Financial Data and Key Metrics Changes - F&G reported adjusted net earnings of $165 million, or $1.22 per share, in the third quarter, with alternative investment income at $67 million, or $0.48 per share, below management's long-term expected return [14][15] - Adjusted return on assets (ROA) on a last 12-month basis was 92 basis points, stable compared to the previous year and sequential quarters [16] - Adjusted return on equity (ROE), excluding AOCI, was 8.8%, consistent with the sequential quarter [17] Business Line Data and Key Metrics Changes - F&G achieved record assets under management (AUM) of $71.4 billion before Flow Reinsurance, a 14% increase year-over-year [5] - Gross sales for the third quarter reached $4.2 billion, with core sales at $2.2 billion, slightly above previous quarters [6] - Indexed annuities contributed $1.7 billion in sales for the quarter, while Pension Risk Transfer (PRT) sales exceeded $500 million [7][8] Market Data and Key Metrics Changes - The company reported strong demand for retirement savings products, particularly fixed annuities, driven by demographic trends and macroeconomic volatility [10] - The investment portfolio remains diversified and high quality, with 96% of fixed maturities being investment grade [11] Company Strategy and Development Direction - F&G is transitioning to a more fee-based, higher margin, and capital-light business model, leveraging its position as a leading distributor of annuities and life insurance [20] - The company aims to grow AUM by 50% and expand adjusted ROA to 133 to 155 basis points by 2026 [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver strong returns and achieve long-term shareholder value [13][62] - The competitive landscape remains active, particularly in the PRT market, with expectations for continued momentum [48] Other Important Information - F&F, the majority owner, plans to distribute approximately 12% of F&G's outstanding shares to its shareholders, increasing F&G's public float from 18% to 30% [24] Q&A Session Summary Question: Capital allocation priorities amidst stock pressure - Management emphasized the focus on growing the fixed index annuity business and owned distribution, with share buybacks being a low priority due to the upcoming share distribution [26][28] Question: Variable investment income expectations - Management indicated that variable investment income is expected to fluctuate, with a near-term run rate in the high single digits [30] Question: Exposure to private letter-rated assets - Management reassured that their portfolio is well-positioned and comfortable, with minimal exposure to private credit concerns [32] Question: Alternatives performance breakdown - Management noted that alternative investments had mixed performance, with LPs performing better than direct lending [35] Question: Operating leverage and expense management - Management expects continued improvement in the operating expense ratio, aiming to reduce it from 60 to 50 basis points by year-end 2025 [56] Question: Comments on F&F's share distribution - Management viewed the increase in free float as a positive development, enhancing institutional ownership and confidence in F&G's future [59]

Financial Data and Key Metrics Changes - The company generated total revenue of $3.6 billion in Q2 2025, compared to $3.2 billion in Q2 2024, excluding net recognized gains and losses [12] - Adjusted net earnings were $318 million or $1.16 per diluted share, down from $338 million or $1.24 per share in Q2 2024 [13] - The title segment contributed $260 million to adjusted net earnings, while the F and G segment contributed $89 million [13] Business Line Data and Key Metrics Changes - The title segment generated $2.2 billion in total revenue in Q2 2025, up from $2 billion in Q2 2024, with direct premiums increasing by 12% [14] - Adjusted pretax title earnings were $337 million, a $13 million or 4% increase from the previous year, with a title margin of 15.5% [5][14] - The F and G segment's assets under management grew to $69.2 billion, a 13% increase year-over-year [10] Market Data and Key Metrics Changes - Daily purchase orders opened increased by 5% compared to Q2 2024, while refinance orders saw a significant 28% increase [6][7] - Commercial volumes showed strong performance with direct commercial revenue of $626 million in the first half of 2025, up 23% from $511 million in the same period of 2024 [8] Company Strategy and Development Direction - The company is focused on long-term growth through strategic investments in security, technology, and recruiting [5] - F and G is pursuing a more fee-based, higher-margin, and less capital-intensive business model, supported by the launch of a new reinsurance vehicle [19][20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about a rebound in transaction volumes and the potential for efficiencies across operations [9] - The company anticipates that elevated health claims will normalize in 2026, and they remain confident in maintaining a 15% to 20% pretax title margin [15][45] Other Important Information - The company repurchased 2.9 million shares for $159 million at an average price of $55.2 per share during Q2 2025 [20] - The company returned nearly $300 million of capital to shareholders through dividends and share repurchases in the second quarter [21] Q&A Session Summary Question: Thoughts on holding separate businesses under the same company - Management is pleased with F and G's performance and sees continued value in the current structure, contributing 32% of adjusted earnings [27][28] Question: Details on personnel expenses - Personnel expenses increased due to active recruiting and elevated health claims, with a significant impact from medical claims [29][32] Question: Margin and expense outlook - Management expects health claims to peak this quarter and then moderate, maintaining confidence in the 15% to 20% margin range [44][45] Question: Commercial order momentum - National open orders were up 22% year-over-year, with strong expectations for continued growth in the back half of the year [49][50] Question: Buyback strategy - The company plans to remain active in share buybacks, particularly if share prices show weakness [55][60] Question: Dividend capacity for the second half - Approximately $250 million is available from regulated entities, with an additional $60 million from F and G [67]