DES MOINES, Iowa, Feb. 19, 2026 /PRNewswire/ -- F&G Annuities & Life, Inc. $(FG)$ (F&G or the Company) a leading provider of insurance solutions serving retail annuity and life customers and institutional clients, today reported financial results for the fourth quarter and full year ended December 31, 2025.
Net earnings attributable to common shareholders for the fourth quarter were $124 million, or $0.92 per diluted share (per share), compared to $323 million, or $2.50 per share, for the fourth quarter of 2024. Full year net earnings attributable to common shareholders were $248 million, or $1.88 per share, compared to $622 million, or $4.88 per share, for the year ended December 31, 2024. Net earnings or losses attributable to common shareholders include mark-to-market effects and non-recurring items; all of which are excluded from adjusted net earnings attributable to common shareholders.
Adjusted net earnings attributable to common shareholders (adjusted net earnings) for the fourth quarter were $123 million, or $0.91 per share, compared to $143 million, or $1.12 per share, for the fourth quarter of 2024. Full year adjusted net earnings were $482 million, or $3.64 per share, compared to $546 million, or $4.30 per share, for the year ended December 31, 2024. Adjusted net earnings include significant income and expense items, as well as investment income from alternative investments below management's long-term expected return. Please see the "Fourth Quarter 2025 Results", "Full Year 2025 Results" and "Non-GAAP Measures and Other Information" sections for further explanation.
Company Highlights
-- Generated record assets under management: F&G achieved record assets
under management before flow reinsurance of $73.1 billion as of December
31, 2025, an increase of 12% over year-end 2024. This included retained
AUM of $57.6 billion. F&G's gross sales were $14.6 billion for the full
year 2025, including $3.4 billion in the fourth quarter
-- Excellent credit performance in the investment portfolio: The investment
portfolio is performing well, with 97% of fixed maturities being
investment grade. It is well matched to our liability profile and
diversified across asset types. Credit-related impairments have remained
low and stable, averaging 6 basis points over the past five years and
significantly below pricing assumptions
-- Reported adjusted return on assets (ROA) and adjusted return on equity
$(ROE)$ ex AOCI include short-term fluctuations in investment income from
alternative investments: Adjusted ROA was 87 basis points for the fourth
quarter, in line with the sequential quarter, and reflects asset growth,
growing fees from accretive flow reinsurance, steady owned distribution
margin, and operating expense discipline driving scale benefit; adjusted
ROE excluding AOCI was 8.2% for the fourth quarter
-- Continued progress toward our Investor Day targets: We have made strong
progress toward the medium-term targets set out at our 2023 Investor Day
-- Continued focus on organic growth and return of capital to shareholders:
F&G returned $137 million of capital to shareholders from common and
preferred dividends during the full year 2025, including $38 million in
the fourth quarter
-- Strong solvency position and announcement of the strategic sale of our
Bermuda subsidiary: Estimated risk-based capital (RBC) ratio for our
primary operating subsidiary of approximately 430% as of December 31,
2025, above our 400% target; reflects partial recapture of inforce block
and dividend of assets from our Bermuda legal entity, F&G Life Re Ltd, at
year-end; we are on track to close a transaction in the first quarter of
2026 to sell this Bermuda legal entity, including the remaining inforce
block, as we no longer need a Bermuda operation to support our
reinsurance strategy
-- Completed planned distribution of approximately 12% of FNF's ownership of
F&G to FNF shareholders: On December 31, 2025, FNF completed the
distribution to FNF's shareholders of approximately 16 million shares of
F&G common stock owned by FNF. Following the distribution of
approximately 12% of the outstanding common shares of F&G's common stock
to FNF shareholders, FNF retains control of F&G through an approximate
70% equity ownership stake
Chris Blunt, F&G's Chief Executive Officer, commented, "We delivered a strong finish to an outstanding year, highlighted by record assets under management before flow reinsurance of $73 billion fueled by $14.6 billion of gross sales in full year 2025, including $9 billion of gross sales in our core products -- indexed annuities, indexed universal life and pension risk transfer. Our high quality, diversified investment portfolio continues to perform extremely well with credit-related impairments remaining stable and below our expectations."
