Financial Data and Key Metrics Changes - The company achieved record AUM before Flow Reinsurance of $73.1 billion, up 12% from year-end 2024, and record retained AUM of $57.6 billion, up 7% from year-end 2024 [5][14] - Adjusted net earnings were $123 million, or $0.91 per share in the fourth quarter, and $482 million, or $3.64 per share for the full year [24][25] - The fixed income yield was 4.65% in the fourth quarter, up 6 basis points from the fourth quarter of 2024 [6] Business Line Data and Key Metrics Changes - Gross sales for the full year reached $14.6 billion, with core products generating $9 billion, including indexed annuities, indexed universal life, and pension risk transfer [18][19] - Indexed annuities sales were $6.7 billion for the full year, consistent with 2024, while indexed universal life sales increased by 14% to $190 million [19][20] - Opportunistic sales, including funding agreements and multi-year guaranteed annuities, totaled $5.6 billion for the full year, with funding agreements up nearly 80% to $1.8 billion [21][22] Market Data and Key Metrics Changes - The company reported a strong pipeline for pension risk transfer (PRT) sales, achieving $2.1 billion for the full year, marking the third consecutive year of over $2 billion in PRT sales [20] - The alternative investment portfolio had an annualized return of approximately 7% in the fourth quarter, compared to a long-term expected return of 10% [7] Company Strategy and Development Direction - The company is transitioning to a more fee-based, higher margin, and less capital-intensive business model, focusing on long-term shareholder value [4][16] - The strategy includes leveraging distribution partners to grow the spread-based business while expanding sources of fee-based earnings through flow reinsurance and middle-market life insurance [16][26] - The company aims to increase its share of fee-based earnings to approximately 25% of total earnings by year-end 2028 [26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the credit soundness of the investment portfolio, with a stable credit-related impairment rate of 8 basis points in 2025 [6][13] - The company anticipates a potential decrease in surrender fee income in 2026, but is focused on growing AUM and maintaining a disciplined approach to capital allocation [60][61] - Management highlighted the importance of maintaining a strong capital position and flexibility, targeting a debt to capitalization ratio of approximately 25% [34] Other Important Information - The company completed a distribution of approximately 12% of outstanding shares to FNF shareholders, increasing public float from 18% to 30% [15] - A transaction is expected to close in the first quarter with Anchin Financial Holdings LP, which will provide net proceeds of approximately $300 million [32][55] Q&A Session Summary Question: Can you talk about software exposure in the investment portfolio? - Management indicated that software exposure is manageable, less than 5% of the total portfolio, with minimal disruption risk [38][39] Question: Can you discuss your near-term outlook for variable investment income? - Management expects variable investment income to remain stable, with a blended return around 10% [41][42] Question: Can you elaborate on your diversified panel of reinsurance partners? - Management confirmed no concerns regarding existing partnerships and noted a strong interest from potential reinsurance partners [46][47] Question: Can you provide insights on the transaction with Anchin Financial Holdings LP? - Management clarified that the transaction involves recapturing a third of liabilities and expects to use proceeds for general business growth [51][55] Question: What is the outlook for surrender fees and their impact on ROE? - Management anticipates lower surrender fee income in 2026 but expects overall asset growth to offset this [57][58]

Financial Data and Key Metrics Changes - The company achieved record AUM before flow reinsurance of $73.1 billion, up 12% from year-end 2024, and record retained AUM of $57.6 billion, up 7% from year-end 2024 [5][14] - Adjusted net earnings were $123 million, or $0.91 per share in the fourth quarter, and $482 million, or $3.64 per share for the full year [24][25] - The fixed income yield was 4.65% in the fourth quarter, up six basis points from the fourth quarter of 2024 [6] Business Line Data and Key Metrics Changes - Gross sales for the full year reached $14.6 billion, with core products generating $9 billion, including indexed annuities, indexed universal life, and pension risk transfer [18][19] - Indexed annuities sales were $6.7 billion for the full year, consistent with 2024, while indexed universal life sales increased by 14% to $190 million [19][20] - Pension