F&G Annuities & Life Announces Q1 2025 Financial Performance with Mixed Results
F&G Annuities & Life Reports First Quarter 2025 Results
On May 7, 2025, F&G Annuities & Life, Inc. (NYSE: FG) unveiled its financial outcomes for the first quarter that concluded on March 31, 2025. The company, recognized as a leading provider of insurance solutions, caters to both retail and institutional clients within the annuity and life sectors. Here’s a detailed overview of the financial highlights.
Financial Overview
The reported results show a significant net loss of $25 million, translating to a loss of $0.20 per diluted share, a stark contrast to the net earnings of $111 million or $0.88 per share reported in Q1 2024. The first quarter's downturn was primarily influenced by unfavorable mark-to-market effects amounting to $105 million and other adverse factors totaling $11 million—both excluded from adjusted net earnings. Conversely, Q1 2024 encapsulated more favorable conditions with net favorable mark-to-market effects of $17 million and $14 million worth of other unfavorable items, too excluded from the adjusted calculations.
F&G registered adjusted net earnings of $91 million, equating to $0.72 per share for the first quarter, which, while lower than the $108 million ($0.86 per share) achieved in the previous year, indicates persistent profitability in adjusted terms. Notably, these adjusted figures reflect substantial income, expense elements, and returns from alternative investments.
Growth in Assets Under Management
Despite the challenges, F&G reported record assets under management (AUM) of $67.4 billion, demonstrating a robust 16% increase from $58 billion in Q1 2024. This includes retained AUM, which stood at $54.5 billion, up from $49.8 billion a year earlier. The growth in AUM can be attributed to strong indexed annuity sales, with gross sales reported at $2.9 billion and net sales at $2.2 billion.
These metrics underscore the firm’s solid foundation, as commented by CEO Chris Blunt, who emphasized F&G's commitment to focusing on organic growth while strategically allocating capital in higher-return segments. The company returned $30 million to shareholders through common and preferred dividends during the quarter, reaffirming its dedication to shareholder value.
Investment Portfolio Performance
The investment portfolio reflected strong credit performance with 96% of fixed maturities classified as investment-grade. The conservative positioning of the portfolio enables resilience under diverse economic conditions, with credit-related impairments maintaining a low average of 6 basis points over the last five years, and just 2 basis points in Q1 2025.
While the adjusted return on assets (ROA) was recorded at 0.68% for the quarter, a dip from both last year’s figure and the trailing twelve months’ rate of 1.00%, F&G showed an impressive adjusted return on equity (ROE) of 9.7%, appreciably higher than 7.4% reported in Q1 2024.
Future Outlook
Following a public offering of 8 million common shares aimed at bolstering capital for future organic growth ventures, F&G is optimistic about maintaining its upward trajectory. The proceeds from this offering, totaling nearly $269 million, further strengthen its financial flexibility amid fluctuating market conditions. The majority shareholder, Fidelity National Financial, Inc., continues to hold a significant stake in F&G, reinforcing its long-term commitment to the company.
The significant challenges faced in Q1 2025 will require astute management moving forward, but F&G’s capital strategy and commitment to customer service support solid expectations for future performance.
In summary, while the challenges faced in Q1 2025 led to a net loss, F&G Annuities & Life continues to demonstrate resilience and adaptability in a competitive market. Record levels of AUM and consistent indexing annuity sales underscore the company's commitment to securing a prosperous future.