[F&G Investor Update Spring 2025](index=1&type=section&id=F%26G%20Investor%20Update%20Spring%202025) [Disclaimer & Forward-Looking Statements](index=2&type=section&id=Disclaimer%20%26%20Forward-Looking%20Statements) This section outlines forward-looking statements, their inherent risks, and the use of non-GAAP financial measures with provided reconciliations - The presentation contains forward-looking statements based on management's beliefs and assumptions, and actual results may differ materially. Key risks include economic conditions, interest rate fluctuations, and regulatory changes[4](index=4&type=chunk) - The document includes non-GAAP financial measures to help investors understand financial performance. These measures are not a substitute for GAAP and reconciliations to the most comparable GAAP measures are provided[5](index=5&type=chunk) [Q1 2025 Performance Highlights](index=4&type=section&id=Resilience%20Despite%20Near-Term%20Headwinds) F&G achieved record AUM of $54.5 billion in Q1 2025, demonstrating resilience despite margin compression and a strategic reduction in MYGA sales Q1 2025 Key Metrics | Metric | Value | Change (YoY) | | :--- | :--- | :--- | | Gross Sales | $2.9B | ↓ 17% | | Net Sales | $2.2B | ↓ 4% | | AUM before flow reinsurance | $67.4B | ↑ 16% | | Assets Under Management (AUM) | $54.5B | ↑ 9% | | LTM Adjusted ROA | 1.00% | - | | Adjusted ROE | 9.7% | ↑ 2.3% | | Capital Return to Shareholders | $30M | - | - The company strategically managed sales and inforce profitability to optimize capital returns, which resulted in lower Multi-Year Guaranteed Annuity (MYGA) sales[7](index=7&type=chunk) - Margin compression in Q1 was driven by near-term headwinds, including excess cash from CLO prepayments, lower surrender fee income due to slowed terminations, and the timing of inforce pricing actions[10](index=10&type=chunk) - Operating performance remains strong with stable underlying businesses. Key positive drivers include asset growth supporting product margins, growing fee income from flow reinsurance, and improved operating expenses[8](index=8&type=chunk)[9](index=9&type=chunk) [Financials and Business Overview](index=6&type=section&id=Financials%20and%20Business%20Overview) [First Quarter Financial Trends](index=6&type=section&id=First%20Quarter%20Financial%20Trends) Q1 2025 financial trends show decreased gross sales and net earnings year-over-year, offset by increased AUM and Adjusted ROE Financial Trends - As Reported ($M, except per share data) | Metric | 2023 | 2024 | 1Q24 | 1Q25 | | :--- | :--- | :--- | :--- | :--- | | Gross sales | $13,153 | $15,262 | $3,495 | $2,902 | | Net sales | $9,238 | $10,571 | $2,302 | $2,181 | | AUM | $49,103 | $53,817 | $49,787 | $54,546 | | Adjusted ROA | 0.73% | 1.06% | 0.87% | 0.68% | | Adjusted ROE | 6.5% | 10.3% | 7.4% | 9.7% | | Net earnings (loss) | ($58) | $622 | $111 | ($25) | | Adjusted net earnings (ANE) | $335 | $546 | $108 | $91 | - In Q1 2025, investment income from alternative investments was **$63 million** below long-term return expectations, a larger gap than the **$52 million** shortfall in Q1 2024[12](index=12&type=chunk) [F&G Snapshot and Investment Case](index=7&type=section&id=F%26G%20Snapshot%20and%20Investment%20Case) F&G presents a compelling investment case, leveraging diverse distribution and investment expertise to drive margin expansion and ROE growth in retirement markets - F&G operates through five distinct distribution channels (Independent Agents, Broker Dealers, Banks, Pension Risk Transfer, Funding Agreements) and offers Retail Annuities, Life Insurance, and Institutional Products[15](index=15&type=chunk)[17](index=17&type=chunk) - The investment