Mr. Blunt continued, "We are executing on our strategy toward a more fee-based, higher margin and less capital intensive business model to drive long-term growth. We took action to improve our operating expense ratio by 10 basis points as compared to year end 2024 and we have strengthened our capital position, augmented by the launch of our reinsurance sidecar. At the end of the year, we expanded our public float to 30% to enhance market liquidity and broaden investor access to the stock. Looking ahead to 2026, we remain focused on continuing to grow our core business and delivering long-term shareholder value."
Summary Financial Results(1)
(In millions,
except per
share data) Three Months Ended Twelve Months Ended
-------------------------------- ------------------------------
December 31, December 31,
2025 2024 2025 2024
-------------- ---------------- -------------- --------------
Gross sales $ 3,392 $ 3,469 $ 14,638 $ 15,262
Net sales $ 2,304 $ 2,438 $ 10,029 $ 10,571
Assets under
management
(AUM) $ 57,574 $ 53,817 $ 57,574 $ 53,817
Average assets
under
management
$(AAUM)$ YTD $ 55,384 $ 51,574 $ 55,384 $ 51,574
AUM before
flow
reinsurance $ 73,090 $ 65,274 $ 73,090 $ 65,274
Adjusted
return on
assets 0.87 % 1.06 % 0.87 % 1.06 %
Adjusted
return on
average
equity (ex.
AOCI) 8.2 % 10.3 % 8.2 % 10.3 %
Net earnings
(loss) $ 124 $ 323 $ 248 $ 622
Net earnings
(loss) per
share $ 0.92 $ 2.50 $ 1.88 $ 4.88
Adjusted net
earnings $ 123 $ 143 $ 482 $ 546
Adjusted net
earnings per
share $ 0.91 $ 1.12 $ 3.64 $ 4.30
Book value per
common share $ 33.49 $ 29.14 $ 33.49 $ 29.14
Book value per
common share,
excluding
AOCI $ 44.43 $ 44.28 $ 44.43 $ 44.28
Fourth Quarter 2025 Results
Record AUM before flow reinsurance was $73.1 billion as of December 31, 2025, an increase of 12% over $65.3 billion at the end of the fourth quarter of 2024. This included record AUM of $57.6 billion as of December 31, 2025, an increase of 7% over $53.8 billion at the end of the fourth quarter of 2024. A rollforward of AUM can be found in the "Non-GAAP Measures and Other Information" section of this release.
Gross sales were $3.4 billion for the fourth quarter, slightly below $3.5 billion in the fourth quarter of 2024, and were driven by favorable market conditions and strong demand for retirement savings products.
Core sales were $2.8 billion for the fourth quarter, in line with the fourth quarter of 2024, reflecting higher indexed annuity and indexed universal life sales; partially offset by lower pension risk transfer sales.
Opportunistic sales were $0.6 billion for the fourth quarter, comprised of $0.4 billion of multiyear guaranteed annuities and $0.2 of funding agreements, in line with the fourth quarter of 2024 which was comprised of multiyear guaranteed annuities. Opportunistic volumes vary quarter to quarter depending on economics and market opportunity.
Net sales were $2.3 billion for the fourth quarter, down slightly from the fourth quarter of 2024; this reflects flow reinsurance at varying ceded amounts in line with capital targets for multiyear guaranteed annuities and fixed indexed annuities.
Adjusted net earnings were $123 million, or $0.91 per share, compared to $143 million, or $1.12 per share, for the fourth quarter of 2024. Adjusted net earnings include significant income and expense items and alternative investment portfolio returns from short-term mark-to-market movement that differ from long-term return expectations.
-- Adjusted net earnings were $123 million, or $0.91 per share, for the
fourth quarter of 2025. Investment income from alternative investments
was $65 million, or $0.47 per share, below management's long-term
expected return of approximately 10%
-- Adjusted net earnings of $143 million, or $1.12 per share, for the fourth
quarter of 2024 included income from $7 million, or $0.05 per share, of
actuarial model refinements and other items. Investment income from
alternative investments was $32 million, or $0.25 per share, below
management's long-term expected return of approximately 10%
As compared to the prior year quarter and excluding the above items, adjusted net earnings reflect asset growth, growing fees from accretive flow reinsurance, steady owned distribution margin and disciplined expense management driving scale benefit; partially offset by higher interest expense on debt.
