F&G Annuities & Life(US:FG)2025-05-07 22:47Financial Performance - Gross sales for 1Q25 were $2.9 billion, a decrease of 17% year-over-year, primarily due to lower MYGA sales[4,9] - Net sales for 1Q25 were $2.2 billion, a decrease of 4% year-over-year[4,9] - Assets Under Management (AUM) reached $54.5 billion in 1Q25, a 9% increase year-over-year[4,9] - AUM before flow reinsurance was $67.4 billion in 1Q25, a 16% increase year-over-year[4,9] - Adjusted Return on Equity (ROE) for 1Q25 was 9.7%, an increase of 2.3% year-over-year[4] - Adjusted Return on Assets (ROA) for 1Q25 was 0.68%, a decrease of 6 bps compared to LTM 4Q24[4,9] - Adjusted net earnings (ANE) attributable to common shareholders was $91 million, or $0.72 per diluted share[9] Business Diversification and Growth Strategy - The company is targeting large and growing markets, including the middle market demand for life coverage and migration from CDs to fixed annuities[19] - The company is diversifying its business across retail channels and institutional markets, with a focus on capital-light flow reinsurance and accretive owned distribution to generate higher ROEs[23,53] - The company is driving towards its Investor Day targets, including growing AUM by 50%, expanding adjusted ROA ex significant items to 1.33% to 1.55%, and increasing adjusted ROE ex AOCI and significant items to 13% to 14%[34] Investment Portfolio - The investment portfolio is conservatively positioned and well-matched to the liability profile, with 96% of fixed income being investment grade[58,64] - The company has a high-quality and well-diversified portfolio, with $51 billion in assets across various classes, including corporates (31%), structured securities (22%), and private origination (16%)[61]