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 - The company reported a 13% year-over-year growth in adjusted earnings per share and a 14% increase year-to-date, exceeding target ranges [4][5] - Return on equity expanded significantly and is now at the high end of the target range [4] - Year-to-date free capital flow conversion ratio is over 90%, tracking above target [5][6] - Non-GAAP operating earnings reached $474 million, or $2.10 per share, a 19% increase year-over-year [12] - Total company managed AUM increased to $784 billion, a 4% sequential increase [14] Business Line Data and Key Metrics Changes - Workplace Savings and Retirement Solutions (WSRS) transfer deposits grew 13% year-over-year, with total Retirement Investment Solutions (RIS) sales of $7 billion, an 8% increase [7][8] - Specialty Benefits pre-tax operating earnings were $147 million, a record quarter, reflecting a 28% increase compared to the year-ago quarter [17] - Investment management gross sales reached $32 billion, up 19% year-over-year, with net cash flow of $800 million in the quarter [9][16] Market Data and Key Metrics Changes - The company experienced strong momentum in the global asset management sector, with private markets capabilities generating net inflows of $1.7 billion [9] - International pension reported record AUM of $151 billion, a 9% year-over-year increase [16] Company Strategy and Development Direction - The company is focused on three significant profit pools: the broad retirement ecosystem, small and mid-sized businesses, and global asset management [6][10] - Continued investments in modernizing recordkeeping capabilities and enhancing customer service are prioritized [21][26] - The company aims to capitalize on opportunities in the retirement solutions market and expand its asset management capabilities [10][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in delivering full-year enterprise financial targets, supported by strong fundamentals and business momentum [19] - The current economic uncertainty has impacted employer financial inclusion programs, but there are positive signs of government and financial system support [11][12] Other Important Information - The company returned $400 million to shareholders in the quarter, including $225 million in share repurchases and raised its common stock dividend by 8% [5][13] - The company is committed to maintaining a 40% dividend payout ratio, reflecting confidence in continued growth [13][31] Q&A Session Summary Question: Expectations for margin expansion - Management expects margins to continue expanding due to strong underwriting results and disciplined expense management [21][22] Question: Free capital flow conversion trends - The company maintains a strong capital position with a capital-efficient mix of business, allowing for organic investments while returning capital to shareholders [29][30] Question: Investment management flows and client sentiment - Positive net cash flow of $800 million was reported, with strong demand in private markets and emerging market fixed income [36][37] Question: Bering Strategic Partnership and fee rates - The partnership aims to enhance private market expertise and is expected to provide unique opportunities for value creation [44][46] Question: 401(k) business and market consolidation - The company anticipates benefiting from industry consolidation, focusing on organic growth rather than large transactions [51][52] Question: Private credit market performance - The company maintains a strong credit quality in its portfolio, with no direct exposure to recent market issues [90][92] Question: Wealth management opportunity and advisor metrics - The company is building its wealth management capabilities with a focus on long-term growth and asset retention [98]

Financial Data and Key Metrics Changes - The company reported a 13% year-over-year growth in adjusted earnings per share and a 14% increase year-to-date, exceeding target ranges [3][4] - Return on equity expanded significantly and is now at the high end of the target range [3] - Year-to-date free capital flow conversion ratio exceeded 90%, tracking above target [4] - The company returned $400 million to shareholders in the quarter, including $225 million in share repurchases [4][11] Business Line Data and Key Metrics Changes - Workplace Savings and Retirement Solutions (WSRS) transfer deposits grew 13% year-over-year, with total Retirement Investment Solutions (RIS) sales of $7 billion, an 8% increase [5][6] - Small and mid-sized business segment saw WSRS SMB recurring deposits grow 8% and transfer deposits increase 27% [7] - Global asset management gross sales reached $32 billion, up 19% year-over-year, with private markets generating net inflows of $1.7 billion [8][9] Market Data and Key Metrics Changes - Total company managed assets under management (AUM) increased to $784 billion, a 4% sequential increase [13] - International pension reported record AUM of $151 billion, a 9% year-over-year increase [15] Company Strategy and Development Direction - The company is focused on three significant profit pools: the retirement ecosystem, small and mid-sized businesses, and global asset management [4][9] - Continued investment in modernizing recordkeeping capabilities and enhancing retirement solutions [22][23] - The company aims to capitalize on opportunities in financial inclusion and fintech solutions [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in delivering full-year enterprise financial targets based on strong performance and business momentum [4][17] - The economic environment has created challenges, but there are significant opportunities for growth in financial inclusion and retirement solutions [9][10] Other Important Information - The company raised its common stock dividend for the ninth consecutive quarter, reflecting confidence in continued growth [4][11] - The recent release of the Fourth Annual Global Financial Inclusion Index highlights the importance of digital solutions in advancing financial security [9] Q&A Session Summary Question: Expectations for margin expansion - Management expects margins to continue expanding due to strong underwriting results and disciplined expense management [18][20] Question: Areas of investment in growth initiatives - Investments are being made in modernizing recordkeeping capabilities and enhancing customer service for retirement plans [22][23] Question: Free capital flow conversion trends - The company maintains a strong capital position with a capital-efficient mix of business, allowing for organic growth and capital returns [26][27] Question: Changes in investment management flows and investor sentiment - Positive net cash flow of $800 million was reported, with growth across multiple channels, indicating strong investor sentiment [30][31] Question: Impact of performance fees - Performance fees are expected to remain modest, but there has been an uptick in transaction and borrower fee activity [34][35] Question: Update on the Bering Strategic Partnership - The partnership aims to enhance private market expertise and improve fee rates through collaboration [36][39] Question: Outlook on 401(k) business and industry consolidation - The company anticipates benefiting from industry consolidation and is focused on driving organic growth [41][44] Question: Update on private credit market performance - The company maintains a strong credit quality in its portfolio, with low credit losses reported [79][80] Question: Wealth management opportunity metrics - The company has seen a 90% plan sponsor adoption rate for advisory services, with a notable increase in roll-in transfers [87][88]