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F&G Annuities & Life Inc (FG)
NYSE:FG
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F&G Annuities & Life Inc
(NYSE:FG)
70Outperform
F&G Annuities & Life Inc (FG) vs. S&P 500 (SPY)
Market Cap
$4.15B
Dividend Yield2.79%
Average Volume (3M)387.60K
Price to Earnings (P/E)8.3
Beta (1Y)1.12
Revenue Growth-1.72%
EPS Growth95.91%
CountryUS
Employees1,300
SectorFinancial
Sector Strength85
IndustryInsurance - Life
Share Statistics
EPS (TTM)0.72
Shares Outstanding134,762,570
10 Day Avg. Volume299,427
30 Day Avg. Volume387,599
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)0.95
Price to Sales (P/S)0.00
P/FCF Ratio0.68
Enterprise Value/Market Cap0.96
Enterprise Value/Revenue0.19
Enterprise Value/Gross Profit0.73
Enterprise Value/Ebitda20.86
Forecast
1Y Price Target
$37.00Price Target Upside20.17% Upside
Rating ConsensusHold
Number of Analyst Covering2
F&G Annuities & Life Inc Business Overview & Revenue Model
Company DescriptionF&G Annuities & Life, Inc. provides fixed annuities and life insurance products. It serves retail annuity and life customers, as well as institutional clients. The company was founded in 1959 and is headquartered in Des Moines, Iowa. F&G Annuities & Life, Inc. is a subsidiary of Fidelity National Financial, Inc.
How the Company Makes MoneyF&G Annuities & Life Inc generates revenue primarily through the sale of its annuity and life insurance products. The company earns money by collecting premiums from policyholders, which are then invested to generate returns. These investments are typically managed in a way to ensure that the company can meet its obligations to policyholders while also earning a profit. Key revenue streams include income from policyholder premiums, investment income from the management of invested assets, and fees associated with managing and servicing insurance contracts. Significant partnerships with financial advisors and brokers also contribute to its earnings by expanding the company's distribution network and customer reach.
F&G Annuities & Life Inc Financial Statement Overview
Summary
F&G Annuities & Life Inc showcases strong financials with significant revenue growth from $1.43 billion in 2020 to $5.74 billion in 2024. The company turned profitable with a net profit margin of 10.83% in 2024 and robust cash flow management, indicated by a high Free Cash Flow to Net Income ratio of 9.61. However, the low Equity Ratio of 4.64% suggests high reliance on liabilities, requiring careful management.Income Statement
F&G Annuities & Life Inc has demonstrated significant revenue growth, with Total Revenue increasing from $1.43 billion in 2020 to $5.74 billion in 2024. The Gross Profit margin remains strong at 100% due to no cost of goods sold. Net Profit Margin improved to 10.83% in 2024 from a negative margin in 2023, indicating a turnaround in profitability. EBIT and EBITDA margins also reflected robust performance, particularly with the EBIT margin increasing to 15.49% in 2024. The strong revenue growth and improved profitability metrics contribute to a high score.85
Very Positive
Balance Sheet
The company maintains a solid equity position with Stockholders' Equity increasing to $3.95 billion in 2024. The Debt-to-Equity ratio is low at 0.55, indicating prudent leverage management. However, the Return on Equity (ROE) is at a moderate 15.75%, suggesting scope for more efficient equity utilization. The Equity Ratio is low at 4.64%, reflecting a high reliance on liabilities, which could pose risks if not managed carefully.72
Positive
Cash Flow
