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F&G Annuities & Life Inc
(NYSE:FG)
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Rating:71Outperform
Price Target:
$29.00
▲(6.97% Upside)
Action:Reiterated
Date:06/26/26
FG’s score is driven primarily by solid financial performance (strong cash generation and a rebound in profitability) and attractive valuation (low P/E and a meaningful dividend yield). The latest earnings call supports the outlook with growth/efficiency initiatives and capital returns, though results remain sensitive to alternative investment timing. Technicals are the main drag, with the stock trading below key moving averages and weak momentum indicators.
Positive Factors
Strong cash generation
Sustained high operating and free cash flow with near 1.0x cash conversion to net income provides durable internal funding for capital returns, buybacks, reserves and investment in a fee‑based shift. Strong cash flows reduce dependence on external financing over the medium term.
Negative Factors
Dependence on alternatives timing
Alternative investments are a key swing factor for near‑term earnings and ROE. Returns below long‑term targets and realization timing uncertainty mean profit and capital metrics can move materially based on exits and valuations, weakening predictability of sustainable returns.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Sustained high operating and free cash flow with near 1.0x cash conversion to net income provides durable internal funding for capital returns, buybacks, reserves and investment in a fee‑based shift. Strong cash flows reduce dependence on external financing over the medium term.
Read all positive factors
F&G Annuities & Life Inc (FG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.70B
Dividend Yield2.91%
Average Volume (3M)1.01M
Price to Earnings (P/E)7.1
Beta (1Y)1.00
Revenue Growth17.32%
EPS Growth-0.37%
CountryUS
Employees1,300
SectorFinancial
Sector Strength70
IndustryInsurance - Life
Share Statistics
EPS (TTM)3.88
Shares Outstanding132,484,990
10 Day Avg. Volume808,894
30 Day Avg. Volume1,005,509
Financial Highlights & Ratios
PEG Ratio-0.25
Price to Book (P/B)0.84
Price to Sales (P/S)0.71
P/FCF Ratio0.87
Enterprise Value/Market Cap1.21
Enterprise Value/Revenue0.76
Enterprise Value/Gross Profit2.31
Enterprise Value/Ebitda2.94
Forecast
1Y Price Target
$27.00Price Target Upside-0.41% Downside
Rating ConsensusHold
Number of Analyst Covering2
EPS Forecast (FY)3.88
Revenue Forecast (FY)$6.01B
F&G Annuities & Life Inc Business Overview & Revenue Model
Company Description
F&G Annuities & Life, Inc. delivers a range of fixed annuity and life insurance products. The firm serves a broad customer base, including individual retail purchasers of annuities and life coverage, as well as various institutional clients. This ...
How the Company Makes Money
F&G primarily makes money by collecting premiums on annuity and life insurance policies, investing the premiums in a portfolio of assets, and earning an investment spread. For annuities, the company receives premium deposits from policyholders and...
F&G Annuities & Life Inc Earnings Call Summary
Earnings Call Date:May 06, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 11, 2026
Earnings Call Sentiment Positive
The call highlighted strong top-line momentum (record gross AUM ~$75B, double-digit gross sales growth and diversified product mix), improved operating efficiency, a high-quality and well-diversified $53B retained investment portfolio with low credit impairments, and proactive capital returns (dividends and an enhanced $100M buyback authorization). Key near-term challenges center on alternative investment returns lagging long-term expectations (alts returned 8.3% vs. target 12%–14%), timing-related yield pressure that reduced fixed income yield by ~16 bps, and some moderation in opportunistic product demand. Management emphasized a shift toward higher-margin, fee-based and capital-light strategies to expand ROE, and reiterated strong capital targets and flexibility. On balance, the positives — AUM scale, diversified earnings mix, improving expense efficiency, strong capitalization, and shareholder returns — outweigh the current challenges tied largely to alternative timing and a few one-time items.Positive Updates
Record AUM and Strong Growth
Reported nearly $75.0B gross AUM at quarter-end (before reinsurance), an 11% increase versus $67B in 2025 and representing an 18% compound annual growth rate since 2019.
