F&G Annuities Reports Financial Results and Strategic Insights for 2025
F&G Annuities & Life, Inc. has announced its financial results for the fourth quarter and the full fiscal year ending December 31, 2025. The company, known for providing innovative insurance solutions to both retail annuity and life insurance customers, as well as institutional clients, reported a decrease in net earnings attributable to common shareholders. Specifically, fourth-quarter net earnings stood at $124 million, or $0.92 per diluted share, down from $323 million, or $2.50 per share, in the previous year. For the full year, net earnings amounted to $248 million, or $1.88 per share, compared to $622 million, or $4.88 per share, in 2024, inclusive of non-recurring items.
F&G's adjusted net earnings reported for the fourth quarter were $123 million, or $0.91 per share, marking a decline from $143 million, or $1.12 per share, during the same period in 2024. Annually, adjusted net earnings were $482 million, or $3.64 per share, contrasting with $546 million, or $4.30 per share, from the previous year. These figures account for important income and expense items, alongside investment income generated from alternative investment strategies.
Record Asset Growth and Financial Metrics
The firm's assets under management (AUM) before flow reinsurance achieved a record-breaking $73.1 billion by the end of the year, marking a 12% increase from the prior year. Gross sales for 2025 reached $14.6 billion, as the investment portfolio maintained exceptional credit quality with 97% of fixed maturities rated as investment grade. Throughout the year, credit-related impairments remained minimal, averaging just 6 basis points over five years. F&G reported an adjusted return on assets of 87 basis points and an adjusted return on equity reaching 8.2% for the fourth quarter.
Strategic Initiatives and Capital Management
Aligned with its objectives set during the 2023 Investor Day, F&G focused on organic growth and returning capital to shareholders. In 2025, the company returned $137 million through dividends, with a year-end risk-based capital ratio of approximately 430%, surpassing the 400% target. Preparations are underway for the strategic sale of its Bermuda subsidiary, F&G Life Re Ltd, slated to close in Q1 2026, as it pivots from previous reinsurance strategies.
In a significant move, F&G distributed around 12% of its common shares to Fidelity National Financial (FNF) shareholders, keeping FNF's equity stake in F&G at 70%. CEO Chris Blunt emphasized the company's robust year-end performance, underscoring the growth in core product sales such as indexed annuities and universal life products. He highlighted the shift towards a fee-based model, aiming to enhance liquidity and expand F&G's public float, with a continued focus on core business expansions and enhancing shareholder value in 2026.
For further insights into F&G's financial outcomes and strategic capital plans, investors are invited to join the earnings conference call available online through the company's Investor Relations website.