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Sep 30, 2024

F&G Annuities & Life Q3 2024 Earnings Report

F&G reported a net loss but adjusted net earnings increased driven by sales growth and strong investment returns.

Key Takeaways

F&G Annuities & Life reported a net loss of $10 million for Q3 2024, but adjusted net earnings were $156 million, up from $120 million in Q3 2023. Gross sales increased by 39% year-over-year, driven by record retail channel sales. Assets under management before flow reinsurance reached a record $62.9 billion.

Gross sales of $3.9 billion, an increase of 39% over the third quarter 2023, primarily driven by record retail channel sales

Assets under management before flow reinsurance of $62.9 billion, an increase of 20% over the third quarter 2023

Adjusted return on assets expansion above baseline of 110 basis points

Returned $31 million of capital to shareholders from common and preferred dividends

Total Revenue
$1.44B
Previous year: $851M
+69.7%
EPS
$1.22
Previous year: $0.96
+27.1%
Assets Under Management
$52.5B
Adjusted Return on Assets
1.05%
Gross Profit
$1.36B
Previous year: $269M
+405.9%
Cash and Equivalents
$3.54B
Previous year: $1.74B
+103.2%
Free Cash Flow
$2.15B
Total Assets
$84.1B
Previous year: $56.2B
+49.8%

F&G Annuities & Life

F&G Annuities & Life

F&G Annuities & Life Revenue by Segment

Forward Guidance

F&G is well-positioned for the remainder of the year and continues to make great progress toward Investor Day targets.

Positive Outlook

  • Profitably grown assets under management before flow reinsurance to a record $62.9 billion
  • Gross sales increased 39% over the third quarter of 2023
  • Record retail sales of $3.5 billion, nearly double the third quarter of 2023
  • Benefit from consumers wanting to secure the relatively higher interest rates, guaranteed tax deferred growth and principal protection that annuity products offer
  • Seeing a healthy PRT pipeline with some significant early wins in the fourth quarter

Challenges Ahead

  • General economic conditions
  • Prevailing interest and unemployment rate levels and stock and credit market performance
  • Natural disasters, public health crises, international tensions and conflicts, geopolitical events, terrorist acts, labor strikes, political crisis, accidents and other events
  • The impact of interest rate fluctuations
  • Equity market volatility or disruption

Revenue & Expenses

Visualization of income flow from segment revenue to net income