F&G Annuities & Life (FG) Q3 2024 earnings summary

Executive summary

• Gross sales for Q3 2024 reached $3.9 billion, up 39% year-over-year, with year-to-date gross sales of $11.8 billion, up 30% year-over-year; net sales for Q3 were $2.4 billion, up 4% year-over-year.

• Assets under management before flow reinsurance hit a record $62.9 billion, up 20% year-over-year, with retained AUM at $52.5 billion, up 11%.

• Adjusted net earnings attributable to common shareholders were $156 million ($1.22 per share) for Q3 2024, up from $120 million in Q3 2023, while net loss attributable to common shareholders was $10 million, mainly due to $150 million in unfavorable mark-to-market effects.

• Retail sales reached a record $3.5 billion in Q3 2024, nearly double the prior year, driven by demand for retirement savings products and favorable demographics.

• Completed acquisitions of Roar Joint Venture, LLC and PALH, LLC, expanding owned distribution and generating new revenue streams.

Financial highlights

• Adjusted net earnings for the nine months ended September 30, 2024 were $403 million, up from $260 million in the prior year period.

• Adjusted net earnings per diluted share (excluding significant items) rose to $3.95 YTD 3Q24 from $3.27 YTD 3Q23.

• Book value per share (excluding AOCI) was $42.28 at Q3 2024, up 5% from year-end 2023.

• Interest and investment income for Q3 2024 was $712 million, up from $578 million in Q3 2023.

• Debt-to-capitalization ratio (excluding AOCI) was 26.5% as of September 30, 2024.

Outlook and guidance

• Management expects continued strong demand for annuity products, supported by demographic trends and high cash balances in money market funds.

• On track to achieve medium-term targets: 50% AUM growth, adjusted ROA of 1.33–1.55%, and adjusted ROE of 13–14%.

• Healthy pipeline for Pension Risk Transfer (PRT) sales, with $2.1 billion generated in the first 10 months of 2024 and expectations for $2–4 billion annually.

• RILA sales expected to be modest in 2024 but could reach billions over the medium term as distribution expands.

• Management remains focused on disciplined expense management and product innovation amid ongoing market volatility.