F&G Annuities & Life Stock Dips Amid Strong Premium Growth and Capital Gains

F&G Annuities & Life (NYSE:FG) has experienced a significant decline in its stock price over the last six months, with shares dropping to $29.58, resulting in a 15% loss.

This performance contrasts sharply with the S&P 500's 25.5% gain during the same period, prompting investor reassessment. Despite recent stock weakness, F&G Annuities & Life demonstrates robust operational growth, serving approximately 677,000 policyholders and providing fixed annuities, life insurance, and pension risk transfer products.

The company’s net premiums earned have grown at an annualized rate of 19.7% over the past two years, outperforming broader industry trends. This growth indicates increased market penetration and effective risk management through reinsurance strategies. A key financial metric for insurers, book value per share (BVPS), has surged at an annualized rate of 28.2%, reflecting the firm’s capacity to sustain capital adequacy and meet long-term liabilities.

Consensus estimates project a substantial 48.8% increase in BVPS over the next year, forecasting a book value of $45.29 per share. This expected growth stems from profitable underwriting results and strategic investment portfolio management. Valuation metrics reveal that F&G Annuities & Life is currently trading at 0.8 times forward price-to-book, suggesting potential undervaluation relative to its growth prospects.

The broader market context includes recent volatility induced by tariff announcements, which caused a selloff but were followed by recovery phases benefiting long-term investors. Industry professionals are advised to monitor F&G's financial metrics alongside market signals to evaluate timing for potential investment moves. The company’s performance metrics highlight its resilience amid fluctuating equity conditions.