Core Insights - Economic volatility is significantly impacting retirement readiness among Americans over 50, with 70% of pre-retirees considering or delaying their retirement date [1][2] - A notable 23% of pre-retirees are definitely postponing their planned retirement date, reflecting a 14% increase from 2024 [2] - Half of the respondents (50%) cite financial uncertainties and economic volatility as reasons for reconsidering their retirement plans, marking a 10% increase from the previous year [2] Group 1: Retirement Planning Concerns - Nearly a third (29%) of retirees are contemplating returning to work, with this figure rising to 54% among younger Generation X retirees [3] - 49% of American investors feel the need to invest in products that provide guaranteed income for the future due to economic uncertainty [3][4] - 48% of respondents are worried about not having enough money for retirement, while 44% express concerns about inflation [8] Group 2: Self-Assessment of Retirement Readiness - 32% of American investors rated their financial readiness for retirement as a C or below, compared to only 26% who rated it an A [6] - 41% of respondents rated their social connections in retirement as a C or below, indicating a lack of confidence in this area [6] - 28% rated their personal fulfillment in retirement as an A, while another 28% rated it a C or lower [6] Group 3: Financial Professional Engagement - Despite lower self-assessments, 47% of Americans over 50 are not currently using a financial professional, an increase from 43% in the previous year [7] - Among Generation X, over half (54%) are not leveraging a financial professional, up from 49% in 2024 [7] - Only 15% of retirees indicated they would consult their financial advisor before returning to work, suggesting a trend of independent financial decision-making [10] Group 4: Importance of Financial Guidance - Financial professionals are seen as crucial in helping investors align their financial plans with their desired lifestyle in retirement [11] - The emphasis on personal fulfillment in retirement planning is lacking, with 29% of investors placing little to no emphasis on this aspect [10]

Group 1 - F&G Annuities & Life shares have declined over 20% in value over the past year [1] - The decline began in March when the company unexpectedly issued equity, leading to a drop in share prices [1] - A weaker than expected Q1 performance further exacerbated the situation [1]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number 001-41490 F&G Annuities & Life, Inc. (Exact name of registrant as specified in its charter) Delaware (State or other jurisdiction of incorporation or organization) 85 ...

Financial Data and Key Metrics Changes - First quarter reported adjusted net earnings were $91 million or $0.72 per share, compared to $108 million or $0.86 per share in the first quarter of 2024, reflecting a decrease of $17 million primarily driven by margin compression and higher interest expense [27][28] - First quarter adjusted return on assets (ROA) was 68 basis points, pressured from near-term headwinds, with a last twelve-month adjusted ROA of 100 basis points, down six basis points from the previous quarter [29] - Reported adjusted return on equity (ROE), excluding AOCI, was 9.7%, up 2.3% over the first quarter of 2024 [29] Business Line Data and Key Metrics Changes - F&G reported record assets under management (AUM) before flow reinsurance of $67.4 billion as of March 31, reflecting a 169% increase compared to the first quarter of 2024 [21] - Gross sales were $2.9 billion, a 17% decrease from the first quarter of 2024, primarily due to lower MYGA sales, while indexed annuity sales remained strong at $1.5 billion [21][22] - Pension risk transfer (PRT) sales were $311 million, down from $584 million in the first quarter of 2024, with funding agreements at $525 million compared to $105 million in the prior year [23] Market Data and Key Metrics Changes - The investment portfolio is well matched to the liability profile, with 96% of fixed maturities being investment grade, and credit-related impairments averaging six basis points over the last five years [12][29] - The fixed income yield was 4.53% in the first quarter, a decrease of three basis points from the first quarter of 2024, reflecting the runoff of higher-yielding in-force assets [13] Company Strategy and Development Direction - The company continues to diversify earnings between spread-based and fee-based sources, with a focus on optimizing return on capital and maintaining pricing discipline [19][20] - F&G is committed to achieving its 2023 Investor Day targets while navigating near-term headwinds and macro uncertainty [31] Management's Comments on Operating Environment and Future Outlook - Management believes that the near-term headwinds are temporary and expects improvement in sales and profitability throughout 2025 [7][9] - The company remains confident in its business model's resilience and its ability to generate long-term shareholder value despite current market volatility [84] Other Important Information - The company has successfully completed recent capital markets activities, including issuing $375 million of junior subordinated notes and a public offering of 8 million shares of common stock [30][31] - The owned distribution portfolio is performing well, with double-digit annual growth of EBITDA expected over the medium term [19] Q&A Session Summary Question: Growth opportunity for the Ryla product - Management expressed excitement about the Ryla product, noting that it has taken time to get onto platforms but is now adding broker dealers consistently, with medium-term potential in the billions [35][38] Question: Impact of lower industry volume on own distribution - Management indicated that the slowdown in owned distribution was balanced between industry volume and investments supported by the company, with a rebound observed in April [39][40] Question: Thoughts on capital deployment after raising common equity - Management stated that the capital raised would be deployed thoughtfully into new business, maintaining a disciplined approach to pricing and capital allocation [43][44] Question: Cost of funds increase and market competition - Management acknowledged the increase in cost of funds and attributed it to lower surrender income and market volatility, but remains disciplined in pricing [47][48] Question: Performance of the alternatives portfolio - Management noted that the direct lending portfolio performed well, while the limited partnerships came in lower than expectations, impacting overall yield [75][76] Question: Surrender activity expectations - Management projected that surrender activity would remain similar in Q2 compared to Q1, with ongoing uncertainty regarding future surrenders [78][80]