case is built on: targeting large, growing markets; a superior ecosystem with strong distribution and investment capabilities; a proven track record of growth; and strategies to drive margin expansion and higher ROE[18](index=18&type=chunk)[19](index=19&type=chunk) - Since its 2020 acquisition by FNF, F&G has expanded its **Adjusted ROE by 2 percentage points** and grown its **Book Value Per Share (BVPS) by 58%** (from YE 2020 to Q1 2025)[20](index=20&type=chunk)[22](index=22&type=chunk)[24](index=24&type=chunk) Progress Toward Medium-Term Investor Day Targets | Target | Goal | | :--- | :--- | | AUM Growth | Grow by 50% | | Adjusted ROA Expansion | 1.33% to 1.55% | | Adjusted ROE Increase | 13% to 14% | | P/E Multiple Expansion | 7-8x | [Inforce Business and Market Opportunity](index=11&type=section&id=Inforce%20Business%20and%20Market%20Opportunity) F&G's profitable $53 billion inforce book benefits from secular tailwinds in high-growth retirement markets, driving significant sales diversification Retail Fixed Annuity Metrics (Q1 2025) | Metric | Value | | :--- | :--- | | Weighted average time in surrender period | 5.5 Years | | % Surrender protected | 92% | | Average remaining surrender charge | 7% | | % Subject to market value adjustment (MVA) | 78% | | Distance to guaranteed minimum crediting rates | 218 bps | - The company's **$53 billion GAAP Net Reserves** are primarily composed of Indexed Annuities (**58%**), with no problematic legacy business[29](index=29&type=chunk)[30](index=30&type=chunk)[32](index=32&type=chunk) - F&G is positioned to benefit from secular tailwinds, including a projected **30% increase** in the 65+ population over the next 25 years and nearly **$3 trillion** in retail money market funds expected to seek higher-rate solutions like fixed annuities[38](index=38&type=chunk)[41](index=41&type=chunk) - Annual gross sales grew from **$3.9 billion** in 2019 to **$15.3 billion** in 2024, representing a **31% CAGR**. The business has diversified significantly, with institutional markets (Funding Agreements & PRT) growing from **0% of sales in FY2020 to 46% in FY2024**[43](index=43&type=chunk)[44](index=44&type=chunk)[46](index=46&type=chunk) [Strategic Initiatives and Investment Portfolio](index=16&type=section&id=Strategic%20Initiatives%20and%20Investment%20Portfolio) F&G's owned distribution strategy drives margin expansion, supported by a high-quality, diversified $51 billion investment portfolio with minimal real estate exposure - The owned distribution strategy is a capital-light source of fee-based earnings, contributing **5 bps to Adjusted ROA** in Q1 2025[47](index=47&type=chunk)[50](index=50&type=chunk) - The investment portfolio is **96% investment grade**, with modest credit-related impairments of **6 bps** over the last 5 years. Office exposure is low at **1.6% of the total portfolio**[57](index=57&type=chunk) Investment Portfolio by Asset Class ($51B Total) | Asset Class | Percentage | | :--- | :--- | | Corporates | 31% | | Structured Securities | 22% | | Private Origination | 16% | | Mortgage Loans | 11% | | Alternatives (LP) | 6% | | Other | 14% | - The investment strategy focuses on high-grade public and private securities, well-diversified structured credit (CLOs, CMBS, ABS), and superior loss-adjusted mortgage loans and private credit[62](index=62&type=chunk) [Detailed Financial Performance and Capital Management](index=19&type=section&id=Detailed%20Financial%20Performance%20and%20Capital%20Management) [1Q25 Detailed Performance Review](index=19&type=section&id=1Q25%20Detailed%20Performance%20Review) Q1 2025 saw a strategic sales pivot, record AUM growth, and improved Adjusted ROE, despite