F&G Annuities & Life Reports 42% Revenue Decline and $25 Million Net Loss in Q1 2025

F&G Annuities & Life, Inc. reported a significant decline in financial performance for the first quarter of 2025, with total revenues of $908 million, down 42% from $1.57 billion in the same period last year. The decrease was primarily driven by a sharp drop in life insurance premiums and other fees, which fell to $489 million from $718 million, alongside recognized losses of $263 million compared to gains of $212 million in the prior year. The company recorded a net loss attributable to common shareholders of $25 million, or $(0.20) per share, contrasting sharply with a profit of $111 million, or $0.90 per share, in the first quarter of 2024.

In terms of operational metrics, F&G's total assets increased to $88.01 billion as of March 31, 2025, up from $84.93 billion at the end of 2024. The company’s liabilities also rose, reaching $83.52 billion, compared to $80.86 billion previously. The increase in liabilities was largely attributed to contractholder funds, which grew to $57.82 billion from $56.40 billion. The company’s equity increased to $4.49 billion, reflecting a rise in additional paid-in capital and retained earnings, despite a decrease in accumulated other comprehensive income.

Strategically, F&G has been active in expanding its market presence and product offerings. The company completed a public offering of 8 million shares of common stock in March 2025, raising approximately $269 million for general corporate purposes. Additionally, F&G redeemed $300 million of its 5.50% Senior Notes in February 2025 and issued $375 million in 7.300% Junior Subordinated Notes in January 2025. These actions are part of F&G's strategy to optimize its capital structure and support growth initiatives.

The company’s customer base and product adoption rates have shown mixed results. While indexed annuity sales increased slightly, fixed rate annuity sales decreased, reflecting a strategic shift towards indexed products in response to favorable market conditions. The pension risk transfer (PRT) sales saw a decline, attributed to the timing of transactions. F&G's total assets under management (AUM) reached approximately $53.88 billion, up from $49.40 billion year-over-year, indicating a positive trend in asset retention and growth.

Looking ahead, F&G anticipates continued challenges due to macroeconomic factors, including interest rate fluctuations and market volatility, which could impact sales and profitability. The company remains focused on enhancing its product offerings and distribution strategies to capture growth opportunities in the evolving insurance landscape. Management emphasized the importance of monitoring customer behavior and market conditions to navigate the uncertainties ahead effectively.