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F&G Annuities & Life Inc
(NYSE:FG)
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Rating:71Outperform
Price Target:
$24.50
▲(2.13% Upside)
Action:Reiterated
Date:10/06/26
The score is driven mainly by strong cash flow and an improving financial profile, alongside an attractive valuation (low P/E and high dividend yield). Offsetting these positives are weak technicals (below key moving averages with negative MACD) and a mixed earnings-call backdrop where near-term alternative investment underperformance and related earnings pressure temper the otherwise solid growth and capital story.
Positive Factors
AUM and Core Sales Growth
Growing AUM and strong core retail sales indicate expanding distribution and product demand in retirement and protection markets. This scale can support recurring spread and fee income, while continued sales momentum strengthens F&G’s ability to compound earnings over multiple quarters.
Negative Factors
Alternative Investment Underperformance
Alternative investments remain materially below management’s long-term return assumption, creating a recurring headwind to investment income and ROE while mark-to-market results remain weak. Because alternatives represent about 8% of retained assets, continued underperformance could restrain earnings quality over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
AUM and Core Sales Growth
Growing AUM and strong core retail sales indicate expanding distribution and product demand in retirement and protection markets. This scale can support recurring spread and fee income, while continued sales momentum strengthens F&G’s ability to compound earnings over multiple quarters.
Read all positive factors
F&G Annuities & Life Inc (FG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.67B
Dividend Yield4.91%
Average Volume (3M)780.41K
Price to Earnings (P/E)6.8
Beta (1Y)0.81
Revenue Growth13.68%
EPS Growth16.86%
CountryUS
Employees1,173
SectorFinancial
Sector Strength70
IndustryInsurance - Life
Share Statistics
EPS (TTM)3.00
Shares Outstanding130,935,210
10 Day Avg. Volume752,186
30 Day Avg. Volume780,415
Financial Highlights & Ratios
PEG Ratio-0.26
Price to Book (P/B)0.84
Price to Sales (P/S)0.71
P/FCF Ratio0.87
Enterprise Value/Market Cap2.17
Enterprise Value/Revenue0.97
Enterprise Value/Gross Profit3.05
Enterprise Value/Ebitda4.17
Forecast
1Y Price Target
$24.00Price Target Upside0.04% Upside
Rating ConsensusHold
Number of Analyst Covering2
EPS Forecast (FY)3.03
Revenue Forecast (FY)$6.01B
F&G Annuities & Life Inc Business Overview & Revenue Model
Company Description
F&G Annuities & Life, Inc. delivers a range of fixed annuity and life insurance products. The firm serves a broad customer base, including individual retail purchasers of annuities and life coverage, as well as various institutional clients. This ...
How the Company Makes Money
F&G primarily makes money by collecting premiums and deposits on annuity and life insurance products, investing the resulting assets, and earning a spread between investment returns and what it credits or pays to policyholders.
Key revenue and ea...
F&G Annuities & Life Inc Earnings Call Summary
Earnings Call Date:Aug 05, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Positive
The call conveyed a generally constructive operational and capital story: solid AUM growth (+8% YoY), record-level core retail sales, high-quality fixed income portfolio and improving operating efficiency. Management highlighted strong balance sheet positioning, continued capital flexibility and targeted strategic actions (e.g., Peak Altitude review, new reinsurance partners). The primary near-term headwinds were below-expectation alternative investment returns, some earnings pressure from the FG Life Re sale, and timing/assumption items impacting product margin. Overall, the positives around growth, capital strength and disciplined execution materially outweigh the temporary headwinds in alternatives and sale-related impacts.Positive Updates
AUM Growth and Scale
Assets under management before reinsurance increased to $74.7 billion at June 30, up 8% year-over-year. Retained AUM was $55.9 billion. Management cites continued momentum in AUM growth driven by core and opportunistic sales.
Negative Updates
Alternative Investments Underperformance (Near-Term)
Alternative investment annualized return fell to ~5.9% in Q2 from 8.3% in Q1 2026; alternative investment income was $49 million ($0.38/share), below management's long-term expected return of 12% and slightly below the preannounced $51 million guide. Management expects near-term alts returns roughly in the 7%–8% range before longer-term realization.
Read all updates
Q2-2026 Updates
Positive
Negative
AUM Growth and Scale
Assets under management before reinsurance increased to $74.7 billion at June 30, up 8% year-over-year. Retained AUM was $55.9 billion. Management cites continued momentum in AUM growth driven by core and opportunistic sales.