risk transfer sales were $2.1 billion for the full year, marking the third consecutive year of over $2 billion in sales [20] Market Data and Key Metrics Changes - The company reported a strong pipeline for pension risk transfer deals, particularly for mid-sized transactions [20] - The alternative investment portfolio had an annualized return of approximately 7% in the fourth quarter, compared to a long-term expected return of 10% [7] Company Strategy and Development Direction - The company is transitioning to a more fee-based, higher margin, and less capital-intensive business model, focusing on long-term shareholder value [4][16] - The strategy includes leveraging distribution partners to grow the spread-based business while expanding fee-based earnings through flow reinsurance and middle-market life insurance [16][26] - The company aims to increase the share of fee-based earnings to approximately 25% of total earnings by year-end 2028 [26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the credit soundness of the investment portfolio, with a stable credit-related impairment rate of six basis points [6][13] - The company anticipates a potential decrease in surrender fee income in 2026, but is focused on growing AUM and maintaining a disciplined approach to capital allocation [60][61] - Management highlighted the importance of maintaining a strong capital position and flexibility in operations, targeting a debt to capitalization ratio of approximately 25% [34] Other Important Information - The company completed a distribution of approximately 12% of outstanding shares to FNF shareholders, increasing public float from 18% to 30% [15] - A transaction is expected to close in the first quarter with Anchin Financial Holdings LP, which will provide net proceeds of approximately $300 million [32][33] Q&A Session Summary Question: Can you talk about software exposure in the investment portfolio? - Management indicated that software exposure is manageable, less than 5% of the total portfolio, with minimal disruption risk [40] Question: Can you discuss your near-term outlook for variable investment income? - Management expects variable investment income to remain stable, with a blended return around 10% [42][45] Question: Can you elaborate on your diversified panel of reinsurance partners? - Management confirmed no concerns regarding existing partnerships and noted a strong interest from potential reinsurance partners [48] Question: Can you clarify the transaction details and uses of capital? - Management detailed the recapture of $900 million in liabilities and indicated that proceeds will be used for general business growth [56][57] Question: How do you see surrender fees impacting ROE? - Management expects surrender fee income to decrease in 2026, but is focused on asset growth and maintaining a disciplined approach [59][60]

Financial Data and Key Metrics Changes - The company achieved record AUM before Flow Reinsurance of $73.1 billion, up 12% from year-end 2024, and record retained AUM of $57.6 billion, up 7% from year-end 2024 [5][14] - Adjusted net earnings were $123 million, or $0.91 per share in the fourth quarter, and $482 million, or $3.64 per share for the full year [24][25] - The fixed income yield was 4.65% in the fourth quarter, up 6 basis points from the fourth quarter of 2024 [6] Business Line Data and Key Metrics Changes - Gross sales for the full year reached $14.6 billion, with core products generating $9 billion, including indexed annuities, indexed universal life, and pension risk transfer [19][20] - Indexed annuities sales were $6.7 billion for the full year, consistent with 2024, while indexed universal life sales were $190 million, reflecting a 14% increase over 2024 [20][21] - Pension risk transfer sales were $2.1 billion for the full year, marking the third consecutive year of over $2 billion in sales [21] Market Data and Key Metrics Changes - The company reported a strong pipeline for pension risk transfer deals, particularly for mid-sized transactions up to $500 million [21] - The alternative investment portfolio had an annualized return of approximately 7% in the fourth quarter, compared to a long-term expected return of 10% [7] Company Strategy and Development Direction - The company is transitioning to a more fee-based, higher margin, and less capital-intensive business model, focusing on long-term shareholder value [4][17] - The strategy includes leveraging distribution partners to grow the spread-based business while expanding fee-based earnings through flow reinsurance and middle-market life insurance [17][26] - The company aims to increase its share of fee-based earnings to approximately 25% of total earnings by year-end 2028 [26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the