(1) See definition of non-GAAP measures below
Full Year 2025 Results
Record AUM before flow reinsurance was $73.1 billion as of December 31, 2025, an increase of 12% over $65.3 billion as of December 31, 2024. This included record AUM of $57.6 billion as of December 31, 2025, an increase of 7% over $53.8 billion as of December 31, 2024. A rollforward of AUM can be found in the "Non-GAAP Measures and Other Information" section of this release.
Gross sales were $14.6 billion for the full year, one of our best sales years in history, driven by favorable market conditions and strong demand for retirement savings products; our all-time record of $15.3 billion was in 2024.
Core sales were $9.0 billion for the full year, reflecting strong indexed annuity, indexed universal life and pension risk transfer sales; our second year of more than $9 billion in core sales.
Opportunistic sales were $5.6 billion for the full year, comprised of $3.8 billion of multiyear guaranteed annuities and $1.8 billion of funding agreements, as compared to $6.1 billion in full year 2024 which was comprised of $5.1 billion of multiyear guaranteed annuities and $1.0 billion of funding agreements. Opportunistic volumes vary depending on economics and market opportunity.
Net sales were $10.0 billion for the full year, as compared to $10.6 billion for full year 2024; this reflects flow reinsurance at varying ceded amounts in line with capital targets for multiyear guaranteed annuities and fixed indexed annuities.
Adjusted net earnings for the full year were $482 million, or $3.64 per share, compared to $546 million, or $4.30 per share for the full year 2024. Adjusted net earnings include significant income and expense items and alternative investment portfolio returns from short-term mark-to-market movement that differ from long-term return expectations.
-- Adjusted net earnings of $482 million, or $3.64 per share, for the full
year 2025 included income from $16 million, or $0.12 per share,
reinsurance true-up adjustment, $10 million, or $0.07 per share, tax
valuation allowance benefit and $4 million, or $0.03 per share, of
actuarial reserve release. Investment income from alternative investments
was $278 million, or $2.03 per share, below management's long-term
expected return of approximately 10%
-- Adjusted net earnings of $546 million, or $4.30 per share, for the full
year 2024 included expense from $30 million, or $0.23 per share, of
actuarial model updates and refinements; partially offset by income from
$14 million, or $0.11 per share, tax valuation allowance benefit and $6
million, or $0.05 per share, of other income items. Investment income
from alternative investments was $145 million, or $1.11 per share, below
management's long-term expected return of approximately 10%
As compared to the prior year and excluding the above items, adjusted net earnings reflect asset growth, growing fees from accretive flow reinsurance, steady owned distribution margin and disciplined expense management driving scale benefit; partially offset by higher interest expense on debt.
Capital and Liquidity Highlights
Total F&G equity attributable to common shareholders, excluding AOCI, was $6.0 billion, or $44.43 per share, as of December 31, 2025. This reflects an increase of $0.78 per share as compared to December 31, 2024, after the effect of the common stock offering, including $0.36 per share increase during the fourth quarter.
4Q25 FY2025
------ ------
Book value per common share excluding AOCI - Starting
Balance(1) $ 44.07 $ 44.28
Common stock offering -- (0.63)
Subtotal, after effect of common stock offering $ 44.07 $ 43.65
Adjusted net earnings and other 0.85 3.03
Subtotal, before capital actions & mark-to-market $ 44.92 $ 46.68
Capital actions (0.56) (1.04)
Subtotal, before mark-to-market $ 44.36 $ 45.64
Mark-to-market movement 0.07 (1.21)
------ ------
Book value per common share excluding AOCI - As of
December 31, 2025 $ 44.43 $ 44.43
------ ------
(1) The starting balance for 4Q25 and FY2025 is September 30, 2025 and
December 31, 2024, respectively
F&G has returned capital to shareholders through common and preferred dividends of $137 million for the full year, including $38 million in the fourth quarter.
The Company continues to have a strong and stable capital position with an estimated statutory company action level risk-based capital (RBC) ratio for our primary operating subsidiary of approximately 430% as of December 31, 2025, above our 400% target. At year end, F&G's Iowa operating company has recaptured approximately $900 million of the affiliated statutory liabilities from Bermuda-based F&G Life Re Ltd and received a $200 million dividend of assets. This action was taken in preparation for the planned sale of F&G Life Re Ltd as we no longer need a Bermuda operation to support our reinsurance strategy. We expect to close the sale of the F&G Life Re Ltd legal entity to Ancient Financial Holdings LP, on March 1, 2026, which will include the remaining inforce block of approximately $1.9 billion.
