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NYSE:FG
Financial Services Insurance - Life

F&G Annuities & Life, Inc.

A major provider of life insurance and annuities in the U.S., reporting $5.73B in revenue and $271M net profit recently despite significant cash outflows for investments.

■ Key Metrics

Revenue
$5.73B
Net Income
$271.0M
Gross Profit
$5.73B
Operating Cash Flow
$4.68B
Total Assets
$98.43B
Shareholders' Equity
$4.92B
Cash & Equiv
$1.49B

⚖ Investment Thesis

Bull Case

The stock offers exposure to the growing demand for retirement security and life protection products in an aging demographic; Recent revenue growth from $2.34B in 2022 to $5.74B in 2024 demonstrates successful market expansion; Strong cash flow from operations of $4.68B provides liquidity to fund dividends or strategic investments despite investing outflows.

Bear Case

The massive negative cash flow from investing activities and the large accumulated other comprehensive income loss create uncertainty about future capital allocation; Net income volatility with a loss in 2023 followed by profit in 2024 and 2025 indicates sensitivity to market conditions or accounting adjustments; The retained earnings deficit of $2.57B suggests the company has struggled to accumulate internal capital over time, potentially limiting organic growth without external funding.

◉ About F&G Annuities & Life, Inc.

F&G Annuities & Life, Inc. operates as an insurance holding company providing life insurance, annuity, and retirement planning solutions primarily to retail consumers. The firm generates revenue through premiums on its core life insurance and annuity products while managing a substantial portfolio of marketable securities. Serving the broader U.S. financial services sector, the company leverages its scale to offer competitive protection and income products.

⚙ Analysis

Management Discussion

The company reported revenue of $5.73B and net profit of $271M, though cash flow from investing was heavily negative at -$8.43B driven by massive marketable security purchases of $22.50B. While operating expenses were substantial at $5.41B against gross profit of $5.73B, the firm maintained positive operating profit of $323M before tax adjustments. The significant accumulated other comprehensive income loss of -$1.49B suggests unrealized losses on available-for-sale securities are impacting equity metrics significantly.

Industry Overview

The insurance sector is characterized by long-duration liabilities requiring stable investment portfolios and rigorous regulatory compliance across state lines; Competition is fierce among traditional carriers and financial services firms offering similar protection and savings products; Industry performance is highly correlated with interest rate environments which affect both investment yields and annuity pricing margins.

☰ Financial Statements

Income Statement
Balance Sheet
Cash Flow
Metric2022202320242025
Revenue$2.34B$4.50B$5.74B$5.73B
Cost of Revenue$0$0$0$0
Gross Profit$2.34B$4.50B$5.74B$5.73B
Operating Expenses$1.74B$4.54B$4.83B$5.41B
Operating Income$598.0M$-35.0M$914.0M$323.0M
Stock-Based Comp$12.0M$23.0M$29.0M$31.0M
D&A$329.0M$412.0M$569.0M$665.0M
Amortization$25.0M$26.0M$69.0M$87.0M
Non-Operating Income$0$0$0$0
Interest Expense$29.0M$97.0M$132.0M—
Pre-Tax Income$598.0M$-35.0M$914.0M$323.0M
Income Tax$117.0M$23.0M$136.0M$52.0M
Continuing Ops$481.0M$-58.0M$778.0M$323.0M
Discontinued Ops$0$0$-136.0M$-52.0M
Net Income$481.0M$-58.0M$642.0M$271.0M
Minority Interest$0$0$3.0M$6.0M
Net to Common$481.0M$-58.0M$639.0M$265.0M
Metric2022202320242025
Cash & Equivalents$960.0M$1.56B$2.26B$1.49B
PP&E (Net)$13.0M———
Intangibles$3.65B$4.21B$562.0M$551.0M
Goodwill$1.76B$1.75B$2.18B$2.18B
Operating Leases$8.0M———
Total Assets$55.08B$70.20B$85.04B$98.43B
Total Liabilities$53.26B$67.10B$80.96B$93.51B
Shareholders' Equity$1.82B$3.10B$4.08B$4.92B
Retained Earnings$1.46B$1.93B$2.44B$2.57B
AOCI$-2.80B$-1.99B$-1.92B$-1.49B
Treasury Stock—$18.0M$30.0M$40.0M
Total L&E$55.08B$70.20B$85.04B$98.43B
Metric2022202320242025
Net Income (CFO)$481.0M$-58.0M$642.0M$271.0M
Non-Cash Adjustments$-1.23B$1.77B$-677.0M$-707.0M
Working Capital Changes$3.92B$4.12B$6.03B$5.12B
Cash from Operations$3.17B$5.83B$6.00B$4.68B
Cash from Investing$-9.37B$-8.92B$-7.95B$-8.43B
Share Buybacks—$18.0M$12.0M$10.0M
Dividends Paid—$101.0M——
Cash from Financing$5.63B$3.69B$2.65B$2.97B
FX Effect$0$0$0$0
Net Change in Cash$-573.0M$603.0M$701.0M$-778.0M
Beginning Cash$1.53B$960.0M$1.56B$2.26B
Ending Cash$960.0M$1.56B$2.26B$1.49B

Frequently Asked Questions

How does F&G Annuities & Life, Inc. make money?

Core Life Insurance providing death benefit protection and savings components; Annuity Products offering fixed and variable contracts for retirement income; Asset Management managing a large portfolio of marketable securities to support liabilities; Corporate & Other operations supporting the holding structure and investment activities.

What are the main risks for FG?

Interest rate volatility impacting investment returns relative to fixed annuity liabilities; Regulatory changes in the insurance sector affecting pricing or solvency requirements; High cash outflows for investing activities ($30.93B) potentially signaling asset liquidation or strategic shifts; Significant retained earnings deficit of $2.57B indicating historical profitability challenges.

What is FG's competitive advantage?

Strong balance sheet with over $98B in total assets providing stability and capital reserves for policyholder obligations; Diversified product mix across life insurance and annuities reducing reliance on single revenue streams; Significant goodwill and intangible assets indicating a robust brand reputation and distribution network value.

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