F&G Annuities & Life (FG) Q2 2026 earnings summary

Executive summary

• Achieved record assets under management (AUM) before reinsurance of $74.7 billion, up 8% year-over-year, with retained AUM at $55.9 billion, driven by strong core retail sales and a strategic shift toward fee-based, higher margin, and less capital-intensive business.

• Leadership transition completed with new CEO and CFO, ensuring continuity and expertise.

• Completed the sale of Bermuda-based subsidiary F&G Life Re, resulting in a pre-tax gain and a 19.9% partnership interest in Ancient Re, and impacting product margins.

• Demonstrated capital flexibility with significant capital returned to shareholders and a robust balance sheet.

Financial highlights

• Adjusted net earnings for Q2 2026 were $85 million ($0.65 per share), down from $103 million in Q2 2025, reflecting lower alternative investment income and the impact of the F&G Life Re sale.

• Gross sales totaled $2.7 billion, with $2 billion from core sales and $700 million from opportunistic sales; net sales were $1.5 billion, reflecting slow reinsurance in line with capital targets.

• Book value per share excluding AOCI rose to $45.93, up 68% since 2020 and 3% since year-end 2025.

• Total revenues for Q2 2026 were $1.42 billion, up from $1.36 billion in Q2 2025.

Outlook and guidance

• Management expects continued macroeconomic uncertainty, with volatility in capital markets and interest rates impacting results, but remains focused on disciplined capital allocation, product innovation, and expense management.

• Targeting 50% AUM growth, adjusted ROE ex AOCI and significant items of 13–14%, and adjusted ROA ex significant items of 1.33–1.55% in the medium term.

• Expecting to increase fee-based earnings to 25% of adjusted net earnings by 2028.

• PRT sales expected to increase in the second half, targeting $1.5–$2 billion annually.