F&G maintains strong capitalization and financial flexibility across all of our statutory balance sheets, including our offshore entities, which are conservatively managed to the most stringent capital requirements of our regulators and four rating agencies.
Earnings Conference Call
Members of F&G's senior management team will host a conference call with the investment community to discuss F&G's fourth quarter and full year 2025 results on Friday, February 20, 2026, beginning at 9:00 a.m. Eastern Time. The conference call will be broadcast live over F&G's Investor Relations website at investors.fglife.com. A replay will also be available at the same location.
About F&G
F&G is committed to helping Americans turn their aspirations into reality. F&G is a leading provider of insurance solutions serving retail annuity and life customers and institutional clients and is headquartered in Des Moines, Iowa. For more information, please visit fglife.com.
Use of Non-GAAP Financial Information
Generally Accepted Accounting Principles (GAAP) is the term used to refer to the standard framework of guidelines for financial accounting. GAAP includes the standards, conventions, and rules accountants follow in recording and summarizing transactions and in the preparation of financial statements. In addition to reporting financial results in accordance with GAAP, this presentation includes non-GAAP financial measures, which the Company believes are useful to help investors better understand its financial performance, competitive position and prospects for the future. Management believes these non-GAAP financial measures may be useful in certain instances to provide additional meaningful comparisons between current results and results in prior operating periods. Our non-GAAP financial measures may not be comparable to similarly titled measures of other organizations because other organizations may not calculate such non-GAAP measures in the same manner as we do. The presentation of this financial information is not intended to be considered in isolation of or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. By disclosing these non-GAAP financial measures, the Company believes it offers investors a greater understanding of, and an enhanced level of transparency into, the means by which the Company's management operates the Company. Any non-GAAP measures should be considered in context with the GAAP financial presentation and should not be considered in isolation or as a substitute for GAAP net earnings, net earnings attributable to common shareholders, or any other measures derived in accordance with GAAP as measures of operating performance or liquidity. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measures are provided within.
Forward-Looking Statements and Risk Factors
This press release contains forward-looking statements that are subject to known and unknown risks and uncertainties, many of which are beyond our control. Some of the forward-looking statements can be identified by the use of terms such as "believes", "expects", "may", "will", "could", "seeks", "intends", "plans", "estimates", "anticipates" or other comparable terms. Statements that are not historical facts, including statements regarding our expectations, hopes, intentions or strategies regarding the future are forward-looking statements. Forward-looking statements are based on management's beliefs, as well as assumptions made by, and information currently available to, management. Because such statements are based on expectations as to future financial and operating results and are not statements of fact, actual results may differ materially from those projected. We undertake no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise. The risks and uncertainties which forward-looking statements are subject to include, but are not limited to: general economic
conditions and other factors, including prevailing interest and unemployment rate levels and stock and credit market performance; consumer spending; government spending; the volatility and strength of the capital markets; investor and consumer confidence; foreign currency exchange rates; commodity prices; inflation levels; changes in trade policy; tariffs and trade sanctions on goods; trade wars; supply chain disruptions; natural disasters, public health crises, international tensions and conflicts, geopolitical events, terrorist acts, labor strikes, political crisis, accidents and other events; concentration in certain states for distribution of our products; the impact of interest rate fluctuations; equity market volatility or disruption; the impact of credit risk of our counterparties; changes in our assumptions and estimates regarding amortization of our deferred acquisition costs, deferred sales inducements and value of business acquired balances; regulatory changes or actions, including those relating to regulation of financial services affecting (among other things) underwriting of insurance products and regulation of the sale, underwriting and pricing of products and minimum capitalization and statutory reserve requirements for insurance companies, or the ability of our insurance subsidiaries to make cash distributions to us; and other factors discussed in "Risk Factors" and other sections of F&G's Form 10-K and other filings with the Securities and Exchange Commission (SEC).
CONTACT:
Lisa Foxworthy-Parker
SVP of Investor & External Relations
Investor.relations@fglife.com
515.330.3307
F&G ANNUITIES & LIFE, INC.
