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F&G Annuities & Life's Impressive Third Quarter Results for 2025

F&G Annuities & Life, Inc., a prominent player in the insurance sector, recently unveiled its financial performance for the third quarter of 2025, reporting remarkable growth in various facets of its business. With a focus on providing insurance solutions to retail annuity and life customers, as well as institutional clients, the company experienced a substantial recovery in net earnings, marking a notable turnaround from the previous year.

Key Financial Highlights

For the third quarter of 2025, F&G reported net earnings attributable to common shareholders of $114 million, translating to $0.85 per diluted share. This is a significant improvement compared to a net loss of $10 million, or $0.08 per share, during the same period in 2024. The increase in net earnings was bolstered by improved market conditions and strong demand for their offerings.

Adjusted net earnings, which exclude certain unfavorable effects, stood at $165 million, with earnings per share remaining constant at $1.22, similar to the third quarter of 2024. This framing highlights the strong underlying performance of the firm, despite facing challenges in investment income and market fluctuations.

Record Assets Under Management

One of the standout achievements in Q3 2025 was the record assets under management (AUM), which reached $71.4 billion, a 14% increase from $62.9 billion in the same quarter last year. This growth resulted from strong sales across all distribution channels, underscoring the positive response from consumers towards F&G's products. The retained AUM amounting to $56.6 billion also reflects a strong investor confidence in their offerings.

Sales Performance

Gross sales reached $4.2 billion, an increase of 8% over the equivalent figure in 2024, driven by favorable market conditions and a robust demand for retirement savings products. Notably, core sales—a measure of the firm’s fundamental product offerings—were approximately $2.2 billion, which reflects the overall health of the business in areas such as indexed annuities and pension risk transfer sales.

Opportunistic sales also showed impressive growth, totaling $2.0 billion for the quarter, which included multi-year guaranteed annuities and other funding agreements. This diversification in sales strategy has proven beneficial, allowing the firm to seize market opportunities effectively.

Investment Portfolio Performance

The company's investment portfolio has demonstrated excellent credit performance. 96% of fixed maturity investments are rated as investment grade, indicating a solid alignment with the company's liability profile. Importantly, the average credit-related impairments were just 6 basis points over the past five years, maintaining stability throughout the period.

The reported adjusted return on assets for the third quarter was 87 basis points, aligning closely with previous quarters, showcasing how effectively the company has managed its investment strategies amid a complex financial landscape.

Focus on Growth and Capital Management

In addition to focusing on organic growth, F&G has prioritized the return of capital to shareholders, distributing $33 million in dividends during the quarter. The launch of a new reinsurance vehicle in August 2025 is another strategic move by the company to enhance its capabilities with an anticipated capital dedication of about $1 billion.

Chris Blunt, CEO of F&G, expressed optimism about the future, stating, "We delivered outstanding third quarter results highlighted by record assets under management, fueled by robust sales. Our disciplined approach to managing expenses ensures our continued ability to achieve efficiency and scale."

Conclusion

F&G Annuities & Life’s third quarter report for 2025 reflects a strong positioning within the insurance sector. The company showed resilience through effective management strategies, focused product offerings, and solid investment performance. As it continues on the path toward its medium-term growth targets, F&G remains committed to enhancing shareholder value while delivering comprehensive solutions to its customers.

As F&G prepares to host an earnings conference call with the investment community on November 7, 2025, stakeholders will surely look forward to further insights on the company's performance and strategic direction.

F&G Annuities & Life's headquarters is based in Des Moines, Iowa, focusing on leveraging its market position as a major provider of insurance solutions aimed at meeting the evolving needs of its clients.