year.

• Strategic acquisitions included 100% ownership in Freedom Equity Group and a 70% stake in Roar Joint Venture, enhancing distribution and growth.

Financial highlights

• Adjusted net earnings for Q2 2024 were $139 million ($1.10 per share), up from $79 million ($0.63 per share) in Q2 2023; 1H24 adjusted net earnings were $247 million.

• Net earnings per diluted share for Q2 2024 were $1.55; 1H24 adjusted net earnings per diluted share, excluding significant items, were $2.57.

• Book value per share excluding AOCI increased to $42.52 as of June 30, 2024, up from $40.70 a year ago.

• Market capitalization reached $5.4 billion as of July 31, 2024.

• Returned $32 million to shareholders through dividends in Q2 2024; $62 million returned in 1H24, a 64% increase year-over-year.

Outlook and guidance

• On track to achieve targeted 50% AUM growth by 2028 and Investor Day targets, with expectations for continued margin expansion and sustainable growth.

• Anticipates continued strong annuity sales as consumers seek higher rates amid declining money market yields.

• RILA product expected to become a significant sales contributor by 2025, targeting younger demographics.

• Stable and profitable enforced book projected to generate over $1 billion in capital for 2024.

• No material changes to risk factors or market risk exposures were noted for the remainder of 2024.