CONSOLIDATED BALANCE SHEETS
(In millions, except per share data)
(Unaudited)
Assets December 31, 2025 December 31, 2024
----------------------------- -----------------------------
Investments
Fixed maturity
securities available
for sale, at fair
value, (amortized
cost of $55,292), net
of allowance for
credit losses of $104
at December 31, 2025 $ 52,700 $ 46,317
Equity securities, at
fair value 341 415
Derivative investments 1,148 792
Mortgage loans, net of
allowance for credit
losses of $86 at
December 31, 2025 7,891 5,926
Investments in
unconsolidated
affiliates (certain
investments at fair
value of $270 at
December 31, 2025) 4,878 3,565
Other long-term
investments 1,294 580
Policy loans 147 104
Short-term investments 1,043 2,410
----------------------------- -----------------------------
Total investments $ 69,442 $ 60,109
----------------------------- -----------------------------
Cash and cash
equivalents 1,486 2,264
Reinsurance
recoverable, net of
allowance for credit
losses of $18 at
December 31, 2025 17,545 13,369
Goodwill 2,180 2,179
Prepaid expenses and
other assets (certain
assets held at fair
value of $24 at
December 31, 2025) 1,052 950
Other intangible
assets, net 6,275 5,572
Market risk benefits
asset 285 189
Income taxes
receivable 83 --
Deferred tax asset, net 82 299
----------------------------- -----------------------------
Total assets $ 98,430 $ 84,931
============================= =============================
Liabilities and Equity
Contractholder funds $ 62,726 $ 56,404
Future policy benefits 10,755 8,749
Market risk benefits
liability 903 549
Accounts payable and
accrued liabilities 2,701 2,219
Income taxes payable -- 5
Notes payable 2,237 2,171
Funds withheld for
reinsurance
liabilities 14,191 10,758
----------------------------- -----------------------------
Total liabilities $ 93,513 $ 80,855
----------------------------- -----------------------------
Equity
Preferred stock
$0.001 par value;
authorized 25,000,000
shares as of
December 31, 2025;
outstanding and
issued shares of
5,000,000 -- --
Common stock $0.001
par value; authorized
500,000,000 shares as
of December 31, 2025;
outstanding and
issued shares of
135,610,292 and
137,056,106,
respectively -- --
Additional
paid-in-capital 3,764 3,464
Retained earnings 2,568 2,440
Accumulated other
comprehensive income
(loss) ("AOCI") (1,488) (1,923)
Treasury stock, at
cost (1,445,814
shares as of December
31, 2025) (40) (30)
----------------------------- -----------------------------
Total F&G
Annuities & Life,
Inc.
shareholders'
equity $ 4,804 $ 3,951
Non-controlling
interests 113 125
----------------------------- -----------------------------
Total equity $ 4,917 $ 4,076
----------------------------- -----------------------------
Total liabilities
and equity $ 98,430 $ 84,931
============================= =============================
F&G ANNUITIES & LIFE, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
FOURTH QUARTER INFORMATION
(In millions, except per share data)
(Unaudited)
Three months ended Twelve months ended
--------------------------------------------
December 31, December 31, December 31, December 31,
2025 2024 2025 2024
--------------------- --------------------- --------------------- ---------------------
Revenues
Life insurance
premiums and
other fees $ 987 $ 1,149 $ 2,795 $ 2,860
Interest and
investment
income 741 707 2,837 2,719
Owned
distribution
revenues 26 20 89 81
Recognized gains
and (losses),
net 11 (317) 10 84
--------------------- --------------------- --------------------- ---------------------
Total
revenues 1,765 1,559 5,731 5,744
Benefits and
expenses
Benefits and
other changes in
policy reserves 1,265 927 3,963 3,791
Market risk
benefit (gains)
losses 19 (105) 167 (25)
Depreciation and
amortization 174 152 665 569
Personnel costs 70 81 293 296
Other operating
expenses 35 54 156 203
Interest expense 41 38 164 132
--------------------- --------------------- --------------------- ---------------------
Total
benefits and
expenses 1,604 1,147 5,408 4,966
Earnings (loss)
before income
taxes 161 412 323 778
Income tax
expense
(benefit) 31 85 52 136
--------------------- --------------------- --------------------- ---------------------
