F&G Annuities & Life, Inc. (NYSE: FG) reported fourth‑quarter 2025 results that included net earnings attributable to common shareholders of $124 million, or $0.92 per diluted share, and adjusted net earnings of $123 million, or $0.91 per share. Full‑year 2025 net earnings were $248 million, or $1.88 per share, while adjusted net earnings reached $482 million, or $3.64 per share. Total revenue for the year was $1.77 billion, beating the consensus estimate of $1.55 billion, and gross sales totaled $14.6 billion with net sales of $10.0 billion.
The company’s adjusted earnings fell short of analyst expectations, with a miss of $0.91 versus consensus estimates ranging from $1.20 to $1.57. The decline was attributed to lower alternative investment income and higher interest expense, which reduced the quality of earnings compared to the prior year’s adjusted net earnings of $143 million, or $1.12 per share.
Revenue growth was driven by strong demand in the company’s core product lines—indexed annuities, indexed universal life, and pension risk transfer—whose sales contributed $9 billion of the $14.6 billion in gross sales. The revenue beat was largely a result of the robust performance of these fee‑based products, offsetting weaker legacy business segments.
AUM before flow reinsurance reached a record $73.1 billion, up 12% from $65.3 billion at the end of 2024. The growth supports the company’s transition to a fee‑based, capital‑light model, reinforced by the recently launched reinsurance sidecar and the planned sale of its Bermuda‑based reinsurer, F&G Life Re Ltd, which manages about $1.9 billion of in‑force business.
Following the release, the market reacted negatively, with the company’s shares falling 8.84% in after‑hours trading. The decline was driven by the significant miss on adjusted earnings, which outweighed the revenue beat and record AUM growth.
CEO Chris Blunt highlighted the company’s strong finish to the year, noting record AUM and gross sales, and that the high‑quality, diversified investment portfolio continues to perform well. He also acknowledged that the decline in adjusted earnings was due to lower alternative investment income and higher interest expense, underscoring the company’s focus on managing cost and investment performance as it scales its fee‑based model.
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