F&G Annuities & Life Inc.
05/06/2026 | Press release | Distributed by Public on 05/06/2026 14:40
1Q26 Financial Supplement(Excel)
1Q2026 Financial Supplement
| Exhibit 99.2 |
| Quarterly Financial Supplement |
| First Quarter 2026 |
| The financial statements and financial exhibits included herein are unaudited. These financial statements and exhibits should be read in conjunction with the Company's periodic reports on Form 10-K, Form 10-Q and Form 8-K as applicable. All dollar amounts are presented in millions except for per share amounts. |
Table of Contents
| F&G Annuities & Life, Inc. | |
| Financial Supplement - March 31, 2026 | |
| Financial Results | |
| Financial Highlights | 1 |
| Consolidated Statements of Operations (GAAP) | 2 |
| Reconciliation of Net Earnings (Loss) to Adjusted Net Earnings Attributable to Common Shareholders | 3 |
| Adjusted Net Earnings - Significant Income and Expense Items | 4 |
| Adjusted Return on Assets | 5 |
| Assets Under Management Rollforward and Average Assets Under Management | 6 |
| Interest and Investment Income and Yield | 6 |
| Consolidated Balance Sheets (GAAP) | 7 |
| Capitalization | 8 |
| Return on Equity Attributable to Common Shareholders | 8 |
| Investment Summary | |
| Summary of Invested Assets by Asset Class | 9 |
| Credit Quality of Fixed Maturity Securities, Asset-Backed Securities and Collateral Loan Obligations and Loan-Backed Private Originations | 10 |
| Product Summary | |
| GAAP Net Reserve Summary | 11 |
| Annuity Account Balance Rollforward | 11 |
| Annuity Liability Characteristics | 12 |
| Top 5 Reinsurers | 12 |
| Additional Information | |
| Ratings Overview | 13 |
| Shareholder Information | 14 |
| Non-GAAP Reconciliations | 15 |
| Non-GAAP Measures Definitions | 17 |
1. Financial Highlights
| F&G Annuities & Life, Inc. | |||||||||||||||
| Financial Supplement - March 31, 2026 | |||||||||||||||
| Financial Highlights | |||||||||||||||
| Three months ended | Year ended | ||||||||||||||
| March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | December 31, 2025 | December 31, 2024 | |||||||||
| SELECTED CONSOLIDATED STATEMENT OF OPERATIONS DATA | |||||||||||||||
| Net earnings (loss) attributable to F&G | $ 248 | $ 128 | $ 118 | $ 40 | $ (21) | $ 265 | $ 639 | ||||||||
| Net earnings (loss) attributable to common shareholders | 244 | 124 | 114 | 35 | (25) | 248 | 622 | ||||||||
| Net earnings (loss) attributable to common shareholders per diluted share ² | 1.78 | 0.92 | 0.85 | 0.26 | (0.20) | 1.88 | 4.88 | ||||||||
| Weighted-average diluted shares outstanding (in millions) | 139 | 139 | 139 | 134 | 126 | 132 | 131 | ||||||||
| RELATED NON-GAAP MEASURES ¹ | |||||||||||||||
| Adjusted net earnings attributable to common shareholders | 110 | 123 | 165 | 103 | 91 | 482 | 546 | ||||||||
| Adjusted net earnings attributable to common shareholders per diluted share ² | 0.82 | 0.91 | 1.22 | 0.77 | 0.72 | 3.64 | 4.30 | ||||||||
| Adjusted weighted-average diluted shares outstanding (in millions) | 139 | 139 | 139 | 134 | 132 | 137 | 131 | ||||||||
| Adjusted return on assets attributable to common shareholders | 0.76 % | 0.87 % | 0.87 % | 0.71 % | 0.68 % | 0.87 % | 1.06 % | ||||||||
| Adjusted return on average common shareholder equity, excluding AOCI | 8.4 % | 8.2 % | 8.8 % | 8.8 % | 9.7 % | 8.2 % | 10.3 % | ||||||||
| SELECTED CONSOLIDATED BALANCE SHEET DATA | |||||||||||||||
| Total assets | 101,031 | 98,430 | 96,137 | 91,816 | 88,007 | 98,430 | 84,931 | ||||||||
| Total liabilities | 96,282 | 93,513 | 91,197 | 87,259 | 83,522 | 93,513 | 80,855 | ||||||||
| Total equity | 4,749 | 4,917 | 4,940 | 4,557 | 4,485 | 4,917 | 4,076 | ||||||||
| Total equity, excluding AOCI | 6,592 | 6,405 | 6,316 | 6,227 | 6,219 | 6,405 | 5,999 | ||||||||
| Common shares outstanding (in millions) | 134 | 136 | 135 | 135 | 135 | 136 | 127 | ||||||||
| RELATED NON-GAAP MEASURES ¹ | |||||||||||||||
| Total F&G equity attributable to common shareholders, excluding AOCI | 6,232 | 6,042 | 5,950 | 5,858 | 5,847 | 6,042 | 5,624 | ||||||||
| Book value per common share | 32.75 | 33.49 | 33.88 | 31.02 | 30.47 | 33.49 | 29.14 | ||||||||
| Book value per common share, excluding AOCI | 46.51 | 44.43 | 44.07 | 43.39 | 43.31 | 44.43 | 44.28 | ||||||||
| Assets under management ("AUM") | 56,436 | 57,574 | 56,647 | 55,565 | 54,546 | 57,574 | 53,817 | ||||||||
| Average assets under management ("AAUM") YTD | 57,905 | 55,384 | 54,870 | 54,521 | 53,877 | 55,384 | 51,574 | ||||||||
| AUM before reinsurance | 74,454 | 73,090 | 71,430 | 69,161 | 67,398 | 73,090 | 65,274 | ||||||||
| SALES ¹ | |||||||||||||||
| Indexed annuities ("FIA/RILA") | $ 1,579 | $ 1,876 | $ 1,665 | $ 1,701 | $ 1,461 | $ 6,703 | $ 6,729 | ||||||||
| Indexed universal life ("IUL") | 44 | 53 | 41 | 53 | 43 | 190 | 166 | ||||||||
| Pension risk transfer ("PRT") | 317 | 832 | 538 | 445 | 311 | 2,126 | 2,242 | ||||||||
| Subtotal: Core sales | 1,940 | 2,761 | 2,244 | 2,199 | 1,815 | 9,019 | 9,137 | ||||||||
| Fixed rate annuities ("MYGA") | 183 | 356 | 969 | 1,907 | 562 | 3,794 | 5,105 | ||||||||
| Funding agreements ("FABN/FHLB") | 1,050 | 275 | 1,025 | - | 525 | 1,825 | 1,020 | ||||||||
| Subtotal: Opportunistic sales ³ | 1,233 | 631 | 1,994 | 1,907 | 1,087 | 5,619 | 6,125 | ||||||||
| Gross sales | 3,173 | 3,392 | 4,238 | 4,106 | 2,902 | 14,638 | 15,262 | ||||||||
| Sales attributable to flow reinsurance to third parties ⁴ | (928) | (1,088) | (1,438) | (1,362) | (721) | (4,609) | (4,691) | ||||||||
| Net sales | $ 2,245 | $ 2,304 | $ 2,800 | $ 2,744 | $ 2,181 | $ 10,029 | $ 10,571 | ||||||||
| ¹ Refer to "Non-GAAP Reconciliations" and "Non-GAAP Measures Definitions" in the additional information section. | |||||||||||||||
| ² For time periods when preferred stock is dilutive, the weighted average number of diluted shares includes assumed issuance of common shares upon conversion of the preferred stock; additionally, the preferred stock dividends are not deducted from net earnings (loss) or adjusted net earnings (loss). | |||||||||||||||
| ³ Opportunistic sales volumes fluctuate quarter to quarter depending on economics and market opportunity as we prioritize allocating capital to the highest return opportunities. | |||||||||||||||
| ⁴ Sales attributable to flow reinsurance to third parties includes the reinsurance sidecar. |
2. Statements of Operations
| F&G Annuities & Life, Inc. | |||||||||||||||
| Financial Supplement - March 31, 2026 | |||||||||||||||
| Consolidated Statements of Operations (GAAP) | |||||||||||||||
| Three months ended | Year ended | ||||||||||||||
| March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | December 31, 2025 | December 31, 2024 | |||||||||
| Revenues | |||||||||||||||
