Core Insights - F&G Annuities & Life, Inc. reported a significant decline in net earnings for Q2 2025, with net earnings attributable to common shareholders at $35 million, or $0.26 per diluted share, compared to $198 million, or $1.55 per share in Q2 2024 [2][10][22] - Adjusted net earnings for Q2 2025 were $103 million, or $0.77 per share, down from $139 million, or $1.10 per share in the same quarter of the previous year [3][10][26] - The company achieved record assets under management (AUM) before flow reinsurance of $69.2 billion, a 13% increase from $61.4 billion in Q2 2024, driven by strong sales [5][7][11] Financial Performance - Gross sales for Q2 2025 were $4.1 billion, a decrease from $4.4 billion in Q2 2024, with net sales at $2.7 billion compared to $3.4 billion in the prior year [6][9][27] - The investment portfolio remains strong, with 97% of fixed maturities rated investment grade, and credit-related impairments averaging 6 basis points over the past five years [11][12] - Adjusted return on assets (ROA) was 0.71% for Q2 2025, down from 0.98% in Q2 2024, while adjusted return on equity (ROE) excluding AOCI increased to 8.8% from 8.4% year-over-year [6][11][14] Sales and Market Position - Retail channel sales reached over $3.6 billion, a 13% increase from Q2 2024, marking one of the best quarters for indexed annuities and record sales for indexed universal life and multiyear guaranteed annuities [8][11][27] - Institutional market sales were $0.5 billion for pension risk transfer, down from $1.2 billion in Q2 2024, reflecting the opportunistic nature of these sales [9][11] - The company continues to focus on organic growth and returning capital to shareholders, having returned $35 million in capital during Q2 2025 [11][14] Capital and Equity - Total equity attributable to common shareholders, excluding AOCI, was $5.9 billion, or $43.39 per share, reflecting an increase of $0.08 per share during the quarter [14][25] - Book value per common share, excluding AOCI, increased to $43.39 from $42.52 at the end of Q2 2024 [6][14][25] - The company is on track to meet its medium-term targets set during the 2023 Investor Day, with expectations for further improvement in operating efficiency [5][11][14]