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1. Company Snapshot

1.a. Company Description

F&G Annuities & Life, Inc.provides fixed annuities and life insurance products.It serves retail annuity and life customers, as well as institutional clients.


The company was founded in 1959 and is headquartered in Des Moines, Iowa.F&G Annuities & Life, Inc.is a subsidiary of Fidelity National Financial, Inc.

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1.b. Last Insights on FG

F&G Annuities & Life, Inc.'s recent performance was impacted by concerns over its private credit exposure, although management considers it manageable. The company's Q3 2025 earnings call highlighted a 14% increase in quarterly common stock dividend. Despite a strong beat on Q3 earnings, with $1.22 per share, exceeding the Zacks Consensus Estimate of $1.02 per share, some investors sold their holdings, such as the Teacher Retirement System of Texas, which trimmed its stake by 45.5%. Additionally, AlphaQuest LLC reduced its stake by 26.3%.

1.c. Company Highlights

2. F&G's Strong Q3 Earnings: A Closer Look

F&G delivered a robust third quarter, with adjusted net earnings reaching $165 million, or $1.22 per share, surpassing estimates of $1.02 per share. The company's assets under management (AUM) before flow reinsurance stood at $71.4 billion, a 14% increase from the third quarter of 2024. Gross sales for the first nine months of the year were $11 billion, with core sales, including index annuities and pension risk transfer, accounting for $6 billion. The company's operating expense ratio improved to 52 basis points, down from 62 basis points in the third quarter of 2024.

Publication Date: Nov -09

📋 Highlights
  • Record AUM Growth: AUM before flow reinsurance reached $71.4B, up 14% YoY, driven by $56.6B retained assets and strong sales performance.
  • Adjusted Net Earnings: Q3 earnings hit $165M ($1.22/share), including a $10M tax benefit ($0.07/share) and $4M actuarial reserve release ($0.03/share).
  • Operating Efficiency: Operating expense ratio dropped to 52 bps (vs. 62 bps in Q3 2024), with a target of 46 bps by 2026 (1 bps/q reduction).
  • Public Float Expansion: FNF plans to distribute ~12% of F&G shares, increasing public float to 30% (from 18%), retaining 70% ownership post-spin.
  • Core Product Momentum: RILA sales grew 20% in Q3 due to lower rates and cap rates, while PRT and FIA remain strategic priorities with robust advisor adoption.

Business Growth and Profitability

F&G's business is becoming more fee-based, higher-margin, and capital-light, leveraging its position as one of the industry's largest sellers of annuities and life insurance. The company is prioritizing pricing discipline and allocating capital to the highest return opportunities. As Conor Murphy mentioned, "We're seeing very attractive opportunities for our core products... we're getting good flows and adoption from advisors." The company's RILA sales were up 20% in Q3, driven by lower rates and cap rates.

Investment Performance and Credit Quality

F&G's investment portfolio is diversified and high-quality, with 96% of fixed maturities being investment grade. Credit-related impairments have remained low and stable, averaging 6 basis points over the past 5 years. Alternative investment income was $67 million below management's long-term expected return for the quarter. As Conor Murphy stated, "Direct lending and whole loan performance was close to expectations, while LPs performed stronger, but still fell short of long-term expectations."

Valuation and Outlook

With a Price-to-Book Ratio of 0.92, F&G's stock appears to be reasonably valued. The company's adjusted return on equity, excluding AOCI, was 8.8%, in line with the sequential quarter. Analysts estimate next year's revenue growth at 13.4%. Given the company's improving operating expense ratio and growing profitability, the stock may be poised for further gains. As Christopher Blunt mentioned, "We're becoming a more fee-based, higher-margin, and capital-light business... we're confident in our long-term future."

Distribution and Capital Management

FNF plans to distribute approximately 12% of the outstanding shares of F&G's common stock to FNF shareholders, increasing F&G's public float from 18% to 30%. This move is expected to be beneficial for the company, increasing its visibility and liquidity. As Chris Blunt stated, "It's a vote of confidence in our long-term future." The company's capital management priorities are likely to remain focused on maintaining a strong balance sheet and returning capital to shareholders.