Net earnings
(loss) 130 327 271 642
Less:
Non-controlling
interests 2 -- 6 3
--------------------- --------------------- --------------------- ---------------------
Net earnings
(loss)
attributable to
F&G 128 327 265 639
Less: Preferred
stock dividend 4 4 17 17
--------------------- --------------------- --------------------- ---------------------
Net earnings
(loss)
attributable to
F&G common
shareholders $ 124 $ 323 $ 248 $ 622
===================== ===================== ===================== =====================
Net earnings
(loss)
attributable to
F&G common
shareholders per
common share
Basic $ 0.93 $ 2.58 $ 1.89 $ 4.98
Diluted $ 0.92 $ 2.50 $ 1.88 $ 4.88
Weighted average
common shares
used in computing
net earnings
(loss) per common
share
Basic 133 125 131 125
Diluted 139 131 132 131
Non-GAAP Measures and Other Information
RECONCILIATION OF NET EARNINGS (LOSS) TO ADJUSTED NET EARNINGS (LOSS)
Three months ended Twelve months ended
--------------------------------------------
December 31, December 31, December 31, December 31,
2025 2024 2025 2024
--------------------- --------------------- --------------------- ---------------------
Net earnings (loss)
attributable to
common shareholders $ 124 $ 323 $ 248 $ 622
Non-GAAP adjustments
Recognized (gains)
and losses, net
Net realized and
unrealized (gains)
losses on fixed
maturity
available-for-sale
securities, equity
securities and
other invested
assets 7 24 44 (76)
Change in allowance
for expected credit
losses 14 -- 54 32
Change in fair value
of reinsurance
related embedded
derivatives (23) (153) 139 33
Change in fair value
of other
derivatives and
embedded
derivatives 6 96 (57) 38
--------------------- --------------------- --------------------- ---------------------
Recognized
(gains) losses,
net 4 (33) 180 27
Market related
liability
adjustments (22) (233) 28 (214)
Purchase price
amortization 18 21 80 84
Transaction costs,
other and
non-recurring items 1 19 16 16
Non-controlling
interest (3) (2) (9) (10)
Income taxes
adjustment 1 48 (61) 21
--------------------- --------------------- --------------------- ---------------------
Adjusted net earnings
attributable to
common shareholders
(1) $ 123 $ 143 $ 482 $ 546
(1) See definition of non-GAAP measures below
-- Adjusted net earnings were $123 million, or $0.91 per share, for the
fourth quarter of 2025. Investment income from alternative investments
was $65 million, or $0.47 per share, below management's long-term
expected return of approximately 10%
-- Adjusted net earnings of $143 million, or $1.12 per share, for the fourth
quarter of 2024 included income from $7 million, or $0.05 per share, of
actuarial model refinements and other items. Investment income from
alternative investments was $32 million, or $0.25 per share, below
management's long-term expected return of approximately 10%
-- Adjusted net earnings of $482 million, or $3.64 per share, for the full
year 2025 included income from $16 million, or $0.12 per share,
reinsurance true-up adjustment, $10 million, or $0.07 per share, tax
valuation allowance benefit and $4 million, or $0.03 per share, of
actuarial reserve release. Investment income from alternative investments
was $278 million, or $2.03 per share, below management's long-term
expected return of approximately 10%
-- Adjusted net earnings of $546 million, or $4.30 per share, for the full
year 2024 included expense from $30 million, or $0.23 per share, of
actuarial model updates and refinements; partially offset by income from
$14 million, or $0.11 per share, tax valuation allowance benefit and $6
million, or $0.05 per share, of other income items. Investment income
from alternative investments was $145 million, or $1.11 per share, below
management's long-term expected return of approximately 10%
RECONCILIATION OF TOTAL EQUITY, TOTAL EQUITY EXCLUDING ACCUMULATED OTHER COMPREHENSIVE INCOME (AOCI), BOOK
VALUE PER SHARE AND BOOK VALUE PER SHARE EXCLUDING AOCI
Three months ended
December 31, September 30, June 30, March 31,
(In millions) 2025 2025 2025 2025
--------------------- --------------------- --------------------- ---------------------
Total F&G
Annuities &
Life, Inc.