F&G Annuities & Life Inc has exhibited impressive cash flow performance, with Free Cash Flow growing consistently to $5.975 billion in 2024. The Operating Cash Flow to Net Income ratio is exceptionally strong at 9.64, indicating robust cash generation relative to net earnings. The Free Cash Flow to Net Income ratio is also high at 9.61, reinforcing the company's strong cash conversion capabilities. These metrics highlight excellent cash flow management, leading to a high score.90
Very Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 5.42B | 4.54B | 2.23B | 3.37B | 1.43B |
| Gross Profit | ||||
| 5.42B | 4.39B | 2.13B | 3.37B | 1.43B |
| EBIT | ||||
| 944.00M | 62.00M | 627.00M | 1.05B | -97.00M |
| EBITDA | ||||
| 1.46B | 474.00M | 0.00 | 0.00 | 139.00M |
| Net Income Common Stockholders | ||||
| 639.00M | -58.00M | 481.00M | 865.00M | -47.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 28.77B | 41.98B | 33.73B | 31.87B | 26.84B |
| Total Assets | ||||
| 85.04B | 70.20B | 55.08B | 48.73B | 39.76B |
| Total Debt | ||||
| 2.18B | 1.76B | 1.13B | 991.00M | 603.00M |
| Net Debt | ||||
| -83.00M | 202.00M | 167.00M | -542.00M | -286.00M |
| Total Liabilities | ||||
| 80.96B | 67.10B | 53.26B | 44.24B | 35.68B |
| Stockholders Equity | ||||
| 3.95B | 3.10B | 1.82B | 4.49B | 4.07B |
| Cash Flow | Free Cash Flow | |||
| 5.97B | 5.81B | 3.14B | 1.84B | 35.00M |
| Operating Cash Flow | ||||
| 6.00B | 5.83B | 3.17B | 1.87B | 63.00M |
| Investing Cash Flow | ||||
| -7.95B | -8.92B | -9.37B | -6.86B | -2.59B |
| Financing Cash Flow | ||||
| 2.65B | 3.69B | 5.63B | 5.63B | 2.52B |
F&G Annuities & Life Inc Technical Analysis
Negative
30.79
Price Trends
35.81
Negative
39.37
Negative
40.93
Negative
Market Momentum
-1.35
Positive
36.06
Neutral
14.72
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FG, the sentiment is Negative. The current price of 30.79 is below the 20-day moving average (MA) of 33.81, below the 50-day MA of 35.81, and below the 200-day MA of 40.93, indicating a bearish trend. The MACD of -1.35 indicates Positive momentum. The RSI at 36.06 is Neutral, neither overbought nor oversold. The STOCH value of 14.72 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FG.
F&G Annuities & Life Inc Risk Analysis
F&G Annuities & Life Inc disclosed 65 risk factors in its most recent earnings report. F&G Annuities & Life Inc reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
F&G Annuities & Life Inc Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $4.15B | 8.33 | 12.72% | 2.79% | -1.72% | 95.91% | |
69 Neutral | $6.16B | 84.00 | 1.24% | 3.36% | 3.55% | 8.91% | |
68 Neutral | $5.89B | 4.90 | 16.91% | 5.22% | 8.31% | -2.30% | |
66 Neutral | $2.87B | 14.29 | 2.73% | ― | 0.98% | 156.14% | |
64 Neutral | $12.74B | 9.83 | 7.63% | 17000.35% | 12.34% | -5.32% | |
59 Neutral | $3.81B | 13.43 | 12.47% | 1.66% | -0.43% | -16.22% | |
49 Neutral | $3.41B | 7.14 | 13.00% | ― | 14.74% | ― |
* Financial Sector Average
Performance Comparison
FG
F&G Annuities & Life Inc
31.04
-10.84
-25.88%
CNO
CNO Financial
38.75
10.39
36.64%
GNW
Genworth Financial
7.04
0.36
5.39%
LNC
Lincoln National
34.10
5.52
19.31%
BHF
Brighthouse Financial
59.70
13.84
30.18%
JXN
Jackson Financial Incorporation
85.20
9.90
13.15%
F&G Annuities & Life Inc Earnings Call Summary
Earnings Call Date:May 07, 2025
(Q1-2025)
| % Change Since: -14.28%|
Next Earnings Date:Aug 12, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a mixed sentiment with a record AUM and strong sales in fixed indexed annuities, but faced challenges with a decline in MYGA sales and lower adjusted net earnings. The operating expense ratio improved, yet margin compression and underperformance in alternative investments were notable concerns.Q1-2025 Updates
Positive Updates
Record Assets Under Management
F&G reported record AUM before flow reinsurance of $67.4 billion as of March 31, reflecting a 16% increase compared to the first quarter of 2024.