Negative Updates
Alternative Investment Returns Below Long-Term Targets
Alternative investment income was $44M ($0.32 per share) in the quarter and the alternatives annualized return of 8.3% is well below management's updated long-term LP/equity expectation of 12%–14%; management notes many alternative investments remain earlier in their value-creation cycle.
Read all updates
Q1-2026 Updates
Positive
Negative
Record AUM and Strong Growth
Reported nearly $75.0B gross AUM at quarter-end (before reinsurance), an 11% increase versus $67B in 2025 and representing an 18% compound annual growth rate since 2019.
Read all positive updates
Company Guidance
Management guided toward continued AUM growth and improving returns, citing record gross AUM of nearly $75 billion (18% CAGR since 2019) and retained AUM of $56 billion (+3% YoY) after an effective 03/01/2026 reinsurance of a $1.8 billion block; Q1 gross sales were $3.2 billion (+10% YoY) with core sales $2.0 billion (+11%) and opportunistic $1.2 billion (+9%), net sales $2.2 billion, and pension risk transfer pipeline expected $1.5–2.0 billion annually. They reiterated a high‑quality $53 billion retained investment portfolio (97% of fixed maturities investment grade) with a 4.77% fixed‑income yield and asset mix of $18B (34%) liquid fixed income, $11B (21%) public structured, $11B (21%) private origination, $7B (13%) mortgage loans, and $4B (7%) alternatives; alternatives long‑term expected return was raised to 12–14% (Q1 annualized alt return 8.3%, up from 7.8%), credit impairments averaged 6 bps over five years (3 bps YTD), and fixed‑income yield was ~16 bps lower q/q due to one‑time items. Financial and capital guidance included Q1 adjusted net earnings $110 million ($0.82), alternative investment income $44 million ($0.32), adjusted ROE excl. AOCI 8.4% and adjusted ROA 76 bps (87 bps LTM), fee‑based earnings ~15% of adjusted net earnings in 2025 targeting ~25% by YE2028, operating expense to AUM at 48 bps (50 bps YE25; 60 bps end‑2024) targeting ≈45 bps by YE2027, capital targets of ~25% debt‑to‑capitalization excl. AOCI and CAL RBC >400%, annual interest expense ~$165 million (~7% on $2.3 billion debt), HoldCo cash ~2x interest coverage, Q1 capital returned $67 million ($38M dividends, $29M repurchases of ~1.2M shares at $24.14) with a new $100 million repurchase authorization, GAAP equity excl. AOCI $6.2 billion and BVPS excl. AOCI $46.51 (up 70% since 2020), and ongoing emphasis on shifting to a more fee‑based, capital‑efficient model while expanding ROE.F&G Annuities & Life Inc Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
66
Positive
Cash Flow
78
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 5.86B | 5.73B | 5.42B | 4.27B | 2.24B | 3.38B |
| Gross Profit | 1.94B | 1.77B | 1.63B | 718.00M | 1.11B | 1.45B |
| EBITDA | 1.52B | 1.15B | 1.48B | 474.00M | 1.15B | 1.85B |
| Net Income | 534.00M | 265.00M | 639.00M | -58.00M | 635.00M | 1.24B |
Balance Sheet | ||||||
| Total Assets | 101.03B | 98.43B | 85.04B | 70.20B | 54.63B | 48.73B |
| Cash, Cash Equivalents and Short-Term Investments | 29.95B | 54.19B | 48.58B | 43.43B | 33.73B | 31.87B |
| Total Debt | 2.25B | 2.24B | 2.18B | 1.76B | 1.13B | 991.00M |
| Total Liabilities | 96.28B | 93.51B | 80.96B | 67.10B | 52.22B | 44.24B |
| Stockholders Equity | 4.64B | 4.80B | 3.95B | 3.10B | 2.40B | 4.49B |
Cash Flow | ||||||
| Free Cash Flow | 4.82B | 4.67B | 5.97B | 5.81B | 3.14B | 1.84B |
| Operating Cash Flow | 4.83B | 4.68B | 6.00B | 5.83B | 3.17B | 1.87B |
| Investing Cash Flow | -8.92B | -8.43B | -7.95B | -8.92B | -9.37B | -6.86B |
| Financing Cash Flow | 2.12B | 2.97B | 2.65B | 3.69B | 5.63B | 5.63B |
F&G Annuities & Life Inc Technical Analysis
Positive
27.11
Price Trends
27.63
Positive
26.03
Positive
27.97
Positive
Market Momentum
0.03
Negative
57.58
Neutral
79.12
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FG, the sentiment is Positive. The current price of 27.11 is below the 20-day moving average (MA) of 27.52, below the 50-day MA of 27.63, and below the 200-day MA of 27.97, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 57.58 is Neutral, neither overbought nor oversold. The STOCH value of 79.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FG.
