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

Financial Performance

• Net earnings attributable to common shareholders for the third quarter were $736 million ($5.48 per diluted share), compared to $114 million ($0.85 per share) in the third quarter of 2025.
• Adjusted net earnings attributable to common shareholders for the third quarter were $96 million ($0.74 per share), compared to $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.
• 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.
• Total F&G equity attributable to common shareholders, excluding AOCI, was $6.7 billion ($51.37 per share) as of September 30, 2026, an increase of $712 million ($5.44 per share) from June 30, 2026.
• Book value per common share, excluding AOCI, increased to $51.37 as of September 30, 2026, from $44.07 in the third quarter of 2025.
• Total assets were $103.8 billion as of September 30, 2026, compared to $98.4 billion as of December 31, 2025.
• Total liabilities were $99.4 billion as of September 30, 2026, compared to $93.5 billion as of December 31, 2025.
• Investment income from alternative investments was $60 million ($0.46 per share) below the long-term expected return of approximately 12% for the third quarter of 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 aims to continue scaling the business while maintaining a focus on profitability and returns.
• Management is making progress toward a more fee-based, higher margin, and less capital-intensive business while growing the core spread-based franchise.
• The company intends to allocate capital to the most attractive opportunities.
• The company expects to continue growing earnings and improving returns through multiple avenues including its strong inforce book, strategic reinsurance relationships, and owned distribution platform.

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 were $3.0 billion for the third quarter of 2026, compared to $4.2 billion in the third quarter of 2025.
• Core retail sales (indexed annuities and indexed universal life) were a record $2.1 billion for the third quarter of 2026, compared to $1.7 billion in the third quarter of 2025.
• Core institutional sales (pension risk transfer) were $200 million for the third quarter of 2026, compared to $538 million in the third quarter of 2025.
• Opportunistic sales were nearly $700 million for the third quarter of 2026, primarily funding agreements, compared to a record $2.0 billion in the third quarter of 2025.
• Net sales were $1.4 billion for the third quarter of 2026, compared to $2.8 billion in the third quarter of 2025.
• The company has de-emphasized multiyear guaranteed annuities (MYGA) sales due to returns below thresholds, prioritizing pricing discipline.
• 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.
• Total product margin was reduced after reflecting the F&G Life Re (Bermuda) sale, lower surrender charge fee income, and higher other liability costs including increased amortization expense.
• These margin reductions were partially offset by steady fees from accretive flow reinsurance, owned distribution margin, and disciplined expense management.

Market and Competitive Landscape

• The company maintains a diversified distribution platform and a growing core retail franchise.
• Strategic reinsurance relationships and an owned distribution platform provide additional sources of fee-based earnings and financial flexibility.
• Opportunistic sales volumes vary quarter to quarter depending on economics and market opportunity.

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.
• Concentration in certain states for product distribution and the impact of credit risk of counterparties are noted risks.
• Changes in assumptions regarding amortization of deferred acquisition costs, deferred sales inducements, and value of business acquired balances may affect results.
• Regulatory changes affecting underwriting, product pricing, and minimum capitalization requirements are potential risks.
• Investment income from alternative investments may differ from management's long-term expected return.

Management Commentary and Tone

• Conor Murphy, CEO and President, commented that F&G continued to build momentum in the third quarter with record core retail sales driving AUM before reinsurance to a record $76.2 billion.
• Management emphasized generating growth while maintaining disciplined pricing and profitability.
• The tone reflects confidence in the company's ability to scale the business while focusing on returns, citing a strong inforce book and strategic relationships.
• Management highlighted the transition toward a more fee-based, higher margin business model.

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 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), which impacted total product margin and book value calculations.
• Adjusted net earnings for the first nine months of 2026 were $291 million ($2.20 per share), compared to $359 million ($2.72 per share) in the same period of 2025.
• Investment income from alternative investments was $153 million ($1.16 per share) below the long-term expected return for the first nine months of 2026.
• The company hosts an earnings conference call on November 6, 2026, at 9:00 a.m. Eastern Time.