Core Viewpoint - F&G Annuities & Life, Inc. is set to release its second quarter 2025 earnings on August 6, 2025, after market close, indicating ongoing financial performance tracking in the insurance sector [1]. Group 1: Earnings Release Information - The earnings release will be available on F&G's Investor Relations website, providing stakeholders with access to detailed financial results [2]. - A conference call to discuss the earnings results will take place on August 7, 2025, at 9:00 a.m. Eastern Time, allowing for direct engagement with the company's financial performance [2]. Group 2: Company Overview - F&G is a prominent provider of insurance solutions, catering to both retail annuity and life customers as well as institutional clients, highlighting its diverse market presence [3]. - The company is headquartered in Des Moines, Iowa, emphasizing its operational base within the United States [3].

Core Viewpoint - Fidelity National Financial, Inc. (FNF) is set to release its second quarter 2025 earnings on August 6, 2025, after market close, highlighting its position as a leading provider in the title insurance and transaction services sectors [1][2]. Company Overview - FNF is a prominent provider of title insurance and transaction services for the real estate and mortgage industries, as well as insurance solutions for retail annuity and life customers through its subsidiary F&G Annuities & Life, Inc. [3] - FNF is recognized as the largest title insurance company in the United States, with its underwriters collectively issuing more title insurance policies than any other company in the nation [3]. Earnings Call Information - A conference call to discuss the quarterly results will take place on August 7, 2025, at 11:00 a.m. Eastern Time, following the earnings release [2]. - Access to the webcast and conference call can be obtained through FNF's Investor Relations website or via telephone [5].

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]

Financial Performance - Total revenues for Q1 2025 were $908 million, a decrease of 42% from $1,569 million in Q1 2024 [301]. - Net earnings attributable to common shareholders for Q1 2025 were $(25) million, compared to $111 million in Q1 2024 [301]. - Life insurance premiums and other fees decreased to $489 million in Q1 2025 from $718 million in Q1 2024, reflecting a decline in life-contingent pension risk transfer premiums [303]. - Total annuity sales for Q1 2025 were $2,023 million, down from $2,764 million in Q1 2024 [301]. - The company reported a net loss before income taxes of $(26) million for Q1 2025, compared to a profit of $142 million in Q1 2024 [301]. - Adjusted net earnings for the three months ended March 31, 2025, were $91 million, which included a $16 million reinsurance true-up adjustment, while for the same period in 2024, adjusted net earnings were $108 million [325]. - Operating cash flow for the three months ended March 31, 2025, was $956 million, a decrease from $1,534 million for the same period in 2024 [379]. Annuity Market Trends - The fixed index annuity market grew from nearly $12 billion in sales in 2002 to $130 billion in sales in 2024, while the registered index-linked annuities market increased from $17 billion in 2019 to $62 billion in 2024 [275]. - The aging U.S. population is expected to increase demand for indexed annuity and indexed universal life products, with over 10,000 Americans turning 65 every day [274]. - Indexed annuity sales increased slightly to $1,461 million in Q1 2025 from $1,437 million in Q1 2024, while fixed rate annuities sales decreased significantly from $1,327 million to $562 million [301]. Investment Portfolio - The fair value of the company's investment portfolio as of March 31, 2025, was approximately $60.2 billion, an increase from $59.5 billion as of December 31, 2024 [327]. - The company's fixed maturity available-for-sale securities totaled $47.9 billion as of March 31, 2025, representing 79% of the total investment portfolio [327]. - The top ten concentrations of the company's fixed maturity and equity securities accounted for 74% of the total fair value as of March 31, 2025, with CLOs valued at $9.3 billion, making up 19% of the total [334]. - As of March 31, 2025, 64% of the fixed income portfolio was rated AAA/AA/A, while 32% was rated BBB [332]. - The fair value of AAA/AA/A rated securities in the AFS CLO portfolio increased to $6,673 million, representing 72% of the total portfolio as of March 31, 2025, compared to 63% on December 31, 2024 [343]. Macroeconomic Factors - The company anticipates various macroeconomic factors will continue to drive uncertainty and instability, impacting financial performance in fiscal year 2025 [269]. - The company is unable to predict the duration of the current market environment or its financial impacts due to increasing uncertainty [270]. Cost Management - Personnel costs and other operating expenses decreased to $108 million in Q1 2025 from $124 million in Q1 2024, a reduction of 12.9% [321]. - Interest expense increased to $40 million in Q1 2025 from $30 million in Q1 2024, reflecting a 33.3% rise due to new debt issuances [322]. Cash Flow and Financing Activities - Cash flows from financing activities for Q1 2025 were $882 million, up from $659 million in Q1 2024, driven by higher net contractholder deposits [381]. - The company completed a public offering of 8,000,000 shares of common stock at $33.60 per share, with net proceeds intended for general corporate purposes [369]. - As of March 31, 2025, cash and cash equivalents totaled $3,293 million, an increase from $2,264 million as of December 31, 2024 [374]. Risk Management - The company began executing pay-float and receive-fixed interest rate swaps in 2023 to reduce market risks from interest rate changes [284]. - Market risk benefit losses for the three months ended March 31, 2025, were $109 million, compared to losses of $(11) million in 2024 [318].

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]