F&G Annuities & Life (FG) Q2 2025 earnings summary

Executive summary

• Q2 2025 delivered strong results with record AUM before flow reinsurance, $4.1 billion in gross sales, and one of the best sales quarters in history, despite net earnings attributable to common shareholders declining to $35 million due to unfavorable mark-to-market and other items excluded from adjusted net earnings.

• Adjusted net earnings for Q2 2025 were $103 million ($0.77 per share), reflecting asset growth, higher fees, and disciplined expense management, partially offset by higher interest expense.

• Launched a $1 billion reinsurance sidecar with Blackstone Managed Funds to support growth and a shift toward a fee-based, higher margin, capital-light model.

• Announced executive transition: John Currier retiring, Conor Murphy appointed President in addition to CFO role.

• Book value per share excluding AOCI increased 58% since year-end 2020, reaching $43.39 at June 30, 2025.

Financial highlights

• Gross sales were $4.1 billion and net sales $2.7 billion in Q2 2025, with core product sales (FIA, indexed life, pension risk transfer) at $2.2 billion, up 22% sequentially and 10% year-over-year.

• Adjusted net earnings were $103 million, or $0.77 per share, in Q2 2025; net earnings attributable to common shareholders were $35 million ($0.26 per share), down from $198 million in Q2 2024.

• Adjusted ROA for Q2 2025 was 0.71%, and 0.92% for the last twelve months; adjusted ROE ex AOCI was 8.8%.

• Book value per share ex AOCI was $43.39 at June 30, 2025.

• Investment income from alternative investments was $83 million, below long-term expectations.

Outlook and guidance

• Management remains confident in achieving medium-term Investor Day targets, including 50% AUM growth over five years, higher ROA/ROE, and a shift toward a fee-based, higher margin, capital-light model.

• Expect sales mix to shift more toward Fixed Indexed Annuities (FIA) in the second half of 2025 due to the new sidecar.

• MYGA sales expected to normalize, with more volatility and a focus on capital allocation to higher-return products.

• Continued focus on organic growth and capital return to shareholders.

• Macroeconomic uncertainty, interest rate volatility, and regulatory changes are expected to impact results in 2025.