| Life insurance premiums and other fees | $ 479 | $ 987 | $ 711 | $ 608 | $ 489 | $ 2,795 | $ 2,860 | ||||||||
| Interest and investment income | 723 | 741 | 748 | 682 | 666 | 2,837 | 2,719 | ||||||||
| Owned distribution revenues | 17 | 26 | 24 | 23 | 16 | 89 | 81 | ||||||||
| Recognized gains and (losses), net | (32) | 11 | 211 | 51 | (263) | 10 | 84 | ||||||||
| Total revenues | 1,187 | 1,765 | 1,694 | 1,364 | 908 | 5,731 | 5,744 | ||||||||
| Benefits and expenses | |||||||||||||||
| Benefits and other changes in policy reserves | 484 | 1,265 | 1,181 | 993 | 524 | 3,963 | 3,791 | ||||||||
| Market risk benefit losses (gains) | 73 | 19 | 43 | (4) | 109 | 167 | (25) | ||||||||
| Depreciation and amortization | 173 | 174 | 180 | 158 | 153 | 665 | 569 | ||||||||
| Personnel costs | 60 | 70 | 79 | 77 | 67 | 293 | 296 | ||||||||
| Other operating expenses | 33 | 35 | 38 | 42 | 41 | 156 | 203 | ||||||||
| Interest expense | 41 | 41 | 42 | 41 | 40 | 164 | 132 | ||||||||
| Total benefits and expenses | 864 | 1,604 | 1,563 | 1,307 | 934 | 5,408 | 4,966 | ||||||||
| Earnings (loss) before income taxes | 323 | 161 | 131 | 57 | (26) | 323 | 778 | ||||||||
| Income tax expense (benefit) | 74 | 31 | 11 | 15 | (5) | 52 | 136 | ||||||||
| Net earnings (loss) | 249 | 130 | 120 | 42 | (21) | 271 | 642 | ||||||||
| Less: Non-controlling interests | 1 | 2 | 2 | 2 | - | 6 | 3 | ||||||||
| Net earnings (loss) attributable to F&G | 248 | 128 | 118 | 40 | (21) | 265 | 639 | ||||||||
| Less: Preferred stock dividend | 4 | 4 | 4 | 5 | 4 | 17 | 17 | ||||||||
| Net earnings (loss) attributable to F&G common shareholders | $ 244 | $ 124 | $ 114 | $ 35 | $ (25) | $ 248 | $ 622 | ||||||||
| Net earnings (loss) attributable to F&G common shareholders per common share | |||||||||||||||
| Basic | $ 1.83 | $ 0.93 | $ 0.86 | $ 0.26 | $ (0.20) | $ 1.89 | $ 4.98 | ||||||||
| Diluted | $ 1.78 | $ 0.92 | $ 0.85 | $ 0.26 | $ (0.20) | $ 1.88 | $ 4.88 | ||||||||
| Weighted average common shares used in computing net earnings (loss) per common share | |||||||||||||||
| Basic | 133 | 133 | 133 | 133 | 126 | 131 | 125 | ||||||||
| Diluted | 139 | 139 | 139 | 134 | 126 | 132 | 131 |
3. Recon of NE to ANE
| F&G Annuities & Life, Inc. | |||||||||||||||
| Financial Supplement - March 31, 2026 | |||||||||||||||
| Reconciliation of Net Earnings (loss) to Adjusted Net Earnings Attributable to Common Shareholders ¹ | |||||||||||||||
| Three months ended | Year ended | ||||||||||||||
| March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | December 31, 2025 | December 31, 2024 | |||||||||
| Net earnings (loss) attributable to F&G | $ 248 | $ 128 | $ 118 | $ 40 | $ (21) | $ 265 | $ 639 | ||||||||
| 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 | 34 | 7 | 10 | 12 | 15 | 44 | (76) | ||||||||
| Change in allowance for expected credit losses | (1) | 14 | (1) | 19 | 22 | 54 | 32 | ||||||||
| Change in fair value of reinsurance related embedded derivatives | (219) | (23) | 60 | 61 | 41 | 139 | 33 | ||||||||
| Change in fair value of other derivatives and embedded derivatives | 23 | 6 | (1) | (13) | (49) | (57) | 38 | ||||||||
| Recognized (gains) losses, net | (163) | 4 | 68 | 79 | 29 | 180 | 27 | ||||||||
| Market related liability adjustments | (37) | (22) | (37) | (16) | 103 | 28 | (214) | ||||||||
| Purchase price amortization | 15 | 18 | 29 | 18 | 15 | 80 | 84 | ||||||||
| Transaction costs, other and non-recurring items | 5 | 1 | 6 | 8 | 1 | 16 | 16 | ||||||||
| Non-controlling interest | (2) | (3) | (2) | (2) | (2) | (9) | (10) | ||||||||
| Income taxes adjustment | 48 | 1 | (13) | (19) | (30) | (61) | 21 | ||||||||
| Adjusted net earnings | 114 | 127 | 169 | 108 | 95 | 499 | 563 | ||||||||
| Less: Preferred stock dividend | 4 | 4 | 4 | 5 | 4 | 17 | 17 | ||||||||
| Adjusted net earnings attributable to common shareholders ¹ ² | $ 110 | $ 123 | $ 165 | $ 103 | $ 91 | $ 482 | $ 546 | ||||||||
| Adjusted net earnings per common share | |||||||||||||||
| Diluted | $ 0.82 | $ 0.91 | $ 1.22 | $ 0.77 | $ 0.72 | $ 3.64 | $ 4.30 | ||||||||
| Weighted average common shares used in computing adjusted net earnings per common share | |||||||||||||||
| Diluted | 139 | 139 | 139 | 134 | 132 | 137 | 131 | ||||||||
| ¹ Refer to "Non-GAAP Measures Definitions" in the additional information section. | |||||||||||||||
| ² Refer to Adjusted Net Earnings - Significant Income and Expense Items on page 4. |
4. ANE Significant Items
| F&G Annuities & Life, Inc. |
| Financial Supplement - March 31, 2026 |
| Adjusted Net Earnings - Significant Income and Expense Items ¹ ² |
| Each reporting period, we identify significant income and expense items that help explain the trends in our adjusted net earnings, as we believe these items provide further clarity to the financial performance of the business. Those significant income and expense items are reported after taxes. |
| Three months ended |
| March 31, 2026 |
| Adjusted net earnings of $110 million for the three months ended March 31, 2026 included expense from $5 million of investment and other income true-up adjustments. Investment income from alternative investments was $44 million below the midpoint of management's long-term expected return of approximately 12% to 14%. |
| December 31, 2025 |
| Adjusted net earnings of $123 million for the three months ended December 31, 2025. Investment income from alternative investments was $51 million below the midpoint of management's long-term expected return of approximately 12% to 14%. |
| September 30, 2025 |
| Adjusted net earnings of $165 million for the three months ended September 30, 2025 included income from $10 million tax valuation allowance benefit and $4 million of actuarial reserve release. Investment income from alternative investments was $53 million below the midpoint of management's long-term expected return of approximately 12% to 14%. |
| June 30, 2025 |
| Adjusted net earnings of $103 million for the three months ended June 30, 2025. Investment income from alternative investments was $67 million below the midpoint of management's long-term expected return of approximately 12% to 14%. |
| March 31, 2025 |
| Adjusted net earnings of $91 million for the three months ended March 31, 2025 included income from a $16 million reinsurance true-up adjustment. Investment income from alternative investments was $45 million below the midpoint of management's long-term expected return of approximately 12% to 14%. |
| Year ended |
| December 31, 2025 |
| Adjusted net earnings of $482 million for the year ended December 31, 2025 included income from a $16 million reinsurance true-up adjustment, $10 million tax valuation allowance benefit, and $4 million of actuarial reserve release. Investment income from alternative investments was $216 million below the midpoint of management's long-term expected return of approximately 12% to 14%. |