margin compression impacting Adjusted Net Earnings - Gross sales of **$2.9 billion** were down **17%** from Q1 2024, driven by lower MYGA sales. Excluding MYGA, gross sales were **$2.3 billion**, an increase of **5%** over Q1 2024[72](index=72&type=chunk) - Ending AUM before flow reinsurance reached a record **$67.4 billion**, with retained AUM at **$54.5 billion**[72](index=72&type=chunk) Q1 2025 vs Q1 2024 Earnings Metrics | Metric | 1Q24 | 1Q25 | | :--- | :--- | :--- | | Common ANE | $108M | $91M | | ANE per share | $0.86 | $0.72 | | Adj. ROA | 0.87% | 0.68% | | Adj. ROE | 7.4% | 9.7% | - The decrease in ANE from Q1 2024 reflects margin compression, lower owned distribution margin, and higher interest expense, which were partially offset by asset growth, higher fees from flow reinsurance, and disciplined expense management[76](index=76&type=chunk) [Capital Profile, Ratings, and Allocation](index=22&type=section&id=Capital%20Profile%2C%20Ratings%2C%20and%20Allocation) F&G maintains a strong capital profile with a 26.7% debt-to-capital ratio, achieving ratings upgrades and actively managing capital for growth and shareholder returns - The adjusted debt-to-capital ratio was **26.7%** at the end of Q1 2025, managed towards a long-term target of approximately **25%**[78](index=78&type=chunk)[79](index=79&type=chunk) - In Q1 2025, F&G issued **$375 million** in junior subordinated notes, redeemed **$300 million** in senior notes, and completed a public offering of **8 million common shares** for net proceeds of ~**$269 million** to support growth[79](index=79&type=chunk) - F&G has received multiple ratings upgrades over time, including to '**A-**' from S&P Global and Fitch, reflecting its scaling business, diversifying earnings, and strong capitalization[81](index=81&type=chunk)[82](index=82&type=chunk) - Capital allocation priorities are reinvesting in the business for growth and returning capital to shareholders via dividends and opportunistic share repurchases. The company returned **$30 million** to shareholders in Q1 2025[83](index=83&type=chunk)[84](index=84&type=chunk)[85](index=85&type=chunk) [Appendix](index=25&type=section&id=Appendix) [Appendix — Investments](index=25&type=section&id=Appendix%20%E2%80%94%20Investments) This appendix details F&G's high-quality, diversified investment portfolio, focusing on structured credit and real estate debt with prudent risk management [Structured Credit Details](index=26&type=section&id=Structured%20Credit%20Details) The structured credit strategy provides access to well-diversified, high-quality assets across CLOs, CMBS, and ABS - The structured credit strategy provides access to well-diversified, high-quality assets across CLOs, CMBS, and ABS[88](index=88&type=chunk)[95](index=95&type=chunk) CLO Portfolio Snapshot ($3.7B Market Value) | Metric | Value | | :--- | :--- | | Credit Quality | 89% Investment Grade | | Structural Protection (Par Subordination) | 25% | | Capital Efficiency (Average NAIC rating) | 1.27 | - The CLO portfolio is highly diversified by manager, issuer, and industry, with the top 10 issuers comprising only **7.1%** of the portfolio[103](index=103&type=chunk)[105](index=105&type=chunk)[107](index=107&type=chunk) [Real Estate Debt Details](index=30&type=section&id=Real%20Estate%20Debt%20Details) The real estate debt portfolio is high-quality and defensively positioned, with a focus on multifamily properties and low-leverage commercial mortgage loans Real Estate Debt Portfolio Snapshot ($11.4B Market Value) | Metric | Value | | :--- | :--- | | Duration | 3.8 years | | Weighted Average Life | 5.7 years | | Quality (Average NAIC rating) | 1.3 | - The CMBS portfolio has a