F&G Annuities & Life Reports Second Quarter 2026 Results

Summary Financial Results ¹

(In millions, except per share data)

Three months ended

Six months ended

June 30, 2026

June 30, 2025

AUM before reinsurance

$       74,687

$       69,161

$       74,687

$       69,161

Assets under management (AUM)

$       55,868

$       55,565

$       55,868

$       55,565

Gross sales

$         2,719

$         4,106

$        5,892

$        7,008

Net sales

$         1,464

$         2,744

$        3,709

$        4,925

Net earnings (loss)

$             (81)

$              35

$           163

$             10

Net earnings (loss) per share

$          (0.62)

$           0.26

$          1.24

$          0.08

Adjusted net earnings

$              85

$            103

$           195

$           194

Adjusted net earnings per share

$           0.65

$           0.77

$          1.49

$          1.48

Adjusted return on average equity (ex. AOCI)

8.0 %

8.8 %

8.0 %

8.8 %

Adjusted return on assets

0.68 %

0.71 %

0.68 %

0.71 %

Book value per common share

$       33.27

$        31.02

$        33.27

$        31.02

Book value per common share, excluding AOCI

$       45.93

$        43.39

$        45.93

$        43.39

¹See definition of non-GAAP measures below

1H26

Book value per common share excluding AOCI - As of December 31, 2025

$44.43

Effect of F&G Life Re (Bermuda) sale (one-time item)

0.10

Subtotal, after one-time items

$44.53

Adjusted net earnings and other

1.05

Subtotal, before capital actions & mark-to-market

$45.58

Capital actions

0.27

Subtotal, before mark-to-market

$45.85

Mark-to-market movement

0.08

Book value per common share excluding AOCI - As of June 30, 2026

$45.93

F&G ANNUITIES & LIFE, INC.

CONSOLIDATED BALANCE SHEETS

(In millions, except per share data)

(Unaudited)

Assets

June 30, 2026

December 31, 2025

Investments

Fixed maturity securities available for sale, at fair value, net of allowance 

$             52,228

$             52,700

Fixed maturity securities, at fair value under fair value option

94

—

Equity securities, at fair value

293

341

Derivative investments

1,305

1,148

Mortgage loans, net of allowance

9,265

7,891

Investments in unconsolidated affiliates

5,065

4,878

Other long-term investments

1,315

1,294

Policy loans

171

147

Short-term investments

545

1,043

Total investments

$             70,281

$             69,442

Cash and cash equivalents

2,103

1,486

Reinsurance recoverable, net of allowance

20,876

17,545

Goodwill

2,124

2,180

Prepaid expenses and other assets

1,142

1,052

Other intangible assets, net

6,536

6,275

Market risk benefits asset

364

285

Income taxes receivable

81

83

Deferred tax asset, net

85

82

Total assets

$            103,592

$             98,430

Liabilities and Equity

Contractholder funds

$             64,398

$             62,726

Future policy benefits

10,856

10,755

Market risk benefits liability

1,102

903

Accounts payable and accrued liabilities

2,846

2,701

Notes payable

2,239

2,237

Funds withheld for reinsurance liabilities

17,457

14,191

Total liabilities

$             98,898

$             93,513

Equity

Preferred stock, at par value

—

—

Common stock, at par value

—

—

Additional paid-in-capital

3,765

3,764

Retained earnings

2,665

2,568

Accumulated other comprehensive income (loss) ("AOCI")

(1,658)

(1,488)

Treasury stock

(163)

(40)

Total F&G Annuities & Life, Inc. shareholders' equity

$               4,609

$               4,804

Non-controlling interests

85

113

Total equity

$               4,694

$               4,917

Total liabilities and equity

$            103,592

$             98,430

F&G ANNUITIES & LIFE, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

SECOND QUARTER INFORMATION

(In millions, except per share data)

(Unaudited)

Three months ended

Six months ended

June 30, 2026

June 30, 2025

June 30, 2026

June 30, 2025

Revenues

Life insurance premiums and other fees

$           394

$           608

$           873

$         1,097

Interest and investment income

718

682

1,441

1,348

Owned distribution revenues

19

23

36

39

Recognized gains and (losses), net

290

51

258

(212)

