F&G Annuities Reports Decreased Profitability but Record AUM in 2025
F&G Annuities & Life reported a decline in profitability for both the fourth quarter and full year of 2025, amidst balance sheet growth. Fourth-quarter net income for common shareholders fell to $124 million, or $0.92 per diluted share, compared to $323 million, or $2.50 per share, in the previous year. Full-year net earnings also decreased to $248 million from $622 million.
Excluding mark-to-market adjustments and one-time items, the adjusted net income was $123 million for the quarter and $482 million for the full year, reflecting a decline from $143 million and $546 million, respectively, in 2024. This was mainly due to lower alternative investment returns and increased interest expenses. However, the company achieved record assets under management (AUM) before flow reinsurance, reaching $73.1 billion—an increase of 12% from the prior year—with retained assets totaling $57.6 billion.
F&G maintained strong capital levels with a book value per common share, excluding accumulated other comprehensive income (AOCI), at $44.43, slightly above the previous year. The risk-based capital (RBC) ratio of its primary operating subsidiary was approximately 430%, surpassing the target of 400%. In 2025, F&G returned $137 million to shareholders via dividends and announced plans to divest its Bermuda reinsurer, F&G Life Re Ltd, managing about $1.9 billion of in-force business. Fidelity National Financial distributed about 16 million F&G shares to its shareholders, increasing the public float to 30%, while retaining around 70% ownership.
Even though earnings decreased from the prior year, AUM grew to $73.1 billion by year-end 2025, driven by $14.6 billion in gross sales and robust demand for retirement products. F&G's credit quality remains conservative, with 97% of fixed-maturity investments rated as investment grade and minimal credit impairments. Key capital metrics remain strong, and future disclosures following the Bermuda reinsurer sale and increased public float may offer further insights into potential impacts on capital management and liquidity.