F&G Annuities Reports Q4 2025 Revenue Growth and Challenges

F&G Annuities & Life reported robust revenue growth in Q4 2025, surpassing Wall Street forecasts with a 10.8% year-over-year increase, reaching $1.77 billion. Despite this positive revenue trajectory, the company's non-GAAP earnings per share of $0.91 fell short of analyst expectations by 24.4%, reflecting challenges in meeting profitability projections.

CEO Chris Blunt announced that F&G achieved record levels of assets under management totaling $73 billion before flow reinsurance. This growth was driven by gross sales of $14.6 billion for the year, including $9 billion from indexed annuities, indexed universal life, and pension risk transfer. Blunt emphasized the company's robust and diverse investment portfolio, noting stable credit-related impairments, highlighting effective risk management practices.

Founded in 1959, F&G Annuities & Life delivers financial protection solutions to around 677,000 policyholders. The company offers fixed annuities, life insurance, and pension risk transfer products to retail and institutional clients. Its consistent service and reliability have cemented its reputation in the competitive insurance industry.

Revenue streams for insurers like F&G generally comprise premiums earned, investment income from their "float," and policy administration fees. Over the past four years, F&G has recorded a compounded annual revenue growth rate of 9.7%, outperforming many insurance providers. This success underscores the growing demand for its diversified offerings.

In the recent quarter, F&G's revenue of $1.77 billion exceeded Wall Street estimates by 14.1%. With 49.3% of total revenue derived from net premiums earned over the past five years, the company showcases a balanced approach between insurance and non-insurance activities. This balance is crucial to maintaining stability and adapting to market fluctuations.

F&G's book value per share (BVPS), a vital metric of long-term capital growth for insurers, declined 5.9% annually over the past four years but recently rose 16.8%, from $24.56 to $33.49 per share. Looking ahead, forecasts suggest a 54.9% increase in BVPS to $47.05 next year, indicating renewed investor confidence in the insurer's financial health.

Despite strong revenue figures, F&G's EPS and BVPS performance fell short of market expectations. After the quarterly results, the stock remained steady at $27.69. While recent performances are evaluated, investment decisions should focus on long-term fundamentals and valuations within the insurance sector.