Total revenues

1,421

1,364

2,608

2,272

Benefits and expenses

Benefits and other changes in policy reserves

1,149

993

1,633

1,517

Market risk benefit losses (gains)

32

(4)

105

105

Depreciation and amortization

175

158

348

311

Personnel costs

77

77

137

144

Other operating expenses

41

42

74

83

Interest expense

41

41

82

81

Total benefits and expenses

1,515

1,307

2,379

2,241

Earnings (loss) before income taxes

(94)

57

229

31

Income tax expense (benefit)

(19)

15

55

10

Net earnings (loss)

(75)

42

174

21

Less: Non-controlling interests

1

2

2

2

Net earnings (loss) attributable to F&G

(76)

40

172

19

Less: Preferred stock dividend

5

5

9

9

Net earnings (loss) attributable to F&G common
shareholders

$           (81)

$            35

$           163

$            10

Net earnings (loss) attributable to F&G common
shareholders per common share

Basic

$         (0.62)

$          0.26

$          1.24

$          0.08

Diluted

$         (0.62)

$          0.26

$          1.24

$          0.08

Weighted average common shares used in computing net
earnings (loss) per common share

Basic

130

133

131

130

Diluted

130

134

131

131

Non-GAAP Measures and Other Information

RECONCILIATION OF NET EARNINGS (LOSS) TO ADJUSTED NET EARNINGS

Three months ended

Six months ended

June 30, 2026

June 30, 2025

June 30, 2026

June 30, 2025

Net earnings (loss) attributable to F&G common shareholders

$           (81)

$            35

$           163

$            10

Non-GAAP adjustments

Recognized (gains) and losses, net

Net realized and unrealized (gains) losses on fixed
maturity available-for-sale securities, equity securities
and other invested assets

137

12

171

27

Change in allowance for expected credit losses

(8)

19

(9)

41

Change in fair value of reinsurance related embedded
derivatives

30

61

(189)

102

Change in fair value of other derivatives and embedded
derivatives

31

(13)

54

(62)

Recognized (gains) losses, net

190

79

27

108

Market related liability adjustments

(10)

(16)

(47)

87

Purchase price amortization

15

18

30

33

Transaction costs, other and non-recurring items

14

8

19

9

Non-controlling interest

(2)

(2)

(4)

(4)

Income taxes adjustment

$           (41)

$           (19)

$             7

$           (49)

Adjusted net earnings attributable to common
shareholders ¹

$            85

$           103

$           195

$           194

¹See definition of non-GAAP measures below

RECONCILIATION OF TOTAL EQUITY, TOTAL EQUITY EXCLUDING ACCUMULATED OTHER COMPREHENSIVE INCOME (AOCI), BOOK VALUE PER SHARE AND BOOK VALUE PER SHARE EXCLUDING AOCI

Three months ended

(In millions)

June 30, 2026

March 31, 2026

December 31,

2025

September 30,

2025

Total F&G Annuities & Life, Inc. shareholders' equity

4,609

4,639

4,804

4,824

Less: Preferred stock

250

250

250

250

Total F&G equity attributable to common shareholders

4,359

4,389

4,554

4,574

Less: AOCI

(1,658)

(1,843)

(1,488)

(1,376)

Total F&G equity attributable to common shareholders, excluding AOCI

$          6,017

$          6,232

$          6,042

$          5,950

Common shares outstanding

131

134

136

135

Book value per common share

$          33.27

$          32.75

$          33.49

$          33.88

Book value per common share, excluding AOCI

$          45.93

$          46.51

$          44.43

$          44.07

ASSETS UNDER MANAGEMENT (AUM) ROLLFORWARD, AVERAGE ASSETS UNDER MANAGEMENT (AAUM) AND AUM BEFORE REINSURANCE

Three months ended

(In millions)

June 30, 2026

March 31, 2026

December 31,

2025

September 30,

2025

AUM at beginning of period

$         56,436

$         57,574

$         56,647

$         55,565

Net new business asset flows

233

1,364

1,660

2,269

Net flow reinsurance to third parties

(801)

