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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

Breaking News: F&G Annuities & Life, Inc. announced a new three-year $100 million share repurchase program, effective March 16, 2026. The program allows the company to buy back up to $100 million of its common stock through March 31, 2029. The purchases may be made in the open market or through privately negotiated transactions. The company's Board of Directors approved the program. No analyst recommendations were available. The company is a leading provider of insurance solutions serving retail annuity and life customers and institutional clients.

1.c. Company Highlights

2. F&G Annuities & Life's Strong Finish to 2025

F&G Annuities & Life, Inc. reported adjusted net earnings of $123 million or $0.91 per share in the fourth quarter, missing estimates of $1.34 per share. For the full year, the company achieved $482 million or $3.64 per share in adjusted net earnings. The company's investment portfolio performed well, with a high-quality diversified portfolio and 97% of fixed maturities being investment grade at year-end. Alternative investment income was below management's long-term expected return for both periods.

Publication Date: Feb -22

📋 Highlights
  • 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.

3. NewsRoom

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F&G Annuities & Life Announces New Three-Year $100 Million Share Repurchase Program

Mar -16

Source: prnewswire.com

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F&G Annuities & Life, Inc. (NYSE:FG) Short Interest Update

Mar -06

Source: defenseworld.net

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F&G Annuities & Life Joins Voya Financial's Annuity Platform, Expanding Access to Protected Growth Solutions

Feb -25

Source: prnewswire.com

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F&G Annuities & Life, Inc. (FG) Q4 2025 Earnings Call Transcript

Feb -20

Source: seekingalpha.com

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F&G Annuities & Life Declares Dividends on Common and Preferred Stock

Feb -20

Source: prnewswire.com

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F&G Annuities & Life, Inc. (FG) Q4 Earnings Miss Estimates

Feb -19

Source: zacks.com

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FNF Reports Fourth Quarter and Full Year 2025 Financial Results

Feb -19

Source: prnewswire.com

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F&G Annuities & Life Reports Fourth Quarter and Full Year 2025 Results

Feb -19

Source: prnewswire.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

A-Score: 6.6/10

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

Value: 6.6

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

Momentum: 4.0

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

23.58$

Current Price

23.58$

Potential

-0.00%

Expected Cash-Flows