shareholders'
equity 4,804 4,824 4,438 4,363
Less: Preferred
stock 250 250 250 250
--------------------- --------------------- --------------------- ---------------------
Total F&G
equity
attributable
to common
shareholders 4,554 4,574 4,188 4,113
Less: AOCI (1,488) (1,376) (1,670) (1,734)
--------------------- --------------------- --------------------- ---------------------
Total F&G
equity
attributable
to common
shareholders,
excluding
AOCI $ 6,042 $ 5,950 $ 5,858 $ 5,847
===================== ===================== ===================== =====================
Common shares
outstanding 136 135 135 135
Book value per
common share $ 33.49 $ 33.88 $ 31.02 $ 30.47
Book value per
common share,
excluding
AOCI $ 44.43 $ 44.07 $ 43.39 $ 43.31
ASSETS UNDER MANAGEMENT (AUM) ROLLFORWARD, AVERAGE ASSETS UNDER MANAGEMENT (AAUM) AND AUM BEFORE FLOW
REINSURANCE
Three months ended
December 31, September 30, June 30, March 31,
(In millions) 2025 2025 2025 2025
--------------------- --------------------- --------------------- ---------------------
AUM at beginning
of period $ 56,647 $ 55,565 $ 54,546 $ 53,817
Net new business
asset flows 1,660 2,269 1,763 1,790
Net flow
reinsurance to
third parties (733) (1,187) (744) (1,395)
Net capital
transaction
proceeds
(disbursements) -- -- -- 334
--------------------- --------------------- --------------------- ---------------------
AUM at end of
period(1) $ 57,574 $ 56,647 $ 55,565 $ 54,546
AAUM YTD(1) $ 55,384 $ 54,870 $ 54,521 $ 53,877
AUM before flow
reinsurance $ 73,090 $ 71,430 $ 69,161 $ 67,398
SALES HIGHLIGHTS
Three months ended Twelve months ended
December 31, December 31, December 31, December 31,
2025 2024 2025 2024
-------------------- -------------------- -------------------- --------------------
Indexed
annuities
("FIA/RILA") $ 1,876 $ 1,797 $ 6,703 $ 6,729
Indexed
universal life
("IUL") 53 41 190 166
Pension risk
transfer
("PRT") 832 983 2,126 2,242
-------------------- -------------------- -------------------- --------------------
Subtotal: Core
sales 2,761 2,821 9,019 9,137
Fixed rate
annuities
("MYGA") 356 648 3,794 5,105
Funding
agreements
("FABN/FHLB") 275 -- 1,825 1,020
-------------------- -------------------- -------------------- --------------------
Subtotal:
Opportunistic
sales(2) 631 648 5,619 6,125
-------------------- -------------------- -------------------- --------------------
Gross sales 3,392 3,469 14,638 15,262
Sales
attributable to
flow
reinsurance to
third
parties(3) (1,088) (1,031) (4,609) (4,691)
-------------------- -------------------- -------------------- --------------------
Net sales 2,304 2,438 10,029 10,571
-------------------- -------------------- -------------------- --------------------
(1) See definition of non-GAAP measures below
(2) Opportunistic sales volumes fluctuate quarter to quarter depending on
economics and market opportunity as we prioritize allocating capital to the
highest return opportunities
(3) Sales attributable to flow reinsurance to third parties includes the
reinsurance sidecar
DEFINITIONS
The following represents the definitions of non-GAAP measures used by F&G:
Adjusted Net Earnings attributable to common shareholders
Adjusted net earnings attributable to common shareholders is a non-GAAP
economic measure we use to evaluate financial performance each period.
Adjusted net earnings attributable to common shareholders is calculated by
adjusting net earnings (loss) attributable to common shareholders to
eliminate:
(i) Recognized (gains) and losses, net: the impact of net investment
gains/losses, including changes in allowance for expected credit losses and
other than temporary impairment ("OTTI") losses, recognized in operations;
and the effects of changes in fair value of the reinsurance related embedded
derivative and other derivatives, including interest rate swaps and
forwards;
(ii) Market related liability adjustments: the impacts related to changes in
the fair value, including both realized and unrealized gains and losses, of
index product related derivatives and embedded derivatives, net of hedging
cost; the impact of initial pension risk transfer deferred profit liability
losses, including amortization from previously deferred pension risk transfer
deferred profit liability losses; and the changes in the fair value of market
risk benefits by deferring current period changes and amortizing that amount
over the life of the market risk benefit;
(iii) Purchase price amortization: the impacts related to the amortization of
certain intangibles (internally developed software, trademarks and value of
distribution asset and the change in fair value of liabilities recognized as
a result of acquisition activities);
(iv) Transaction costs: the impacts related to acquisition, integration and
merger related items;
(v) Other and "non-recurring," "infrequent" or "unusual items": Other
adjustments include removing any charges associated with U.S. guaranty fund
assessments as these charges neither relate to the ordinary course of the
Company's business nor reflect the Company's underlying business performance,
but result from external situations not controlled by the Company. Further,
Management excludes certain items determined to be "non-recurring,"
"infrequent" or "unusual" from adjusted net earnings when incurred if it is
determined these expenses are not a reflection of the core business and when
the nature of the item is such that it is not reasonably likely to recur
within two years and/or there was not a similar item in the preceding two
years;
(vi) Non-controlling interest on non-GAAP adjustments: the portion of the
non-GAAP adjustments attributable to the equity interest of entities that F&G
does not wholly own; and
(vii) Income taxes: the income tax impact related to the above-mentioned
adjustments is measured using an effective tax rate, as appropriate by tax
jurisdiction.