higher concentration in multifamily (**39%**) and lower in retail (**14%**) compared to market averages, reflecting a defensive posture[121](index=121&type=chunk)[122](index=122&type=chunk) - The Commercial Mortgage Loan (CML) portfolio is low risk, with an average loan-to-value of ~**60%**, and is well-diversified by property type and geography. **88%** of loans have an LTV below **60%**[126](index=126&type=chunk)[131](index=131&type=chunk) [Appendix – Finance](index=35&type=section&id=Appendix%20%E2%80%93%20Finance) This appendix provides detailed financial reconciliations, including BVPS analysis and a full reconciliation of GAAP Net Earnings to Adjusted Net Earnings - BVPS ex AOCI decreased from **$44.28** at YE 2024 to **$43.31** at Q1 2025. The decrease was primarily driven by the dilutive effect of the common stock offering (-**$0.63/share**) and mark-to-market movements (-**$0.78/share**), partially offset by underlying business performance (+**$0.59/share**)[140](index=140&type=chunk)[141](index=141&type=chunk)[143](index=143&type=chunk) - On a year-over-year basis, BVPS ex AOCI increased **5%** from **$41.10** in Q1 2024 to **$43.31** in Q1 2025, driven by a **$3.41 per share** increase from underlying business performance[144](index=144&type=chunk)[146](index=146&type=chunk)[147](index=147&type=chunk) Reconciliation of Net Earnings (Loss) to Adjusted Net Earnings (ANE) ($M) | | 1Q24 | 1Q25 | | :--- | :--- | :--- | | Net earnings (loss) attributable to common shareholders | $111 | ($25) | | Recognized (gains) and losses, net | 32 | 29 | | Market related liability adjustments | (55) | 103 | | Purchase price amortization | 22 | 15 | | Transaction costs, other and non-recurring items | - | 1 | | Non-controlling interest | (3) | (2) | | Income taxes adjustment | 1 | (30) | | **ANE attributable to common shareholders** | **$108** | **$91** | - The appendix provides detailed definitions for non-GAAP measures including Adjusted Net Earnings (ANE), Adjusted Return on Assets (ROA), Adjusted Return on Equity (ROE), Assets Under Management (AUM), and Book Value per Common Share, excluding AOCI[156](index=156&type=chunk)[159](index=159&type=chunk)[161](index=161&type=chunk)[164](index=164&type=chunk)

Core Insights - Fidelity National Financial, Inc. reported a net earnings of $83 million for Q1 2025, a significant decrease from $248 million in Q1 2024, resulting in earnings per diluted share of $0.30 compared to $0.91 in the previous year [2][6][26] - Adjusted net earnings for Q1 2025 were $213 million, or $0.78 per share, reflecting a slight increase from $206 million, or $0.76 per share, in Q1 2024 [3][6][26] - The company highlighted strong performance in its Title segment, achieving an adjusted pre-tax title margin of 11.7%, up from 10.7% in the prior year [8][31] Financial Performance - Total revenue for Q1 2025 was $2.729 billion, down from $3.299 billion in Q1 2024, indicating a decline in overall business activity [6][30] - The Title segment generated total revenue of $1.8 billion, a 12% increase from $1.7 billion in Q1 2024, driven by higher direct and agency title premiums [15][24] - F&G's assets under management (AUM) reached $67.4 billion, a 16% increase from $58.0 billion in Q1 2024, supported by strong indexed annuity sales [12][16] Segment Highlights - The Title segment contributed $158 million to adjusted net earnings in Q1 2025, compared to $130 million in Q1 2024, showcasing improved operational efficiency [8][24] - The F&G segment reported adjusted net earnings of $80 million for Q1 2025, down from $95 million in Q1 2024, impacted by unfavorable mark-to-market movements [12][36] - The Corporate segment had adjusted net