| December 31, 2024 |
| Adjusted net earnings of $546 million for the year ended December 31, 2024 included expense from $30 million of actuarial model updates and refinements; partially offset by income from a $14 million tax valuation allowance and $6 million of other income items. Investment income from alternative investments was $145 million below the midpoint of management's long-term expected return of approximately 12% to 14%. |
| ¹ Refer to Reconciliation of net earnings (loss) to adjusted net earnings attributable to common shareholders on page 3. |
| ² 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. |
5. Adjusted Return on Assets
| F&G Annuities & Life, Inc. | |||||||||||||||
| Financial Supplement - March 31, 2026 | |||||||||||||||
| Adjusted Return on Assets ¹ | |||||||||||||||
| Annualized year to date | |||||||||||||||
| March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | December 31, 2025 | December 31, 2024 | |||||||||
| Adjusted interest and investment income | $ 2,944 | $ 2,813 | $ 2,765 | $ 2,674 | $ 2,660 | $ 2,944 | $ 2,643 | ||||||||
| Cost of funds | (1,984) | (1,773) | (1,724) | (1,708) | (1,712) | (1,984) | (1,528) | ||||||||
| Product margin | 960 | 1,040 | 1,041 | 966 | 948 | 960 | 1,115 | ||||||||
| Flow reinsurance fee income | 64 | 56 | 55 | 54 | 52 | 64 | 41 | ||||||||
| Owned distribution margin | 36 | 47 | 45 | 42 | 28 | 36 | 46 | ||||||||
| Expenses (operating, interest and taxes) | (604) | (644) | (645) | (656) | (648) | (604) | (639) | ||||||||
| Adjusted net earnings | $ 456 | $ 499 | $ 496 | $ 406 | $ 380 | $ 456 | $ 563 | ||||||||
| Less: Preferred stock dividend | 16 | 17 | 17 | 18 | 16 | 16000000 | 17000000 | ||||||||
| Adjusted net earnings attributable to common shareholders (A) | $ 440 | $ 482 | $ 479 | $ 388 | $ 364 | 440000000 | 546000000 | ||||||||
| AAUM YTD (B) | 57,905 | 55,384 | 54,870 | 54,521 | 53,877 | ||||||||||
| March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | December 31, 2025 | December 31, 2024 | |||||||||
| Adjusted interest and investment income | 5.08 % | 5.08 % | 5.04 % | 4.90 % | 4.94 % | 5.08 % | 5.12 % | ||||||||
| Cost of funds | (3.42)% | (3.20)% | (3.14)% | (3.13)% | (3.18)% | (3.42)% | (2.96)% | ||||||||
| Product margin | 1.66 % | 1.88 % | 1.90 % | 1.77 % | 1.76 % | 1.66 % | 2.16 % | ||||||||
| Flow reinsurance fee income | 0.11 % | 0.10 % | 0.10 % | 0.10 % | 0.10 % | 0.11 % | 0.08 % | ||||||||
| Owned distribution margin | 0.06 % | 0.08 % | 0.08 % | 0.08 % | 0.05 % | 0.06 % | 0.09 % | ||||||||
| Expenses (operating, interest and taxes) | (1.04)% | (1.16)% | (1.18)% | (1.21)% | (1.20)% | (1.04)% | (1.24)% | ||||||||
| Adjusted return on assets | 0.79 % | 0.90 % | 0.90 % | 0.74 % | 0.71 % | 0.79 % | 1.09 % | ||||||||
| Less: Preferred stock dividend | 0.03 % | 0.03 % | 0.03 % | 0.03 % | 0.03 % | 0.03 % | 0.03 % | ||||||||
| Adjusted return on assets attributable to common shareholders (A/B) | 0.76 % | 0.87 % | 0.87 % | 0.71 % | 0.68 % | 0.76 % | 1.06 % | ||||||||
| ¹ Refer to "Non-GAAP Reconciliations" and "Non-GAAP Measures Definitions" in the additional information section. |
6. AUM and Investment Income
| F&G Annuities & Life, Inc. | |||||||||||||||
| Financial Supplement - March 31, 2026 | |||||||||||||||
| Assets Under Management Rollforward and Average Assets Under Management ¹ | |||||||||||||||
| Three months ended | Year ended | ||||||||||||||
| March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | December 31, 2025 | December 31, 2024 | |||||||||
| AUM at beginning of period | $ 57,574 | $ 56,647 | $ 55,565 | $ 54,546 | $ 53,817 | $ 53,817 | $ 49,103 | ||||||||
| Net new business asset flows | 1,364 | 1,660 | 2,269 | 1,763 | 1,790 | 7,482 | 9,169 | ||||||||
| Net flow reinsurance to third parties | (688) | (733) | (1,187) | (744) | (742) | (3,406) | (4,631) | ||||||||
| Net inforce reinsurance to third parties | (1,814) | - | - | - | (653) | (653) | - | ||||||||
| Net capital transaction proceeds (disbursements) | - | - | - | - | 334 | 334 | 176 | ||||||||
| AUM at end of period | $ 56,436 | $ 57,574 | $ 56,647 | $ 55,565 | $ 54,546 | $ 57,574 | $ 53,817 | ||||||||
| AAUM YTD | $ 57,905 | $ 55,384 | $ 54,870 | $ 54,521 | $ 53,877 | $ 55,384 | $ 51,574 | ||||||||
| AUM before reinsurance | $ 74,454 | $ 73,090 | $ 71,430 | $ 69,161 | $ 67,398 | $ 73,090 | $ 65,274 | ||||||||
| Interest and Investment Income and Yield ¹ | |||||||||||||||
| Three months ended | Year ended | ||||||||||||||
| March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | December 31, 2025 | December 31, 2024 | |||||||||
| Adjusted interest and investment income ² | $ 736 | $ 739 | $ 737 | $ 672 | $ 665 | $ 2,813 | $ 2,643 | ||||||||
| AAUM QTD | 57,905 | 56,986 | 55,654 | 55,170 | 53,877 | 55,384 | 51,574 | ||||||||
| Yield on AAUM | 5.08 % | 5.19 % | 5.29 % | 4.87 % | 4.94 % | 5.08 % | 5.12 % | ||||||||
| Less: Alternatives investment income (including short term mark-to-market) ³ ⁶ | 86 | 82 | 76 | 45 | 39 | 242 | 217 | ||||||||
| Less: Variable investment income ⁴ ⁶ | 8 | 7 | 24 | 6 | 19 | 56 | 59 | ||||||||
| Fixed income and other net investment income ² ⁵ ⁶ | $ 642 | $ 650 | $ 637 | $ 621 | $ 607 | $ 2,515 | $ 2,367 | ||||||||
| AAUM QTD, excluding alternative investments | 53,764 | 52,762 | 51,628 | 51,479 | 50,879 | 51,653 | 48,699 | ||||||||
| Yield on AAUM, excluding alternative investments and variable investment income ⁶ | 4.77 % | 4.93 % | 4.93 % | 4.83 % | 4.77 % | 4.87 % | 4.86 % | ||||||||
| ¹ Refer to "Non-GAAP Reconciliations" and "Non-GAAP Measures Definitions" in the additional information section | |||||||||||||||
| ² Reflects interest and investment income on an adjusted net earnings basis. | |||||||||||||||
| ³ Comprised of alternative investment income, which includes mark-to-market movement that is reflected in adjusted net earnings, from certain limited partnerships and other equity interests, including limited liability corporations classified as investments in unconsolidated affiliates and certain company owned life insurance ("COLI") classified as other long-term investments. | |||||||||||||||
| ⁴ Includes significant, non-recurring interest and investment income items, which could include call and tender income, commercial loan obligation redemption gains and other miscellaneous investment income. | |||||||||||||||
| ⁵ Includes interest and investment income from fixed maturity securities, mortgage loans, equity securities, short-term investments, and long-term investments. | |||||||||||||||
| ⁶ 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. |
