F&G Annuities & Life — Third Quarter 2026 Earnings Summary

Financial Performance:

• Net earnings attributable to common shareholders for the quarter ended September 30, 2026, were $736 million ($5.48 per diluted share), compared to $114 million ($0.85 per share) in the same period in 2025.
• Adjusted net earnings attributable to common shareholders were $96 million ($0.74 per share) for the third quarter of 2026, down from $165 million ($1.22 per share) in the third quarter of 2025.
• Net earnings for the third quarter of 2026 included $648 million of net favorable mark-to-market effects and $8 million of other unfavorable items, all excluded from adjusted net earnings.
• Net earnings for the third quarter of 2025 included $25 million of net unfavorable mark-to-market effects and $26 million of other unfavorable items, all excluded from adjusted net earnings.
• Total revenues for the three months ended September 30, 2026, were $1,131 million, compared to $1,694 million in the prior year period.
• Total benefits and expenses were $195 million for the three months ended September 30, 2026, compared to $1,563 million in the prior year period.
• Adjusted return on average equity, excluding AOCI, was 6.7% for the third quarter of 2026, down from 8.8% in the same period of 2025.
• Adjusted return on assets was 0.69% for the third quarter of 2026, down from 0.87% in the same period of 2025.
• Book value per common share, excluding AOCI, was $51.37 as of September 30, 2026, an increase of $6.94 per share from the beginning of the year.
• Total F&G equity attributable to common shareholders, excluding AOCI, was $6.7 billion as of September 30, 2026.

Guidance and Future Outlook:

• Management stated the company is generating growth while maintaining a disciplined approach to pricing and profitability, prioritizing business that meets return targets.
• The company is making progress toward a more fee-based, higher margin, and less capital-intensive business while growing its core spread-based franchise.
• Strategic reinsurance relationships and an owned distribution platform are cited as sources of fee-based earnings and financial flexibility to support future growth.
• The company plans to continue scaling the business while maintaining a focus on profitability and returns.
• Opportunistic sales volumes are expected to vary quarter-to-quarter depending on economics and market opportunities.

Business Segments and Product Lines:

• Assets under management (AUM) before reinsurance reached a record $76.2 billion as of September 30, 2026, a 7% increase over the third quarter of 2025.
• Retained AUM was $56.2 billion as of September 30, 2026.
• Gross sales for the third quarter were $3.0 billion, including record core retail sales of $2.1 billion.
• Net sales for the third quarter were $1.4 billion, compared to $2.8 billion in the third quarter of 2025.
• Core sales were $2.3 billion for the third quarter, comprised of $2.1 billion in core retail sales (indexed annuities and indexed universal life) and $200 million in core institutional sales (pension risk transfer).
• Opportunistic sales were nearly $700 million for the third quarter, primarily funding agreements, compared to a record $2.0 billion in the third quarter of 2025.
• The company has de-emphasized multiyear guaranteed annuities sales due to returns below thresholds, prioritizing capital allocation to higher return opportunities.
• The retained investment portfolio is performing well, with 97% of fixed maturities being investment grade.
• Credit-related impairments averaged 6 basis points over the past five years and remained below pricing assumptions through the first nine months of 2026.

Market and Competitive Landscape:

• The company maintains a diversified distribution platform and a growing core retail franchise.
• The business model includes a strong inforce book providing a stable foundation of earnings and capital generation.
• The company utilizes strategic reinsurance relationships to manage growth and capital efficiency.

Risks and Challenges:

• Forward-looking statements are subject to risks including general economic conditions, interest rate fluctuations, equity market volatility, and consumer spending.
• Risks include changes in trade policy, tariffs, supply chain disruptions, natural disasters, and geopolitical events.
• Specific insurance risks include concentration in certain states for distribution, credit risk of counterparties, and changes in assumptions regarding amortization of deferred acquisition costs and value of business acquired.
• Regulatory changes affecting underwriting, product pricing, and minimum capitalization requirements could impact operations.
• Investment income from alternative investments was $60 million below management's long-term expected return of approximately 12% for the third quarter of 2026.

Management Commentary and Tone:

• Conor Murphy, CEO and President, commented that the company continued to build momentum in the third quarter with record core retail sales driving AUM to a record level.
• Management emphasized a disciplined approach to pricing and profitability, prioritizing business that meets return targets.
• The tone reflects confidence in the company's diversified distribution platform and ability to scale while maintaining focus on returns.
• Management noted that total product margin was reduced after reflecting the F&G Life Re (Bermuda) sale, lower surrender charge fee income, and higher other liability costs, partially offset by steady fees from accretive flow reinsurance and owned distribution margin.

Other Key Points:

• F&G returned $37 million of capital to shareholders via common and preferred dividends in the third quarter.
• Capital returned to shareholders in the first nine months of 2026 totaled $232 million, consisting of $112 million in dividends and $120 million in share repurchases.
• The increase in equity attributable to common shareholders, excluding AOCI, was driven by $652 million of favorable market-related liability adjustments, including $297 million of actuarial reserve release following the annual assumption review.
• The company sold F&G Life Re (Bermuda), a transaction noted as a one-time item affecting book value calculations.
• Adjusted net earnings for the third quarter included alternative investment portfolio short-term returns that differed from long-term return expectations.
• The company reported $10 million of tax valuation allowance benefit and $4 million of actuarial reserve release in the third quarter of 2025, which are excluded from adjusted net earnings.