F&G Annuities & Life Inc (FG)
NYSE:FG
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F&G Annuities & Life Inc
(NYSE:FG)
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Rating:66Neutral
Price Target:
$27.00
▲(12.36% Upside)
Action:ReiteratedDate:04/02/26
The score is driven primarily by strong cash generation and a manageable leverage profile, tempered by volatile profitability and weaker returns in 2025. Valuation is supportive (moderate P/E and solid dividend yield), while technicals show mixed momentum (short-term strength but still below longer-term averages). Earnings call signals strategic progress and strong capital, but alternative-return underperformance and near-term variability remain key risks.
Positive Factors
Strong free cash flow generation
Consistent, large free cash flow (~$4.7B in 2025) provides durable funding for dividends, debt reduction, buybacks and reinvestment. Robust cash conversion cushions capital allocation during earnings volatility and supports the company’s multi-year strategic repositioning toward fee income.
Negative Factors
Volatile profitability and compressed margins
Material swings in margins and returns (sharp net margin decline and inconsistent ROE) reduce predictability of shareholder returns and complicate capital allocation. Persistent profitability volatility could slow progress toward targeted ROE and weaken investor confidence in sustainable earnings power.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow generation
Consistent, large free cash flow (~$4.7B in 2025) provides durable funding for dividends, debt reduction, buybacks and reinvestment. Robust cash conversion cushions capital allocation during earnings volatility and supports the company’s multi-year strategic repositioning toward fee income.
Read all positive factors
F&G Annuities & Life Inc (FG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.26B
Dividend Yield2.91%
Average Volume (3M)679.73K
Price to Earnings (P/E)15.3
Beta (1Y)0.98
Revenue Growth-4.58%
EPS GrowthN/A
CountryUS
Employees1,300
SectorFinancial
Sector Strength70
IndustryInsurance - Life
Share Statistics
EPS (TTM)0.91
Shares Outstanding135,610,120
10 Day Avg. Volume621,109
30 Day Avg. Volume679,728
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 Cap1.23
Enterprise Value/Revenue0.73
Enterprise Value/Gross Profit2.57
Enterprise Value/Ebitda3.49
Forecast
1Y Price Target
$30.00Price Target Upside24.84% Upside
Rating ConsensusHold
Number of Analyst Covering2
EPS Forecast (FY)4.1
Revenue Forecast (FY)$6.01B
F&G Annuities & Life Inc Business Overview & Revenue Model
Company Description
F&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...
How the Company Makes Money
F&G primarily makes money by collecting premiums (for life insurance) and deposits/purchase payments (for annuities), investing those funds, and earning a spread between its investment returns and the amounts it credits to policyholders. For annui...
F&G Annuities & Life Inc Earnings Call Summary
Earnings Call Date:Feb 19, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 13, 2026
Earnings Call Sentiment Positive
The call emphasized multiple material positives: record AUM, robust gross sales (including core products), improved expense efficiency, strong statutory capital (RBC ~430%), and growing fee-based income (flow reinsurance and owned distribution). Management acknowledged underperformance in alternative investment returns (approximately 7% vs a 10% long-term target) with a significant FY shortfall ($278M) and flagged near-term variability from surrenders and prepayments as potential headwinds. The company is taking disclosure and strategic actions (reclassifying alternative returns, selling an offshore legal entity, optimizing product mix, and pursuing FABN issuances) to strengthen financial flexibility and investor clarity. Overall, the positive operational and capital achievements outweigh the challenges tied to alternative returns and short-term volatility, with management projecting continued progress toward fee-based, higher-margin earnings.Positive Updates
Record AUM and Midpoint Progress Toward Targets
Achieved record AUM before flow reinsurance of $73.1B (up 12% vs year-end 2024) and retained AUM of $57.6B (up 7% vs year-end 2024). AUM grew from a $51B 2020 baseline to $73B at year-end 2025 (a 44% increase toward the five-year 50% target).
Negative Updates
Alternative Investment Returns Below Long-Term Expectations
Annualized return on alternative investments was ~7% in Q4 versus a 10% long-term expected return. Alternative investment income missed management expectations by $65M in Q4 and by $278M for the full year, prompting a disclosure change to reclassify ~60% (~$7B) of alternatives into fixed income yield for better comparability.
Read all updates
Q4-2025 Updates
Positive
Negative
Record AUM and Midpoint Progress Toward Targets
Achieved record AUM before flow reinsurance of $73.1B (up 12% vs year-end 2024) and retained AUM of $57.6B (up 7% vs year-end 2024). AUM grew from a $51B 2020 baseline to $73B at year-end 2025 (a 44% increase toward the five-year 50% target).