7. Balance Sheets
| F&G Annuities & Life, Inc. | ||||||||||
| Financial Supplement - March 31, 2026 | ||||||||||
| Consolidated Balance Sheets (GAAP) | ||||||||||
| Assets | March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | |||||
| Investments | ||||||||||
| Fixed maturity securities available for sale, at fair value, net of allowance | $ 52,361 | $ 52,700 | $ 51,601 | $ 50,193 | $ 47,909 | |||||
| Fixed maturity securities, at fair value under fair value option | 93 | - | - | - | - | |||||
| Equity securities, at fair value | 336 | 341 | 352 | 341 | 354 | |||||
| Derivative investments | 889 | 1,148 | 1,222 | 931 | 702 | |||||
| Mortgage loans, net of allowance | 8,459 | 7,891 | 7,391 | 6,940 | 6,366 | |||||
| Investments in unconsolidated affiliates | 5,013 | 4,878 | 4,731 | 4,301 | 4,127 | |||||
| Other long-term investments | 1,288 | 1,294 | 1,022 | 998 | 587 | |||||
| Policy loans | 157 | 147 | 136 | 125 | 115 | |||||
| Short-term investments | 992 | 1,043 | 910 | 760 | 549 | |||||
| Total investments | $ 69,588 | $ 69,442 | $ 67,365 | $ 64,589 | $ 60,709 | |||||
| Cash and cash equivalents | 1,324 | 1,486 | 2,189 | 1,884 | 3,293 | |||||
| Reinsurance recoverable, net of allowance | 19,975 | 17,545 | 16,843 | 15,777 | 14,746 | |||||
| Goodwill | 2,124 | 2,180 | 2,180 | 2,179 | 2,179 | |||||
| Prepaid expenses and other assets | 1,131 | 1,052 | 1,042 | 967 | 904 | |||||
| Other intangible assets, net | 6,406 | 6,275 | 6,097 | 5,943 | 5,721 | |||||
| Market risk benefits asset | 308 | 285 | 242 | 213 | 187 | |||||
| Income taxes receivable | 78 | 83 | 67 | 6 | - | |||||
| Deferred tax asset, net | 97 | 82 | 112 | 258 | 268 | |||||
| Total assets | $ 101,031 | $ 98,430 | $ 96,137 | 0 | $ 91,816 | $ 88,007 | ||||
| Liabilities and Equity | ||||||||||
| Contractholder funds | $ 63,474 | $ 62,726 | $ 61,798 | $ 59,813 | $ 57,823 | |||||
| Future policy benefits | 10,748 | 10,755 | 10,055 | 9,463 | 9,065 | |||||
| Market risk benefits liability | 968 | 903 | 830 | 711 | 635 | |||||
| Accounts payable and accrued liabilities | 2,367 | 2,701 | 2,696 | 2,568 | 2,314 | |||||
| Income taxes payable | - | - | - | - | 9 | |||||
| Notes payable | 2,238 | 2,237 | 2,236 | 2,235 | 2,234 | |||||
| Funds withheld for reinsurance liabilities | 16,487 | 14,191 | 13,582 | 12,469 | 11,442 | |||||
| Total liabilities | $ 96,282 | $ 93,513 | $ 91,197 | $ 87,259 | $ 83,522 | |||||
| Equity | ||||||||||
| Preferred stock, at par value | - | - | - | - | - | |||||
| Common stock, at par value | - | - | - | - | - | |||||
| Additional paid-in-capital | 3,773 | 3,764 | 3,755 | 3,747 | 3,741 | |||||
| Retained earnings | 2,778 | 2,568 | 2,478 | 2,394 | 2,389 | |||||
| Accumulated other comprehensive income (loss) ("AOCI") | (1,843) | (1,488) | (1,376) | (1,670) | (1,734) | |||||
| Treasury stock | (69) | (40) | (33) | (33) | (33) | |||||
| Total F&G Annuities & Life, Inc. shareholders' equity | $ 4,639 | $ 4,804 | $ 4,824 | $ 4,438 | $ 4,363 | |||||
| Non-controlling interests | 110 | 113 | 116 | 119 | 122 | |||||
| Total equity | $ 4,749 | $ 4,917 | $ 4,940 | $ 4,557 | $ 4,485 | |||||
| Total liabilities and equity | $ 101,031 | $ 98,430 | 0 | $ 96,137 | $ 91,816 | $ 88,007 |
8. Capitalization and ROE
| F&G Annuities & Life, Inc. | ||||||||||
| Financial Supplement - March 31, 2026 | ||||||||||
| Capitalization ¹ | ||||||||||
| Three months ended | ||||||||||
| March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | ||||||
| Notes payable | $ 2,238 | $ 2,237 | $ 2,236 | $ 2,235 | $ 2,234 | |||||
| Net issuance costs (premium) | 32 | 33 | 34 | 35 | 36 | |||||
| Notes payable (aggregate principal amount) (A) | $ 2,270 | $ 2,270 | $ 2,270 | $ 2,270 | $ 2,270 | |||||
| Total equity | 4,749 | 4,917 | 4,940 | 4,557 | 4,485 | |||||
| Less: AOCI | (1,843) | (1,488) | (1,376) | (1,670) | (1,734) | |||||
| Total equity, excluding AOCI | $ 6,592 | $ 6,405 | $ 6,316 | $ 6,227 | $ 6,219 | |||||
| Total Capitalization, excluding AOCI (B) | $ 8,862 | $ 8,675 | $ 8,586 | $ 8,497 | $ 8,489 | |||||
| Debt-to-Capitalization, excluding AOCI (A/B) | 25.6 % | 26.2 % | 26.4 % | 26.7 % | 26.7 % | |||||
| Return on Equity Attributable to Common Shareholders ¹ | ||||||||||
| Twelve months ended | ||||||||||
| March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | ||||||
| Net earnings (loss) attributable to common shareholders - rolling four quarters (C) | $ 517 | $ 248 | $ 447 | $ 323 | $ 486 | |||||
| Adjusted net earnings attributable to common shareholders - rolling four quarters (D) | 501 | 482 | 502 | 493 | 529 | |||||
| Average F&G equity attributable to common shareholders - 5 point average (E) | 4,364 | 4,226 | 4,134 | 3,901 | 3,722 | |||||
| Less: Average AOCI - 5 point average | (1,622) | (1,638) | (1,587) | (1,702) | (1,745) | |||||
| Average F&G equity attributable to common shareholders, excluding AOCI - 5 point average (F) | $ 5,986 | $ 5,864 | $ 5,721 | $ 5,603 | $ 5,467 | |||||
| Return on average common shareholder equity (C/E) | 11.8 % | 5.9 % | 10.8 % | 8.3 % | 13.1 % | |||||
| Adjusted return on average common shareholder equity, excluding AOCI (D/F) | 8.4 % | 8.2 % | 8.8 % | 8.8 % | 9.7 % | |||||
| ¹ Refer to "Non-GAAP Reconciliations" and "Non-GAAP Measures Definitions" in the additional information section. |
9. Summary of Invested Assets
| F&G Annuities & Life, Inc. | |||||||||||||
| Financial Supplement - March 31, 2026 | |||||||||||||
| Summary of Invested Assets by Asset Class | |||||||||||||
| March 31, 2026 | December 31, 2025 | ||||||||||||
| Amortized Cost | Fair Value | Percent | Amortized Cost | Fair Value | Percent | ||||||||
| Fixed maturity securities, available for sale | |||||||||||||
| United States Government full faith and credit | $ 437 | $ 434 | 1 % | $ 495 | $ 493 | 1 % | |||||||
| United States Government sponsored entities | 122 | 121 | - % | 194 | 196 | - % | |||||||
| United States municipalities, states and territories | 1,546 | 1,330 | 2 % | 1,562 | 1,355 | 2 % | |||||||
| Foreign Governments | 306 | 265 | - % | 292 | 261 | - % | |||||||
| Corporate securities: | |||||||||||||
| Finance, insurance and real estate | 9,863 | 9,295 | 14 % | 9,699 | 9,309 | 14 % | |||||||
| Manufacturing, construction and mining | 1,485 | 1,343 | 2 % | 1,496 | 1,386 | 2 % | |||||||
| Utilities, energy and related sectors | 4,283 | 3,800 | 5 % | 4,098 | 3,681 | 5 % | |||||||
| Wholesale/retail trade | 4,477 | 4,011 | 6 % | 4,124 | 3,732 | 5 % | |||||||
| Services, media and other | 5,927 | 5,059 | 7 % | 5,916 | 5,142 | 8 % | |||||||
| Hybrid securities | 643 | 619 | 1 % | 625 | 609 | 1 % | |||||||
| Non-agency residential mortgage-backed securities | 2,544 | 2,531 | 4 % | 2,646 | 2,649 | 4 % | |||||||