Financial Data and Key Metrics Changes - First quarter reported adjusted net earnings were $91 million or $0.72 per share, compared to $108 million or $0.86 per share in the first quarter of 2024, reflecting a decrease of $17 million primarily driven by margin compression and higher interest expense [24][26] - First quarter adjusted return on assets (ROA) was 68 basis points, pressured from near-term headwinds, while adjusted ROA on a last twelve-month basis decreased to 100 basis points from 106 basis points in the fourth quarter of 2024 [27] - Reported adjusted return on equity (ROE), excluding AOCI, was 9.7%, up 2.3% over the first quarter of 2024 [27] Business Line Data and Key Metrics Changes - F and G reported record assets under management (AUM) before flow reinsurance of $67.4 billion as of March 31, reflecting a 169% increase compared to the first quarter of 2024 [19] - Gross sales were $2.9 billion, a 17% decrease from the first quarter of 2024, primarily due to lower MYGA sales, while indexed annuity sales remained strong at $1.5 billion [19][20] - Pension risk transfer (PRT) sales were $311 million in the first quarter, down from $584 million in the first quarter of 2024, with funding agreements at $525 million compared to $105 million in the prior year [21] Market Data and Key Metrics Changes - The investment portfolio is well matched to the liability profile, with 96% of fixed maturities being investment grade, and credit-related impairments averaging six basis points over the last five years [10][11] - The portfolio's fixed income yield was 4.53% in the first quarter, a decrease of three basis points from the first quarter of 2024, reflecting the runoff of higher yielding in-force assets [12] Company Strategy and Development Direction - The company continues to diversify earnings between spread-based and fee-based sources, with a focus on optimizing return on capital and maintaining pricing discipline [17][29] - The owned distribution portfolio is expected to create value with double-digit annual growth of EBITDA over the medium term [17] - The company remains committed to achieving targets set during the 2023 Investor Day, focusing on managing sales and in-force profitability [29] Management's Comments on Operating Environment and Future Outlook - Management noted that near-term headwinds are believed to be temporary, with expectations for improvement throughout 2025 [6][7] - The company is focused on managing sales and in-force profitability to optimize return on capital, while navigating macroeconomic uncertainties [29] - Management expressed confidence in the resilience of the business model despite current market volatility [60] Other Important Information - The company has successfully completed capital markets activities, including issuing $375 million of junior subordinated notes and redeeming $300 million of senior notes [28][29] - The company ended the quarter with a GAAP book value attributable to common shareholders of $5.8 billion or $43.31 per share [29] Q&A Session Summary Question: Growth opportunity for the Ryla product - Management indicated that while MIGA sales declined due to market volatility, there has been a rebound in April, and they remain optimistic about the Ryla product's growth potential [32][34] Question: Impact of lower industry volume on own distribution - Management noted a rebound in own distribution in April and suggested that the slowdown was balanced between industry volume and investments in the platform [36][37] Question: Decision to raise common equity - Management clarified that the capital raised will be deployed thoughtfully into new business opportunities, maintaining a disciplined approach to pricing [40][41] Question: Cost of funds increase - Management acknowledged the sequential increase in the cost of funds and attributed it to lower surrender income and cash yield impacts, while maintaining pricing discipline [45][46] Question: MIGA sales rebound in April - Management confirmed that the rebound was largely due to internal factors and improved market conditions, emphasizing the profitability of the MIGA business [53][54] Question: RBC sensitivity to equity market volatility - Management reassured that there are no changes to RBC expectations and targets, maintaining a focus on being above 400% [69] Question: Performance of alternative investments - Management indicated that the direct lending portfolio performed well, while the LP portfolio came in lower than expectations, impacting overall yield [72][74]

