#United States #Blackstone #Des Moines #Reinsurance #F&G Annuities

F&G Annuities & Life's Strategic Partnership with a New Reinsurer

F&G Annuities & Life, Inc. (NYSE: FG) has officially announced an exciting new strategic partnership with a reinsurance entity backed by Blackstone-managed funds, marking a significant leap for the company. This collaboration, which came into effect on August 1, 2025, is underpinned by an anticipated capital commitment of around $1 billion. This partnership aims to provide F&G with long-term, on-demand growth capital through a forward flow reinsurance agreement on a quota share basis focused on specific fixed indexed annuity products.

This innovative structure is designed to enhance F&G’s capability to efficiently manage its liabilities while re-insuring a portion of its fixed indexed annuity sales. This approach aligns perfectly with F&G’s strategy of fostering a capital-light business model, which has been core to its operational philosophy.

Chris Blunt, CEO of F&G, expressed immense enthusiasm regarding the opportunity this partnership presents. He stated, "We are very excited for this opportunity that recognizes Blackstone as a trusted partner and enables us to fund a portion of our growth with participation from private, long-term capital providers." This sentiment highlights F&G’s forward-looking approach and its readiness to seize new growth opportunities in the marketplace.

With this strategic collaboration in place, F&G is poised to extend its life and annuity solutions to a broader audience, helping distribution partners cater more effectively to their customers' demands. Moreover, the partnership is anticipated to transition F&G towards a more fee-based model, potentially yielding higher profit margins while simultaneously reducing capital intensity.

As F&G transitions into a framework that is both innovative and sustainable, it is committed to boosting its return on equity over time, reflecting a proactive stance in adapting to market dynamics. Such strategic moves are pivotal for F&G as it navigates the competitive landscape of financial services.

F&G Annuities & Life has secured the expertise of Jefferies as its financial advisor, and Sidley Austin LLP has taken on the role of legal counsel for this significant transaction. These collaborations are critical in fortifying the foundation of this new partnership.

About FG Annuities & Life

F&G Annuities & Life, Inc. is committed to fulfilling the aspirations of Americans by providing a variety of insurance solutions. As a prominent provider of insurance products, F&G serves both retail annuity and life customers as well as institutional clients. Headquartered in Des Moines, Iowa, the company emphasizes stability and innovation in its offerings.

For more information about F&G Annuities & Life and its wide array of insurance solutions, visit www.fglife.com.

Looking Ahead

This recent development not only illustrates F&G’s strategic acumen but also its dedication to adapting and nurturing partnerships that solidify its market position. As F&G embarks on this new venture, it will be insightful to observe how the collaboration with Blackstone-managed funds evolves, and what it means for the future of both the company and its clientele. In times of economic uncertainty, partnerships like this have the potential to reshape industry standards and practices in the insurance sector.