| Commercial mortgage-backed securities | 5,135 | 4,953 | 7 % | 5,298 | 5,155 | 8 % | |||||||
| Asset-backed securities | 8,021 | 7,811 | 11 % | 7,982 | 7,842 | 11 % | |||||||
| Collateral loan obligations and loan-backed private originations | 10,842 | 10,789 | 16 % | 10,865 | 10,890 | 16 % | |||||||
| Total fixed maturity securities, available for sale | $ 55,631 | $ 52,361 | 76 % | $ 55,292 | $ 52,700 | 77 % | |||||||
| Fixed maturity securities, at fair value under fair value option | 92 | 93 | - % | - | - | - % | |||||||
| Equity securities | 419 | 336 | 1 % | 414 | 341 | 1 % | |||||||
| Limited partnerships: (includes alternative investments with a FV of $3,622 and $3,708 for 2026 and 2025, respectively, net of amounts attributable to funds withheld reinsurance agreements) ² | |||||||||||||
| Private equity | 2,196 | 2,196 | 3 % | 2,079 | 2,079 | 3 % | |||||||
| Real assets | 918 | 919 | 1 % | 883 | 886 | 1 % | |||||||
| Credit | 1,638 | 1,638 | 2 % | 1,643 | 1,643 | 2 % | |||||||
| Limited partnerships | 4,752 | 4,753 | 6 % | 4,605 | 4,608 | 6 % | |||||||
| Commercial mortgage loans | 3,515 | 3,303 | 5 % | 3,242 | 3,025 | 4 % | |||||||
| Residential mortgage loans | 4,944 | 4,668 | 7 % | 4,649 | 4,424 | 6 % | |||||||
| Other (primarily derivatives, company owned life insurance and unconsolidated owned distribution investments) (includes alternative investments with a FV of $428 for 2026 and 2025) ² | 2,545 | 2,594 | 4 % | 2,525 | 2,859 | 4 % | |||||||
| Short term investments | 992 | 992 | 1 % | 1,043 | 1,043 | 2 % | |||||||
| Total investments ¹ | $ 72,890 | $ 69,100 | 100 % | $ 71,770 | $ 69,000 | 100 % | |||||||
| Interest and investment income (year to date and net of amounts attributable to funds withheld reinsurance agreements): | |||||||||||||
| Alternative investments 2 | $ 86 | 12 % | $ 242 | 9 % | |||||||||
| All other non-alternative investments | 637 | 88 % | 2,595 | 91 % | |||||||||
| Total | $ 723 | 100 % | $ 2,837 | 100 % | |||||||||
| ¹ Asset duration of 4.4 years and 4.5 years vs. liability duration of 5.1 years and 5.2 years for the periods ending March 31, 2026 and December 31, 2025, respectively. | |||||||||||||
| ² Alternative investments primarily include certain limited partnerships and other equity interests, including limited liability corporations classified as investments in unconsolidated affiliates and certain COLI classified as other long-term investments. |
10. Credit Quality of Inv.
| F&G Annuities & Life, Inc. | ||||||||||
| Financial Supplement - March 31, 2026 | ||||||||||
| Credit Quality of Fixed Maturity Available For Sale ("AFS") Securities | ||||||||||
| March 31, 2026 | ||||||||||
| NRSRO Rating | NAIC Designation | Fair Value | Percent | |||||||
| AAA/AA/A | 1 | $ 32,216 | 62 % | |||||||
| BBB | 2 | 17,665 | 34 % | |||||||
| BB | 3 | 1,707 | 3 % | |||||||
| B | 4 | 473 | 1 % | |||||||
| CCC | 5 | 109 | - % | |||||||
| CC and lower | 6 | 191 | - % | |||||||
| Total | $ 52,361 | 100 % | ||||||||
| Credit Quality of AFS Asset-Backed Securities | ||||||||||
| March 31, 2026 | ||||||||||
| NRSRO Rating | NAIC Designation | Fair Value | Percent | |||||||
| AAA/AA/A | 1 | $ 5,336 | 68 % | |||||||
| BBB | 2 | 2,071 | 27 % | |||||||
| BB | 3 | 188 | 2 % | |||||||
| B | 4 | 55 | 1 % | |||||||
| CCC | 5 | 19 | - % | |||||||
| CC and lower | 6 | 142 | 2 % | |||||||
| Total | $ 7,811 | 100 % | ||||||||
| Credit Quality of AFS Collateral Loan Obligations and Loan-Backed Private Originations | ||||||||||
| March 31, 2026 | ||||||||||
| NRSRO Rating | NAIC Designation | Fair Value | Percent | |||||||
| AAA/AA/A | 1 | $ 7,368 | 68 % | |||||||
| BBB | 2 | 2,385 | 22 % | |||||||
| BB | 3 | 803 | 8 % | |||||||
| B | 4 | 207 | 2 % | |||||||
| CCC | 5 | - | - % | |||||||
| CC and lower | 6 | 26 | - % | |||||||
| Total | $ 10,789 | 100 % |
11. Reserve Summary
| F&G Annuities & Life, Inc. | |||||||||||||||
| Financial Supplement - March 31, 2026 | |||||||||||||||
| GAAP Net Reserve Summary 1 | |||||||||||||||
| Three months ended | Year ended | ||||||||||||||
| March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | December 31, 2025 | December 31, 2024 | |||||||||
| Indexed annuities | $ 28,925 | $ 30,966 | $ 30,831 | $ 30,665 | $ 30,139 | $ 30,966 | $ 29,953 | ||||||||
| Fixed rate annuities | 6,142 | 6,404 | 6,623 | 6,661 | 5,880 | 6,404 | 6,434 | ||||||||
| Single premium immediate annuity and other | 1,483 | 1,521 | 1,555 | 1,549 | 1,562 | 1,521 | 1,564 | ||||||||
| Indexed universal and other life | 3,380 | 3,304 | 3,203 | 3,053 | 2,899 | 3,304 | 2,812 | ||||||||
| Funding agreements | 6,785 | 6,234 | 6,011 | 5,284 | 5,737 | 6,234 | 5,315 | ||||||||
| Pension risk transfer | 8,192 | 8,125 | 7,375 | 6,785 | 6,373 | 8,125 | 6,066 | ||||||||
| Total product reserves | $ 54,907 | $ 56,554 | $ 55,598 | $ 53,997 | $ 52,590 | $ 56,554 | $ 52,144 | ||||||||
| Annuity Account Balance Rollforward ² | |||||||||||||||
| Three months ended | Year ended | ||||||||||||||
| March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | December 31, 2025 | December 31, 2024 | |||||||||
| Annuity balances at beginning of period: | $ 36,109 | $ 36,174 | $ 36,359 | $ 35,281 | $ 35,553 | $ 35,553 | $ 32,967 | ||||||||
| Net deposits | |||||||||||||||
| Indexed annuities | 774 | 1,043 | 778 | 1,298 | 1,070 | 4,189 | 5,828 | ||||||||
| Fixed rate annuities | 52 | 112 | 377 | 1,075 | 204 | 1,768 | 1,275 | ||||||||
| Total net deposits | 826 | 1,155 | 1,155 | 2,373 | 1,274 | 5,957 | 7,103 | ||||||||
| Surrenders, withdrawals, deaths, etc. | |||||||||||||||
| Indexed annuities | (1,034) | (1,121) | (1,106) | (1,109) | (968) | (4,304) | (4,320) | ||||||||
| Fixed rate annuities | (370) | (403) | (494) | (374) | (159) | (1,430) | (1,141) | ||||||||
| Total surrenders, withdrawals, deaths, etc. | (1,404) | (1,524) | (1,600) | (1,483) | (1,127) | (5,734) | (5,461) | ||||||||
| Net flows | (578) | (369) | (445) | 890 | 147 | 223 | 1,642 | ||||||||
| Premium and interest bonuses | 29 | 34 | 31 | 28 | 26 | 119 | 98 | ||||||||
| Fixed interest credited and index credits | 298 | 327 | 276 | 216 | 253 | 1,072 | 1,042 | ||||||||
| Guaranteed product rider fees | (51) | (57) | (47) | (56) | (51) | (211) | (196) | ||||||||
| Ceded inforce reinsurance transactions | (1,827) | - | - | - | (647) | (647) | - | ||||||||
| Account balance at end of period | $ 33,980 | $ 36,109 | $ 36,174 | $ 36,359 | $ 35,281 | $ 36,109 | $ 35,553 | ||||||||
| ¹ Periods prior to March 31, 2026 have been recast to reflect an update to include MRB assets, inclusive of reinsured MRB assets. | |||||||||||||||
| ² The rollforward reflects the vested account balance of our indexed annuities and fixed rate annuities, net of reinsurance. |
