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]

F&G Annuities & Life (NYSE:FG) Q4 2025 Earnings call February 20, 2026 09:00 AM ET Company ParticipantsChris Blunt - CEOConor Murphy - President and CFOJohn Barnidge - Managing DirectorLisa Foxworthy-Parker - Senior VP of Investor RelationsConference Call ParticipantsAlex Scott - Equity Research AnalystMark Hughes - Stock AnalystWilma Burdis - Equity Research AnalystOperatorGood morning. Welcome to F&G's fourth quarter and full year 2025 earnings call. During today's presentation, all callers will be placed ...

F&G Annuities & Life (NYSE:FG) Q4 2025 Earnings call February 20, 2026 09:00 AM ET Speaker6Good morning. Welcome to F&G's fourth quarter and full year 2025 earnings call. During today's presentation, all callers will be placed in listen-only mode. Following management's prepared remarks, the conference will be open for questions with instructions to follow at that time. I would now like to turn the call over to Lisa Foxworthy-Parker, Senior Vice President, Investor & External Relations. Please go ahead.Spea ...

Financial Data and Key Metrics Changes - Manulife reported strong financial results for 2025, with new business CSM growth exceeding 20% in each insurance segment, contributing to double-digit growth in CSM balance and supporting future earnings potential [4][5] - Core EPS grew by 8% year-over-year, with core ROE expanding by 30 basis points from the prior year, tracking well towards the 2027 target of 18%+ [5][24] - The company generated $6.4 billion in remittances and returned nearly $5.5 billion to shareholders, with a LICAT ratio of 136% and a leverage ratio of 23.9% [5][25] Business Line Data and Key Metrics Changes - Global WAM experienced net outflows of $9.5 billion in the second half of 2025, but continued to deliver strong margins and core earnings growth [4][15] - In Asia, APE sales decreased by 3% year-over-year, but new business CSM and new business value delivered strong double-digit growth, with NBV margin expanding by 5.5 percentage points to 41.2% [19][20] - The U.S. segment saw a 9% increase in APE sales, with new business CSM growing by 34%, although core earnings decreased by 22% due to lower investment spreads and unfavorable life insurance claims experience [23] Market Data and Key Metrics Changes - The company reported strong growth in Asia, with APE sales showing double-digit growth in Japan and other Asian markets, despite a decline in Hong Kong sales due to regulatory changes [19][20] - In Canada, APE sales and new business value increased by 2% and 4% respectively, driven by strong growth in individual insurance and annuity sales [21][22] - The U.S. market showed broad-based demand for products, contributing to a significant increase in new business CSM [23] Company Strategy and Development Direction - Manulife introduced a refreshed enterprise strategy focused on growth and customer choice, with strategic investments made to strengthen the portfolio [6][8] - The company aims to become an AI-powered organization, investing in AI to enhance efficiency and customer experience, ranking first among global life insurers for AI maturity [12] - Strategic acquisitions, such as Comvest Credit Partners and a joint venture in India, are part of the company's growth strategy [8][9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating macroeconomic and geopolitical uncertainties due to the diversified nature of the business [4] - The company anticipates continued growth in core earnings and is optimistic about achieving its 2027 targets, despite challenges in specific markets [14][24] - Management highlighted the importance of maintaining a balanced, diversified business model to support sustainable growth [8][9] Other Important Information - The company announced a 10% increase in its quarterly common share dividend and received approval for a new NCIB program to repurchase up to 42 million shares [5][6] - Adjusted book value per share grew by 6% year-over-year, reflecting strong capital position despite significant capital returns to shareholders [25] Q&A Session Summary Question: Clarification on Hong Kong sales and regulatory changes - Management noted that while there was a decline in Hong Kong sales due to regulatory changes, the overall performance for the year was strong, with expectations for recovery as brokers adjust [27][30] Question: Increase in NBV margin in Hong Kong - The increase in NBV margin was attributed to a shift in sales mix, with stronger performance in higher-margin channels [34][36] Question: Impact of eMPF on GWAM earnings and Comvest acquisition - Management indicated that Comvest is expected to contribute positively to AUMA and core earnings, with optimism about customer demand [39] Question: Concerns about mortality experience in the U.S. - Management clarified that recent mortality experience variability is not indicative of a long-term trend and expressed confidence in the normalization of claims experience [44][46] Question: Achieving 18%+ Core ROE target - Management remains confident in reaching the 18%+ Core ROE target by 2027, with various strategies in place to optimize capital deployment and growth [48][50]