credit soundness of the investment portfolio, with a stable credit-related impairment rate of 8 basis points in 2025 [6][13] - The company anticipates a potential decrease in surrender fee income in 2026, but is focused on retaining assets and generating long-term value [30][60] - Management highlighted the importance of maintaining a disciplined approach to capital allocation and business growth [56][34] Other Important Information - The company completed a distribution of approximately 12% of outstanding shares to FNF shareholders, increasing public float from 18% to 30% [16] - A transaction is expected to close in the first quarter with Anchin Financial Holdings LP, involving the sale of F&G Life Re Limited, which will provide approximately $300 million in net proceeds [31][32] Q&A Session Summary Question: Can you talk about software exposure in the investment portfolio? - Management indicated that software exposure is manageable, less than 5% of the total portfolio, with minimal disruption risk [38][39] Question: Can you discuss the near-term outlook for variable investment income? - Management expects variable investment income to remain stable, with a blended return around 10% [41][42] Question: Can you elaborate on your diversified panel of reinsurance partners? - Management confirmed no changes in relationships with existing partners and expressed confidence in having a robust suite of reinsurance partners [46][47] Question: Can you provide details on the transaction mentioned and its capital uses? - Management clarified that proceeds from the transaction will be used for general business growth and maintaining capital flexibility [51][54] Question: How do surrender fees contribute to the crediting rate? - Management expects surrender fee income to decrease in 2026, but emphasized the importance of asset retention for long-term growth [57][60]

Financial Data and Key Metrics Changes - The company reported adjusted net earnings of $103 million or $0.77 per share for the second quarter, reflecting asset growth and higher fee income [17] - Adjusted return on assets (ROA) was 92 basis points, compared to 91 basis points in the same period last year [19] - Adjusted return on equity (ROE), excluding AOCI, was 8.8%, up 40 basis points from the previous year [19] Business Line Data and Key Metrics Changes - Gross sales reached $4.1 billion in the second quarter, marking one of the best sales quarters in history [6] - Core product sales, including fixed index annuities, index life, and pension risk transfer, totaled $2.2 billion, up 22% sequentially and 10% year-over-year [6][7] - MYGA sales were a record $1.9 billion in the second quarter, a 73% increase from the previous quarter but down 21% from the same quarter last year [8] Market Data and Key Metrics Changes - The total annuity market has expanded due to strong consumer demand and favorable demographics, with the aging population seeking guaranteed income streams [5] - The company reported record assets under management (AUM) before flow reinsurance of $69.2 billion, a 137% increase compared to the previous year [11] Company Strategy and Development Direction - The company is transitioning towards a more fee-based, higher-margin, and less capital-intensive business model, supported by the launch of a new reinsurance vehicle in partnership with Blackstone [4][20] - The reinsurance sidecar is expected to enhance ROE over time and is part of a broader strategy to optimize capital allocation [20][21] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, highlighting the strong second quarter results and the potential for continued growth in fee-based earnings [23] - The company aims to improve its operating expense ratio from 60 basis points at year-end 2024 to approximately 50 basis points by year-end 2025 [18] Other Important Information - An executive management transition was announced, with Connor Murphy taking on the role of President in addition to his current role as CFO [14] - The company has invested nearly $700 million in its own distribution company, reflecting a commitment to growing this segment [22] Q&A Session Summary Question: What is the expected capacity of the new sidecar with $1 billion in commitments? - Management indicated that the capacity could be multiple billions, depending on product type, and emphasized the strategic importance of moving towards a capital-light path [27] Question: How are MYGA sales shaping up for Q3? - Management expects a more normalized rate for MYGA sales, with potential volatility, but anticipates a higher level of indexed annuity sales due to the new sidecar [38] Question: What is the outlook for funding agreements? - Management noted that the funding agreement market looks reasonably attractive and will be closely monitored in Q3 [41] Question: How does the company plan to maintain its crediting rates? - Management stated that they regularly review in-force crediting actions and have a good track record of maintaining consistent spreads [54]