12. Annuity Liability Char.
| F&G Annuities & Life, Inc. | |||||||
| Financial Supplement - March 31, 2026 | |||||||
| Annuity Liability Characteristics | |||||||
| March 31, 2026 | |||||||
| Surrender Charge Percentages: | Fixed Rate Annuities Account Value | Indexed Annuities Account Value | |||||
| No surrender charge | $ 380 | $ 2,046 | |||||
| 0.0% < 2.0% | 17 | 449 | |||||
| 2.0% < 4.0% | 142 | 1,802 | |||||
| 4.0% < 6.0% | 669 | 2,877 | |||||
| 6.0% < 8.0% | 1,848 | 5,307 | |||||
| 8.0% < 10.0% | 2,796 | 9,020 | |||||
| 10.0% or greater | - | 6,627 | |||||
| $ 5,852 | $ 28,128 | ||||||
| March 31, 2026 | |||||||
| Credited Rate (Including Bonus Interest) vs. Ultimate Minimum Guaranteed Rate Differential: | Fixed Rate Annuities Account Value | Indexed Annuities Account Value | |||||
| No differential | $ 377 | $ 1,087 | |||||
| 0.0% - 1.0% | 64 | 792 | |||||
| 1.0% - 2.0% | 797 | 659 | |||||
| 2.0% - 3.0% | 849 | 499 | |||||
| 3.0% - 4.0% | 529 | 380 | |||||
| 4.0% - 5.0% | 2,875 | 5 | |||||
| 5.0% - 6.0% | 361 | - | |||||
| Allocated to index strategies | - | 24,706 | |||||
| $ 5,852 | $ 28,128 | ||||||
| Top 5 Reinsurers | |||||||
| March 31, 2026 | |||||||
| Financial Strength Rating | |||||||
| Parent Company/Principal Reinsurers | Reinsurance Recoverable ¹ | AM Best | S&P | Fitch | Moody's | ||
| Aspida ² | $ 8,522 | A- | - | - | - | ||
| Somerset Reinsurance Ltd. | 5,607 | A | BBB+ | - | - | ||
| Everlake Life Insurance Company | 1,875 | A | - | - | - | ||
| Ancient Re Ltd. | 1,735 | - | - | - | - | ||
| Wilton Reassurance Co. | 1,026 | A+ | - | A- | - | ||
| ¹ Reinsurance recoverables do not include unearned ceded premiums that would be recovered in the event of early termination of certain traditional life policies. | |||||||
| ² The balance includes Aspida Life Re Ltd. and Aspida Re Cayman Ltd. | |||||||
| '-' indicates not rated |
13. Ratings Overview
| F&G Annuities & Life, Inc. | ||||||||
| Financial Supplement - March 31, 2026 | ||||||||
| Ratings Overview | ||||||||
| A.M. Best | S&P | Fitch | Moody's | |||||
| Holding Company and Security Ratings | ||||||||
| F&G Annuities & Life, Inc. | ||||||||
| Issuer Credit / Default Rating | Not Rated | BBB- | BBB | Baa3 | ||||
| Outlook | Stable | Stable | Stable | |||||
| Senior Unsecured Notes | Not Rated | BBB- | BBB- | Baa3 | ||||
| Junior Subordinated Notes | Not Rated | BB | BB | Ba1 | ||||
| Operating Subsidiary Ratings | ||||||||
| Fidelity & Guaranty Life Insurance Company | ||||||||
| Financial Strength Rating | A | A- | A- | A3 | ||||
| Outlook | Stable | Stable | Stable | Stable | ||||
| Fidelity & Guaranty Life Insurance Company of New York | ||||||||
| Financial Strength Rating | A | A- | A- | Not Rated | ||||
| Outlook | Stable | Stable | Stable | |||||
| F&G Cayman Re Ltd | ||||||||
| Financial Strength Rating | Not Rated | Not Rated | A- | Not Rated | ||||
| Outlook | Stable |
14. Shareholder Information
| F&G Annuities & Life, Inc. | ||||||||
| Financial Supplement - March 31, 2026 | ||||||||
| Shareholder Information | ||||||||
| NYSE: FG | ||||||||
| History of Quarterly Common Stock Price | High | Low | Close | |||||
| 2025 | ||||||||
| First Quarter | 47.04 | 34.70 | 36.05 | |||||
| Second Quarter | 36.88 | 30.17 | 31.98 | |||||
| Third Quarter | 35.50 | 30.01 | 31.27 | |||||
| Fourth Quarter | 34.93 | 28.91 | 30.85 | |||||
| 2026 | ||||||||
| First Quarter | 30.84 | 20.57 | 25.32 | |||||
| History of Quarterly Cash Dividend to Common Shareholders | Ex-Dividend Date | Record Date | Payable Date | Amount per Share | ||||
| 2025 | ||||||||
| First Quarter | 3/14/25 | 3/17/25 | 3/31/25 | $ 0.22 | ||||
| Second Quarter | 6/13/25 | 6/16/25 | 6/30/25 | $ 0.22 | ||||
| Third Quarter | 9/15/25 | 9/16/25 | 9/30/25 | $ 0.22 | ||||
| Fourth Quarter | 12/16/25 | 12/17/25 | 12/31/25 | $ 0.25 | ||||
| 2026 | ||||||||
| First Quarter | 3/16/26 | 3/17/26 | 3/31/26 | $ 0.25 | ||||
| Corporate Headquarters | FG Research Analyst Coverage | FNF Research Analyst Coverage ¹ (cont.) | ||||||
| F&G Annuities & Life, Inc. | Alex Scott | Geoffrey Dunn | ||||||
| 801 Grand Avenue, Suite 2600 | Barclays Capital, Inc. | Dowling & Partners | ||||||
| Des Moines, IA 50309 | (212) 526-1561 | (860) 676-8600 | ||||||
| [email protected] | [email protected] | |||||||
| Investor Contact | ||||||||
| Lisa Foxworthy-Parker | Wilma Burdis | Bose George | ||||||
| SVP, Investor and External Relations | Raymond James | Keefe, Bruyette & Woods | ||||||
| [email protected] | (727) 761-5166 | (212) 887-3843 | ||||||
| (515) 330-3307 | [email protected] | [email protected] | ||||||
| Transfer Agent | FNF Research Analyst Coverage ¹ | Oscar Nieves | ||||||
| Continental Stock Transfer and Trust Company | Tengwei Ma | Stephens, Inc. | ||||||
| 1 State Street, 30th Floor | Barclays Capital, Inc. | (501) 377-8519 | ||||||
| New York, NY 10004 | (212) 526-7965 | [email protected] | ||||||
| Phone: (212) 509-4000 | [email protected] | |||||||
| Mark Hughes | ||||||||
| Mark DeVries | Truist Securities | |||||||
| Deutsche Bank | (615) 748-4422 | |||||||
| (212) 250-4018 | [email protected] | |||||||
| [email protected] | ||||||||
| ¹ Reflects research analyst coverage for parent Fidelity National Financial, Inc. (NYSE: FNF), which holds approximately 70% majority ownership stake in F&G (NYSE: FG) |
15. Non-GAAP Reconciliations
| F&G Annuities & Life, Inc. | |||||||||||||||
| Financial Supplement - March 31, 2026 | |||||||||||||||
| Non-GAAP Reconciliations | |||||||||||||||
| Three months ended | Year ended | ||||||||||||||
| March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | December 31, 2025 | December 31, 2024 | |||||||||
| Reconciliation of interest and investment income to adjusted interest and investment income | |||||||||||||||
| US GAAP interest and investment income | $ 723 | $ 741 | $ 748 | $ 682 | $ 666 | $ 2,837 | $ 2,719 | ||||||||
| Adjustments | |||||||||||||||
| Recognized (gains) losses, net | 10 | 1 | (8) | (5) | 1 | (11) | (59) | ||||||||
| Transaction costs, other and non-recurring items | 5 | - | - | - | - | - | - | ||||||||
| Reclass of dividend income to owned distribution margin | (2) | (3) | (3) | (5) | (2) | (13) | (17) | ||||||||
| Total adjustments to arrive at adjusted interest and investment income | 13 | (2) | (11) | (10) | (1) | (24) | (76) | ||||||||
| Adjusted interest and investment income | $ 736 | $ 739 | $ 737 | $ 672 | $ 665 | $ 2,813 | $ 2,643 | ||||||||
| Adjusted interest and investment income - fixed income and others | $ 642 | $ 650 | $ 637 | $ 621 | $ 607 | $ 2,515 | $ 2,367 | ||||||||
| Adjusted interest and investment income - alternatives | 86 | 82 | 76 | 45 | 39 | 242 | 217 | ||||||||
| Adjusted interest and investment income - variable | 8 | 7 | 24 | 6 | 19 | 56 | 59 | ||||||||
| Adjusted interest and investment income | $ 736 | $ 739 | $ 737 | $ 672 | $ 665 | $ 2,813 | $ 2,643 | ||||||||
| Reconciliation of benefits and expenses to cost of funds | |||||||||||||||
| US GAAP life insurance premiums and other fees | 479 | 987 | 711 | 608 | 489 | 2,795 | 2,860 | ||||||||
| US GAAP recognized gains and (losses), net | (32) | 11 | 211 | 51 | (263) | 10 | 84 | ||||||||