Read all positive updates
Company Guidance
Management's guidance emphasized continued disciplined, capital-light growth and margin improvement: they expect operating expense to AUM for reinsurance to improve to ~45 bps by year-end 2027 (a 15‑bp, ~25% improvement vs end‑2024), to maintain an estimated company action level RBC above 400%, and to target ~25% debt-to-capitalization (ex‑AOCI) as the balance sheet naturally delevers; holding company cash and invested assets are targeted at 2x interest coverage. They reiterated a long‑term expected return on alternative investments of 12% (which would add ~3.1 ppt to ROE and ~35 bps to ROA), acknowledged near‑term alt returns were ~5.9% annualized in Q2 (down from 8.3% in Q1) and suggested near‑term H2 realization closer to ~7–8%. Operational metrics and sales guidance included disciplined AUM growth (AUM $74.7B, +8% YoY; retained AUM $55.9B), Q2 gross sales $2.7B (core $2.0B, opportunistic $0.7B), retained net sales $1.5B with flow reinsurance aligned to capital targets, a Q2 fixed income yield of 4.91%, an alts portfolio of $4B (~8% of retained portfolio), and a target PRT run‑rate of roughly $1.5–2.0B annually; buybacks are opportunistic (H1 repurchases $120M for 4.5M shares at $26.44 avg) but not the primary capital deployment tool.F&G Annuities & Life Inc Financial Statement Overview
Summary
Income Statement
67
Positive
Balance Sheet
61
Positive
Cash Flow
84
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 5.98B | 5.73B | 5.42B | 4.27B | 2.24B | 3.38B |
| Gross Profit | 1.90B | 1.77B | 1.63B | 718.00M | 1.11B | 1.45B |
| EBITDA | 1.39B | 1.15B | 1.48B | 474.00M | 1.15B | 1.85B |
| Net Income | 418.00M | 265.00M | 639.00M | -58.00M | 635.00M | 1.24B |
Balance Sheet | ||||||
| Total Assets | 103.59B | 98.43B | 85.04B | 70.20B | 54.63B | 48.73B |
| Cash, Cash Equivalents and Short-Term Investments | 2.65B | 54.19B | 48.58B | 43.43B | 33.73B | 31.87B |
| Total Debt | 2.24B | 2.24B | 2.18B | 1.76B | 1.13B | 991.00M |
| Total Liabilities | 98.90B | 93.51B | 80.96B | 67.10B | 52.22B | 44.24B |
| Stockholders Equity | 4.61B | 4.80B | 3.95B | 3.10B | 2.40B | 4.49B |
Cash Flow | ||||||
| Free Cash Flow | 4.69B | 4.67B | 5.97B | 5.81B | 3.14B | 1.84B |
| Operating Cash Flow | 4.70B | 4.68B | 6.00B | 5.83B | 3.17B | 1.87B |
| Investing Cash Flow | -5.35B | -8.43B | -7.95B | -8.92B | -9.37B | -6.86B |
| Financing Cash Flow | 871.00M | 2.97B | 2.65B | 3.69B | 5.63B | 5.63B |
F&G Annuities & Life Inc Technical Analysis
Neutral
23.99
Price Trends
22.37
Negative
25.29
Negative
25.56
Negative
Market Momentum
-0.71
Negative
53.62
Neutral
87.57
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FG, the sentiment is Neutral. The current price of 23.99 is above the 20-day moving average (MA) of 20.55, above the 50-day MA of 22.37, and below the 200-day MA of 25.56, indicating a neutral trend. The MACD of -0.71 indicates Negative momentum. The RSI at 53.62 is Neutral, neither overbought nor oversold. The STOCH value of 87.57 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FG.
F&G Annuities & Life Inc Risk Analysis
F&G Annuities & Life Inc disclosed 69 risk factors in its most recent earnings report. F&G Annuities & Life Inc reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
F&G Annuities & Life Inc Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $2.67B | 6.79 | 8.86% | 4.91% | 13.68% | 16.86% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | $39.61B | 10.30 | 12.00% | 4.83% | 9.38% | 144.26% | |
64 Neutral | $7.73B | 3.37 | 21.99% | 4.46% | 12.32% | 97.86% | |
60 Neutral | $8.82B | 162.71 | 1.04% | 2.69% | 15.09% | ― | |
58 Neutral | $8.66B | 16.14 | 12.63% | 1.95% | 3.16% | 18.32% | |
50 Neutral | $2.70B | 3.69 | 13.17% | ― | 2.62% | 33.55% |
* Financial Sector Average
FG
F&G Annuities & Life Inc
21.45
-7.15
-25.00%
LNC
Lincoln National
41.11
2.97
7.78%
PRU
Prudential Financial
118.17
21.13
21.78%
VOYA
Voya Financial
98.42
26.61
37.06%
BHF
Brighthouse Financial
46.35
-0.29
-0.62%
JXN
Jackson Financial Incorporation
133.32
37.10
38.56%
F&G Annuities & Life Inc Corporate Events
Financial Disclosures
F&G Issues Preliminary Update on Weaker Alternative Returns
Negative
Oct 5, 2026
For the quarter ended September 30, 2026, FG Annuities Life, Inc. disclosed preliminary estimates that investment income from alternative investments will total between $47 million and $57 million pre-tax, implying an annualized return of about 5...
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
F&G Annuities Reports Q2 Loss Amid Strong AUM
Negative
Aug 5, 2026
On August 5, 2026, FG Annuities Life reported second-quarter 2026 results showing a net loss attributable to common shareholders of $81 million, or $0.62 per share, versus net earnings of $35 million, or $0.26 per share, a year earlier, largely d...
Business Operations and StrategyFinancial DisclosuresRegulatory Filings and Compliance
F&G Annuities Flags Lower Alternative Investment Returns
Negative
Jul 8, 2026
FG Annuities Life Inc. disclosed preliminary figures indicating that investment income from alternative investments for the quarter ended June 30, 2026 is expected to be between $56 million and $66 million pre-tax, implying an annualized return o...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.