Financial Data and Key Metrics Changes - Adjusted operating income increased by 32% year over year, reaching $427 million or $2.36 per diluted share [4][27] - Net income available to common stockholders was $688 million or $3.80 per diluted share, reflecting positive market risk benefits [27] - The estimated RBC ratio remained above 420%, consistent with the company's strategy to maintain a capital buffer above the 400% target [43] Business Line Data and Key Metrics Changes - Group Protection business achieved record earnings of $173 million, up 33% year over year, with a margin increase to 12.5% [28][18] - Annuities generated operating income of $287 million, slightly down from $297 million in the prior year, primarily due to traditional variable annuity outflows [35] - Life Insurance reported operating earnings of $32 million, a significant improvement from an operating loss of $35 million in the prior year [40] Market Data and Key Metrics Changes - All four business segments delivered double-digit sales growth in the first half of the year, with notable contributions from previously non-key products [8] - Retirement Plan Services saw first-year sales increase by nearly 50% year over year, with total deposits up by 10% [22] Company Strategy and Development Direction - The company is focused on increasing risk-adjusted returns, reducing volatility, and growing its franchise through a disciplined growth strategy [5][24] - Strategic investments are being made in higher-margin products and segments, enhancing digital capabilities, and optimizing the operating model [7][8] - The company aims to deepen its strategic moat and evolve into a more agile, scalable organization [24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's trajectory, emphasizing the importance of disciplined execution and strategic clarity [25][48] - The economic backdrop remains volatile, but the company is committed to delivering long-term value and sustainable growth [8][24] Other Important Information - The company has launched a Bermuda-based reinsurance subsidiary to enhance its investment strategy [7] - The alternative investment portfolio achieved a 10% annualized return, contributing positively to overall earnings [27][47] Q&A Session Summary Question: On group and the shift into smaller local markets and supplemental health products - Management highlighted the successful execution of a targeted segment strategy, particularly in local markets and supplemental health, which are expected to drive margin expansion [50][51] Question: On the restructuring of the Life Captives - Management indicated that specifics on the impact of restructuring on earnings and free cash flow would be provided once more concrete details are available, with potential impacts expected in the following year [62][64] Question: On RILA product sales and market competition - Management reported a 32% increase in RILA sales year over year, attributing growth to the introduction of a second-generation product and expanding distribution segments [67][69] Question: On free cash flow conversion guidance - Management expressed confidence in the long-term free cash flow conversion rate being above previous targets, especially with the deployment of Bain Capital [74][76] Question: On distribution strategies in the group business - Management emphasized the importance of strategic broker relationships and investments in digital capabilities to enhance competitive differentiation and drive growth [80][82] Question: On external reinsurance solutions - Management is exploring options for external reinsurance focused on the legacy life block, with the potential for less reliance on structured deals due to deployable excess capital [88]

Financial Data and Key Metrics Changes - Adjusted non-GAAP earnings for Q2 2025 were $469 million, or $2.7 per share, representing an 18% increase in EPS compared to 2024 [5][6] - Reported non-GAAP operating earnings were $489 million, up 27% year over year, with EPS at $2.16, a 33% increase [15][16] - Total company managed AUM reached $753 billion, a 5% increase sequentially and an 8% increase year over year [7][11] - Net cash flow was negative $2.6 billion for the quarter, but showed improvement sequentially [7][11] Business Line Data and Key Metrics Changes - In Retirement, overall RIS sales were $6 billion, a 7% year-over-year increase, driven by Workplace Savings and Retirement Solutions [9][10] - Principal Asset Management AUM increased to $723 billion, a 5% sequential increase, with sales of $33 billion, up 19% year over year [11][12] - Specialty Benefits saw a 10% growth in earnings, with a margin expansion of 100 basis points [12][21] - Life Insurance premium fees increased by 5% compared to 2024, driven by strong business market growth [22] Market Data and Key Metrics Changes - The market drop in April affected daily averages, impacting second quarter fee revenue, but a strong rebound in May and June provided positive momentum [6][7] - International Pension net revenue was impacted by foreign currency, but increased by 2% on a constant currency basis [20] Company Strategy and Development Direction - The company remains focused on disciplined expense management while investing for growth, aiming to align revenue and expenses effectively [29][31] - Continued emphasis on capital return targets, with $320 million returned to shareholders in Q2, including $150 million in share repurchases [6][24] - The company is committed to maintaining a strong capital position and expects to deliver on full-year capital return targets of $1.4 billion to $1.7 billion [24][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the second half of the year, expecting full-year results to align with 2025 outlook and financial targets [7][8] - The company anticipates improved results in the latter half of 2025, particularly in investment management and performance fees [48][49] - Management acknowledged the competitive environment in pension risk transfer (PRT) but remains optimistic about achieving targeted returns [40][42] Other Important Information - The company was recognized for its leadership in disability inclusion and AI application in financial services [13] - A $0.78 common stock dividend was announced for Q3, reflecting an 8% increase over the previous year [26] Q&A Session Summary Question: Overall expense levels and future focus - Management confirmed a continued focus on aligning expenses with revenue while maintaining investments in the business [29][31] Question: Spread balances within RIS - Management noted that investment-only issuance and PRT sales were moderate, emphasizing a disciplined approach to prioritizing returns over volume [34][38] Question: Competitive environment in PRT - Management acknowledged increased competition but remains optimistic about converting existing DB clients into PRT opportunities [40][42] Question: Variable investment income experience - Management indicated improved performance in variable investment income, with expectations for better results in the latter half of 2025 [47][49] Question: Dental business outlook - Management highlighted competitive pricing and renewal rates, with expectations for improved sales in the second half of the year [84][88]

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 - Non-GAAP operating earnings for the first quarter were $421 million or $1.30 per share, down 7% year over year on a per share basis, while adjusting for notable items, non-GAAP operating EPS was $1.35, down 3% compared to the prior year [7][20] - GAAP net income was $63 million in the quarter, lower than non-GAAP operating earnings due to non-economic hedging impacts [21] - The reported book value per share excluding AOCI was $27.62, while the adjusted book value per share including ownership in AB at market value was $39.96 [22] Business Line Data and Key Metrics Changes - The Protection Solutions segment reported a loss of $17 million due to high levels of large individual life mortality claims, which were approximately $80 million above expectations [8][23] - Retirement businesses produced $1.6 billion of net inflows, driven by momentum in the RILEH franchise and expansion of institutional offerings [8] - Wealth management business had $2 billion of advisory net inflows, with advisor productivity up 8% and a 12% organic growth rate on a trailing twelve-month basis [9] Market Data and Key Metrics Changes - The company experienced positive net flows across each of its three distribution channels, with total active net inflows of $2.7 billion [9] - The private markets business saw AUM increase by 20% year over year to $75 billion, with a strong pipeline [9] - The company noted that market volatility and tax payments pressured flows in April, but it remains well-positioned due to its diversified asset mix and global investment platform [9][11] Company Strategy and Development Direction - The company plans to close a reinsurance transaction with RGA, which will free up over $2 billion of capital and enhance focus on retirement, asset management, and wealth management [10][18] - The strategy emphasizes the combination of insurance and asset management to provide competitive advantages, with a focus on capturing synergies between Equitable and AB [17][92] - The company aims to maintain a strong balance sheet and predictable cash flows, leveraging its all-weather product portfolio to navigate market volatility [12][38] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate periods of macro volatility, highlighting strong underlying growth drivers and the need for retirement and investment advice [5][12] - The company anticipates that periods of market volatility will increase demand for its products, particularly buffered annuities [12][46] - Management remains optimistic about long-term growth prospects, driven by favorable demographic trends and a durable need for the advice and solutions offered [38] Other Important Information - The company returned $335 million to shareholders in the first quarter, representing an 80% payout ratio, and plans to increase its quarterly cash dividend by 13% [29][30] - The company has $2.2 billion of cash and liquid assets at holdings, up from $1.8 billion at the end of the fourth quarter [30] - The company is focused on maintaining financial flexibility and is prepared to take advantage of market opportunities as they arise [36][68] Q&A Session Summary Question: Can you size the extraordinary dividend planned for the holding company? - Management expects to take an extraordinary dividend of about $1 billion later in the year, following the $2 billion benefit from the life insurance company post-transaction with RGA [42] Question: Are you seeing incremental demand for your products given current market conditions? - Management reported robust sales in April, driven by demographic trends and heightened market volatility, with continued demand for their products [46][47] Question: What is the impact of seasonally elevated expenses and lower fee days on earnings? - Management indicated that the seasonal expenses and lower fee days had a pretax impact of about $10 million on individual retirement earnings, which is expected to normalize in the second quarter [50] Question: How do you view the leverage ratio and potential buybacks? - Management stated that any incremental buybacks would likely be accompanied by debt repayment to maintain leverage ratios in line with rating agency expectations [52] Question: What is the outlook for cash flow guidance given lower equity markets? - Management remains comfortable with the cash flow guidance of $1.6 billion to $1.7 billion for the year, despite being on the lower end due to current market conditions [91]

Financial Data and Key Metrics Changes - Non-GAAP operating earnings for Q1 2025 were $421 million or $1.30 per share, down 7% year over year on a per share basis [5][19] - Adjusted for notable items, non-GAAP operating EPS was $1.35, a decrease of 3% compared to the prior year [5][19] - GAAP net income was $63 million, lower than non-GAAP operating earnings due to non-economic hedging impacts [20] - Reported book value per share excluding AOCI was $27.62, while adjusted book value per share including ownership in AB at market value was $39.96 [20][21] Business Line Data and Key Metrics Changes - Protection Solutions segment reported a loss of $17 million due to high mortality claims, which were approximately $80 million above expectations [6][22] - Retirement businesses produced $1.6 billion of net inflows, driven by the RILEH franchise and institutional offerings [6][25] - Wealth management business had $2 billion of advisory net inflows, with advisor productivity up 8% and a 12% organic growth rate [6][25] - AllianceBernstein (AB) reported positive net flows across all distribution channels, with total active net inflows of $2.7 billion [7][26] Market Data and Key Metrics Changes - The company experienced strong net flows in individual retirement, with $1.4 billion in net flows and an 8% organic growth rate over the last twelve months [55] - Group Retirement had positive net inflows of $192 million, while Wealth Management advisory net flows were $2 billion [25][26] - AB's institutional pipeline increased materially by several billion dollars in Q1, indicating confidence in future flows despite market volatility [60] Company Strategy and Development Direction - The company plans to close a reinsurance transaction with RGA, which will free up over $2 billion of capital and enhance focus on retirement, asset management, and wealth management [9][34] - The strategy includes increasing ownership in AllianceBernstein to 69%, capturing more economic benefits and synergies between the two firms [9][35] - The company emphasizes the importance of providing retirement and investment advice, especially during periods of market volatility, to meet the growing demand for secure income solutions [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate macro volatility due to a strong balance sheet and predictable cash flows [10][37] - The company highlighted favorable demographic trends, with 4 million Americans turning 65 each year, increasing the demand for retirement solutions [12] - Management noted that periods of market volatility enhance the need for the advice and solutions offered, positioning the company well for future growth [11][37] Other Important Information - The company returned $335 million to shareholders in Q1, representing an 80% payout ratio, and plans to increase the quarterly cash dividend by 13% [8][28] - The company has $2.2 billion of cash and liquid assets at holdings, up from $1.8 billion at the end of the previous quarter [28] - The company expects to close the life reinsurance transaction in mid-2025, which will provide significant financial flexibility [34] Q&A Session Summary Question: Size of extraordinary dividend from $2 billion proceeds - Management expects to take an extraordinary dividend of about $1 billion later in the year after the reinsurance transaction [40][41] Question: Demand for products amid market volatility - Management reported robust sales in April, driven by demographic trends and heightened market volatility [44][46] Question: Impact of elevated expenses and lower fee days on earnings - Elevated expenses had a pretax impact of about $10 million on individual retirement earnings, but growth in net investment margin is expected [48][49] Question: Leverage ratio management - Management indicated that any incremental buybacks would likely be accompanied by debt repayment to maintain leverage ratios [50][51] Question: Outlook for cash flow guidance - Management remains confident in the $1.6 billion to $1.7 billion cash flow guidance despite current market conditions [90][91] Question: Changes in ownership thoughts for AllianceBernstein - Management has no immediate plans to increase ownership beyond 69% but is pleased with the current synergies [92][93]

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]