(688)

(733)

(1,187)

Net inforce reinsurance to third parties

—

(1,814)

—

—

Net capital transaction proceeds (disbursements)

—

—

—

—

AUM at end of period¹

$         55,868

$         56,436

$         57,574

$         56,647

AAUM YTD¹

$         56,939

$         57,905

$         55,384

$         54,870

AUM before reinsurance

$         74,687

$         74,454

$         73,090

$         71,430

SALES HIGHLIGHTS

Three months ended

Six months ended

(In millions)

June 30, 2026

June 30, 2025

June 30, 2026

June 30, 2025

Indexed annuities ("FIA/RILA")

$                   1,744

$                   1,701

$                   3,323

$                 3,162

Indexed universal life ("IUL")

42

53

86

96

Pension risk transfer ("PRT")

232

445

549

756

Subtotal: Core sales

2,018

2,199

3,958

4,014

Fixed rate annuities ("MYGA")

101

1,907

284

2,469

Funding agreements ("FABN/FHLB")

600

—

1,650

525

Subtotal: Opportunistic sales²

701

1,907

1,934

2,994

Gross sales

2,719

4,106

5,892

7,008

Sales attributable to flow reinsurance to third parties³

(1,255)

(1,362)

(2,183)

(2,083)

Net sales

1,464

2,744

3,709

4,925

¹See definition of non-GAAP measures below

²Opportunistic sales volumes fluctuate quarter to quarter depending on economics and market opportunity

³Sales attributable to flow reinsurance to third parties includes the reinsurance sidecar

DEFINITIONS

The following represents the definitions of non-GAAP measures used by F&G:

Adjusted Net Earnings Attributable to Common Shareholders

Adjusted net earnings attributable to common shareholders (ANE) is a non-GAAP economic measure used to evaluate financial performance each period.

ANE eliminates the impact of specific items that are not indicative of the underlying economics of our business, including certain market volatility, asymmetrical and noneconomic accounting, nonrecurring items and other income and expense adjustments. These items are volatile in our reported GAAP earnings and are not indicative of the underlying profitability drivers reflected in the design and pricing of our products and/or our investment and hedging strategy, as such items fluctuate from period to period in a manner inconsistent with these drivers.

ANE provides information to enhance an investor's understanding of our results and underlying profitability drivers by removing the impact of short-term market volatility (i.e. recognized gains and losses, market risk benefits remeasurement gains and losses, derivative gains and losses), asymmetrical and non-economic accounting (i.e. derivatives and investment hedges that do not qualify for hedge accounting, deferred pension risk transfer deferred profit liability losses), and other adjustments.

ANE is calculated by adjusting net earnings or loss attributable to common shareholders to eliminate:

(i)   Recognized gains and losses, net: the impact of net investment gains/losses, including changes in allowance for expected credit losses and other than temporary impairment ("OTTI") losses, recognized in operations; and the effects of changes in fair value of the reinsurance related embedded derivative and other derivatives, including interest rate swaps and forwards;

(ii)   Market related liability adjustments: the impacts related to changes in the fair value, including both realized and unrealized gains and losses, of index product related derivatives and embedded derivatives, net of hedging cost; the impact of initial pension risk transfer deferred profit liability losses, including amortization from previously deferred pension risk transfer deferred profit liability losses; and the changes in the fair value of market risk benefits by deferring current period changes and amortizing that amount over the life of the market risk benefit;

(iii) Purchase price amortization: the impacts related to the amortization of certain intangibles (internally developed software, trademarks and value of distribution asset and the change in fair value of liabilities recognized as a result of acquisition activities);

(iv)  Transaction costs: the impacts related to acquisition, integration and merger related items;

(v)  Other and "non-recurring," "infrequent" or "unusual items": Other adjustments include removing any charges associated with U.S. guaranty fund assessments as these charges neither relate to the ordinary course of the Company's business nor reflect the Company's underlying business performance, but result from external situations not controlled by the Company. Further, Management excludes certain items determined to be "non-recurring," "infrequent" or "unusual" from adjusted net earnings when incurred if it is determined these items are not a reflection of the core business and when the nature of the item is such that it is not reasonably likely to recur within two years and/or there was not a similar item in the preceding two years;

(vi)  Non-controlling interest on non-GAAP adjustments: the portion of the non-GAAP adjustments attributable to the equity interest of entities that F&G does not wholly own; and

(vii)  Income taxes: the income tax impact related to the above-mentioned adjustments is measured using an effective tax rate, as appropriate by tax jurisdiction.