earnings of $3 million for Q1 2025, a decrease from $8 million in the same period last year [8][36] Capital Management - The company invested $150 million in F&G's capital raise to maintain its ownership stake above 80%, indicating confidence in F&G's growth potential [5][12] - FNF restarted its share repurchase program, buying back 390,000 shares for $25 million, and paid a quarterly cash dividend of $0.50 per share, totaling $136 million [5][8] - The company ended Q1 2025 with $687 million in cash and short-term liquid investments, reflecting a strong liquidity position [8][30]

Core Viewpoint - F&G Annuities & Life, Inc. reported a significant net loss of $25 million for Q1 2025, contrasting sharply with net earnings of $111 million in Q1 2024, primarily due to unfavorable mark-to-market effects and other items [2][3][12]. Financial Performance - Net loss attributable to common shareholders for Q1 2025 was $25 million, or $0.20 per diluted share, compared to net earnings of $111 million, or $0.88 per share, in Q1 2024 [2][12]. - Adjusted net earnings for Q1 2025 were $91 million, or $0.72 per share, down from $108 million, or $0.86 per share, in Q1 2024 [3][12]. - Total revenues for Q1 2025 were $908 million, a decrease from $1.569 billion in Q1 2024 [26]. Assets Under Management (AUM) - Record AUM before flow reinsurance reached $67.4 billion as of March 31, 2025, a 16% increase from $58.0 billion a year earlier [5][9][7]. - Retained AUM was $54.5 billion, reflecting a 9% increase from $49.8 billion in Q1 2024 [7][9]. Sales Performance - Gross sales for Q1 2025 were $2.9 billion, a decrease of 17% from $3.495 billion in Q1 2024 [8][9]. - Net sales were $2.2 billion, slightly down from $2.3 billion in the same quarter of the previous year [12][9]. Investment Portfolio - The investment portfolio maintained high credit quality, with 96% of fixed maturities rated as investment grade [5][9]. - Credit-related impairments remained low, averaging 6 basis points over the past five years and 2 basis points in Q1 2025 [9]. Capital and Liquidity - Total equity attributable to common shareholders, excluding AOCI, was $5.8 billion, or $43.31 per share, as of March 31, 2025 [14][25]. - The debt-to-capitalization ratio, excluding AOCI, was 26.7%, with a commitment to a long-term target of approximately 25% [16][14]. Strategic Initiatives - The company completed a public offering of 8 million shares of common stock in March 2025, generating nearly $269 million for general corporate purposes [21][9]. - F&G returned $30 million of capital to shareholders through common and preferred dividends in Q1 2025, compared to $26 million in Q1 2024 [16][9].

DES MOINES, Iowa, April 23, 2025 /PRNewswire/ -- F&G Annuities & Life, Inc. (NYSE: FG) (F&G), a leading provider of insurance solutions serving retail annuity and life customers and institutional clients, will release first quarter 2025 earnings after the close of regular market trading on Wednesday, May 7, 2025.A webcast and conference call to discuss the results will follow at 9:00 a.m. Eastern Time on Thursday, May 8, 2025. Additional information about the quarterly financial results, including the earni ...

Falcon Gold Finalizes Third and Fourth Drill Hole at Great Burnt Copper-Gold Project, And Prepares for the Fifth Drill PadMarch 27, 2025 10:57 AM EDT | Source: Falcon Gold Corp.Vancouver, British Columbia--(Newsfile Corp. - March 27, 2025) - Falcon Gold Corp. (TSXV: FG) (OTC Pink: FGLDF) (FSE: 3FA) ("Falcon" or the "Company") is pleased to announce the successful completion of its third drill hole at the Great Burnt Copper-Gold Project in Newfoundland. Drilling on the fourth hole is now being ...