Strong Fixed Indexed Annuity Sales
Indexed annuity sales were strong at $1.5 billion in the first quarter, in line with the first quarter of 2024, showing resilience in a volatile market.
Improved Operating Expense Ratio
The ratio of operating expenses to AUM before flow reinsurance decreased to 58 basis points in the quarter from 63 basis points a year ago, indicating better efficiency.
Quality Investment Portfolio
The retained investment portfolio is high quality, with 96% of fixed maturities being investment-grade, and real estate exposure is high quality with moderate leverage.
Negative Updates
Decline in MYGA Sales
Gross sales were $2.9 billion, 17% lower than the first quarter of 2024, primarily due to a reduction in MYGA sales.
Lower Adjusted Net Earnings
First quarter reported adjusted net earnings were $91 million or $0.72 per share, a decrease from $108 million or $0.86 per share in the first quarter of 2024.
Margin Compression
Adjusted net earnings decreased by $17 million, primarily driven by margin compression due to near-term headwinds.
Alternative Investments Underperformance
Investment income from alternative investments was $63 million below management's long-term expected return.
Company Guidance
In F&G's First Quarter 2025 earnings call, the company provided several key metrics and guidance updates. The firm reported a record AUM before flow reinsurance of $67.4 billion as of March 31, reflecting a 16% increase from the previous year, with retained assets under management at $54.5 billion, up 9%. Gross sales were $2.9 billion, a 17% decline from the prior year, largely due to reduced MYGA sales, while indexed annuity sales stood strong at $1.5 billion. Adjusted net earnings (ANE) were $91 million, or $0.72 per share, down from $108 million, or $0.86 per share, in Q1 2024, primarily due to margin compression and higher interest expenses. Despite short-term pressures, including a 22 basis point increase in the cost of funds to 318 basis points, the company expects improvement in key drivers throughout 2025 and remains committed to meeting its 2023 Investor Day targets. The investment portfolio's credit quality has improved, and the fixed income yield was 4.53%, with the real estate exposure being of high quality and moderate leverage. The firm completed capital market activities, including issuing $375 million of junior subordinated notes and redeeming $300 million of senior notes, maintaining a debt to capitalization target of approximately 25%, excluding AOCI.F&G Annuities & Life Inc Corporate Events
Private Placements and FinancingBusiness Operations and StrategyFinancial Disclosures
F&G Annuities Reports Q1 2025 Net Loss Amid Growth
Negative
May 7, 2025
On May 7, 2025, F&G Annuities & Life, Inc. reported a net loss of $25 million for the first quarter of 2025, compared to net earnings of $111 million in the same period of 2024. Despite the loss, the company achieved record assets under management of $67.4 billion, driven by strong indexed annuity sales. F&G also completed a public offering of 8 million shares, raising nearly $269 million to support organic growth opportunities. The company remains focused on optimizing capital allocation and maintaining high credit quality in its investment portfolio, positioning itself to succeed amid economic uncertainties.
Spark’s Take on FG Stock
According to Spark, TipRanks’ AI Analyst, FG is a Outperform.
F&G Annuities & Life Inc’s overall stock score is strong, driven by their robust financial performance and positive earnings call insights. While the technical indicators suggest caution with potential bearish trends, the company’s undervalued status and solid dividend yield offer attractive long-term prospects. Investors should consider the high reliance on liabilities and stay aware of market volatility.
To see Spark’s full report on FG stock, click here.
Business Operations and StrategyFinancial Disclosures
F&G Annuities Reports Strong Q4 2024 Financial Growth
Positive
Feb 20, 2025
On February 20, 2025, F&G Annuities & Life Inc. released its financial results for the fourth quarter and the full year ending December 31, 2024, showcasing significant financial growth. The company reported net earnings of $323 million for Q4 2024 compared to a loss of $299 million in Q4 2023, with full-year net earnings reaching $622 million. The firm achieved record gross sales of $15.3 billion in 2024, marking a 16% increase from 2023. Assets under management also hit a record $65.3 billion by year-end, reflecting a 17% rise from the previous year. The results underscore F&G’s strategic success in capitalizing on favorable market conditions and expanding its distribution channels, positioning the company strongly for continued growth and enhanced shareholder value.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.