Financial Data and Key Metrics Changes - F&G reported total gross sales of $2.7 billion in the fourth quarter, a 23% increase over the prior year quarter, and record gross sales of $11.3 billion for the full year 2022, an 18% increase over 2021 [3][4] - Total net sales retained were $1.9 billion in the fourth quarter and $9 billion for the full year, reflecting a 7% decrease in the fourth quarter but a 3% increase for the full year compared to 2021 [4] - Adjusted net earnings for the fourth quarter were $138 million or $1.10 per share, and for the full year, adjusted net earnings were $345 million or $3 per share [13][14] - The company ended the year with a GAAP book value of $4.6 billion or $36.66 per share, reflecting a 7% year-over-year growth before capital actions [33] Business Line Data and Key Metrics Changes - Retail channels reported record gross sales of $2.5 billion in the fourth quarter, a 79% increase year-over-year, and $8.5 billion for the full year, a 37% increase over 2021 [3][30] - Institutional sales included approximately $250 million of pension risk transfer in the fourth quarter, with total institutional sales for the year at $2.8 billion, split evenly between pension risk transfer and funding agreements [4][11] Market Data and Key Metrics Changes - The company’s assets under management totaled nearly $44 billion at December 31, reflecting a $7 billion or 19% increase over the prior year quarter [4] - Fixed income yield, excluding alternative investment volatility, expanded to 4.27% for the fourth quarter compared to 3.75% in the fourth quarter of 2021 [31] Company Strategy and Development Direction - F&G aims to double its assets under management to $50 billion over five years, with a strong focus on growth through its multichannel new business platform [3][10] - The company is pursuing a strategy to expand its owned life insurance distribution and boost its presence in underserved multicultural and middle-market segments [11] - F&G has made strategic equity investments in independent agent distribution partners to align with its diversified growth strategy [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving double-digit growth in total gross sales for 2023, supported by strong momentum and numerous growth opportunities [12] - The adoption of the new LDTI accounting standard is expected to have an insignificant impact on total book value, with an anticipated increase in GAAP shareholders' equity by up to $200 million [6][33] - The company remains optimistic about the pension risk transfer market, citing favorable conditions due to higher option budgets and increased interest in downside protection [42] Other Important Information - F&G paid its first public company quarterly dividend of $0.20 per share in January 2023, with plans for future dividends subject to Board approval [14][33] - The company ended the year with a strong and stable capital position, with an estimated RBC ratio of approximately 440%, well above the 400% target [7] Q&A Session Summary Question: Cost of funds and its drivers - Management noted that despite rising interest rates, the cost of funds remained stable due to the ability to purchase options that align with policyholder requests [17][18] Question: Use of revolving credit versus long-term debt - The decision to utilize revolving credit was to ensure capital for growth at the start of the year, with plans to consider long-term debt later depending on market conditions [19] Question: Strength of index universal life products - The growth in index universal life products is driven by strong demand in the middle market, particularly among young families, with expectations for continued growth [22] Question: Institutional sales and market outlook - Management confirmed that total institutional sales are expected to fall within the $2 billion to $4 billion range annually, with a focus on growing pension risk transfer and funding agreements [23] Question: Surrender rates - Surrender rates were slightly up but within expectations, primarily due to normal MYGA runoff, with 90% of the block being surrender charge protected [25] Question: Pipeline for pension risk transfer - The pipeline for pension risk transfer is strong, supported by favorable market conditions and solid relationships with independent agents [42][47]