- Record AUM Growth: AUM before flow reinsurance reached $73.1 billion (+12% YoY), with retained AUM at $57.6 billion (+7% YoY).
- Strong Core Gross Sales: Achieved $14.6 billion in gross sales, driven by $9 billion in indexed annuities, indexed universal life, and pension risk transfer.
- Investment Portfolio Quality: 97% of fixed maturities were investment grade at year-end, with over $2 billion in assets repositioned since 2020 to reduce risk.
- Fee-Based Earnings Growth: Full-year fee income from flow reinsurance rose 37% to $56 million in 2025, targeting 25% of total earnings by 2028.
Asset Under Management and Sales Performance
The company achieved record AUM before flow reinsurance of $73.1 billion, up 12% from year-end 2024, and record retained AUM of $57.6 billion, up 7%. Gross sales reached $14.6 billion, its second-highest year on record, driven by $9 billion in core sales, including indexed annuities, indexed universal life, and pension risk transfer. The company is on track to grow its core business and move towards a more fee-based, higher-margin business model.
Valuation and Dividend Yield
The company's Price-to-Book Ratio stands at 0.71, indicating that the stock is trading below its book value. The Dividend Yield is 3.57%, suggesting an attractive return for income-seeking investors. The company's ROE is 5.75%, which is a moderate return. With a P/E Ratio of 12.79, the stock appears to be reasonably valued. The company's efforts to increase transparency around its credit and private credit portfolio may help alleviate valuation concerns, as noted by CEO Christopher Blunt, who believes the current valuation is extreme.
Business Outlook and Growth Prospects
F&G Annuities & Life, Inc. expects fee-based earnings to grow to approximately 25% of total earnings by year-end 2028. The company aims to improve its operating expense ratio to approximately 45 basis points by year-end 2027. Analysts estimate next year's revenue growth at 5.5%. The company is capital independent and does not rely on equity raises or external capital to write business, providing a stable foundation for growth.
Product Sales and Reinsurance
Rilla sales are showing steady improvement, and the company is optimistic about combining Rilla with FIA. FABN sales experienced a slowdown in 4Q but bounced back in Q1 2026, with $750 million in sales. The company expects to continue writing MYGA but will be more selective. The sale of F&G Life Re Limited is expected to decrease AUM by $1.9 billion and reduce annual adjusted net earnings by $10 million per quarter.