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]

Financial Data and Key Metrics Changes - F&G Annuities & Life, Inc. reported record gross sales of $15.3 billion for the full year 2024, a 16% increase over 2023, with $3.5 billion in the fourth quarter [8] - Adjusted net earnings for Q4 2024 were $153 million, up 17% from $131 million in Q4 2023, and for the full year 2024, adjusted net earnings were $657 million, a 22% increase from $539 million in 2023 [36] - The company achieved an adjusted return on equity (ROE) of 12% in Q4 2024, compared to approximately 10% in Q4 2023, and expanded adjusted ROE from 10% to over 12% over the last year [42][26] Business Line Data and Key Metrics Changes - Retail channel sales reached $12 billion for the full year, a 20% increase over 2023, with record sales in fixed indexed annuities (FIA), multi-year guaranteed annuities (MYGA), and indexed universal life (IUL) products [9] - Institutional market sales totaled $3.3 billion for the year, with pension risk transfer (PRT) sales of nearly $2.3 billion, reflecting a 15% increase over 2023 [12] - Funding agreements were $1 billion for the full year, down from $1.6 billion in 2023, with no funding agreements in Q4 [15] Market Data and Key Metrics Changes - The company’s assets under management (AUM) reached a record $65.3 billion at the end of Q4 2024, a 17% increase over Q4 2023, driven by net new business flows [18] - The retained portfolio was high quality, with 97% of fixed maturities being investment grade, and the company holds very little office exposure at 1.7% of the total portfolio [19][20] Company Strategy and Development Direction - The company is focused on diversifying earnings beyond spread-based sources and driving margin expansion, with a strategic emphasis on flow reinsurance and owned distribution [23] - F&G Annuities & Life, Inc. plans to continue expanding its distribution channels and has entered the registered indexed linked annuity (RILA) market, expecting significant sales growth in the medium term [10][11] - The company aims to grow AUM by 50% and increase adjusted ROA to 133 to 155 basis points, while targeting an adjusted ROE of 13% to 14% [48] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the ongoing secular demand for their products, particularly as baby boomers age and seek fixed income solutions [64] - The company has not seen meaningful impacts from industry lawsuits related to pension risk transfer and continues to see opportunities in the $100 million to $1 billion deal size market [57] - Management anticipates a rebound in fixed income yield in 2025 as they fully deploy cash and refine strategic asset allocation [21] Other Important Information - The company has invested $680 million in strategic owned distribution companies, with an estimated annualized EBITDA of approximately $90 million expected in 2025 [24] - F&G Annuities & Life, Inc. returned $125 million of capital to shareholders through dividends and received upgrades in financial strength ratings from AM Best and Moody's [25] Q&A Session Summary Question: Can you talk about the evolving organizational structure at the company and what that growth opportunity means? - Management indicated that the organizational changes are in response to significant growth and the need to drive value through new distribution channels and flow reinsurance arrangements [54] Question: Can you discuss the impact of industry lawsuits related to pension risk transfer? - Management noted that they have not felt any impact from industry lawsuits and continue to see opportunities in their targeted market segment [57] Question: What is the outlook for growth in net sales or retained AUM over the next few years? - Management remains optimistic about growth, citing strong secular demand and the addition of distribution partners as key drivers [62][66] Question: How do you expect the ROA to trend from here? - Management expects ROA to rebound in 2025, with adjustments made to asset allocation and renewal rate settings to mitigate any compression [71] Question: What is the current state of MYGA sales and market demand? - Management indicated that while MYGA sales have seen a decline, they do not anticipate a significant long-term decline in demand for MYGA products [114] Question: Can you provide insights on the funding agreement-backed note market? - Management explained that they will issue funding agreement-backed notes opportunistically based on capital allocation priorities and market conditions [81][83]