F&G Annuities & Life Reports $622 Million Net Earnings for 2024, Up from Loss in 2023

F&G Annuities & Life, Inc. reported net earnings of $622 million for the year ended December 31, 2024, attributable to its common shareholders, down from $635 million in 2022 but significantly higher than the $58 million loss reported in 2023. Adjusted net earnings, a non-GAAP measure, reached $546 million in 2024, compared to $335 million in 2023 and $353 million in 2022. The company's adjusted return on assets attributable to common shareholders was 106 basis points for 2024. Assets under management (AUM) grew from $26.5 billion at the time of its acquisition by Fidelity National Financial, Inc. in 2020 to $53.8 billion as of December 31, 2024.

Significant changes in financial performance compared to the previous year were driven by several factors, including a $266 million increase in invested asset growth, $49 million in returns on alternative investments, and $193 million in other rate and mix impacts contributing to higher interest and investment income in 2024. Conversely, the 2023 results were impacted by a $37 million tax valuation allowance and a $10 million one-time fixed asset impairment charge. The company's gross sales increased from $13.153 billion in 2023 to $15.262 billion in 2024, primarily due to growth in annuity sales across multiple distribution channels.

Strategic developments during the year included the acquisition of a 70% majority stake in Roar Joint Venture, LLC and a 100% stake in PALH, LLC, both involved in wholesaling life insurance and annuity products. The company also expanded its product offerings with the launch of registered index-linked annuities (RILAs) in early 2024. Further, F&G completed several debt issuances, including $500 million of 6.250% Senior Notes due 2034 and $550 million of 6.50% Senior Notes due 2029, and redeemed $300 million of 5.50% Senior Notes due 2025.

Key operational developments included the expansion into new retail channels (banks and broker-dealers), resulting in $5 billion in annuity sales in 2024. The company also continued to grow its institutional business lines, with pension risk transfer (PRT) sales reaching $2.2 billion in 2024. As of December 31, 2024, F&G had approximately 731,000 annuity and life insurance policyholders and served approximately 115,000 plan participants through its PRT solutions. The company employed 1,338 full-time equivalent employees.

F&G's outlook remains focused on continued growth, driven by its diversified product portfolio and multi-channel distribution strategy. The company aims to achieve medium-term financial targets by driving sustainable asset growth, generating return on asset expansion, and diversifying earnings through flow reinsurance and owned distribution strategies. However, the company also acknowledges several risk factors, including those related to economic conditions, market volatility, interest rate fluctuations, and regulatory changes, which could materially affect its future performance.