While these adjustments are an integral part of the overall performance of
F&G, market conditions and/or the non-operating nature of these items can
overshadow the underlying performance of the core business. Accordingly,
management considers this to be a useful measure internally and to investors
and analysts in analyzing the trends of our operations. Adjusted net earnings
should not be used as a substitute for net earnings (loss). However, we
believe the adjustments made to net earnings (loss) in order to derive
adjusted net earnings provide an understanding of our overall results of
operations.
Adjusted Weighted Average Diluted Shares Outstanding
Adjusted weighted average diluted shares outstanding is the same as weighted
average diluted shares outstanding except for periods in which our preferred
stocks are calculated to be dilutive to either net earnings attributable to
common shareholders or adjusted net earnings attributable to common
shareholders, but not both, or there is a net earnings loss attributable to
common shareholders on a GAAP basis, but positive adjusted net earnings
attributable to common shareholders using the non-GAAP measure. The above
exceptions are made to include relevant diluted shares when dilution occurs
and exclude relevant diluted shares when dilution does not occur for adjusted
net earnings attributable to common shareholders.
Management considers this non-GAAP financial measure to be useful internally
and for investors and analysts to assess the level of return driven by the
Company that is available to common shareholders.
Adjusted Net Earnings attributable to common shareholders per Diluted Share
Adjusted net earnings attributable to common shareholders per diluted share is
calculated as adjusted net earnings plus preferred stock dividend (if the
preferred stock has created dilution). This sum is then divided by the
adjusted weighted-average diluted shares outstanding.
Management considers this non-GAAP financial measure to be useful internally
and for investors and analysts to assess the level of return driven by the
Company that is available to common shareholders.
Adjusted Return on Assets attributable to Common Shareholders
Adjusted return on assets attributable to common shareholders is calculated by
dividing year-to-date annualized adjusted net earnings attributable to common
shareholders by year-to-date AAUM. Return on assets is comprised of net
investment income, less cost of funds, flow reinsurance fee income, owned
distribution margin and less expenses (including operating expenses, interest
expense and income taxes) consistent with our adjusted net earnings definition
and related adjustments. Cost of funds includes liability costs related to
cost of crediting as well as other liability costs. Management considers this
non-GAAP financial measure to be useful internally and to investors and
analysts when assessing financial performance and profitability earned on
AAUM.
Adjusted Return on Average Common Shareholder Equity, excluding AOCI
Adjusted return on average common shareholder equity is calculated by dividing
the rolling four quarters adjusted net earnings attributable to common
shareholders, by total average F&G equity attributable to common shareholders,
excluding AOCI. Average equity attributable to common shareholders, excluding
AOCI for the twelve month rolling period is the average of 5 points throughout
the period. Since AOCI fluctuates from quarter to quarter due to unrealized
changes in the fair value of available for sale investments, changes in
instrument-specific credit risk for market risk benefits and discount rate
assumption changes for the future policy benefits, management considers this
non-GAAP financial measure to be a useful internally and for investors and
analysts to assess the level return driven by the Company's adjusted
earnings.
Assets Under Management (AUM)
AUM is comprised of the following components and is reported net of
reinsurance assets ceded in accordance with GAAP:
(i) total invested assets at amortized cost, excluding investments in
unconsolidated affiliates, owned distribution and derivatives;
(ii) investments in unconsolidated affiliates at carrying value;
(iii) related party loans and investments;
(iv) accrued investment income;
(v) the net payable/receivable for the purchase/sale of investments; and
(vi) cash and cash equivalents excluding derivative collateral at the end
of the period.
Management considers this non-GAAP financial measure to be useful internally
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