F&G Annuities & Life (FG) Q4 2025 earnings summary

Executive summary

• Achieved record AUM before flow reinsurance of $73.1B, up 12% year-over-year, and record retained AUM of $57.6B, up 7% year-over-year.

• Delivered $14.6B in gross sales for 2025, with core product sales above $9B for the second consecutive year and opportunistic sales of $5.6B.

• Transitioned toward a more fee-based, higher margin, and less capital-intensive business model, with fee-based earnings expected to reach 25% of total by 2028.

• Returned $137M to shareholders via dividends in 2025, a 10% increase year-over-year.

• Expanded public float from 18% to 30% through FNF share distribution, enhancing market liquidity and institutional ownership.

Financial highlights

• Adjusted net earnings were $123M ($0.91/share) in Q4 and $482M ($3.64/share) for the full year, both down from 2024.

• Book value per share (ex-AOCI) reached $44.43 at year-end 2025, up 62% since 2020.

• Operating expense to AUM ratio improved to 50 bps, down from 60 bps in 2024.

• Investment income from alternatives was $278M below long-term expectations in 2025.

• Quarterly common stock dividend increased by 14% in Q4.

Outlook and guidance

• Expect fee-based earnings to grow to 25% of total by 2028.

• Targeting AUM growth of 50%, adjusted ROA ex significant items of 1.33%-1.55%, and adjusted ROE ex AOCI of 13-14% over the medium term.

• Operating expense ratio targeted to improve to 45 bps by year-end 2027.

• Anticipate lower surrender fee income and prepayment fees in 2026, with potential 20% decline in surrender-related fees.

• Remain focused on disciplined growth, capital allocation, and expanding ROE and AUM.