DES MOINES, Iowa, May 6, 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 first quarter ended March 31, 2026.
Net earnings attributable to common shareholders for the first quarter of $244 million, or $1.78 per diluted share (per share), compared with a net loss attributable to common shareholders of $25 million, or $0.20 per share, for the first quarter of 2025. Net earnings for the first quarter included $147 million of net favorable mark-to-market effects and $13 million of other unfavorable items; all of which are excluded from adjusted net earnings. Net loss for the first quarter of 2025 included $105 million of net unfavorable mark-to-market effects and $11 million of other unfavorable items; all of which are excluded from adjusted net earnings.
Adjusted net earnings attributable to common shareholders (adjusted net earnings) for the first quarter were $110 million, or $0.82 per share, compared with $91 million, or $0.72 per share, for the first quarter of 2025. 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 "First Quarter 2026 Results" and "Non-GAAP Measures and Other Information" sections for further explanation.
Company Highlights
-- Generated record assets under management before reinsurance: F&G achieved
record assets under management before reinsurance of $74.5 billion as of
March 31, 2026, an increase of 11% over the first quarter of 2025. This
included retained AUM of $56.4 billion. F&G's gross sales were $3.2
billion and net sales were $2.2 billion for the first 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 3
basis points in the first quarter
-- Reported adjusted return on equity $(ROE)$ ex AOCI and adjusted return on
assets (ROA) include short-term fluctuations in investment income from
alternative investments: Adjusted ROE excluding AOCI was 8.4% and
adjusted ROA was 76 basis points for the first quarter; adjusted ROA of
87 basis points over the last twelve months $(LTM)$ was in line with the
full year 2025
-- Solid balance sheet supports both organic growth and return of capital to
shareholders: During the first quarter, F&G returned $67 million of
capital to shareholders through $38 million of common and preferred
dividends and $29 million to repurchase 1.2 million shares of common
stock. Effective March 13, 2026, the Board of Directors authorized a new
three-year share repurchase program under which F&G may repurchase up to
$100 million of common stock
Chris Blunt, F&G's Chief Executive Officer, commented, "The first quarter was a solid start to the year, highlighted by record assets under management before reinsurance of nearly $75 billion fueled by $3.2 billion of gross sales in the quarter, including $2 billion of core sales from indexed annuities, indexed universal life and pension risk transfer, and $1.2 billion of opportunistic funding agreements and multiyear guaranteed annuities. Our high quality, diversified investment portfolio continues to perform extremely well, including our private origination portfolio, with total credit-related impairments stable and below our pricing assumptions."
Mr. Blunt continued, "Our diversified, self-funding capital model is supported by our annual inforce capital generation and third party capital through our reinsurance sidecar and our strategic flow reinsurance partnerships. Together, these sources of capital provide financial strength and flexibility to invest for growth in our core business, while consistently returning capital to shareholders through dividends and opportunistic share repurchases. During the first quarter, we returned $67 million of capital to shareholders through dividends and opportunistic share repurchases. We are executing on our strategy toward a more fee-based, higher margin and less capital intensive business model to drive long-term growth and shareholder value."
Summary Financial Results(1)
(In millions, except per share data) Three Months Ended
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March 31, 2026 March 31, 2025
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Gross sales $ 3,173 $ 2,902
Net sales $ 2,245 $ 2,181
Assets under management (AUM) $ 56,436 $ 54,546
Average assets under management $(AAUM)$ YTD $ 57,905 $ 53,877
AUM before reinsurance $ 74,454 $ 67,398
Adjusted return on assets 0.76 % 0.68 %
Adjusted return on average equity (ex. AOCI) 8.4 % 9.7 %
Net earnings (loss) $ 244 $ (25)
Net earnings (loss) per share $ 1.78 $ (0.20)
Adjusted net earnings $ 110 $ 91
Adjusted net earnings per share $ 0.82 $ 0.72
Book value per common share $ 32.75 $ 30.47
Book value per common share, excluding AOCI $ 46.51 $ 43.31
First Quarter 2026 Results
Record AUM before reinsurance was $74.5 billion as of March 31, 2026, an increase of 11% over $67.4 billion at the end of the first quarter of 2025. This included AUM of $56.4 billion as of March 31, 2026, an increase of 3% over $54.5 billion at the end of the first quarter of 2025; retained AUM was reduced by $1.8 billion inforce block ceded with the F&G Life Re Ltd sale in the first quarter of 2026. A rollforward of AUM can be found in the "Non-GAAP Measures and Other Information" section of this release.
Gross sales were $3.2 billion for the first quarter, compared with $2.9 billion for the first quarter of 2025; reflects continued strong demand for retirement savings products.
Core sales were $2.0 billion for the first quarter, compared with $1.8 billion for the first quarter of 2025; reflects higher core retail indexed annuity and indexed universal life and pension risk transfer sales.
Opportunistic sales were $1.2 billion for the first quarter, compared with $1.1 billion for the first quarter of 2025; reflects higher funding agreements, partially offset by lower multiyear guaranteed annuities sales. Opportunistic volumes vary quarter to quarter depending on economics and market opportunity.
Net sales were $2.2 billion for the first quarter, in line with the first quarter of 2025; reflects flow reinsurance in line with capital targets for multiyear guaranteed annuities and fixed indexed annuities.
Adjusted net earnings were $110 million, or $0.82 per share, for the first quarter, compared with $91 million, or $0.72 per share, for the first quarter of 2025. Adjusted net earnings include significant income and expense items, as well as alternative investment portfolio short-term returns that differ from long-term return expectations.
-- Effective January 1, 2026, our presentation of investment income from
alternative investments does not include fixed income assets. Prior
periods are presented on a comparable basis to reflect the new definition
of investment income from alternative investments.
-- Adjusted net earnings of $110 million, or $0.82 per share, for the first
quarter of 2026 included $5 million, or $0.03 per share, of expense from
investment and other income true-up adjustments. Investment income from
alternative investments was $44 million, or $0.32 per share, below the
midpoint of management's long-term expected return of approximately 12%
to 14%
-- Adjusted net earnings of $91 million, or $0.72 per share, for the first
quarter of 2025 included $16 million, or $0.12 per share, of income from
a reinsurance true-up adjustment. Investment income from alternative
investments was $45 million, or $0.35 per share, below the midpoint of
management's long-term expected return of approximately 12% to 14%
As compared with 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.
(1) See definition of non-GAAP measures below
Capital and Liquidity Highlights
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