Q3 2025 F&G Annuities & Life Inc Earnings Call Transcript
Key Points
- F&G Annuities & Life Inc (FG) reported a record $71.4 billion of AUM before flow reinsurance at the end of the third quarter, marking a 14% increase compared to the third quarter of 2024.
- The company generated $11 billion in gross sales for the first nine months of the year, with $6 billion from core sales and $5 billion from opportunistic sales.
- F&G's investment portfolio is high-quality, with 96% of fixed maturities being investment grade, and credit-related impairments have remained low and stable.
- The company has successfully launched a new reinsurance sidecar, which is expected to enhance its fee-based earnings and capital efficiency.
- F&G's own distribution portfolio is performing well, with an expected EBITDA of over $80 million for the full year 2025, reflecting strong leadership and diversified holdings.
- The company's stock has been under pressure year-to-date, raising concerns about capital allocation and prioritization.
- Alternative investment income was $67 million below management's long-term expected return for the quarter.
- The company expects higher amortization expenses over the next year, which could impact future earnings.
- There is increased competition in the private credit space, which could affect F&G's ability to find attractive investment opportunities.
- The company's floating rate assets, although hedged, still represent 5% of the total portfolio, which could expose it to interest rate fluctuations.
Good morning and welcome to FMG's third quarter 2025 earnings call.
During today's presentation, all callers will be placed in a listen-only mode.
Following management's prepared remarks, the conference will be open for questions with instructions to follow at that time.
I would now like to turn the call over to Lisa Foxworthy Parker, senior Vice President, Investor relations and external relations. Please go ahead.
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Thanks, operator, and welcome everyone. I'm joined today by Chris Blunt, Chief Executive Officer, and Connor Murphy, President and Chief Financial Officer. Today's earnings call may include forward-looking statements and projections under the Private Securities Litigation Reform Act, which do not guarantee future events or performance. We do not undertake any duty to revise or update such statements to reflect new information, subsequent events, or changes in strategy.
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