Company Performance - F&G Annuities & Life, Inc. reported quarterly earnings of $0.72 per share, missing the Zacks Consensus Estimate of $1.19 per share, and down from $0.86 per share a year ago, representing an earnings surprise of -39.50% [1] - The company posted revenues of $908 million for the quarter ended March 2025, missing the Zacks Consensus Estimate by 38.36%, compared to $1.57 billion in revenues a year ago [2] - Over the last four quarters, the company has surpassed consensus EPS estimates two times and topped consensus revenue estimates two times [2] Stock Performance - F&G Annuities & Life, Inc. shares have lost about 14.1% since the beginning of the year, while the S&P 500 has declined by -4.7% [3] - The current status of estimate revisions is unfavorable, leading to a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] Earnings Outlook - The current consensus EPS estimate for the coming quarter is $1.20 on revenues of $1.52 billion, and for the current fiscal year, it is $5.05 on revenues of $6.18 billion [7] - The sustainability of the stock's price movement will depend on management's commentary during the earnings call [3][4] Industry Context - The Insurance - Life Insurance industry is currently in the bottom 43% of over 250 Zacks industries, suggesting that the outlook for the industry can materially impact stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Performance - Gross sales for 1Q25 were $2.9 billion, a decrease of 17% year-over-year, primarily due to lower MYGA sales[4,9] - Net sales for 1Q25 were $2.2 billion, a decrease of 4% year-over-year[4,9] - Assets Under Management (AUM) reached $54.5 billion in 1Q25, a 9% increase year-over-year[4,9] - AUM before flow reinsurance was $67.4 billion in 1Q25, a 16% increase year-over-year[4,9] - Adjusted Return on Equity (ROE) for 1Q25 was 9.7%, an increase of 2.3% year-over-year[4] - Adjusted Return on Assets (ROA) for 1Q25 was 0.68%, a decrease of 6 bps compared to LTM 4Q24[4,9] - Adjusted net earnings (ANE) attributable to common shareholders was $91 million, or $0.72 per diluted share[9] Business Diversification and Growth Strategy - The company is targeting large and growing markets, including the middle market demand for life coverage and migration from CDs to fixed annuities[19] - The company is diversifying its business across retail channels and institutional markets, with a focus on capital-light flow reinsurance and accretive owned distribution to generate higher ROEs[23,53] - The company is driving towards its Investor Day targets, including growing AUM by 50%, expanding adjusted ROA ex significant items to 1.33% to 1.55%, and increasing adjusted ROE ex AOCI and significant items to 13% to 14%[34] Investment Portfolio - The investment portfolio is conservatively positioned and well-matched to the liability profile, with 96% of fixed income being investment grade[58,64] - The company has a high-quality and well-diversified portfolio, with $51 billion in assets across various classes, including corporates (31%), structured securities (22%), and private origination (16%)[61]

Core Insights - F&G Annuities & Life, Inc. has achieved cumulative pension risk transfer (PRT) sales exceeding $7 billion, maintaining a top 10 ranking in the PRT market for four consecutive years [1][2][3] - In 2024, F&G recorded a record $2.2 billion in PRT sales, marking a 15% increase from 2023, with an additional $300 million in sales in Q1 2025 [2][3] - The company has executed over 30 PRT transactions since entering the market in 2021, serving more than 125,000 participants [2][3] Company Strategy - F&G's PRT track record is a key component of its growth and diversification strategy, with a focus on competitive pricing and a diversified balance sheet [3][4] - The company has adapted its approach by adding new market segments and broadening its prospects through additional PRT consultants [3] - F&G's tech-enabled servicing and high-quality investment portfolio enhance its ability to deliver superior value in a competitive market [3] Market Position - F&G consistently ranks among the top 10 in the $3 trillion private pension market and is a top 6 player in PRT writers, with an average deal size below $1 billion [3] - Pension fiduciaries view F&G as a reliable and cost-effective provider for securing pension benefits while managing plan assets prudently [4]

[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]