F&G Annuities & Life, Inc. (FG) SEC Filings & Earnings Calls

Alternative investment income significantly below long-term expected return, indicating mark-to-market volatility and potential earnings pressure.

“Midpoint ~5% annualized return vs. 12% expected; $70M pre-tax shortfall.”

Net loss in Q2 2026

“Net earnings (loss) attributable to F&G common shareholders $ (81) $ 35” · word for word

AOCI deterioration

“Accumulated other comprehensive income (loss) (1,658) (1,488)”

Contractholder withdrawal increase

“Contractholder account withdrawals (5,004) (4,430)” · word for word

Net loss driven by $144M unfavorable mark-to-market effects

“Net loss for the second quarter included $144 million of net unfavorable mark-to-market effects” · word for word

Significant decline in gross and net sales due to opportunistic sales comparison

“Gross sales $2.7B vs $4.1B YoY; Net sales $1.5B vs $2.7B YoY”

Alternative investment income miss vs long-term expected return

“midpoint of this range represents an annualized return of approximately 6% ... $65 million and $51 million below management’s current long-term expected return of approximately 12%”

Regulatory capital pressure from new NAIC CLO RBC factors

“could reduce FGL Insurance’s December 31, 2026 pro forma estimated U.S. RBC ratio by approximately 10 percentage points” · word for word

Leadership transition risk is mitigated by internal promotion and experienced external hire; no immediate operational disruption expected.

“CEO retirement with continued board role; new CEO has 38 years experience; CFO has 27 years in life/annuity industry.”

Credit-related impairments low; investment portfolio 97% investment grade.

Controlled company risk

“Because FNF owns approximately 71% of the shares of outstanding F&G common stock, we are a controlled company within the meaning of the rules of the New York Stock Exchange.” · word for word

Related party transactions

“BilCar received payments totaling $7.9 million from MVB Management in 2025. BilCar received payments totaling $2.9 million from F&G in 2025.” · word for word

Reinsurance counterparty concentration risk

“As of December 31, 2025, the net amount recoverable from Aspida, Somerset, Everlake and Wilton Re were $8,589 million, $5,071 million, $1,868 million and $1,032 million, respectively.” · word for word

Interest rate disintermediation risk

“Rapidly rising interest rates may also expose us to the risk of financial disintermediation, which is an increase in policy surrenders, withdrawals and requests for policy loans as customers seek to achieve higher returns elsewhere, requiring us to liquidate assets in an unrealized loss position.” · word for word

Geographic concentration risk

“For the year ended December 31, 2025, our top five states for the distribution of our products were California, Florida, Pennsylvania, Texas and New Jersey, which together accounted for 40% of our premiums.” · word for word

Dependence on Blackstone as investment manager

“We have a long-term contractual relationship with BIS that limits our ability to terminate this relationship or retain another investment manager without BIS’s consent.” · word for word

Net earnings declined significantly due to mark-to-market effects and non-recurring items.

“Net earnings attributable to common shareholders for the fourth quarter were $124 million, compared to $323 million for the fourth quarter of 2024.” · word for word

Change in ownership structure may affect stock liquidity and control.

“Distribution of 12% of outstanding shares to FNF shareholders.”

Reinsurance concentration risk

“F&G has a significant concentration of reinsurance risk with third party reinsurers, Aspida Life Re Ltd., Somerset Reinsurance Ltd., Everlake and Wilton Reassurance Company that could have a material impact on our financial position in the event that any of these reinsurers fails to perform its obligations under the various reinsurance treaties.” · word for word

Interest rate risk

“Some of our products, most notably our fixed rate annuities, include guaranteed minimum crediting rates. We are required to pay the guaranteed minimum crediting rates even if earnings on our investment portfolio decline, which would negatively impact earnings.” · word for word

Litigation risk

“Fidelity & Guaranty Life Insurance Company is a defendant in a lawsuit filed in U.S. District Court for the Southern District of Texas styled, Insurance Distribution Consulting, LLC v. Fidelity & Guaranty Life Insurance Company, Case No. 3:23-cv-00126.”

Ownership structure change may lead to increased stock float and potential selling pressure.

“Distribution of 12% of outstanding shares to FNF shareholders, who may sell.”

Credit-related impairments remain low but could increase if economic conditions deteriorate.

“Credit-related impairments have remained low and stable, averaging 6 basis points over the past five years and remained below pricing assumptions for the first nine months of 2025” · word for word