3. NewsRoom

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Americans Grow More Risk Averse and Financially Stressed, New F&G Survey Finds, as Affordability Pressures Threaten Retirement Preparedness

Jan -28

Source: prnewswire.com

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F&G Annuities & Life: Technical Pressure Creates A Compelling Value Opportunity

Jan -14

Source: seekingalpha.com

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My Dividend Growth Income - December 2025 Update

Jan -06

Source: seekingalpha.com

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Christopher Blunt Acquires 5,000 Shares of F&G Annuities & Life (NYSE:FG) Stock

Jan -04

Source: defenseworld.net

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F&G Annuities & Life (NYSE:FG) Sees Strong Trading Volume – Still a Buy?

Jan -02

Source: defenseworld.net

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Fidelity National Financial and F&G Annuities & Life Announce Final Distribution Ratio for Planned Distribution of Approximately 12% Ownership of F&G to FNF Shareholders

Dec -18

Source: prnewswire.com

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Fidelity National Financial and F&G Annuities & Life Announce Final Distribution Ratio for Planned Distribution of Approximately 12% Ownership of F&G to FNF Shareholders

Dec -18

Source: prnewswire.com

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F&G Annuities & Life, Inc. (FG) Shows Fast-paced Momentum But Is Still a Bargain Stock

Dec -18

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.00%)

6. Segments

Insurance and Related Activities

Expected Growth: 7.0%

F&G Annuities & Life, Inc.'s 7.0% growth in Insurance and Related Activities is driven by increasing demand for retirement savings products, expansion into new distribution channels, and strategic partnerships. Additionally, favorable regulatory environments, rising life expectancy, and growing awareness of insurance benefits among consumers contribute to the segment's growth.

7. Detailed Products

Fixed Indexed Annuities

A type of annuity that earns interest based on the performance of a specific stock market index, such as the S&P 500.

Fixed Rate Annuities

A type of annuity that earns a fixed rate of interest, typically for a set period of time.

Term Life Insurance

A type of life insurance that provides coverage for a specified period of time (e.g., 10, 20, or 30 years).

Permanent Life Insurance

A type of life insurance that provides lifetime coverage and a cash value component.

Indexed Universal Life Insurance

A type of permanent life insurance that earns interest based on the performance of a specific stock market index.

8. F&G Annuities & Life, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for F&G Annuities & Life, Inc. is moderate due to the presence of alternative investment options for customers.

Bargaining Power Of Customers

The bargaining power of customers is low due to the complexity of annuity and life insurance products, making it difficult for customers to switch providers.

Bargaining Power Of Suppliers

The bargaining power of suppliers is moderate due to the presence of multiple suppliers of reinsurance and other services, but the company's scale and reputation also give it some bargaining power.

Threat Of New Entrants

The threat of new entrants is low due to the high regulatory barriers to entry and the need for significant capital and expertise to enter the annuity and life insurance market.

Intensity Of Rivalry

The intensity of rivalry is high due to the presence of many established competitors in the annuity and life insurance market, leading to intense competition for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 36.11%
Debt Cost 3.95%
Equity Weight 63.89%
Equity Cost 11.10%
WACC 8.51%
Leverage 56.53%

11. Quality Control: F&G Annuities & Life, Inc. passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Jackson Financial

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Value: 8.2

Growth: 4.3

Quality: 7.8

Yield: 8.0

Momentum: 5.0

Volatility: 6.0

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CNO Financial Group

A-Score: 6.0/10

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Growth: 6.4

Quality: 4.4

Yield: 4.0

Momentum: 6.0

Volatility: 8.3

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Primerica

A-Score: 5.9/10

Value: 5.4

Growth: 7.2

Quality: 6.8

Yield: 3.0

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Volatility: 9.0

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Unum

A-Score: 5.8/10

Value: 5.7

Growth: 5.6

Quality: 5.1

Yield: 5.0

Momentum: 6.0

Volatility: 7.7

1-Year Total Return ->

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F&G Annuities & Life

A-Score: 5.7/10

Value: 8.8

Growth: 8.6

Quality: 5.9

Yield: 5.0

Momentum: 0.5

Volatility: 5.7

1-Year Total Return ->

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American Equity

A-Score: 5.4/10

Value: 9.5

Growth: 7.3

Quality: 6.2

Yield: 0.0

Momentum: 6.0

Volatility: 3.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

27.99$

Current Price

27.99$

Potential

-0.00%

Expected Cash-Flows