F&G Annuities & Life (FG) Q4 2025 earnings summary

Executive summary

• Achieved record AUM before flow reinsurance of $73.1B, up 12% year-over-year, and retained AUM of $57.6B, up 7% year-over-year.

• Gross sales reached $14.6B for the year, with net sales of $10.0B, and core product sales above $9B for the second consecutive year.

• Adjusted net earnings for the year were $482M ($3.64/share), down from $546M ($4.30/share) in 2024.

• Transitioning to a more fee-based, higher margin, and less capital-intensive business model, with progress toward medium-term financial targets.

• Expanded public float from 18% to 30% after FNF's distribution, enhancing market liquidity and institutional ownership.

Financial highlights

• Book value per share (ex-AOCI) rose to $44.43 at year-end 2025, up 62% since 2020.

• Operating expense ratio improved to 50 bps from 60 bps year-over-year.

• Fee income from flow reinsurance grew 37% to $56M; own distribution margin contributed $47M in 2025.

• Investment income from alternative investments was $278M below long-term expectations in 2025.

• Net sales for 2025 were $10.0B, compared to $10.6B in 2024.

Outlook and guidance

• Targeting AUM growth of 50%, adjusted ROA ex significant items of 1.33%-1.55%, and adjusted ROE ex AOCI of 13-14% over the medium term.

• Expect fee-based earnings to grow to 25% of total by 2028, up from 15% in 2025.

• Operating expense ratio targeted to improve to 45 bps by 2027.

• Anticipate lower surrender fee income and prepayments in 2026, with potential 20% decline in surrender-related fees.

• Remain focused on disciplined growth, capital allocation, and expanding core product sales.