Recognized gains and losses are excluded from ANE as part of both adjustments (i) and (ii). As part of those two adjustments to ANE, all material recognized gains and losses are removed except for periodic settlements of interest rate swaps used to economically hedge our floating rate investments.

While these adjustments are an integral part of the overall performance of F&G, market conditions and/or the non-operating nature of these items can overshadow the underlying performance of the core business. Accordingly, management considers this to be a useful measure internally and to investors and analysts in analyzing the trends of our operations. Adjusted net earnings should not be used as a substitute for net earnings (loss). However, we believe the adjustments made to net earnings (loss) in order to derive adjusted net earnings provide an understanding of our overall results of operations.

Adjusted Weighted Average Diluted Shares Outstanding

Adjusted weighted average diluted shares outstanding is the same as weighted average diluted shares outstanding except for periods in which our preferred stocks are calculated to be dilutive to either net earnings attributable to common shareholders or adjusted net earnings attributable to common shareholders, but not both, or there is a net earnings loss attributable to common shareholders on a GAAP basis, but positive adjusted net earnings attributable to common shareholders using the non-GAAP measure. The above exceptions are made to include relevant diluted shares when dilution occurs and exclude relevant diluted shares when dilution does not occur for adjusted net earnings attributable to common shareholders.

Management considers this non-GAAP financial measure to be useful internally and for investors and analysts to assess the level of return driven by the Company that is available to common shareholders.

Adjusted Net Earnings attributable to common shareholders per Diluted Share

Adjusted net earnings attributable to common shareholders per diluted share is calculated as adjusted net earnings plus preferred stock dividend (if the preferred stock has created dilution). This sum is then divided by the adjusted weighted-average diluted shares outstanding.

Management considers this non-GAAP financial measure to be useful internally and for investors and analysts to assess the level of return driven by the Company that is available to common shareholders.

Adjusted Return on Assets attributable to Common Shareholders

Adjusted return on assets attributable to common shareholders is calculated by dividing year-to-date annualized adjusted net earnings attributable to common shareholders by year-to-date AAUM.  Return on assets is comprised of net investment income, less cost of funds, flow reinsurance fee income, owned distribution margin and less expenses (including operating expenses, interest expense and income taxes) consistent with our adjusted net earnings definition and related adjustments. Cost of funds includes liability costs related to cost of crediting as well as other liability costs. Management considers this non-GAAP financial measure to be useful internally and to investors and analysts when assessing financial performance and profitability earned on AAUM.

Adjusted Return on Average Common Shareholder Equity, excluding AOCI

Adjusted return on average common shareholder equity is calculated by dividing the rolling four quarters adjusted net earnings attributable to common shareholders, by total average F&G equity attributable to common shareholders, excluding AOCI.  Average equity attributable to common shareholders, excluding AOCI for the twelve month rolling period is the average of 5 points throughout the period. Since AOCI fluctuates from quarter to quarter due to unrealized changes in the fair value of available for sale investments, changes in instrument-specific credit risk for market risk benefits and discount rate assumption changes for the future policy benefits, management considers this non-GAAP financial measure to be a useful internally and for investors and analysts to assess the level return driven by the Company's adjusted earnings.

Assets Under Management (AUM)

AUM is comprised of the following components and is reported net of reinsurance assets ceded in accordance with GAAP:

(i) total invested assets at amortized cost, excluding investments in unconsolidated affiliates, owned distribution and derivatives;

(ii) investments in unconsolidated affiliates at carrying value;

(iii) related party loans and investments;

(iv) accrued investment income;

(v) the net payable/receivable for the purchase/sale of investments; and

(vi) cash and cash equivalents excluding derivative collateral at the end of the period.