F&G Annuities & Life Inc Risk Analysis
F&G Annuities & Life Inc disclosed 69 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
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $3.70B | 7.07 | 11.42% | 2.91% | 17.32% | -0.37% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | $4.89B | 20.81 | 9.56% | 1.54% | 5.03% | -12.76% | |
67 Neutral | $7.07B | 4.25 | 16.79% | 3.93% | 8.45% | 21.80% | |
66 Neutral | $3.68B | 17.83 | 2.46% | ― | -1.14% | 7.17% | |
61 Neutral | $7.29B | -18.11 | -3.73% | 2.98% | -20.54% | -652.89% | |
51 Neutral | $3.68B | -23.34 | -1.07% | ― | -16.15% | -133.67% |
* Financial Sector Average
FG
F&G Annuities & Life Inc
28.38
-1.73
-5.76%
CNO
CNO Financial
52.64
15.76
42.74%
GNW
Genworth Financial
9.54
1.71
21.84%
LNC
Lincoln National
38.39
5.71
17.48%
BHF
Brighthouse Financial
64.88
14.18
27.97%
JXN
Jackson Financial Incorporation
109.36
24.22
28.45%
F&G Annuities & Life Inc Corporate Events
Executive/Board ChangesShareholder Meetings
F&G Annuities & Life Holds 2026 Annual Shareholder Meeting
Positive
Jun 25, 2026
FG Annuities Life, Inc. held its Annual Meeting of Shareholders on June 24, 2026, with a quorum present from 132,889,653 eligible common shares. Shareholders elected three Class I directors—John D. Rood, Michael J. Nolan and J. Douglas Mart...
Business Operations and StrategyExecutive/Board Changes
F&G Annuities & Life Announces Key Leadership Transitions
Positive
Jun 16, 2026
FG Annuities Life announced a series of executive leadership transitions dated June 16, 2026, highlighted by the planned June 30, 2026 retirement of Chris Blunt from his role as chief executive, while he remains on the board and continues as CEO ...
Business Operations and StrategyStock BuybackDividendsFinancial DisclosuresM&A Transactions
F&G Annuities Reports Strong Q1 2026 Earnings Growth
Positive
May 6, 2026
FG Annuities Life reported on May 6, 2026, that first-quarter 2026 net earnings attributable to common shareholders rose to $244 million, or $1.78 per share, reversing a $25 million loss a year earlier, while adjusted net earnings increased to $1...
Stock BuybackRegulatory Filings and Compliance
F&G Annuities Adopts Rule 10b5-1 Share Repurchase Plan
Positive
Apr 1, 2026
On March 30, 2026, FG Annuities Life, Inc. adopted a Rule 10b5‑1 trading plan to repurchase its common stock under previously authorized share buyback programs. Beginning no earlier than April 7, 2026, a broker was allowed to execute open-m...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.