| US GAAP benefits and other changes in policy reserves | (484) | (1,265) | (1,181) | (993) | (524) | (3,963) | (3,791) | ||||||||
| US GAAP market risk benefit gains (losses) | (73) | (19) | (43) | 4 | (109) | (167) | 25 | ||||||||
| US GAAP depreciation and amortization | (173) | (174) | (180) | (158) | (153) | (665) | (569) | ||||||||
| US GAAP line items subtotal | $ (283) | $ (460) | $ (482) | $ (488) | $ (560) | $ (1,990) | $ (1,391) | ||||||||
| Adjustments | |||||||||||||||
| Recognized (gains) losses, net | (170) | 2 | 70 | 82 | 33 | 187 | 79 | ||||||||
| Market related liability adjustments | (37) | (22) | (37) | (16) | 103 | 28 | (214) | ||||||||
| Purchase price amortization | 14 | 17 | 24 | 15 | 14 | 70 | 58 | ||||||||
| Reclass of acquisition expenses from operating expenses | (3) | (2) | - | (5) | (5) | (12) | (19) | ||||||||
| Reclass of affiliated DAC from owned distribution margin | (1) | - | - | - | - | - | - | ||||||||
| Reclass of fee income to flow reinsurance fee income | (16) | (15) | (14) | (14) | (13) | (56) | (41) | ||||||||
| Total adjustments to arrive at cost of funds | (213) | (20) | 43 | 62 | 132 | 217 | (137) | ||||||||
| Cost of funds | $ (496) | $ (480) | $ (439) | $ (426) | $ (428) | $ (1,773) | $ (1,528) | ||||||||
| Cost of funds - cost of crediting | $ (460) | $ (457) | $ (443) | $ (427) | $ (412) | $ (1,739) | $ (1,487) | ||||||||
| Cost of funds - surrender charge fee income | 56 | 57 | 70 | 69 | 57 | 253 | 268 | ||||||||
| Cost of funds - all other | (92) | (80) | (66) | (68) | (73) | (287) | (309) | ||||||||
| Cost of funds | $ (496) | $ (480) | $ (439) | $ (426) | $ (428) | $ (1,773) | $ (1,528) | ||||||||
| Composition of flow reinsurance fee income | |||||||||||||||
| Reclass of fee income from cost of funds | 16 | 15 | 14 | 14 | 13 | 56 | 41 | ||||||||
| Flow reinsurance fee income | $ 16 | $ 15 | $ 14 | $ 14 | $ 13 | $ 56 | $ 41 | ||||||||
| Reconciliation of owned distribution revenues to owned distribution margin | |||||||||||||||
| US GAAP owned distribution revenues | $ 17 | $ 26 | $ 24 | $ 23 | $ 16 | $ 89 | $ 81 | ||||||||
| US GAAP non-controlling interest | (1) | (2) | (2) | (2) | - | (6) | (3) | ||||||||
| US GAAP line items subtotal | 16 | 24 | 22 | 21 | 16 | 83 | 78 | ||||||||
| Adjustments | |||||||||||||||
| Non-controlling interest | (2) | (3) | (2) | (2) | (2) | (9) | (10) | ||||||||
| Reclass of affiliated DAC to cost of funds | 1 | - | - | - | - | - | - | ||||||||
| Reclass of owned distribution dividend income from interest and investment income | 2 | 3 | 3 | 5 | 2 | 13 | 17 | ||||||||
| Reclass of owned distribution expenses from operating expenses | (8) | (11) | (10) | (10) | (9) | (40) | (39) | ||||||||
| Total adjustments to arrive at owned distribution margin | (7) | (11) | (9) | (7) | (9) | (36) | (32) | ||||||||
| Owned distribution margin | $ 9 | $ 13 | $ 13 | $ 14 | $ 7 | $ 47 | $ 46 | ||||||||
| Reconciliation of operating expenses | |||||||||||||||
| US GAAP personnel costs | $ (60) | $ (70) | $ (79) | $ (77) | $ (67) | $ (293) | $ (296) | ||||||||
| US GAAP other operating expenses | (33) | (35) | (38) | (42) | (41) | (156) | (203) | ||||||||
| US GAAP line items subtotal | (93) | (105) | (117) | (119) | (108) | (449) | (499) | ||||||||
| Adjustments | |||||||||||||||
| Recognized (gains) losses, net | (3) | 1 | 6 | 2 | (5) | 4 | 7 | ||||||||
| Purchase price amortization | 1 | 1 | 5 | 3 | 1 | 10 | 26 | ||||||||
| Transaction costs, other and non-recurring items | - | 1 | 6 | 8 | 2 | 17 | 19 | ||||||||
| Reclass of acquisition expenses to cost of funds | 3 | 2 | - | 5 | 5 | 12 | 19 | ||||||||
| Reclass of expenses to owned distribution margin | 8 | 11 | 10 | 10 | 9 | 40 | 39 | ||||||||
| Total adjustments to arrive at operating expenses | 9 | 16 | 27 | 28 | 12 | 83 | 110 | ||||||||
| Operating expenses | $ (84) | $ (89) | $ (90) | $ (91) | $ (96) | $ (366) | $ (389) | ||||||||
| Reconciliation of interest expense | |||||||||||||||
| US GAAP interest expense | (41) | (41) | (42) | (41) | (40) | (164) | (132) | ||||||||
| US GAAP line items subtotal | (41) | (41) | (42) | (41) | (40) | (164) | (132) | ||||||||
| Adjustments | |||||||||||||||
| Transaction costs, other and non-recurring items | - | - | - | - | (1) | (1) | (3) | ||||||||
| Total adjustments to arrive at interest expense | - | - | - | - | (1) | (1) | (3) | ||||||||
| Interest expense | $ (41) | $ (41) | $ (42) | $ (41) | $ (41) | $ (165) | $ (135) | ||||||||
| Reconciliation of income tax (expense) benefit to non-GAAP income tax (expense) benefit | |||||||||||||||
| US GAAP income tax (expense) benefit | $ (74) | $ (31) | $ (11) | $ (15) | $ 5 | $ (52) | $ (136) | ||||||||
| Adjustments | |||||||||||||||
| Income taxes on non-GAAP adjustments | 48 | 1 | (13) | (19) | (30) | (61) | 21 | ||||||||
| Total adjustments to arrive at adjusted income tax (expense) benefit | 48 | 1 | (13) | (19) | (30) | (61) | 21 | ||||||||
| Adjusted income tax (expense) benefit | $ (26) | $ (30) | $ (24) | $ (34) | $ (25) | $ (113) | $ (115) |
16. AUM Reconcilation
| F&G Annuities & Life, Inc. | |||||||||||||||
| Financial Supplement - March 31, 2026 | |||||||||||||||
| Non-GAAP Reconciliations (continued) | |||||||||||||||
| Three months ended | Year ended | ||||||||||||||
| March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | December 31, 2025 | December 31, 2024 | |||||||||
| Reconciliation of total investments to AUM | |||||||||||||||
| US GAAP total investments | $ 69,588 | $ 69,442 | $ 67,365 | $ 64,589 | $ 60,709 | $ 69,442 | $ 60,109 | ||||||||
| US GAAP cash and cash equivalents | 1,324 | 1,486 | 2,189 | 1,884 | 3,293 | 1,486 | 2,264 | ||||||||
| Less: US GAAP derivative investments | 889 | 1,148 | 1,222 | 931 | 702 | 1,148 | 792 | ||||||||
| US GAAP line items subtotal | 70,023 | 69,780 | 68,332 | 65,542 | 63,300 | 69,780 | 61,581 | ||||||||
| Adjustments | |||||||||||||||
| Net assets ceded pursuant to coinsurance funds withheld arrangements | (16,769) | (14,260) | (13,531) | (12,325) | (11,578) | (14,260) | (10,836) | ||||||||
| Unrealized (gains)/losses and allowances adjustment | 3,274 | 2,579 | 2,384 | 2,960 | 3,113 | 2,579 | 3,412 | ||||||||
| Owned distribution investments adjustment | (298) | (306) | (302) | (303) | (297) | (306) | (300) | ||||||||
| Reclass from prepaid expenses and other assets ¹ | 879 | 812 | 830 | 759 | 706 | 812 | 742 | ||||||||
| Reclass from accounts payable and accrued liabilities ² | (673) | (1,031) | (1,066) | (1,068) | (698) | (1,031) | (782) | ||||||||
| Total adjustments to arrive at AUM | (13,587) | (12,206) | (11,685) | (9,977) | (8,754) | (12,206) | (7,764) | ||||||||
| AUM | 56,436 | 57,574 | 56,647 | 55,565 | 54,546 | 57,574 | 53,817 | ||||||||
| Reinsurance | 18,018 | 15,516 | 14,783 | 13,596 | 12,852 | 15,516 | 11,457 | ||||||||
| AUM before reinsurance | $ 74,454 | $ 73,090 | $ 71,430 | $ 69,161 | $ 67,398 | $ 73,090 | $ 65,274 | ||||||||
| Reconciliation of total F&G Annuities & Life, Inc. shareholders' equity to total F&G equity attributable to common shareholders, excluding AOCI | |||||||||||||||