Management considers this non-GAAP financial measure to be useful internally and to investors and analysts when assessing the size of our investment portfolio that is retained.

AUM before Reinsurance

AUM before Reinsurance is comprised of AUM plus flow reinsured assets, including certain block reinsured assets.

Management considers this non-GAAP financial measure to be useful internally and to investors and analysts when assessing the size of our investment portfolio including reinsured assets.

Average Assets Under Management (AAUM) (Quarterly and YTD)

AAUM is calculated as AUM at the beginning of the period and the end of each month in the period, divided by the total number of months in the period plus one. 

Management considers this non-GAAP financial measure to be useful internally and to investors and analysts when assessing the rate of return on retained assets.

Book Value per Common Share, excluding AOCI

Book value per Common share, excluding AOCI is calculated as total F&G equity attributable to common shareholders divided by the total number of shares of common stock outstanding. Management considers this to be a useful measure internally and for investors and analysts to assess the capital position of the Company.

Debt-to-Capitalization Ratio, excluding AOCI

Debt-to-capitalization ratio is computed by dividing total aggregate principal amount of debt by total capitalization (total debt plus total equity, excluding AOCI). Management considers this non-GAAP financial measure to be useful internally and to investors and analysts when assessing its capital position.

Return on Average F&G common shareholder Equity, excluding AOCI

Return on average F&G common shareholder equity, excluding AOCI  is calculated by dividing the rolling four quarters net earnings (loss) attributable to common shareholders, by total average F&G equity attributable to common shareholders, excluding AOCI. Average F&G equity attributable to common shareholders, excluding AOCI for the twelve month rolling period is the average of 5 points throughout the period. Since AOCI fluctuates from quarter to quarter due to unrealized changes in the fair value of available for sale investments, changes in instrument-specific credit risk for market risk benefits and discount rate assumption changes for the future policy benefits, management considers this non-GAAP financial measure to be useful internally and for investors and analysts to assess the level of return driven by the Company that is available to common shareholders.

Sales

Annuity, IUL, funding agreement and non-life contingent PRT sales are not derived from any specific GAAP income statement accounts or line items and should not be viewed as a substitute for any financial measure determined in accordance with GAAP. Sales from these products are recorded as deposit liabilities (i.e., contractholder funds) within the Company's consolidated financial statements in accordance with GAAP. Life contingent PRT sales are recorded as premiums in revenues within the consolidated financial statements. Management believes that presentation of sales, as measured for management purposes, enhances the understanding of our business and helps depict longer term trends that may not be apparent in the results of operations due to the timing of sales and revenue recognition.

Total Capitalization, excluding AOCI

Total capitalization, excluding AOCI is based on total equity excluding the effect of AOCI and the total aggregate principal amount of debt.  Since AOCI fluctuates from quarter to quarter due to unrealized changes in the fair value of available for sale investments, changes in instrument-specific credit risk for market risk benefits and discount rate assumption changes for the future policy benefits, management considers this non-GAAP financial measure to provide useful supplemental information internally and to investors and analysts to help assess the capital position of the Company.

Total Equity, excluding AOCI

Total equity, excluding AOCI is based on total equity excluding the effect of AOCI. Since AOCI fluctuates from quarter to quarter due to unrealized changes in the fair value of available for sale investments, changes in instrument-specific credit risk for market risk benefits and discount rate assumption changes for the future policy benefits, management considers this non-GAAP financial measure to provide useful supplemental information internally and to investors and analysts assessing the level of earned equity on total equity.

Total F&G Equity attributable to common shareholders, excluding AOCI

Total F&G equity attributable to common shareholder, excluding AOCI is based on total F&G Annuities & Life, Inc. shareholders' equity excluding the effect of AOCI and preferred stocks, including additional paid-in-capital. Since AOCI fluctuates from quarter to quarter due to unrealized changes in the fair value of available for sale investments, changes in instrument-specific credit risk for market risk benefits and discount rate assumption changes for the future policy benefits, management considers this non-GAAP financial measure to be useful internally and for investors and analysts to assess the level of return driven by the Company that is available to common shareholders.