Core Viewpoint - F&G Annuities & Life (NYSE: FG) shares have dropped 15% in two days following the announcement of a secondary equity issuance, which was unexpected in both timing and structure [1] Company Summary - The recent secondary equity issuance by F&G Annuities & Life has led to a significant decline in its stock price, indicating market reaction to the company's capital-raising strategy [1]

Group 1 - F&G Annuities & Life, Inc. has priced a public offering of 8,000,000 shares of its common stock at $35.00 per share, with an additional option for underwriters to purchase up to 1,200,000 shares [1] - Fidelity National Financial, Inc., F&G's majority-stockholder, will purchase 4,500,000 shares at $33.60 per share from the underwriters [1] - The offering is expected to close on March 24, 2025, subject to customary closing conditions [1] Group 2 - The net proceeds from the offering will be used for general corporate purposes, including supporting organic growth opportunities [2] - BofA Securities, Inc. and J.P. Morgan Securities LLC are acting as joint book-running managers for the offering [2] Group 3 - The public offering is made pursuant to a registration statement filed with the U.S. Securities and Exchange Commission [3] - Copies of the registration statement and prospectus can be accessed through the SEC's website or by contacting the joint book-running managers [3] Group 4 - F&G is a leading provider of insurance solutions, serving retail annuity and life customers as well as institutional clients, and is headquartered in Des Moines, Iowa [5]

Core Insights - Falcon Gold Corp. has released high-resolution images from the first two drill holes of its late 2024 exploration program at the Great Burnt Copper-Gold Project, showcasing the quality of core recovery and promising geological features [1][2][5] Exploration Progress - The released images illustrate detailed views of the core recovered, highlighting the geological characteristics and mineralization encountered in the initial two holes [5] - This visual documentation supports previous press releases and reinforces the company's exploration strategy in the Great Burnt camp, validating geophysical targets identified during prior surveys and historical drilling [5] Transparency and Communication - By sharing these images, Falcon Gold aims to keep stakeholders and the broader investor community informed about the project's progress, emphasizing its commitment to transparency and open communication [5] Company Overview - Falcon Gold Corp. is a Canadian mineral exploration company focused on generating, acquiring, and exploring opportunities in the Americas, with its flagship project being the Central Canada Gold Mine [9] - The company holds multiple projects, including the Great Burnt Copper Project in Central Newfoundland and various battery metals projects in Ontario and Quebec [12]

Regulatory Environment - F&G Insurance's maximum ordinary dividend capacity for 2025 is estimated to be $0 due to regulatory limitations[142]. - F&G Insurance is subject to comprehensive regulation in its domiciles, including Iowa and New York, affecting its operations and product offerings[132]. - FGL Insurance must provide advance written notice to the NYDFS for any dividends or distributions, even if prior consent is not required[145]. - The company is subject to the 15% corporate alternative minimum tax (CAMT) on adjusted financial statement income effective January 1, 2023, but does not expect to be in a perpetual CAMT position[186]. - The DOL's new Fiduciary Rule, effective September 23, 2024, broadens the definition of "fiduciary" and may subject the company to greater regulatory risk[179]. - The company is monitoring developments related to market conduct standards that may materially affect its business operations and compliance practices[183]. - Changes in regulations in Bermuda and the Cayman Islands may limit the company's ability to offer existing or new products and services[356]. - Compliance with state laws may restrict the amount of dividends that can be paid by subsidiaries, impacting the company's liquidity[383]. - The maximum dividend allowed by law does not necessarily reflect the actual ability to pay dividends, which may be constrained by business and regulatory considerations[384]. Financial Strength and Ratings - As of the latest report, F&G Annuities & Life, Inc. holds a BBB- credit rating from S&P and Fitch, with a stable outlook[127]. - The financial strength rating for Fidelity & Guaranty Life Insurance Company is rated A by A.M. Best, with a stable outlook[127]. - F&G Insurance's access to funding and borrowing costs are influenced by its credit ratings and financial strength ratings[123]. - FGL Insurance's estimated U.S. RBC ratio was over 410% as of December 31, 2024, exceeding the 400% target[149]. - FGL Insurance and FGL NY Insurance each exceeded the minimum RBC requirements as of the most recent annual statutory financial statements[148]. - FGL Insurance's financial strength ratings could be adversely affected by a downgrade, increasing the cost of capital and hindering growth[149]. - Statutory surplus amounts and U.S. RBC ratios of F&G's insurance subsidiaries can fluctuate significantly due to external factors, affecting financial strength ratings[361]. - Rating agencies may change internal models, impacting the