| Total F&G Annuities & Life, Inc. shareholders' equity | $ 4,639 | $ 4,804 | $ 4,824 | $ 4,438 | $ 4,363 | $ 4,804 | $ 3,951 | ||||||||
| Less: Preferred stock | 250 | 250 | 250 | 250 | 250 | 250 | 250 | ||||||||
| Total F&G equity attributable to common shareholders | 4,389 | 4,554 | 4,574 | 4,188 | 4,113 | 4,554 | 3,701 | ||||||||
| Less: AOCI | (1,843) | (1,488) | (1,376) | (1,670) | (1,734) | (1,488) | (1,923) | ||||||||
| Total F&G equity attributable to common shareholders, excluding AOCI | $ 6,232 | $ 6,042 | $ 5,950 | $ 5,858 | $ 5,847 | $ 6,042 | $ 5,624 | ||||||||
| ¹ Includes accrued investment income, receivable for sale of investments and low income housing tax credit assets | |||||||||||||||
| ² Includes derivative collateral and payable for purchase of investments |
17. Non-GAAP Definitions
| F&G Annuities & Life, Inc. |
| Financial Supplement - March 31, 2026 |
| Non-GAAP Measures Definitions |
| Non-GAAP Measures |
| 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 document 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 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. |
| 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 (ANE) is a non-GAAP economic measure used to evaluate financial performance each period. |
| ANE eliminates the impact of specific items that are not indicative of the underlying economics of our business, including certain market volatility, asymmetrical and noneconomic accounting, nonrecurring items and other income and expense adjustments. These items are volatile in our reported GAAP earnings and are not indicative of the underlying profitability drivers reflected in the design and pricing of our products and/or our investment and hedging strategy, as such items fluctuate from period to period in a manner inconsistent with these drivers. |
| ANE provides information to enhance an investor's understanding of our results and underlying profitability drivers by removing the impact of short-term market volatility (i.e. recognized gains and losses, market risk benefits remeasurement gains and losses, derivative gains and losses), asymmetrical and non-economic accounting (i.e. derivatives and investment hedges that do not qualify for hedge accounting, deferred pension risk transfer deferred profit liability losses), and other adjustments. |
| ANE is calculated by adjusting net earnings or 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. |
| Recognized gains and losses are excluded from ANE as part of both adjustments (i) and (ii). As part of those two adjustments to ANE, all material recognized gains and losses are removed except for periodic settlements of interest rate swaps used to economically hedge our floating rate investments. |
| 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 and to investors and analysts when assessing the size of our investment portfolio that is retained. |
| AUM before Reinsurance |
| AUM before Reinsurance is comprised of AUM plus flow reinsured assets, including certain block reinsured assets. |
| Management considers this non-GAAP financial measure to be useful internally and to investors and analysts when assessing the size of our investment portfolio including reinsured assets. |
| Average Assets Under Management (AAUM) (Quarterly and YTD) |
| AAUM is calculated as AUM at the beginning of the period and the end of each month in the period, divided by the total number of months in the period plus one. |
| Management considers this non-GAAP financial measure to be useful internally and to investors and analysts when assessing the rate of return on retained assets. |
| Book Value per Common Share, excluding AOCI |
| Book value per Common share, excluding AOCI is calculated as total F&G equity attributable to common shareholders divided by the total number of shares of common stock outstanding. Management considers this to be a useful measure internally and for investors and analysts to assess the capital position of the Company. |
| Return on Average F&G common shareholder Equity, excluding AOCI |
| Return on average F&G common shareholder equity, excluding AOCI is calculated by dividing the rolling four quarters net earnings (loss) attributable to common shareholders, by total average F&G equity attributable to common shareholders, excluding AOCI. Average F&G 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 useful internally and for investors and analysts to assess the level of return driven by the Company that is available to common shareholders. |
| Sales |
| Annuity, IUL, funding agreement and non-life contingent PRT sales are not derived from any specific GAAP income statement accounts or line items and should not be viewed as a substitute for any financial measure determined in accordance with GAAP. Sales from these products are recorded as deposit liabilities (i.e., contractholder funds) within the Company's consolidated financial statements in accordance with GAAP. Life contingent PRT sales are recorded as premiums in revenues within the consolidated financial statements. Management believes that presentation of sales, as measured for management purposes, enhances the understanding of our business and helps depict longer term trends that may not be apparent in the results of operations due to the timing of sales and revenue recognition. |
| Total Capitalization, excluding AOCI |
| Total capitalization, excluding AOCI is based on total equity excluding the effect of AOCI and the total aggregate principal amount of debt. 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 provide useful supplemental information internally and to investors and analysts to help assess the capital position of the Company. |
| Debt-to-Capitalization Ratio, excluding AOCI |
| Debt-to-capitalization ratio is computed by dividing total aggregate principal amount of debt by total capitalization (total debt plus total equity, excluding AOCI). Management considers this non-GAAP financial measure to be useful internally and to investors and analysts when assessing its capital position. |
| Total Equity, excluding AOCI |
| Total equity, excluding AOCI is based on total equity excluding the effect of AOCI. 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 provide useful supplemental information internally and to investors and analysts assessing the level of earned equity on total equity. |
| Total F&G Equity attributable to common shareholders, excluding AOCI |
| Total F&G equity attributable to common shareholder, excluding AOCI is based on total F&G Annuities & Life, Inc. shareholders' equity excluding the effect of AOCI and preferred stocks, including additional paid-in-capital. 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 useful internally and for investors and analysts to assess the level of return driven by the Company that is available to common shareholders. |
| Yield on AAUM |
| Yield on AAUM is calculated by dividing annualized adjusted interest and investment income by AAUM. Management considers this non-GAAP financial measure to be useful internally and to investors and analysts when assessing the level of return earned on AAUM. |
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