Read all positive updates
Company Guidance
Management reiterated guidance to continue shifting to a more fee‑based, higher‑margin, less capital‑intensive model while growing AUM and improving returns: FY‑25 AUM before flow reinsurance was $73.1B (+12% YoY) with retained AUM $57.6B (+7%), $14.6B gross sales ($9.0B core; $5.6B opportunistic), net retained sales $10.0B, and progress toward the 2023 Investor Day targets (AUM +44% from the $51B baseline toward a 50% five‑year goal; ROA and ROE moving toward the lower ends of the 133–155 bps and 13–14% targets). Key operational and capital targets included growing fee‑based earnings from ~15% of adjusted net earnings in 2025 (flow reinsurance fees $56M, owned distribution $47M) to ~25% by year‑end 2028, lowering operating expense to AUM before flow reinsurance from 50 bps (down from 60 bps) to ~45 bps by 2027, reinsuring the vast majority of MYGA while evolving FIA toward ~50/50 retained vs. flow, maintaining debt around a ~25% debt‑to‑capitalization target, holding company cash ~2x interest coverage, sustaining strong statutory capital (company action level RBC ~430% vs 400% target), and executing a transaction expected to deliver ~$300M net proceeds (including a $200M dividend), reduce AUM by ~$1.9B and forego ~ $10M of adjusted net earnings per quarter pre‑deployment; other portfolio metrics noted: Q4 fixed‑income yield 4.65% (+6 bps YoY), alt‑investments annualized ~7% (vs 10% long‑term), floating‑rate exposure ~$2.8B (~5%), prepayment fees $7M pretax Q4 ($56M FY), FY adjusted net earnings $482M ($3.64/share) and Q4 $123M ($0.91/share).F&G Annuities & Life Inc Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
63
Positive
Cash Flow
78
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 5.73B | 5.42B | 4.27B | 2.24B | 3.38B |
| Gross Profit | 1.77B | 1.63B | 718.00M | 1.11B | 1.45B |
| EBITDA | 1.15B | 1.48B | 474.00M | 1.15B | 1.85B |
| Net Income | 265.00M | 639.00M | -58.00M | 635.00M | 1.24B |
Balance Sheet | |||||
| Total Assets | 98.43B | 85.04B | 70.20B | 54.63B | 48.73B |
| Cash, Cash Equivalents and Short-Term Investments | 54.19B | 48.58B | 43.43B | 33.73B | 31.87B |
| Total Debt | 2.24B | 2.18B | 1.76B | 1.13B | 991.00M |
| Total Liabilities | 93.51B | 80.96B | 67.10B | 52.22B | 44.24B |
| Stockholders Equity | 4.80B | 3.95B | 3.10B | 2.40B | 4.49B |
Cash Flow | |||||
| Free Cash Flow | 4.67B | 5.97B | 5.81B | 3.14B | 1.84B |
| Operating Cash Flow | 4.68B | 6.00B | 5.83B | 3.17B | 1.87B |
| Investing Cash Flow | -8.43B | -7.95B | -8.92B | -9.37B | -6.86B |
| Financing Cash Flow | 2.97B | 2.65B | 3.69B | 5.63B | 5.63B |
F&G Annuities & Life Inc Technical Analysis
Negative
24.03
Price Trends
24.93
Negative
27.72
Negative
29.54
Negative
Market Momentum
0.21
Negative
46.45
Neutral
26.43
Neutral
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 24.03 is below the 20-day moving average (MA) of 24.31, below the 50-day MA of 24.93, and below the 200-day MA of 29.54, indicating a bearish trend. The MACD of 0.21 indicates Negative momentum. The RSI at 46.45 is Neutral, neither overbought nor oversold. The STOCH value of 26.43 is Neutral, 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 68 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 |
|---|---|---|---|---|---|---|---|
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
66 Neutral | $3.26B | 15.25 | 5.75% | 2.91% | -4.58% | ― | |
62 Neutral | $3.98B | 11.12 | 8.60% | 1.54% | -1.61% | 15.79% | |
61 Neutral | $6.50B | 6.91 | 12.03% | 3.93% | 35.76% | 636.97% | |
58 Neutral | $3.39B | 447.44 | 2.54% | ― | 1.41% | 150.35% | |
58 Neutral | $7.15B | 276.83 | 0.26% | 2.98% | 24.94% | ― | |
54 Neutral | $3.47B | 8.55 | 7.20% | ― | 27.71% | ― |
* Financial Sector Average
FG
F&G Annuities & Life Inc
24.03
-9.06
-27.38%
CNO
CNO Financial
42.25
5.05
13.56%
GNW
Genworth Financial
8.75
2.07
30.99%
LNC
Lincoln National
34.20
5.62
19.66%
BHF
Brighthouse Financial
60.73
10.23
20.26%
JXN
Jackson Financial Incorporation
101.62
31.22
44.35%
F&G Annuities & Life Inc Corporate Events
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...
Business Operations and StrategyDividendsFinancial Disclosures
F&G Annuities Reports Lower Earnings Amid Strategic Reshaping
Negative
Feb 19, 2026
FG Annuities Life reported on February 19, 2026 that fourth-quarter 2025 net earnings attributable to common shareholders fell to $124 million, or $0.92 per share, from $323 million a year earlier, with full-year 2025 net earnings down to $248 mi...
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.