F&G Annuities & Life Reports Significant Growth in 2025

F&G Annuities & Life, trading on the NYSE under the ticker FG, concluded 2025 with substantial growth in assets under management (AUM) and diverse sales expansion. The company is strategically pivoting towards increasing its fee-based revenues, a key point highlighted during the earnings call for their fourth-quarter and full-year results.

CEO Chris Blunt reported that F&G ended 2025 with AUM at $73.1 billion, a 12% lift from the previous year, while retained AUM rose by 7% to $57.6 billion. Gross sales amounted to $14.6 billion for the year, balanced between $9.0 billion in core sales and $5.6 billion in opportunistic sales. This diversification marks a significant step in adapting to market shifts.

Fourth-quarter gross sales were reported at $3.4 billion, with core sales accounting for $2.8 billion. This consistent performance, 27% higher than the third quarter, underscores the firm's ability to maintain adaptable volume levels across various products and channels, according to President and CFO Conor Murphy.

Net sales for 2025 stood at $10.0 billion, slightly down from $10.6 billion in 2024. Blunt reassured that the company's investment portfolio remains robust, with 97% of fixed maturities rated investment grade. The firm also maintained historical credit impairment rates at six basis points, reflecting strong risk management practices.

Fixed income yields improved to 4.65% by the final quarter, supported by prudent hedging strategies leaving $2.8 billion of the portfolio exposed to floating rates. In the alternative investments segment, the annualized return of 7% fell below the long-term projection of 10%, but the alternative portfolio still reached $11 billion, balanced between equity and investment-grade fixed income.

Fourth-quarter adjusted net earnings were $123 million, or $0.91 per share, with annual earnings reaching $482 million, or $3.64 per share. The earnings pattern was influenced by factors like asset expansion, increased fees from flow reinsurance, and controlled operational costs. Looking forward, F&G aims to grow fee-based earnings to compose 25% of total earnings by 2028, as they enhance core offerings and optimize operational efficiencies.