statutory capital requirements for F&G's insurance subsidiaries[363]. - Failure to meet RBC requirements could lead to regulatory actions, limiting the ability to write additional business and adversely affecting financial condition[364]. Operational Efficiency and Strategy - The company has designed an efficient corporate platform that allows for scalability and low incremental fixed operating costs[121]. - The company outsources various functions to third-party service providers to focus on core business operations[122]. - The owned distribution strategy, including investments in various distribution consolidators, exposes the company to operational and financial risks, with a focus on the performance of these businesses[339]. Risk Management - F&G Insurance has established risk limits associated with credit risk, liquidity risk, and interest rate risk, governed by the Enterprise Risk Management Committee[119]. - The company is exposed to liquidity risk, which may arise from market, insurance, investment, or operational risks, potentially leading to a shortfall in meeting near-term obligations[333][334]. - F&G's liquidity exposure includes derivative collateral market exposure, asset liability mismatch, and unexpected cash demands from insurance cash flows[335]. - The company faces significant risks from natural and man-made catastrophes, including pandemics, which could adversely affect operations and financial condition[337]. - The company is developing climate-related targets to enhance its existing risk management framework and improve understanding of climate risks[255]. - F&G's risk management framework includes ongoing monitoring of ESG-related regulations and climate risks, ensuring compliance with evolving standards[248]. Employee Engagement and Corporate Culture - As of December 31, 2024, F&G had 1,338 full-time equivalent employees, with no employees subject to collective bargaining agreements[217]. - F&G's employee turnover rates have consistently remained below national and industry-specific benchmarks, indicating strong employee retention[224]. - F&G has received multiple "Top Workplaces" designations, reflecting strong employee engagement and satisfaction[221]. - The company focuses on community engagement and charitable giving, particularly in addressing food insecurity and housing needs[226]. Investment and Financial Performance - The last financial examination by the IID found no material deficiencies in F&G Insurance's financial statements for the five-year period ending 2022[138]. - The company’s historical financial information may not accurately represent future results due to its recent separation from Fidelity National Financial, Inc. (FNF)[386]. - FNF retains significant control over the company, owning approximately 85% of its common stock, which may lead to conflicts of interest[387]. - The company may face higher ongoing capital costs compared to its previous access to FNF's cost of capital[390]. - Historical financial data prior to the separation does not account for new debt and associated interest expenses incurred post-separation[390]. - The company is exposed to potential assessments for policyholder losses due to insolvencies of other companies, which could impact financial stability[346]. Regulatory Changes and Compliance - The NAIC released new regulations in 2023 defining criteria for investments classified as bonds, which the company is implementing[166]. - The company has instituted new business procedures to comply with the revised NAIC model regulation regarding agent conduct in annuity transactions[176]. - Ongoing legal challenges to the DOL's fiduciary rule may delay its implementation and affect the insurance industry[352]. - The company has implemented a compliance program in response to the DOL's fiduciary regulations, requiring agents to acknowledge compliance with specific requirements[349]. ESG and Sustainability - F&G's governance includes a dedicated committee for overseeing sustainability risks, including climate risks as part of investment risks[227]. - The company completed a qualitative assessment of climate risks and opportunities in 2023, identifying potential impacts over short-, medium-, and long-term horizons[233]. - F&G's investment risk management integrates sustainability practices, focusing on climate-related risks and opportunities throughout the investment holding period[252]. - Changing ESG regulations may increase administrative expenses and management focus, potentially impacting access to capital[379]. - The company faces challenges in implementing ESG initiatives, which can be costly and time-consuming, potentially affecting its reputation and financial performance if goals are not met[380]. - Recent "anti-ESG" sentiment in the U.S. may lead to additional compliance obligations and reputational harm for the company[381].

F&G Investor Update Winter 2024 Disclaimer & Forward-Looking Statements This presentation contains forward-looking statements that are subject to known and unknown risks and uncertainties, many of which are beyond our control. Some of the forward-looking statements can be identified by the use of terms such as "believes", "expects", "may", "will", "could", "seeks", "intends", "plans", "estimates", "anticipates" or other comparable terms. Statements that are not historical facts, including statements regardi ...