F&G Annuities & Life Inc (FG)
NYSE:FG
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F&G Annuities & Life Inc
(NYSE:FG)
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Rating:77Outperform
Price Target:
$32.00
▲(18.04% Upside)
Action:Reiterated
Date:05/10/26
FG scores well primarily on valuation (very low P/E and a ~3.3% dividend yield) and improving fundamentals, including a rebound in profitability and strong cash generation. The score is tempered by historical earnings volatility, rising debt versus earlier years, and earnings sensitivity to alternative investment timing, while technicals suggest only moderate, not fully established, longer-term momentum.
Positive Factors
Cash generation
Consistent, large operating and free cash flow provides durable internal funding for dividends, buybacks, and reinvestment. Strong cash conversion (~1.0x) reduces reliance on external financing, supports capital targets and enables strategic shifts toward fee-based, capital-efficient businesses over the next several quarters.
Negative Factors
Dependence on alternatives
Alternative investment performance and the timing of realizations are a material swing factor for reported ROE and ROA. Lower-than-target alt returns compress near-term profitability and capital generation, making earnings and capital returns sensitive to multi-quarter private asset value realization and market timing.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation
Consistent, large operating and free cash flow provides durable internal funding for dividends, buybacks, and reinvestment. Strong cash conversion (~1.0x) reduces reliance on external financing, supports capital targets and enables strategic shifts toward fee-based, capital-efficient businesses over the next several quarters.
Read all positive factors
F&G Annuities & Life Inc (FG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.68B
Dividend Yield2.91%
Average Volume (3M)889.84K
Price to Earnings (P/E)3.4
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. Volume1,602,529
30 Day Avg. Volume889,842
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 Cap1.25
Enterprise Value/Revenue0.79
Enterprise Value/Gross Profit2.38
Enterprise Value/Ebitda3.41
Forecast
1Y Price Target
$27.00Price Target Upside-0.41% Downside
Rating ConsensusHold
Number of Analyst Covering2
EPS Forecast (FY)3.95
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 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 | 1.35B | 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
26.50
Positive
26.42
Positive
29.04
Negative
Market Momentum
0.28
Positive
52.03
Neutral
17.49
Positive
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 28.19, above the 50-day MA of 26.50, and below the 200-day MA of 29.04, indicating a neutral trend. The MACD of 0.28 indicates Positive momentum. The RSI at 52.03 is Neutral, neither overbought nor oversold. The STOCH value of 17.49 is Positive, 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 |
|---|---|---|---|---|---|---|---|
77 Outperform | $3.68B | 3.39 | 11.42% | 2.91% | 17.32% | -0.37% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | $4.41B | 25.62 | 9.56% | 1.54% | 5.03% | -12.76% | |
66 Neutral | $3.47B | 16.76 | 2.46% | ― | -1.14% | 7.17% | |
62 Neutral | $6.89B | -9.86 | 16.79% | 3.93% | 8.45% | 21.80% | |
60 Neutral | $7.46B | -4.35 | -3.73% | 2.98% | -20.54% | -652.89% | |
54 Neutral | $3.59B | -1.13 | -1.07% | ― | -16.15% | -133.67% |
* Financial Sector Average
FG
F&G Annuities & Life Inc
27.81
-3.38
-10.85%
CNO
CNO Financial
47.05
9.52
25.37%
GNW
Genworth Financial
9.03
2.05
29.37%
LNC
Lincoln National
35.78
3.81
11.90%
BHF
Brighthouse Financial
62.67
1.88
3.09%
JXN
Jackson Financial Incorporation
106.18
24.85
30.56%
F&G Annuities & Life Inc Corporate Events
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...
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.